Star Metro - November 2026 Letter to Shareholders

Vatu Aurum is Kalo Gold's 100%-owned, 367-square-kilometre gold project on Vanua Levu, Fiji. After more than 30 years as a geologist working on mineral projects around the world, I believe its scale and the pattern of gold emerging across the property make it a rare opportunity.

A year ago, we had a high-grade discovery hole at Aurum Prime (22.12 metres at 12.80 g/t gold) and an early-stage target at Wainikoro. That was a great starting point. Our next question was how to build on it and make more discoveries across this 367-square-kilometre project as efficiently as possible. To select the best places to drill, we needed a fuller picture of the project's geology.

In 2026, our team completed an extensive program of geological exploration and geophysical surveys at Vatu Aurum. At Aurum Prime, gold is now confirmed in three separate volcanic pipes. At Wainikoro, we traced gold-bearing veins at surface, intersected anomalous gold in two reconnaissance drill holes and outlined a 4.3-kilometre geophysical corridor with gold occurrences at several points along it. Surveys, ground geophysics, mapping, sampling and trenching helped build a clearer picture of the project and prioritize targets for drilling.

I know shareholders want to see more drilling. We do too, and we are close. Thank you for your patience while we completed this critical geological work in 2026.

Kalo had more than C$7 million in cash (unaudited) at August 31, 2026. After planned year-end work, we expect to finish 2026 with approximately C$5 million, leaving the Company well-funded for its planned drilling, scheduled to begin in January 2027.

Our goal for 2027 is clear: make more gold discoveries that may one day support a viable mining operation at Vatu Aurum.

Most exploration projects do not become mines, and the ones that do are rarely found by luck. They are found by narrowing a large area down to a few well-defined targets and then testing those targets with the drill: map the ground, sample the soils and rocks, trench the best of those to see whether the gold is in bedrock, run geophysics to see how the structures continue below the surface, and only then drill holes aimed at a specific target for a specific reason. At every step most of the ground drops out. That is the point: the money is saved for the places that deserve it.

That takes discipline. In April we said publicly that no further drilling would be done until the airborne magnetic survey was complete and integrated into the exploration model (news release dated April 22, 2026). We then chose to complete the ground geophysics before drilling again. I recognize that shareholders want to see drilling results. So do I. But drilling is our most expensive activity, and putting that money against well-defined targets is a better use of shareholders' funds than drilling before the model is ready. The rest of this letter shows what that produced.

On January 19, 2026, we closed the final tranche of our financing for total gross proceeds of approximately C$12.45 million: about 38.9 million units at C$0.32, each with one share and one-half of a warrant, each whole warrant exercisable at C$0.50 for three years (news release dated January 19, 2026). Thank you to our new and long-standing shareholders. Because we were funded on day one, the team could commit to a full year of groundwork without interruption.

We spent the first half of the year building the most detailed picture of Vatu Aurum the project has ever had: LiDAR and aerial photography across most of the project, mapping the true shape of the land beneath the jungle canopy (news release dated February 10, 2026); a 6,212 line-kilometre helicopter magnetic survey showing where faults run and where rock has been altered by the hot fluids that carry gold; and the detectORE™ field gold-testing system in routine use at site, so geologists could follow up promising ground within days while certified results still came from an accredited laboratory (news release dated February 24, 2026). In May we combined all of this into an updated geological model. Our updated geological model suggests that Vatu Aurum represents a connected, multi-phase volcanic and hydrothermal system, rather than a collection of unrelated prospects, with the highest-priority ground interpreted to lie at intersections of major fault structures (news release dated May 27, 2026). That gives us a clear, repeatable logic for choosing drill targets.

At Aurum Prime, home of our 2025 discovery hole (22.12 metres at 12.80 g/t gold; true width 20.70 metres; news release dated October 15, 2025), hole VA26-DH17 returned 16.90 metres at 3.25 g/t gold, including 9.00 metres at 4.66 g/t (true widths approximately 95% of reported lengths; news release dated April 8, 2026), with gold interpreted to run continuously from near surface into the volcanic pipe below rather than sitting in isolated pockets. Gold is now confirmed in three separate volcanic pipes at Aurum Prime, most of the interpreted fluid pathways there remain untested at depth (QC1, QC3 and QC4), and a gravity survey completed this fall (news release dated October 28, 2026) adds another layer of information for future drilling.

Wainikoro, about 5 kilometres from Aurum Prime, is the biggest story of 2026. Here is how it came together:

1. Gold in rock (June). Our crews traced the soil signal to gold-bearing quartz veins at surface along a trend about 1.8 kilometres long, and two reconnaissance drill holes returned anomalous gold at depth, including 1.5 metres at 1.61 g/t gold in VA26-DH19 (downhole length; true width not known; news releases dated June 9 and June 30, 2026).
2. Gold in bedrock (July). Certified fire assays returned surface gold of up to 8.78 g/t from a vein float sample, and trenching showed the gold comes from the bedrock itself (news release dated July 21, 2026). Mercury and alteration of the kind that forms at the top of a gold system suggested the gold-bearing zone may lie below the current level of exposure (news release dated July 8, 2026).
3. A new high-grade vein cluster (September). Seven rock samples from a single previously unsampled outcrop returned up to 7.83 g/t gold and 108 g/t silver, five of them above 2 g/t gold (certified assays; news release dated September 8, 2026).
4. The corridor takes shape (September). A ground resistivity survey outlined a corridor about 4.3 kilometres long, open along strike, with gold occurrences recorded along its length (news release dated September 24, 2026), and a university study identified a single grain of electrum, a natural gold-silver alloy, in core from drill hole VA26-DH19 (news release dated September 29, 2026).
5. More occurrences (October). A detectORE™ field-screening test on a grab sample at Kope Road North returned 16,361 dU (~16.36 g/t gold estimated), which is not a certified assay and is subject to laboratory fire assay (news release dated October 13, 2026), and a further detectORE™ result extended surface gold occurrences along the full length of the corridor (news release dated October 28, 2026).

To be precise about what this is: a 4.3-kilometre corridor defined by geophysics, with gold found at surface and anomalous gold in two drill holes along it. The continuity, width and grade of mineralization along this corridor remain untested. The January drilling program is planned to test prioritized targets along this corridor to establish the grade, width and continuity of gold mineralization at depth.

Shareholders will remember the 22.12 metres at 12.80 g/t at Aurum Prime and may ask why the first rig goes to Wainikoro. Three reasons. First, Wainikoro has had only two holes, and neither was drilled with the information we now hold; the ground surveys that tell us where structures go at depth were run there in full. Second, the 2026 work gave us a targeting relationship to drill against: elevated gold screening responses at Wainikoro occur preferentially along the margins of the resistivity highs and lows (news release dated September 24, 2026), and the corridor gives us many places to test that. Third, prioritizing Wainikoro does not diminish Aurum Prime. The high-grade discovery at QC1 and the confirmation of gold in two further diatreme structures remain compelling, and with the gravity survey now complete Aurum Prime stays an important part of our exploration pipeline, behind the Wainikoro targets now being refined for January.

From July to October, Fender Geophysics completed three ground surveys at Wainikoro: an electrical (IP) survey, a gravity survey and a deeper electrical survey (CSAMT) that finished on October 26. Through November and early December, the team will interpret those data together with all of our mapping, sampling and trenching, trench the most promising survey targets, and finish about 1.6 kilometres of road upgrades, three culverts and gravel surfacing so crews can work safely through the wet season. Drilling is planned to begin in January 2027, with one rig operating through the wet season to systematically test the highest-priority Wainikoro targets. Aurum Prime and our third area, Coqeloa, give us a pipeline of further opportunities behind it.

As at August 31, 2026, Kalo had over C$7 million in cash (unaudited). After this year's surveys, trenching and road work, we expect to finish 2026 with a cash balance of approximately C$5 million, so we begin the January program with well-defined targets and the money to test them.

Finding a mine also depends on being welcome where you work. On November 2 we announced that Digbee, an independent sustainability assessment platform for the mining sector, had awarded Kalo an overall rating of BBB on our first submission, covering both the Company and the Vatu Aurum Project. Behind that rating:

• No fatalities, disabling injuries or lost time incidents since exploration began in 2010.
• Over 90% of staff during the first eight months of 2026 were Fiji nationals, with the site team reaching nearly 100 people.
• About 70% of current project procurement sourced locally.
• Access and compensation agreements in place with landowners for all exploration activities.

The assessment also gave us a specific list of things to improve, and we will work through it before our next submission in September 2027.

2026 was about doing the groundwork properly so that 2027 can be about drilling. A year ago, Wainikoro was an early-stage exploration target; in January it is planned to be tested by holes aimed at defined targets with every dataset we could gather behind them. That is what it takes to find a mine, and it is what we have built. I do not underestimate the uncertainties. Encouraging assays, alteration and geophysical responses do not establish an economic gold deposit. Drilling is required to determine the continuity and extent of mineralization, and that is our next objective. But with well-defined targets, a strong cash position and drilling planned to begin in January, I have never been more confident in the opportunity in front of us.

Thank you to our team in Fiji, our technical partners at Strata GeoData Services Ltd. (SGDS-Hive), Pioneer Exploration Consultants Ltd., GeoDiscovery Group Pty Ltd, Fender Geophysics Pty Ltd, Portable PPB Pty Ltd, Australian Laboratory Services Pty Ltd (ALS), Diamond Drilling Fiji Pte Limited, CRM Consulting and the Camborne School of Mines, University of Exeter, the communities and landowners of Vanua Levu, and to you, our shareholders, for your continued support. The news releases behind every result in this letter are at kalogoldcorp.com/news, and I look forward to reporting on the first holes.

Sincerely,

Terry L. Tucker, P.Geo.
President and Chief Executive Officer, Kalo Gold Corp.
(TSXV:KALO)(OTCID:KLGDF)(FSE:9M51)

The exploration results in this letter are drawn from Kalo Gold's previously published news releases. Certified laboratory assays are distinguished from detectORE™ field-screening results, which are semi-quantitative and are not equivalent to certified gold assays. Surface grab and rock samples are selective and may not be representative of broader mineralization. The 4.3-kilometre interpreted resistivity corridor does not establish continuity of gold mineralization. No current mineral resource or mineral reserve has been established at the Vatu Aurum Project. The scientific and technical information in this letter has been reviewed and approved by Terry L. Tucker, P.Geo., President and Chief Executive Officer of Kalo Gold Corp., a Qualified Person as defined by NI 43-101 who is not independent of the Company. The technical results summarized herein were previously disclosed by the Company. The data-verification procedures, sampling and analytical methods, quality assurance and quality control measures, and relevant limitations are described in the previously filed news releases identified below. Drill intercepts are reported as downhole lengths; true widths are stated where known. detectORE™ values are reported in detectORE™ units (dU), and the gold grades derived from them are estimates only. The Digbee sustainability assessment is an independent third-party evaluation based on information submitted at the time of assessment and is not an investment recommendation. Cash figures at August 31, 2026 are unaudited. The projected December 31, 2026 cash balance represents management's financial outlook and is based on the Company's current cash-flow forecast, including budgeted exploration, geophysical surveys, infrastructure works and corporate operating expenditures through year-end. This outlook is provided to illustrate the Company's anticipated liquidity entering its planned January 2027 drilling program and may not be appropriate for other purposes. Actual cash balances may differ materially due to changes in expenditure levels, timing of planned activities, unforeseen costs, foreign exchange fluctuations or other factors affecting cash flows. This letter contains forward-looking information, including anticipated exploration activities, drilling schedules and projected cash balances; actual results may differ materially due to geological, operational, financial and regulatory uncertainties. Readers should refer to the Company's continuous disclosure filings on SEDAR+. Neither 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 release.

Previously Filed Technical Disclosure

The exploration results and geological interpretations summarized in this letter are drawn from the following previously published Kalo Gold Corp. news releases, available at www.kalogoldcorp.com/news:

October 15, 2025: Kalo Gold Drills New Discovery, Intersects Bonanza-Grade 12.80 g/t Au over 22.12 m, including 25.10 g/t Au over 10.05 m at Qiriyaga Complex, Vatu Aurum Project, Fiji
February 10, 2026: Kalo Gold Advances 2026 Target Development at Vatu Aurum; Lidar and Orthophotography Completed; Airborne Geophysics Planned for February
February 24, 2026: Kalo Gold Enhances Drill Targeting at Vatu Aurum With Rapid detectORE™ Gold Screening
April 8, 2026: Kalo Gold Confirms Vertically Continuous Gold System at Qiriyaga Complex and Identifies Untested Epithermal Feeder Target at Depth - 16.90 m at 3.25 g/t Au
April 22, 2026: Kalo Gold Defines Kilometre-Scale Epithermal Gold Targets and Structural Corridors at Wainikoro Within a 40 km Gold Corridor, Vatu Aurum, Fiji
April 29, 2026: Kalo Gold Provides Update on High-Resolution Airborne Magnetic Survey at Vatu Aurum Project, Fiji
May 27, 2026: Kalo Gold Updates Structural and Geological Model at Vatu Aurum Project, Fiji
June 9, 2026: Kalo Gold Identifies In-Situ Epithermal Gold Veins at Wainikoro; Surface Values up to 3,397 dU (~3.40 g/t Au estimated), Arsenic Corridor Extends to 1,800 m, Vatu Aurum, Fiji
June 30, 2026: Kalo Gold Confirms a Gold-Bearing Epithermal System at Wainikoro Over a Strike Length of 1.8 km, Vatu Aurum, Fiji
July 8, 2026: Kalo Gold Expands Wainikoro Epithermal System with Additional Quartz Veins and Mercury Anomalies, Vatu Aurum
July 21, 2026: Kalo Gold Confirms Mineralized Bedrock at Wainikoro with Fire Assays up to 8.78 g/t Au, Fiji
September 8, 2026: Kalo Gold Identifies High-Grade Gold-Silver Veins at Wainikoro, Vatu Aurum, Fiji
September 24, 2026: Kalo Gold's Wainikoro Corridor Extends 4.3 Kilometres and Remains Open, with Gold Results to 8.78 g/t Au Along Its Length, Vatu Aurum, Fiji
September 29, 2026: Kalo Gold Confirm Gold-Silver Electrum at Wainikoro, Sharpening Drill Targeting at Vatu Aurum Project, Fiji
October 13, 2026: Kalo Gold Samples 16,361 dU (~16.36 g/t Au est.) at New Kope Road North Occurrence as Wainikoro Heads Toward January Drilling.
October 28, 2026: Kalo Gold Extends Occurrences of Surface Gold Mineralization at Wainikoro to 4.3 Kilometres, Vatu Aurum Project, Fiji

SOURCE: Kalo Gold Corp.

View the original press release on ACCESS Newswire

O.Gauthier--SMC