Vancouver, BC – October 7, 2025 – Red Lake Gold Inc. (CSE: RGLD) today announced a pivotal strategic move, acquiring the Soo North Copper Project in Ontario, Canada. This significant diversification into the critical metals sector comes at a time when the global copper market is experiencing an unprecedented surge, driven by escalating demand and severe supply constraints. The acquisition positions Red Lake Gold Inc. to potentially capitalize on a bullish market outlook, though the company faces its own operational and financial hurdles.

The acquisition of the Soo North Copper Project is a bold declaration of intent from Red Lake Gold Inc., traditionally known for its gold exploration endeavors. By securing a 100% interest in the 9,142-hectare project, the company aims to leverage the escalating value of copper, a metal indispensable to the global energy transition. This strategic pivot highlights a broader industry trend where companies are scrambling to secure critical mineral assets in a rapidly evolving market landscape.

Detailed Coverage: A Rapid Response to a Copper Rush

Red Lake Gold Inc.'s acquisition of the Soo North Copper Project was a swift and calculated response to a significant regional development. The company secured its 100% interest in the 416 mining claims by paying applicable Crown staking fees to the Government of Ontario, notably without any third-party share or cash property earn-in payments or ongoing royalties, apart from those payable to the Crown. This structure offers Red Lake Gold Inc. substantial flexibility and direct control over the project's future.

The catalyst for this rapid acquisition was the high-grade copper discovery announced by Sterling Metals Corp. (TSX-V: SAG) on September 29, 2025, at its adjacent Soo Copper Project. Sterling Metals reported a compelling drill intercept of 262.5 meters of 1.05% Copper Equivalent (CuEq), instantly elevating the prospectivity of the entire Batchewana Bay region in Ontario. Red Lake Gold Inc. credited its "same-day work" following Sterling Metals' announcement for its success in acquiring the Soo North claims, demonstrating an agile strategy to secure promising ground.

Key players in this event include Red Lake Gold Inc. itself, led by CEO Ryan Kalt and CFO Nicholas Koo, who orchestrated the acquisition. Sterling Metals Corp. stands as a crucial adjacent stakeholder whose discovery effectively de-risked the initial exploration appeal of the Soo North area. The Government of Ontario also benefits from the Crown staking fees paid for the claims. While Red Lake Gold Inc. has framed the acquisition as a strategic play to benefit from the robust copper market, market analytics from TipRanks' AI Analyst "Spark" have rated Red Lake Gold Inc. as "Neutral," citing a challenging financial position, including a lack of revenue, persistent losses, negative cash flow, and bearish technical momentum, which are considered significant risks to the company's stock outlook.

Market Ripple Effects: Winners and Those Facing Challenges

Red Lake Gold Inc.'s (CSE: RGLD) entry into the copper exploration arena, set against a backdrop of a highly bullish copper market, is poised to create distinct winners and those facing challenges across the mining sector and related industries.

Potential Winners:

1. Red Lake Gold Inc. (CSE: RGLD): If the Soo North Copper Project yields commercially viable high-grade deposits, Red Lake Gold Inc. stands to gain significantly. The 100% royalty-free interest (excluding Crown royalties) provides substantial upside potential. A successful discovery could transform its financial outlook from its current pre-revenue status, significantly increasing its C$2.51 million market capitalization. Its rapid acquisition also granted a "first-mover advantage" in the immediate vicinity of a proven discovery.
2. Sterling Metals Corp. (TSX-V: SAG): The acquisition by Red Lake Gold Inc. serves as a strong validation of the regional copper potential, drawing increased investor and industry attention to Sterling Metals' own high-grade Soo Copper Project. Sterling Metals has already made a significant discovery, which includes copper, molybdenum, silver, and gold, making it a prime beneficiary of the heightened focus on the area and the strong copper market. This could also enhance its merger and acquisition prospects.
3. Established Copper Mining Companies (e.g., BHP (ASX: BHP), Codelco, Southern Copper (NYSE: SCCO), Teck Resources (TSX: TECK), Freeport-McMoRan (NYSE: FCX)): These major producers are already enjoying substantial revenues and profits from high copper prices (LME copper at $10,800/ton in early October 2025). The structural supply deficit ensures a favorable pricing environment, and companies with robust development pipelines are well-positioned to expand production and capture market share.
4. Junior Exploration Companies with Nearby Claims: Any other junior mining companies holding claims in the broader Batchewana Bay/Soo region could see an increase in the perceived value and prospectivity of their assets, potentially attracting more investment.

Potential Losers (or those facing challenges):

1. Red Lake Gold Inc. (CSE: RGLD) (Risk Factors): Despite the strategic potential, Red Lake Gold Inc.'s current financial vulnerability (lack of revenue, persistent losses, reliance on external funding) means that failure to make a significant discovery or secure sufficient financing could lead to further financial strain and shareholder dilution. Exploration is inherently risky, and proximity to a discovery is not a guarantee of similar success.
2. Copper-Consuming Industries: Industries heavily reliant on copper, such as electric vehicle manufacturers, electronics producers, construction companies, and infrastructure developers, will continue to face increased operating costs due to squeezing profit margins. The ongoing global supply disruptions could also lead to challenges in securing adequate copper supply, causing production delays.
3. Junior Mining Companies with Less Promising Copper Projects: In a strong copper market, investor capital tends to flow towards projects with confirmed high-grade discoveries or advanced development. Less compelling, early-stage, or geographically isolated projects might struggle to attract funding.
4. Speculative Investors Betting on Falling Copper Prices: While the overarching market sentiment is bullish, some analysts, like J.P. Morgan, anticipate a potential price slide in the latter half of 2025. Such a scenario would negatively impact copper-focused exploration companies and major producers.

Wider Significance: Copper at the Crossroads of Energy Transition and Geopolitics

Red Lake Gold Inc.'s acquisition of the Soo North Copper Project is more than just a corporate transaction; it's a microcosm of profound shifts occurring within the global mining industry and the broader geopolitical landscape, particularly concerning the energy transition.

This event squarely aligns with several major industry trends. The most prominent is the surging demand for copper against a backdrop of tightening supply and persistent deficits. Global copper demand is projected to grow by over 40% by 2040, requiring an estimated 80 new mines and $250 billion in investment by 2030. However, existing mine production is set to peak between 2025-2026, leading to a structural shortage projected to last beyond 2035. This imbalance, exacerbated by geopolitical tensions and Chinese stimulus measures, has propelled copper prices to near-record highs in 2025.

The acquisition also reflects a trend of consolidation and strategic acquisitions within the mining sector. Faced with lengthy mine development timelines, companies are increasingly turning to M&A to secure future supply. Red Lake Gold's move, following a significant discovery by a neighbor, exemplifies the scramble for promising exploration targets. Major deals like BHP (ASX: BHP) acquisition of OZ Minerals in 2022 and the recently announced $50 billion merger agreement between Anglo American (LSE: AAL) and Teck Resources (TSX: TECK) to form "Anglo Teck" in September 2025 underscore this drive to strengthen positions in critical raw materials.

Crucially, this event is deeply intertwined with the global energy transition. Copper is a recognized "critical mineral" for decarbonization, vital for electric vehicles (EVs), renewable energy systems (solar, wind), grid modernization, energy storage, and AI infrastructure. Clean energy technologies are expected to account for roughly half of the global copper demand growth by 2040. Red Lake Gold's entry into copper exploration directly contributes to the potential supply of this essential metal, making it a participant in enabling the global shift towards cleaner energy.

Ripple effects will likely include intensified competition for other promising copper prospects in Ontario and across Canada. Successful development at Soo North could attract partnerships from larger mining companies or industrial consumers seeking to de-risk their future copper supply. For downstream industries, while a single project won't solve the global deficit, it adds to the overall pipeline, potentially contributing to a more diversified supply chain.

From a regulatory and policy standpoint, copper's status as a critical mineral in Canada means projects like Soo North could potentially benefit from government support, including financial incentives and streamlined permitting, under Canada's evolving Critical Minerals Strategy. This strategy prioritizes supply security and resilience, and Canadian copper projects are seen as contributing to allied supply chain security. Historically, the current wave of copper acquisitions, driven by green technologies, is distinct, echoing resource nationalism and exploration-focused acquisitions seen in previous commodity supercycles, but with a unique focus on sustainability and carbon footprint in asset valuations.

What Comes Next: Exploration, Financing, and Market Volatility

For Red Lake Gold Inc.'s (CSE: RGLD) Soo North Copper Project, the immediate future (next 12-24 months) will be defined by aggressive exploration and geological assessments. The company plans to engage third-party consultants to conduct detailed mapping, geophysical surveys, and initial sampling to identify high-priority drill targets. A maiden drill program is anticipated, with results being crucial for validating the project's potential and influencing Red Lake Gold's valuation. Given the company's current financial position, further capital raising, likely through equity financing, will be necessary to fund subsequent exploration phases.

In the long term (beyond 24 months), successful exploration could lead to systematic resource delineation and progression through preliminary economic assessments, pre-feasibility, and feasibility studies – a multi-year process typical of mine development. Red Lake Gold Inc. may seek strategic partnerships or joint ventures with larger mining companies to fund the substantial capital requirements. A successful project could also make Red Lake Gold Inc. an attractive acquisition target for major players looking to secure future copper supply.

The broader copper market will continue to be a dominant factor. Market opportunities include sustained high prices due to the structural deficit, the "green" metal premium attracting ESG-focused funds, and potential technological advancements. However, market challenges persist, including a significant funding gap for new mine development, lengthy permitting timelines, and the potential for global economic volatility to impact demand.

Strategic pivots and adaptations for Red Lake Gold Inc. will include prioritizing aggressive funding and execution of exploration at Soo North, carefully managing shareholder dilution, building technical expertise in copper exploration, and maintaining clear market communication.

Potential Scenarios:

• Optimistic: Early, highly successful drill programs confirm widespread high-grade copper, leading to a rapid increase in RGLD's market capitalization, successful capital raises, and potentially a major mining partner or acquisition offer.
• Moderate: Exploration yields promising but not immediately "world-class" results, suggesting a viable but smaller-scale deposit. The company continues methodical exploration, facing ongoing funding challenges, with strategic partnerships becoming critical.
• Conservative: Initial drill results are disappointing, leading to waning investor interest, difficult capital raising, and potentially a scaling back of copper ambitions or divestment of the project.

For the broader copper sector, scenarios range from a bullish outcome of accelerating deficits and price surges (potentially towards $15,000/ton), to steady growth with managed deficits, or a bearish scenario of demand weakness or unexpected supply influx causing price declines.

Wrap-up: A High-Stakes Bet in a Critical Market

Red Lake Gold Inc.'s (CSE: RGLD) acquisition of the Soo North Copper Project marks a high-stakes bet on the future of copper, a metal now undeniably at the heart of the global energy transition. The key takeaway is the strategic shift of a gold explorer into a critical mineral sector, driven by compelling market fundamentals and the allure of a high-grade discovery adjacent to its new ground.

The copper market is currently in an unprecedented state of bullishness, characterized by record-high prices, severe supply disruptions (such as the Grasberg mine incident), structural underinvestment in new mines, and soaring demand from electrification, infrastructure, and AI. Analysts from major financial institutions are forecasting sustained high prices, with some projecting prices well over $11,000 per ton through 2027 and potential peaks at $15,000. This creates a highly favorable environment for companies with promising copper assets.

The lasting impact of this acquisition for Red Lake Gold Inc. will hinge entirely on its ability to translate the geological promise of Soo North into a defined, economically viable resource. While the strategic location and the current copper supercycle provide significant tailwinds, the company's existing financial challenges mean that successful exploration and astute capital management will be paramount.

Investors should closely watch for the following in the coming months:

1. Exploration Results: Any news regarding geological assessments, sampling, and especially initial drill results from the Soo North Copper Project will be the most critical indicator of its potential.
2. Financing and Partnerships: Monitor announcements regarding capital raises, strategic partnerships, or joint ventures that could provide the necessary funding and expertise for project advancement.
3. Copper Market Trends: Keep an eye on global copper prices, news of further supply disruptions or resolutions, and demand forecasts from key industrial sectors.
4. Sterling Metals Corp. Updates: Developments from Sterling Metals Corp. (TSX-V: SAG) at its adjacent Soo Copper Project could offer valuable insights into the regional geology and potential of Red Lake Gold's new acquisition.
5. Company Financial Health: Observe Red Lake Gold Inc.'s overall corporate updates, focusing on efforts to improve its operational and financial position.

Red Lake Gold Inc. has made a bold move into a market that promises significant rewards for those who can navigate its complexities. The coming months will reveal whether this strategic pivot will lead to a transformative discovery or prove to be a challenging endeavor for the company.

This content is intended for informational purposes only and is not financial advice.