Barksdale Completes Phase II Earn-In to Reach 67.5% Ownership of Sunnyside; Advances San Javier Gold Work

Rhea-AI Summary

Barksdale Resources (OTCQB: BRKCF) has completed Phase II earn-in requirements for the Sunnyside Property in Arizona by paying $550,000 in cash and issuing 4,900,000 common shares to Great Basin Metals on August 28, 2026. This increased Barksdale’s interest in Arizona Standard LLC, the Sunnyside holding company, from 51% to 67.5%, while Great Basin’s share decreased to 32.5%. The new shares are subject to a four‑month hold period.

A Management Committee, chaired by Barksdale and comprising three Barksdale and two Great Basin delegates, will now oversee Sunnyside, with expenditures funded pro rata to ownership. Barksdale plans to propose a budget in early September 2026 to complete the Fall 2026 diamond drill program, an airborne ZTEM survey and related work, subject to committee approval.

At the San Javier copper‑gold project in Sonora, all cash and share payments under the 2020 option agreement with Tusk Exploration are complete and transfer of 12 concessions is underway. Prior resampling of 2007 drill core rejects returned favourable gold results, and Barksdale aims to conduct metallurgical tests to support an initial gold resource estimate.

Positive

• Ownership in Sunnyside increased to 67.5% after $550,000 cash payment and 4,900,000 shares issued on August 28, 2026
• Management control at Sunnyside via new committee chaired by Barksdale with majority representation (3 of 5 delegates)
• Pro-rata funding structure aligns Sunnyside spending with 67.5% and 32.5% ownership interests
• San Javier option fully paid and transfer of 12 concessions underway toward 100% purchase
• Favourable gold resampling results at San Javier from 2007 drill core rejects support further metallurgical testing plans

Negative

• Share dilution from issuance of 4,900,000 new common shares to Great Basin to complete Phase II earn-in

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Vancouver, British Columbia--(Newsfile Corp. - August 31, 2026) - Barksdale Resources Corp. (TSXV: BRO) (OTCQB: BRKCF) (FSE: 2NZ) ("Barksdale" or the "Company") is pleased to report that final cash and share payments to Great Basin Metals Inc. ("Great Basin"), formerly Regal Resources Inc., were completed on August 28, 2026. On that date, the Company paid $550,000 in cash and issued 4,900,000 common shares to Great Basin in satisfaction of the remaining Phase II earn-in requirements. The common shares issued to Great Basin are subject to a four-month hold period from the date of issuance, in accordance with Canadian securities legislation. As such, the Company's ownership percentage of Arizona Standard LLC ("Arizona Standard"), holding company of the Sunnyside Property located in the Patagonia mining district of southern Arizona, has increased from 51% to 67.5% and Great Basin's ownership has decreased from 49% to 32.5%.

Barksdale CEO William Wulftange comments, "Reaching 67.5% ownership is a major accomplishment for Barksdale and I congratulate all involved. We now look forward to working with the Great Basin delegates to forge a common path forward at Sunnyside, a project we believe has the potential to host a significant copper system in Arizona."

Management Committee and Joint Funding

As of August 28, 2026, Arizona Standard's Sunnyside Property will be operated under the direction of a Management Committee chaired by Barksdale, composed of three delegates representing Barksdale and two delegates representing Great Basin. All approved spending will be funded based on the 67.5% and 32.5% ownership percentages. The Company intends to present an initial budget to the Management Committee in early September 2026, which would provide for completion of the Fall 2026 diamond drill program, an airborne ZTEM survey over the property, and other supporting expenditures. Approval of the budget and the timing of any work program are subject to the approval of the Management Committee.

Under the Arizona Standard LLC joint venture agreement, each member is required to fund approved expenditures in proportion to its ownership interest. The agreement sets out the timing of contributions and the consequences where a member does not fund its share. The agreement also governs the composition and operation of the Management Committee.

San Javier

The property option agreement between Barksdale (and its subsidiary, Estrella de Cobre, S.A. de C.V.) and Tusk Exploration Ltd. ("Tusk Exploration") (and its subsidiary San Javier de Cobre, S.A. de C.V.) to purchase 100% of Tusk Exploration's San Javier Property was executed on September 22, 2020, and included 12 named concessions. All required cash and share payments are paid and transfer of the 12 concession titles is underway.

The resampling of 2007 drill core rejects for gold content returned very favourable results as announced in the Company's July 30, 2026, press release. The next step is to identify 2026 and 2007 drill core material that can be sampled for column and/or bottle roll tests to determine estimated recoveries of the gold present at San Javier. This precursor work is a key step in estimating an initial gold resource and determining potential recovery methods.

Figure 1. San Javier de Cobre location and 12 concessions acquired, comprising Cerro Verde (5), San Carlos (3), Cobre Nuevo (1) and Las Tunas (3)

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8531/312094_0c23d7b89467ba9c_002full.jpg

Barksdale Resources Corp. is a base metal exploration company headquartered in Vancouver, British Columbia that is focused on the acquisition, exploration and advancement of highly prospective base metal projects in North America. Barksdale is currently advancing the Sunnyside copper-zinc-lead-silver and San Antonio copper projects, both of which are in the Patagonia mining district of southern Arizona, as well as the San Javier copper-gold project in central Sonora, Mexico.

ON BEHALF OF BARKSDALE RESOURCES CORP.

William Wulftange
Chief Executive Officer and Director

For more information, please phone 604-398-5385, email info@barksdaleresources.com or visit www.BarksdaleResources.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "plans", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. All statements, other than statements of historical fact, included herein are forward-looking statements, including, without limitation, statements relating to: the operation of the Management Committee and the funding of approved expenditures by the members of Arizona Standard in proportion to their respective ownership interests; the presentation of an initial budget and the approval of that budget by the Management Committee; the completion, timing and scope of the Fall 2026 diamond drill program and the proposed airborne ZTEM survey, and the results therefrom and impact thereof; the potential of the Sunnyside Property; the transfer and registration of the 12 concession titles comprising the San Javier Property; the identification and sampling of drill core material for column and/or bottle roll testwork; the determination of estimated gold recoveries and potential recovery methods at San Javier; and the estimation of an initial gold resource at San Javier. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by Barksdale, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements, and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: general business, economic, competitive, political and social uncertainties; uncertain and volatile equity and capital markets; lack of available capital; the failure of the Management Committee to approve a proposed budget or work program; the failure of a member of Arizona Standard to fund its share of approved expenditures and the consequences of any such failure; delays in the transfer or registration of mineral concessions; actual results of exploration activities and metallurgical testwork; the risk that a mineral resource for gold may not be defined at the San Javier Property; environmental risks; future prices of base and precious metals; operating risks; accidents; labour issues; delays in obtaining governmental approvals and permits, including approvals of the TSX Venture Exchange; and other risks in the mining industry. All forward-looking statements contained in this news release are qualified by these cautionary statements and those in the Company's continuous disclosure filings available on SEDAR+ at www.sedarplus.ca. Readers should not place undue reliance on the forward-looking statements contained in this news release concerning these items. Barksdale does not assume any obligation to update the forward-looking statements should beliefs, opinions, projections, or other factors change, except as required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/312094

FAQ

What does Barksdale Resources’ 67.5% ownership of Sunnyside mean for BRKCF shareholders as of August 28, 2026?

Barksdale now holds a 67.5% interest in Arizona Standard, owner of the Sunnyside Property. According to Barksdale, this higher stake gives it management committee control and requires it to fund project expenditures pro rata with Great Basin’s reduced 32.5% interest.

What payments did Barksdale Resources (BRKCF) make to complete the Phase II earn-in at Sunnyside?

To complete Phase II, Barksdale paid $550,000 in cash and issued 4,900,000 common shares to Great Basin. According to Barksdale, these August 28, 2026 payments satisfied remaining earn-in obligations and triggered the increase to 67.5% ownership in Arizona Standard.

How will the Sunnyside Management Committee operate after Barksdale’s Phase II earn-in (BRKCF)?

The Sunnyside Property will be overseen by a Management Committee chaired by Barksdale, with three Barksdale and two Great Basin delegates. According to Barksdale, all approved spending will be funded according to 67.5% and 32.5% ownership interests, and work programs require committee approval.

What is the current status of Barksdale Resources’ San Javier gold project option as of August 31, 2026?

Barksdale reports all required cash and share payments under the San Javier option agreement have been made. According to Barksdale, transfer of the 12 concession titles is underway, following favourable 2007 drill core gold resampling that supports planned metallurgical testing and initial resource estimation work.

What are the next technical steps at Barksdale’s San Javier project following favourable gold resampling?

The next step is selecting 2007 and 2026 drill core for column or bottle roll tests. According to Barksdale, these metallurgical tests aim to estimate gold recoveries, a key precursor to defining an initial gold resource and potential recovery methods at San Javier.

Are the new Barksdale Resources shares issued to Great Basin for Sunnyside immediately tradable?

No, the 4,900,000 common shares issued to Great Basin are subject to a four‑month hold period. According to Barksdale, this restriction is required under Canadian securities legislation and temporarily limits secondary market liquidity for those particular shares after issuance.