Vancouver, British Columbia — September 3, 2026 — Leads & Copy — RED METAL RESOURCES LTD. (CSE: RMES) (OTC Pink: RMESF) (FSE: I660) announced that its Farellon Project, located within the Carrizal Copper-Gold-Cobalt Property near Vallenar, Chile, has completed its first deliveries of copper sulphide ore to the Empresa Nacional de Minería (ENAMI) processing plant in Vallenar. The lessee and operator, Minera KMT SpA (KMT), executed these deliveries on August 20th and 21st, 2026.
These initial shipments were completed approximately three months after the mining agreement was signed on May 14th, 2026, significantly ahead of the seven-month development period stipulated in the original agreement. This development marks a milestone as it provides Red Metal with non-dilutive revenue through a net sales royalty (NSR) on the ore sold to ENAMI, which will contribute towards the Company’s general and administrative costs. Concurrently, Red Metal is advancing drill targets at the Carrizal Copper-Gold-Cobalt Property.
During August 2026, KMT focused development on Level 7 of the north tunnel at Farellon 1/8, stockpiling copper sulphide ore on the surface. A total of 16 truckloads, weighing approximately 591.66 tonnes, were transported to the ENAMI processing plant. The mining lease and royalty agreement with KMT requires a minimum production of 2,500 tonnes per month after an initial seven-month development phase. The early completion of these first deliveries positions KMT ahead of this schedule.
Red Metal, operating through its subsidiary Minera Polymet SpA, is entitled to a 10% NSR on all minerals sold to ENAMI from the Farellon 1/8 concession. After accounting for a pre-existing 1.5% royalty owed to the original vendor of the concession, Red Metal will receive a net effective royalty of 8.5%. KMT is responsible for all mining operations, permitting, and regulatory compliance as the designated operator.
As part of its operational oversight, Red Metal collected ten rock samples (FTN036L7 through FTN045L7) from Level 7 of the north tunnel at Farellon 1/8. These samples, gathered during bi-weekly site visits, have been submitted to an independent laboratory for copper, gold, and silver analysis. Assay results are pending and will be disclosed upon receipt. Red Metal continues to monitor operations through regular site visits conducted by its field technician in Chile.
Caitlin Jeffs, P.Geo., President and CEO of Red Metal Resources, commented on the significance of these ore deliveries, particularly with copper trading near record highs. She highlighted that this small-scale mining activity generates non-dilutive revenue to support general and administrative expenses while the Company prioritizes and develops drill targets at Carrizal for upcoming drilling later this year.
Throughout 2026, Red Metal has made considerable progress on its Chilean portfolio. Following early-year financings, the Company completed a detailed LiDAR survey and structural interpretation of the Carrizal Property, initiating a three-dimensional induced polarization (IP) geophysical survey. Preliminary findings from this survey have identified a kilometre-scale chargeability-resistivity target that remains open both at depth and along strike. In addition to the KMT agreement, Red Metal signed a second small-scale mining lease and royalty agreement with Construción Minería y Servicios Catalina Ltda. for its Irene and Margarita concessions. The Company has also enhanced its market presence by engaging investor relations firm Jimini Capital and market maker ITG, and has received proceeds from warrant exercises.
Looking ahead, KMT will continue its development and ore production efforts on Level 7 of the north tunnel at the Farellon 1/8 concession, working towards the minimum production levels outlined in the mining lease. Red Metal will further integrate its IP survey data with other exploration data to refine and develop priority drill targets at Carrizal for late 2026 drilling.
It is important to note that mining at the Farellon 1/8 concession is conducted by the lessee, Minera KMT SpA, under a lease and royalty arrangement. Red Metal, through Minera Polymet SpA, is the lessor and royalty holder, not the operator. The reported tonnages are based on delivered weights from operator and ENAMI weighbridge records, and final assay results and settlement values are subject to ENAMI’s determination based on its assays. The mining operation is not supported by a feasibility study or similar technical study demonstrating economic or technical viability, and no current mineral resource or reserve estimates have been prepared under National Instrument 43-101. Consequently, there is no guarantee that anticipated production or royalty revenue for Red Metal will be realized. Historical grades referenced in prior disclosures are not necessarily indicative of the delivered material.
The technical content of this news release was reviewed and approved by Caitlin Jeffs, P.Geo., a Qualified Person as defined in National Instrument 43-101. Red Metal Resources is a mineral exploration company focused on acquiring, exploring, and developing clean energy and strategic minerals projects. Its current portfolio includes projects in Chile’s Candelaria Iron Oxide-Copper-Gold (IOCG) belt, as well as the Ville Marie claims in Quebec and Ontario, Canada. The Company trades on the Canadian Securities Exchange under the symbol RMES, on the OTC Pink marketplace under RMESF, and on the Frankfurt Stock Exchange under I660.
Source: Red Metal Resources Ltd.
