Explorer Uncovers 163,000-Hectare Gold System in Brazils Madeira River Region

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1. Disclosure for the quote from the John Newell article published on December 5, 2025

1. For the quoted article (published on December 5, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,500.
2. Author Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a  U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

John Newell Disclaimer

As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.

2. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Canary Gold Corp. (BRAZ:CSE; CNYGF:OTC; K5D:FSE) has announced the commencement of its 2026 exploration program at the Madeira Project in Brazil, marked by the arrival of the first drill rig on site, as stated in a January 15 release.

The company has partnered with Geosol, a leading drilling services contractor, to execute a comprehensive, multi-rig drilling campaign aimed at defining near-surface mineralization. The exploration program employs a dual-rig strategy, combining specialized drilling for geological definition with rapid regional coverage.

"The first drill rig has arrived on site and is currently mobilizing to initial collar locations," the company stated in the release. "The rig utilizes a screw-auger drilling system, a specialized technique that represents a variation of diamond drilling optimized for unconsolidated ground conditions. This method is specifically designed to recover high-quality samples from the favorable 'Mocururu' geologic horizon and associated prospective gravel beds."

Key aspects of the screw-auger program include targeting high-priority geological zones (Mocururu and gravel beds), drilling approximately 5,000 meters across roughly 100 drill holes, and using an initial grid of 200 meters x 100 meters, with flexibility to adjust spacing based on visual observations and assay results. The drilling will reach a maximum depth of approximately 50 meters per hole.

The Company anticipates the arrival of a second drill rig — a Reverse Circulation (RC) unit — in the latter half of January. While the screw-auger program focuses on defining specific near-surface geological units, the RC rig will be used to "sweep" the broader land package included in the original agreement with New Frontiers, Canary noted. This phase aims to rapidly assess regional geological continuity and identify new priority targets across the property.

Key highlights of the RC program include regional reconnaissance drilling to test the broader extent of the property and identify new geological anomalies, with approximately 15,000 meters of drilling across roughly 300 drill holes, using a wide-spaced reconnaissance grid of approximately 2,000 meters x 1,000 meters, and consistent testing of the oxide profile to a maximum depth of approximately 50 meters, the release indicated.

Comprehensive Update of Website and Investor Materials

Alongside the launch of its 2026 exploration program, the company announced it has completed a thorough update of its corporate website and investor presentation.

The revamped website and investor materials reflect the company's transition into an active execution phase, offering shareholders enhanced technical context and a more structured overview of Canary's exploration goals at the Madeira Project and throughout the broader Madeira River region.

"As we move into an active drilling phase, it was important that our public-facing materials evolve alongside our operations," said President Mark Tommasi. "The updated website and investor presentation better reflect where the company is today and support clear, consistent communication as we move into what is expected to be a very productive year of exploration."

The company also announced it has granted a total of 6,107,500 stock options to certain directors, officers, and consultants under the company's Omnibus Equity Incentive Plan. The options have an exercise price of CA$0.27 per common share for a period of five years from the date of grant. All securities are subject to a statutory hold period of four months and one day from the date of grant, in compliance with applicable stock exchange policies.

Canary Gold stated it is a Canadian public exploration company focused on acquiring and advancing gold projects in Brazil. The company has an option to earn up to a 70% undivided interest in the Rio Madeira Project through a series of staged exploration expenditures and milestone payments.

In August 2025, Canary expanded its regional strategy by entering into a definitive agreement to acquire a 100% interest in ten additional mineral tenements, totaling approximately 94,700 hectares, from Talisman Venture Partners Ltd., a private British Columbia corporation. The total consideration of CA$1.7 million is being fulfilled through staged cash and share payments, with a portion still outstanding according to the agreement's terms. Talisman retains a 1.0% net smelter return (NSR) royalty on future production from the acquired tenements, half of which (reducing the NSR to 0.5%) can be repurchased by the company at any time for CA$1.0 million.

The company stated these interests collectively provide Canary Gold with a dominant and strategically consolidated land position in the Madeira River region of Rondônia State, one of Brazil's most promising yet underexplored gold provinces.

Company Positioned at the Intersection of Rising Gold Prices and a Reviving Brazilian Market

¹Brazil is quietly revolutionizing the way gold is discovered, tracked, and authorized in the Amazon. At the same time, gold is on a strong long-term upward trajectory, and Brazil's equity market seems to be recovering from a decade-long slump, according to Technical Analyst John Newell in his review of the company on December 5.

Canary stands at the crossroads of these trends, controlling approximately 163,000 hectares along the Madeira River system, one of South America's richest historic placer belts, where over 7 million ounces (Moz) of gold were extracted from the river between the 1970s and 1990s.

The working hypothesis is straightforward yet ambitious, Newell said. The gold that fueled decades of artisanal dredging did not appear out of nowhere. It originated from the Bolivian Andes, was transported into the Madeira Basin, and became trapped in a cemented, iron-rich layer known as Mocururu. Canary's technical team believes this layer forms a preserved paleoplacer surface that extends across much of its project area and may represent the primary source of the region's alluvial gold.

Over the past three years, the company has conducted resistivity surveys, radiometrics, sonic drilling, and aircore drilling to map this horizon and confirm its presence beneath shallow cover across an approximately 80-kilometer corridor, according to Newell. Visible gold has been observed in Mocururu sediments and pan concentrates, and high-resistivity bands suggest the duricrust horizon lies 20–30 meters below the surface. Canary is now transitioning from concept to systematic drill testing.

From a technical perspective, BRAZ appears to be in its early Point of Recognition (POR) phase, Newell said. After a prolonged period of consolidation, the shares broke out in 2025, reaching initial targets at CA$0.37 and CA$0.45. This movement coincided with increased awareness of the Rio Madeira story and an oversubscribed financing. Following these peaks, the stock pulled back, but in a constructive manner: the pattern of higher lows remains intact, supported by a rising trendline that has been developing since early 2025.

Recent trading suggests a potential island reversal, often indicating the end of a corrective phase. Volume has increased during rallies and decreased during pullbacks, suggesting quiet accumulation rather than distribution. Momentum (MACD) has turned positive again, and the 50-day moving average is attempting to flatten and rise above the longer-term 200-day. At recent prices in the CA$0.30–0.33 range, the stock is near support with the next technical target around CA$0.60.

If the January drill program yields encouraging results amid a strong gold market, a move toward the longer-term "big picture" target becomes more feasible, the expert said. The chart suggests the stock is poised rather than broken and could respond quickly to positive news.

"With the shares trading around CA$0.30–CA$0.33, we view Canary Gold Corp. as a Speculative Buy for investors seeking leveraged exposure to an emerging Brazilian gold story with meaningful drill catalysts ahead," he wrote.

The Catalyst: Safe-Haven Appeal Boosts Potential

As of January 15, 2026, spot gold remained stable in the upper US$4,580–US$4,620 per ounce range, consolidating near recent highs amid a mix of heightened geopolitical risks and varied economic signals, according to a January 15 report by Naeem Aslam for Kitco News.

The metal's stability underscores its entrenched role as a safe-haven asset in an environment characterized by territorial policies, trade protectionism, military alignments, and homeland security priorities, Aslam said. This price action highlights gold's function as a portfolio stabilizer rather than a short-term trading instrument. With uncertainty surrounding future interest rates — driven by central bank efforts to balance growth support with security concerns—gold benefits from compressed real yields and ongoing macroeconomic uncertainty.

Renewed focus on global fragmentation has cemented gold's status as the preferred hedge against risks of disintegration, policy volatility, and potential trade disruptions, the report noted. Ongoing territorial tensions, protectionist measures, and security alignments continue to heighten uncertainty, prompting market participants to seek refuge in tangible assets. This environment keeps safe-haven demand structurally supported, even as some short-term easing in specific flashpoints (such as delayed actions in certain regions) provides occasional relief. Institutional flows and central bank interest remain supportive, enhancing gold's appeal beyond reactive fear trades.

Mounting geopolitical tensions and increasing debt levels could drive gold prices as high as US$5,050 per ounce in the first half of 2026, though this may also lead to a more substantial pullback in the latter half, according to analysts at HSBC, reported Ernest Hoffman for Kitco News on January 8.

"We see a wide range of US$5,050-US$3,950/oz for 2026 and an end-year price of US$4,450/oz," the analysts stated in a note published earlier this month, according to the report. While the US$5,050 forecast exceeds their previous estimate of US$5,000, the bank also reduced its average gold price forecast for 2026 from US$4,600 to US$4,587 per ounce, citing the potential for rising prices to trigger a correction later in the year.

The analysts noted that the correction could be more pronounced if geopolitical risks diminish or if the U.S. Federal Reserve stops cutting interest rates, suggesting that the gold market is likely to experience significant volatility in 2026, Hoffman said. HSBC also increased its average price forecast for 2027 to US$4,625 from US$3,950, for 2028 to US$4,700 from US$3,630, and provided a 2029 average price forecast of US$4,775.

Ownership and Share Structure²

About 4.11% of the company is owned by insiders and management. The rest is retail. Top shareholders include Andrew Lee Smith with 2.74%, Hein Poulus with 0.54%, and Al Kanji with 0.14%.

Its market cap is CA$21.16 million with 72.88 million shares outstanding. It trades in a 52-week range of CA$0.19 and CA$0.48.