Quartz Mountain to drill Maestro gold-silver project, British Columbia

Quartz Mountain Resources Ltd. [TSXV: QZM; OTCQX: QZMRF] reported that Phase 5 core drilling at its 100%-owned Maestro Project, located near Houston in central British Columbia, is scheduled to commence on October 20, 2026.

Phase 5 is designed to expand the open-ended Prodigy discovery along its trend beyond the current mineralized footprint. Successful results could increase the overall mineralized footprint significantly. Four phases of drilling totaling 12,951 metres in 21 drill holes have been successfully completed at Prodigy to date. The company has drill permits in place covering 37 additional drill sites. Apex Diamond Drilling Ltd. of Smithers, BC, has been contracted to conduct the drilling program and HEG and Associates Exploration Services Inc. (HEG) will provide geological services.

Quartz considers the Phase 5 drilling program particularly significant because it will test well developed geophysical targets immediately north, south and east of the current Prodigy drill footprint. These include strong IP chargeability-high anomalies indicative of extensive sulphide mineralization coincident with resistivity-high features indicative of potential mineralizing intrusions.

Additional geophysical targets are located even farther north providing substantial potential to continue the expansion of the open-ended Prodigy mineralized system. The drilled footprint of the Prodigy system currently measures approximately 100-200 metres wide, 600 metres long and up to 500 metres deep. It comprises near-surface epithermal gold-silver-molybdenum mineralization and higher-grade gold-silver veins, associated with an underlying gold-rich porphyry system, and adjacent porphyry molybdenum-copper mineralization.

To finance this work, Quartz announces a non-brokered private placement of 1,550,000 Units at $0.40 per Unit for proceeds of $620,000 and 1,875,000 Flow-Through Units at a price of $0.40 per FT Unit for proceeds of $750,000, for total gross proceeds of $1.37 million (the offering). The current working capital position of Quartz, before completion of this financing is $2.3 million.

Each Unit will consist of one common share in the capital of the company and one common share purchase warrant. Each Warrant will entitle the holder to purchase one additional common share (a warrant share) at an exercise price of $0.50 per warrant share for 24 months from the date of issuance.

Each FT Unit will consist of one common share to be designated as a flow-through common share (a FT Share) within the meaning of the Income Tax Act (Canada) and one common share purchase warrant (a FT Unit Warrant). Each FT Unit Warrant will entitle the holder of to buy one flow-through common share of the company (each, a FT Unit Warrant Share) at a price of $0.50 per FT Unit Warrant Share for 24 months following the date of issuance. Units and FT Units are identical in all respects except for the Canadian income tax incentive associated with the FT Units.

Quartz expects to use the proceeds from the sale of the FT Units to advance the drilling program at its 100%-owned Maestro Project, while the proceeds from the Units will be used for general working capital purposes.

This financing includes participation of three insiders, namely two members of the Dickinson Control Group (DCG) and the Sutton Group Inc. Their participation constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 (MI 61-101) which in certain cases can require disinterested minority shareholder approval and valuation requirements. However, the participation of these insiders is exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in Section 5.5(b), because the company’s shares are listed on TSX Venture Exchange and from the minority shareholder approval requirements of MI 61-101 by virtue of the small aggregate size of the participation (under $2.5 million and 25% of the Company’s market capitalization).

The DCG, which includes Robert Dickinson, a director, holds 30,803,874 common shares of the company, representing approximately 41.3% of issued common shares (43.9% fully diluted), will participate in the offering to the extent of $400,000 (1,000,000 FT Units). Upon conclusion of the offering, DCG will hold 31,803,874 common shares, and convertible securities allowing DCG to acquire an additional 5,200,000 common shares, representing an aggregate of 40.8% of the outstanding common shares, 44.6% on a partially diluted basis. Other family and/or friends of insiders will purchase an additional 850,000 of FT Units and 50,000 Units. Sutton Group, a holder of 19,900,000 outstanding common shares of the company, representing approximately 26.7% of the outstanding common shares, will participate in the offering and subscribe for 1,500,000 Units. Upon conclusion of the offering, Sutton Group will hold 21,400,000 common shares, and convertible securities entitling it to acquire an additional 1,500,000 common shares, representing 27.6% of the outstanding common shares (28.8% on a partially diluted basis). Updated EWRs will be filed on SEDAR+ upon completion of the financing.

All securities issued pursuant to the offering will be subject to a statutory hold period in Canada expiring four months and one day after closing. Completion of the offering is subject to approval of the TSX Venture Exchange and is expected to complete in September 2026. No securities are being sold to U.S. persons.

Quartz Mountain Resources is a well-funded public company whose successful mine-finding management team is focused on discovering and advancing important-scale gold, silver and copper projects in BC. The company owns 100% of the Maestro gold-silver project and 100% of the Jake porphyry copper-gold-silver project. Both projects are permitted by the BC government for drilling activities with access to infrastructure and high potential for the development of substantial resources for significant future transactions.

Quartz is associated with Hunter Dickinson Inc. (HDI), a company with over 35 years of successfully discovering, developing and transacting mineral projects in Canada and internationally. Former HDI projects in British Columbia included Mount Milligan, Kemess South and Gibraltar all of which are porphyry copper±gold deposits that are currently producing or were formerly producing mines.

Recently, Amarc Resources, an HDI associated company, with funding from Freeport McMoran Inc., announced the exciting discovery of the Tier One AuRORA gold-copper porphyry deposit also in British Columbia. Other well-known projects with HDI involvement include Sisson, Duke and Prosperity in Canada, Pebble and Florence in the United States, and Xietongmen in China.