Drilling Starts at Pacific Ridge's Kliyul Copper-Gold Project; Two Drill Programs Underway

Pacific Ridge starts drilling at Kliyul and RDP, but value remains distant and unproven.

Risk flags

• ●Resource estimates are classified as Inferred, meaning there is a high degree of geological uncertainty and no demonstrated economic viability. This matters because Inferred resources cannot be used for mine planning or financing and may not convert to higher-confidence categories.
• ●All recovery rates and cost assumptions are based on analogues (Mount Milligan) rather than Kliyul-specific testwork or engineering. This introduces technical risk, as actual recoveries and costs could differ materially, impacting project economics.
• ●There is no disclosure of funding, permitting status, or capital allocation for the announced drill programs. Without evidence of secured financing or regulatory progress, the ability to execute the full exploration plan is uncertain.
• ●The focus on large aggregate resource numbers and forward-looking targets (such as M39) is not matched by supporting data or evidence of prior work, raising the risk of promotional bias in the narrative.
• ●No financial results, cash flow data, or period-over-period metrics are disclosed, leaving investors unable to assess the company's financial health or sustainability.

Bottom line

This update signals that Pacific Ridge is in the early stages of exploring two copper-gold projects in British Columbia, with drilling just underway and all resource figures still in the Inferred category. The company emphasizes large resource potential and a new high-priority target (M39), but provides no evidence of funding, permitting, or near-term economic milestones. All technical and cost assumptions are modeled, not proven, and there are no financial disclosures to support claims of progress or value creation. For investors, this announcement is not actionable in the near term and does not change the risk/reward calculus: the projects remain highly speculative and years from demonstrating commercial viability. The most important takeaway is that while the scale of the resource is large on paper, no pathway to monetization or de-risking is yet visible. Future updates would need to provide concrete financial, permitting, or technical milestones to alter this assessment.

Announcement summary

(TSXV: PEX) (OTCQB: PEXZF) Pacific Ridge Exploration Ltd. announced that a ~2,500 m drill program has started at its 100% owned Kliyul copper-gold project in addition to the ~3,000 m drill program underway at the Company's 100% owned RDP copper-gold project. The 2026 drill program at Kliyul will focus on the M39 target area, which is the highest priority target at Kliyul and has never been drilled before. The Kliyul Main Zone (KMZ) hosts 2.42 billion pounds copper equivalent or 5.7 million ounces gold equivalent in the Inferred Mineral Resource category. KMZ hosts 334.1 million tonnes grading 0.33% CuEq (0.15% copper, 0.26 g/t gold, and 0.95 g/t silver) or 386 Mt grading 0.459 g/t AuEq (0.236 g/t gold, 0.142% copper, and 0.911 g/t silver) in the Inferred Mineral Resource category and remains open for expansion. The effective date of the Mineral Resource estimate is July 31, 2025. The Company estimates copper recoveries of 80%, gold recoveries of 65%, and silver recoveries of 65% based on reported recoveries from Mount Milligan. The mineral resource is constrained within a pit shell using metal recoveries of Cu 80%, Au 65% and Ag 65%, an exchange rate of 1.30 CAD:USD, mining cost of C$3.5/t, process cost of C$7.0/t, G&A costs of C$3.0/t, pit slopes of 45 degrees and metal prices of $Cu = US$4.60/lb, $Au = US$2,600/oz., Ag = US$30.00/oz.

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