ALPHA EXPLORATION

This summary update on Alpha Exploration Ltd. (“Alpha”) is based on a discussion with CEO John Wilton on August 20, 2026 and recent press releases.  Alpha (TSXV: ALEX) is an Eritrea-focused explorer in the Arabian–Nubian Shield (ANS). The Company controls 100% of the Kerkasha exploration licence covering 514km², where it has already made three materially different discoveries: Aburna orogenic gold, Anagulu porphyry Cu-Au, and Tolegimja VMS Cu-Zn-Au as shown in Table 1 and Figure 1.  The Company also has identified seven (7) additional Au-Cu-VMS targets which are largely untested with the potential to outline more.

Table 1: Summary of Major Targets, Alpha Exploration Ltd. Kerkasha Exploration License

Alpha announced on July 6, 2026 that  Michael Hopley retired from his position as Chairman of the Company’s board of directors and that Stephen Gatley, a mining engineer, joined the Alpha board, as a seasoned mining executive with previous experience in Eritrea through Lundin Mining’s investment in Sunridge Gold’s development of the Asmara project.  Mr. Gatley, who has 40 years worldwide experience in the mining industry, was previously Vice President Technical Services for Lundin Mining Corp. from 2012 to 2021. Also stepping down was Anna Nydegger, Managing Director of NWT Group. An important current board member is John Clarke who was the former president & CEO of Nevsun Resources who discovered, developed and sold the Bisha Cu-Zn-Au mine in Eritrea. Mr. Clarke is a metallurgist with over 40 years experience in the mining industry.

In addition to the board appointments, Alpha has appointed Dr. Richard Sillitoe, an internationally renowned expert on Cu-Au porphyry systems, as an advisor and Scott McKeig, as Country Manager.  Mr. McKeig is an exploration geologist with 30 years’ experience in North America, Middle East, Africa & Oceana including with Barrick (Saudi Arabia) Jabel Sayid.

John Wilton emphasizes that Eritrea is an attractive country for mining investment.  The time from discovery to development for Bisha at nine (9) years is very favourable especially when compared to North American jurisdictions. The Eritrean mining code based on the Western Australian model.  Access and infrastructure are good with good road access to the Massawa port which has container facilities.

Another important point is that Eritrea is very underexplored so as John emphasizes, conventional techniques such as trenching, soil sampling. RAB drilling and termite mound sampling are very effective at outlining targets.  Alpha has used RAB drilling very effectively in areas with transported soils to get down to bedrock.

The Company currently has US$4.5M in their treasury.  Drilling costs are very competitive at all-up of US$150/m hence they are fully funded for the next phase of drilling.

1. Aburna — currently the flagship

Aburna is a district-scale orogenic gold system covering approximately 7 km × 2 km (Figure 2). Alpha has concentrated much of its drilling on three areas: Hill 52, Central and Northeast. The system has produced some  strong intersections, including:

• 18 m @ 15.33 g/t Au
• 16 m @ 14.07 g/t Au
• 23 m @ 6.74 g/t Au
• 49 m @ 2.75 g/t Au
• 9 m @ 10.0 g/t Au
• 15 m @ 5.85 g/t Au.

Drilling by Alpha has demonstrated substantial widths of mineralization in several parts of the system, while higher-grade shoots occur within broader mineralized structures. In addition, about 90% of the mineralization encountered in drilling reported through early 2026 was shallow occurring less than 120 m below surface.  Subsequent drilling has demonstrated that the system continues deeper and remains open. Alpha estimates that only about 20% of the roughly 7-km Aburna trend has been drill tested.

Gold occurs as tellurides in quartz veins and initial metallurgical testing has been positive returning 91% recovery of Au using a conventional CIL process.

Alpha has commenced a new approximately 6,500-m RC and diamond drilling program announced on July 15 2026, targeting Hill 52, Central, Northeast and additional targets along the Aburna corridor. The company’s objective is working toward a maiden Aburna resource during the latter part of 2026/ Q1 2027.  This could be an important rerating event.

2. Anagulu — potentially an important asset longer term

Anagulu has the potential to be a sizeable Cu-Au porphyry system, and some of the initial grades are unusually strong for a porphyry discovery. The standout discovery hole returned: 108 m @ 1.24 g/t Au + 0.60% Cu + 3.57 g/t Ag including: 49 m @ 2.42 g/t Au + 1.10% Cu + 6.83 g/t Ag. Another hole returned: 109 m @ 0.79 g/t Au + 0.35% Cu, including 27 m @ 2.67 g/t Au + 0.89% Cu.

The issue historically was whether Alpha had found a relatively small high-grade porphyry body or part of something substantially larger.  Results from the  2026 exploration program have enhanced the evidence towards the latter interpretation.  Alpha now reports drilled porphyry mineralization over approximately 2.4 km of strike, with the mineralized 800 million year old deformed quartz-eye diorite porphyry extending from surface to around 340 m depth.  Mineralization occurs as chalcopyrite and thus far there is no evidence for any supergene enrichment. The entire system is surrounded by a prominent thorium radiometric anomaly.

Recent drilling included another: 120 m @ 0.30% Cu + 0.47 g/t Au.  While lower grade than the discovery holes it is geologically important because it helps demonstrate the scale of the system.

The new Camel target is particularly interesting. Shallow RAB drilling has identified a separate Camel target approximately 500 m from the known Anagulu mineralization. Camel is already at least approximately 1.25 km × 200 m and remains open. RAB samples returned up to 1,358 ppm Cu but what is most important is that the 1,000ppm Cu contour of outlines an extensive target zone at least 1.25km long. Indeed has noted by John Witner, the Camel target could in the future likely become the principal target at Anagula rather than the Discovery Zone.

Conceptually, Anagulu is beginning to look more like a sizeable porphyry intrusive/hydrothermal complex containing multiple mineralized centres.

3. Tolegimja — interesting early VMS target

The third discovery is Tolegimja, approximately 50 km south of the large Bisha VMS mine. Alpha identified gossans, exhalites, strong Cu-Zn geochemistry and IP anomalies before drilling. Initial drilling results included: 26 m @ 1.67% Zn + 0.38% Cu + 0.11 g/t Au and 18 m @ 0.99% Zn + 0.34% Cu + 0.16 g/t Au. While these results are not high grade, drilling has encountered packages of massive and semi-massive sulphide, while subsequent exploration has expanded the prospective folded VMS trend to approximately 6 km.

Comments

Alpha continues to make good progress on both Aburna and Anagula.  Two (2) core and one (1) RC rig have just started drilling on Aburna. These drills were previously at Anagula. I am pleased that Alpha is using more core drilling with orientated core as this is critical to understanding the structure and geometry of the gold deposit.  Once the geometry has been figured out then RC can be used to fill in areas for grade.  There will be drill results coming out all this fall for Aburna but the next big trigger will be the planned maiden MRE.  Given the delays in receiving laboratory results I would not expect anything until at least Q1 2027.  This could potentially be a big rerate for the company depending on the results.

Anagula is a very interesting target that appears to be developing into an extensive porphyry intrusive/hydrothermal complex containing multiple mineralized centres although it is still early stage.  I expect that the market was indifferent to the latest press release on August 17, 2026 as the results were relatively low grade but do show that the porphyry system continues.  I discussed with John the need to simplify the maps in his presentation as they are too complicated and do not really tell the story especially to investors.  He agrees and is planning to work on this.  I am sending him a separate note with some suggestions on how to potentially improve the presentation so the overall picture and potential is clearer to investors.

There is no question Alpha suffers from an African discount as Eritrea gets lumped in with other African countries where there have been problems. Alpha has a lot of successful Eritrean experience on the board in John Clarke and newly appointed director Stephen Gatley which John needs to get in front of investors.  The appointment of  Stephen Gatley to the board is certainly very positive as it brings strong engineering expertise on board which will be invaluable as the projects advance as is the appointment of Scott McKeig as the new Country Manager.  Alpha is certainly very strong operationally and is well financed for the drill program in progress at Aburna.

I will continue to follow results with great interest.  I can’t think of any other company that has three major targets in three different major deposit types on the same property in an area that is very underexplored.

Figure 1
Source: Alpha Exploration

Figure 2
Source: Alpha Exploration

Figure 3
Source: Alpha Exploration