K2 Gold begins drilling campaign at Mojave Project in California

San Francisco, CA – June 26, 2026 – K2 Gold Corporation (TSX-V: KTO) has officially launched its 2026 exploration and drilling program at its wholly owned Mojave Project, situated in Inyo County, California, United States. This significant undertaking follows the receipt of crucial federal environmental approvals, clearing the path for extensive drilling across highly prospective gold targets. The company plans to drill a minimum of 5,650 meters, with initial operations commencing at the high-grade Dragonfly Zone, marking what President and CEO Anthony Margarit describes as the largest and most comprehensive drill program in K2 Gold’s history.

A New Chapter for Mojave: K2 Gold Initiates Major Drill Program

The commencement of drilling at the Mojave Project is a pivotal development for K2 Gold, representing the culmination of extensive preparatory work and regulatory compliance. The approved plan of operations and associated environmental impact statement (EIS) grant K2 Gold permission for up to approximately 14,000 meters of drilling within the project’s Eastern Target Area. This strategically important corridor stretches for more than four kilometers and is known to host significant gold mineralization.

The initial phase of the program will meticulously target areas identified through prior exploration efforts, which have consistently returned promising results. The primary goal is to delineate and expand the extent of known gold mineralization, particularly focusing on zones with demonstrable high-grade potential. For the mining industry, a substantial drilling campaign like this, following rigorous environmental review, underscores the company's commitment to responsible exploration and its confidence in the project's upside in an established, yet often challenging, jurisdiction like California.

Strategic Targeting: Unlocking High-Grade Potential

K2 Gold’s 2026 drill program is strategically structured to maximize the understanding of the Mojave Project's geological assets. The initial focus is divided between two key zones that have shown strong indications of significant gold mineralization:

• Dragonfly Zone: Approximately 3,000 meters of drilling have been allocated to the Dragonfly Zone. This area is of particular interest due to historical intercepts, including a notable hole that returned 86.9 meters grading four grams per tonne (g/t) gold, encompassing a higher-grade interval of 24.4 meters at 10.9 g/t gold. The current drilling aims to evaluate the continuity and reach of this high-grade gold mineralization, both along strike (extending horizontally) and within parallel structures that may host additional mineralized bodies. Such high-grade intercepts are critical for economic viability and can significantly enhance a project’s valuation.
• Newmont Zone: An initial 2,650 meters of drilling is planned for the Newmont Zone. Previous exploration in this area yielded results such as 41.15 meters at 1.64 g/t gold. The program here will concentrate on testing the southern extension and continuity of gold mineralization, particularly near the Discovery Outcrop – an area often indicative of broader mineralized systems. Proving continuity is essential for defining predictable resources and developing a robust geological model.

Both the Dragonfly and Newmont zones have been subjected to exploration in earlier campaigns, with K2 Gold having conducted reverse circulation (RC) drilling as recently as 2020. RC drilling is a rapid and cost-effective method for initial resource definition, providing rock chip samples that geologists use to understand the subsurface geology and mineralization patterns.

Broadening the Scope: Surface Exploration at Emerging Targets

Beyond the core drilling activities, K2 Gold is also advancing surface exploration work at several other promising targets within the Mojave Project. This multi-pronged approach allows the company to systematically evaluate the broader potential of its land package and identify new areas for future drilling. Key emerging targets include:

• Flores Zone: At Flores, initial channel sampling, which involves collecting continuous rock samples across an exposed mineralized zone, returned an impressive 3.78 g/t gold over 43 meters. Follow-up work has since uncovered additional gold-bearing rock samples, suggesting a potentially significant gold footprint.
• Gold Valley: Surface samples collected from Gold Valley have indicated extremely high-grade gold, with values reaching up to 375 g/t gold. While surface samples require drilling to confirm depth and continuity, such high values provide compelling indicators for further investigation.
• Stega Zone: The Stega Zone presents a compelling multi-commodity opportunity, with rock samples yielding copper values up to 14.2% and gold values up to 12.68 g/t. The presence of significant copper alongside gold could enhance the project's overall economics, diversifying potential revenue streams.

This systematic exploration strategy, combining targeted drilling with broader surface geochemistry and sampling, is a standard and effective approach to de-risk and advance early-stage projects. It ensures that while the most advanced targets are being drilled, new opportunities are continuously being identified.

Regulatory Milestones and Fiscal Commitment

The successful acquisition of federal environmental approval for the Mojave Project is a crucial milestone for K2 Gold. In US jurisdictions, particularly in environmentally sensitive states like California, navigating the federal regulatory landscape, including the completion of an Environmental Impact Statement (EIS) and approval of a Plan of Operations, can be a protracted and costly process. President and CEO Anthony Margarit recognized this in his statement, noting, “It has been a long road to get to this point, and it feels like we are just getting started.” Overcoming these hurdles significantly de-risks the project, demonstrating the company’s ability to meet stringent environmental standards and gain governmental support for its activities.

To fund this ambitious program, K2 Gold has allocated a substantial budget of $9.8 million (C$13.89 million) for the 2026 Mojave exploration season. This significant financial commitment underscores the company's strong belief in the project's potential and its dedication to aggressively advancing its development. Such an allocation is substantial for a junior exploration company and signals to investors a serious intent to unlock value.

The Broader Picture: K2 Gold's North American Strategy

The Mojave Project is a cornerstone of K2 Gold’s North American portfolio, which also includes the Si2 Gold Project in Nevada. Earlier this year, K2 Gold commenced drilling operations at its fully owned Si2 Gold Project, situated approximately 59 kilometers west of Tonopah in Nevada. This dual-state strategy positions K2 Gold within two of the most historically significant and geologically prospective gold-producing regions in the United States. Nevada, in particular, is a globally recognized Tier-1 mining jurisdiction, while California, despite its regulatory complexities, holds immense untapped potential from its rich gold history.

The company’s focus on these regions reflects a sound corporate strategy to explore in areas with proven mineral endowment and established infrastructure, minimizing some of the inherent risks associated with exploration in frontier territories. Projects like Mojave, with documented historical mineralization and a clear path to federal approval, are attractive to investors seeking exposure to potential new discoveries in stable geopolitical environments.

Implications for the Gold Sector and Future Outlook

For the broader mining industry and investors, K2 Gold’s aggressive exploration at Mojave carries several important implications. Firstly, it highlights the ongoing importance of junior explorers in identifying and developing new mineral deposits, even in historically mined regions. These companies are vital for replenishing the global mineral supply pipeline, particularly for critical metals like gold.

Secondly, the project’s advancement in California, a state known for its rigorous environmental oversight, can serve as a valuable case study. Successful navigation of regulatory processes by K2 Gold demonstrates that responsible and compliant mining exploration is still achievable, even if challenging.

Looking ahead, the results of this 5,650-meter-plus drilling program will be eagerly awaited by the market. Positive drill results, particularly if they confirm and extend high-grade mineralization, could significantly enhance the Mojave Project’s resource potential and advance it towards a preliminary economic assessment (PEA). Anthony Margarit’s enthusiastic statement, “The commencement of drilling at Mojave represents a significant step forward for K2 Gold as we begin the largest and most comprehensive drill programme in the company’s history,” encapsulates the high expectations tied to this campaign. The coming months will be critical in shaping the future of the Mojave Project and, by extension, K2 Gold’s strategic position in the North American gold exploration landscape.