Red Canyon Provides Exploration Update

Vancouver, August 15, 2024 - Red Canyon Resources Ltd. ("Red Canyon" or the "Company") (CSE: REDC | OTCQB: REDRF) is pleased to provide an overview outlining summary results on current activities and exploration plans for the remainder of 2024. The Company is focused on impactful, value-add exploration to make discoveries of copper and copper-gold deposits in established mineral belts in North America.

Company Highlights:

• Red Canyon controls a portfolio of seven 100%-owned, internally generated copper and copper - gold projects.

• The Company is progressing on final set-up for its inaugural drill program at its 100% owned Kendal copper project in west-central British Columbia. All required permits are in place, drill pad preparation is underway, and the drill is set to mobilize on September 1, 2024. The planned program will consist of 4 to 6 drill holes totalling up to 2,500m. Drilling will target an interpreted copper porphyry system, represented by significant altered and mineralized volcanic and porphyritic rocks exposed over 2.5 x 1.5 km. Recent lithogeochemical studies suggest that the erosional level of the porphyry system alteration in Kendal Creek could be directly above and in close proximity to a modeled zone of copper mineralization. Kendal has never been previously drill tested.

• Plans are underway to conduct expanded IP and gravity geophysical surveys at the Company's 100% owned Scraper Springs project in northern Nevada. Scraper Springs hosts a 4 x 4 km alteration footprint comparable in scale to some of the world's largest copper deposits. The Company plans to expand on a deep penetrating IP geophysical line previously completed by Red Canyon which identified a large chargeable target at depth. A series of lines are planned to better define the extent of this feature and aid in drill targeting. In addition, the Company has commissioned Fathom Geophysics to complete a 3D magnetic inversion model at Scraper Springs prior to the expanded IP program.

• In Q2, Red Canyon completed four first-pass diamond drill holes at its Peak copper-gold project in British Columbia, testing two main areas of its Peak Central copper-gold target. The drilling specifically tested zones with magnetic features, coincident IP and elevated copper-in-soil geochemistry interpreted to represent a covered Alkalic copper gold porphyry system. Drilling identified an altered Alkalic megacrystic porphyry dyke with quartz veining and minor sulphides but did not identify a causative intrusive body linked to surface mineralization. The area potential remains open to discovery.

Wendell Zerb, the Chairman and CEO of the Company, states: "Red Canyon continues to advance of its portfolio of 100% owned copper and copper/gold projects. We are very excited that our high-profile Kendal project is weeks away from the first ever drilling. Cumulative work suggests Kendal may represent a large, mineralized porphyry system. Testing big targets is part of our business plan and we believe Kendal is a great leveraged target. While drilling at our Peak project did not yet identify a source of the surface mineralization, potential for discovery remains open at Peak Central and the Peak North area remains untested. Finally, expanded geophysics at Scraper Springs this fall is expected to improve future drill targeting on this high-profile Nevada project. Drilling is expected to commence as early as Q2, 2025".

Kendal Project Drill Plan

Red Canyon has initiated a diamond drill program consisting of 4 to 6 drill holes totalling up to 2,500m. Kendal has never been previously drill tested. Drilling will target an interpreted copper porphyry system, represented by significant altered and mineralized volcanic and porphyritic rocks exposed over 2.5 x 1.5 km. Recent lithogeochemical studies suggest the erosional level of the porphyry system at the base of Kendal Creek could potentially be directly above and in close proximity to the modelled zone of copper mineralization. All required permits are in place, drill pad preparation is underway and drill contractor Diamondhead Drilling is set to mobilize a drill rig on September 1, 2024.

Kendal comprises five 100%-owned mineral claims totaling 2,738 hectares located in west-central British Columbia approximately 25 km northeast of the city of Terrace, a regional infrastructure hub with a well-serviced airport. Infrastructure is excellent with four intersecting highways, hydroelectric power and rail corridors and port facilities approximately 120 km to the west at Prince Rupert. The project has direct road access, only 3.5 km from Highway 16.

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Figure 1: Kendal Project location map.

A key focus of the Kendal project is the large 2.5 x 1.5 km zone of hydrothermal alteration, manifested as a phyllic zone associated with mineralized porphyry intrusions. The Company has completed detailed geological interpretation, a lithogeochemistry vectoring study, magnetic inversion modelling and radiometric surveys. These technical studies significantly enhance our confidence that Kendal may represent a newly discovered, copper porphyry system.

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Figure 2: Kendal project topographic orthophoto looking south, with outline of mapped phyllic alteration (yellow line) and focus area of the Q4/23 trace element rock sampling program (blue line).

In the fourth quarter of 2023, a lithogeochemical vectoring study including approximately 200 specimens of variably altered and randomly mineralized whole rocks were collected within the area of interest (Figure 2). Interpretation of Kendal data suggests that the current level of erosion is potentially in close proximity to the most prospective potassic alteration zone (Figure 3), suggesting that the top of a copper porphyry system could be near-surface.

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Figure 3: Geochemical data from Kendal indicates the approximate erosional level to be at the top of the magmatic-dominant portion (potassic zone) that hosts porphyry copper deposits, when compared to the Halley et al. (2015) cross-section through the porphyry copper lithogeochemical footprint model. The erosional level of Kendal is well-constrained by threshold enrichments of Mo, W and Sn, as well as Cu, and depletions of Na, Mn, Sr, As, which are all characteristic of the high temperature parts of the system.

The drill plan is set up at approximately 115 m above the base of Kendal Creek at multiple sites, to drill through the phyllic zone and test the system to depth below the base elevation of Kendal Creek. Drilling will concentrate on testing below exposed porphyrytic intrusions in Kendal Creek and within the interpreted magnetic destruction zone and gamma-ray radiometric response outlining very low thorium/potassium (Th/K) ratios identified previously (Figure 4). The Company anticipates the program to run into late October.

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Figure 4: Magnetic analytic signal image over the central part of the Kendal project indicates a (> 2 km2) hydrothermal alteration footprint defined by a large zone of depressed magnetic response from potential hydrothermal magnetite destruction within a broader region of gossanous pyrite alteration.

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Figure 5: (left) Kendal Creek, highly-fractured and veined outcrop of intrusive rocks with an early, closely-spaced generation of parallel fractures and veins, cut by later, larger generation of sulphide-rich veins with pink weathering, possibly potassium feldspar alteration. (right) Kendal Creek outcrop with multiple generations of veins with pink alteration halos hosted in a coarse-grained and porphyritic texture intrusion.

Scraper Springs Project Expanded Geophysics:

Plans are underway to conduct expanded IP and gravity geophysical surveys at the Company's 100% owned Scraper Springs project in northern Nevada. The Company expects to expand on a deep penetrating IP geophysical line previously completed by Red Canyon in 2022. A series of parallel lines and one cross-line are planned to better define the extent of a large, previously identified chargeable target. In addition, the Company has commissioned Fathom Geophysics to complete a 3D magnetic inversion model at Scraper Springs prior to the expanded IP and gravity program (Figures 6 and 7).

Scraper Springs is located in northern Nevada approximately 125 km from the cities of Winnemucca and Elko. The project is 100% owned, subject to a 2% net smelter return royalty and consists of 190 unpatented mining claims, spanning 1,589 hectares. Scraper Springs hosts a 4 x 4 km alteration footprint comparable in scope to some of the world's largest copper deposits.

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Figure 6: Scraper Springs plan view shallow IP with 2022 IP section.

Figure 7: Scraper Springs proposed expanded IP survey.

Previous operators at Scraper Springs mostly targeted shallow, high-grade gold systems or Carlin-related gold systems. A reinterpretation of the alteration and geology at the project by Red Canyon and third-party consultants suggests high-temperature, low-pH clays and Eocene-aged intrusions at Scraper Springs could be associated with a deeper, large-scale copper system. In 2022, Red Canyon completed a deep IP survey at the project, which outlined a significant, chargeable zone not previously drill tested. One historical drill hole located approximately 1.5 km east of this new chargeability target intersected strong propylitic alteration and ended in anomalous copper mineralization with values up to 0.17% copper.

The Company views Scraper Springs as an important, high-profile copper project with excellent discovery potential.

Peak First Pass Drill Program

In Q2 the Company drilled four first pass diamond drill holes totaling 1,310 m at the Company's Peak copper-gold project in central British Columbia. This initial program tested the main Peak Central target with three holes and the 6S target with one hole.

The project area has multiple copper-gold targets highlighted by magnetic features, coincident Induced Polarization (IP) anomalies and elevated copper geochemistry. Peak represents a 6,560-hectare, strategic land position situated in a copper?gold district with active large scale mining operations nearby and excellent infrastructure.

The Company's main priority was to test Peak Central. A previous IP survey at Peak Central outlined a large chargeability zone and a deep resistive centre, west of outcropping copper bearing porphyritic rocks grading up to 2% copper.

Figure 8: Peak Central Drill hole locations - Plan view

Drill holes (Figure 8 and 9) at Peak Central intersected a series of mixed sediments including black graphitic shales, sandstones and polymictic conglomerates. The sedimentary package is intruded throughout by a series of porphyry dykes and the highly chargeable zone outlined by IP geophysics is likely due to graphitic sediments and zones with up to 5% pyrite. In addition, a deep resistive centre targeted in RC-PG-02 is interpreted to be caused by quartz-rich sandstones, conglomerates and late porphyry dykes. Both the high chargeability and high resistivity anomalies targeted by drilling are not considered to be associated with an intrusive centre at Peak Central. The source of copper mineralization found on surface to the east of recent drilling by Red Canyon remains unknown. However, drill hole RC-PC-01 intersected an altered megacrystic alkaline porphyry dyke that contains quartz veining and minor sulphides. This rock is encouraging in that the intense sericitic alteration and associated veining is typical of that associated with a possible mineralized porphyry system (Figure 10).

The Company tested the 6S target north of Peak Central with one drill hole. Graphitic sediments with sulphides, predominately pyrite with trace chalcopyrite are interpreted to be the cause of the associated chargeability high at 6S. Elevated copper geochemistry surrounding the 6S area is possibly related minor chalcopyrite identified in the sediments. No further work is planned on the 6S target.

Figure 9: Peak Central drill holes RC-PC-01, 02 Cross Section. Photo 1 (upper left) graphitic sediments with up to 5% pyrite. Photo 2 (lower left) mixed sediment package of sandstones and silicious conglomerates with late porphyritic dykes.

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Figure 10: Peak Central RC-PC-01 megacrystic porphyry dyke with intense sericite alteration and quartz veining (photo lower left) and minor pyrite.

Other Projects

The Company has allowed its Cooper project claims in central British Columbia to lapse. Initial work at Cooper failed to replicate previous operators' sampling results and validate the geological interpretation.

The Company has entered into a lease to purchase option on the Oxford copper-gold project in Nevada. Preliminary work programs are planned for 2024.

At our 100% owned Keg project in Utah, the Company plans to complete a rock and soil geochemistry program across a zone of pyritic volcaniclastic and Eocene-aged porphyritic rocks associated with a magnetic low. Previous grab samples in the area returned up to 300 ppm copper.

References

Halley, S; Dilles, JH; and Tosdal, RM; 2015. Footprints: Hydrothermal Alteration and Geochemical Dispersion Around Porphyry Copper Deposits. SEG Newsletter 100, 1,12-18.

About Red Canyon Resources

Red Canyon Resources Ltd. (CSE: REDC | OTCQB: REDRF) is a geoscience-driven, discovery-focused mineral exploration company focused on exploring North America's top copper jurisdictions. The Company's core goal is to make impactful copper discoveries to benefit all stakeholders and aid in the clean energy transition. Red Canyon has a portfolio of 100% owned copper and copper-gold porphyry exploration projects. The Company's technical team consists of experienced geoscientists with diverse capital market, small cap and major mining company backgrounds, and a track record of success.

For more information, please visit the Company's website at www.redcanyonresources.com.

Red Canyon is part of the NewQuest Capital Group which is a discovery-driven investment group that builds value through the incubation and financing of mineral projects and companies. Further information about NewQuest can be found on the company website at www.nqcapitalgroup.com.

On Behalf of the Board of Directors

Wendell Zerb, P. Geol

Chairman and Chief Executive Officer

+1 (604) 681-9100

wzerb@redcanyonresources.com

For further information, please contact:

Brennan Zerb

Investor Relations Manager

+1 (778) 867-5016

bzerb@redcanyonresources.com

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Forward-Looking Statements:

This news release includes certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding future capital expenditures, exploration activities and the specifications, targets, results, analyses, interpretations, benefits, costs and timing of them, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as "pro forma", "plans", "expects", "may", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, risks related to the anticipated business plans and timing of future activities of the Company, including the Company's exploration plans and the proposed expenditures for exploration work thereon, the ability of the Company to obtain sufficient financing to fund its business activities and plans, the ability of the Company to obtain the required permits, changes in laws, regulations and policies affecting mining operations, the Company's limited operating history, currency fluctuations, title disputes or claims, environmental issues and liabilities, as well as those factors discussed under the heading "Risk Factors" in the Company's prospectus dated October 12, 2023 and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website at www.sedar.com.

Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements, except as otherwise required by law.

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