Coloured Ties Announces Intention to Solicit Proxies to Reconstitute Labrador Board and To Reject Change of Business

• Labrador Board is responsible for Perpetual Underperformance of the company.
• Proposed Change of Business to Investment Issuer is Risky and Ill-advised.
• Coloured Ties is currently reviewing brownfield mineral exploration projects where Labrador's treasury can be deployed to create shareholder value.
• We aim to build Labrador Gold into a respected mineral exploration company with 100% ownership of brownfield projects.

Vancouver, British Columbia--(Newsfile Corp. - January 13, 2026) - Coloured Ties Capital Inc. (TSXV: TIE) (OTC Pink: APEOF) (FSE: 97A0) ("CTI" or "Coloured Ties"), one of the largest shareholders of Labrador Gold Corp. (TSXV: LAB) (OTC Pink: NKOSF) (FSE: 2N6) ("Labrador" or the "Company"), together with Kal Malhi and Rauni Malhi (the "Concerned Shareholders", "us" or "we"), today announce that they intend to solicit proxies to be voted at the annual and special shareholders meeting of the Company to be held on February 24, 2026 (the "Meeting") in order to reconstitute the board of directors of the Company (the "Board") and to reject the Company's proposed change of business to pursue a hybrid business model between resource development and investment (the "Change of Business").

The Concerned Shareholders own or control approximately 8.40% of the Company's outstanding common shares, and we have significant concerns regarding Labrador's poor corporate governance and perpetual underperformance. The Board has destroyed shareholder value over the last five years in absolute and relative terms. After attempting to engage with the Board without success, we have concluded that the Board appears more interested in entrenching themselves than enhancing shareholder value. The recent announcement seeking shareholder approval of a Change of Business is, in our view, a desperate attempt to distract shareholders from the Company's poor performance and problematic decisions.

We believe an immediate reconstitution of the Board is needed to ameliorate Labrador's weak performance, to enable the Company to become a respected mineral exploration company led by qualified executives and to create value for all stakeholders.

Numerous shareholders have reached out to us to express their frustration and to note that change is required NOW.

We highlight below some of the key decisions made by the Board during the past 18 months which have been ineffective at value creation and have led to opportunities being squandered and a total loss in confidence:

• SALE OF KINGSWAY PROJECT AT THE START OF A RUN IN GOLD PRICES – On July 9, 2024, the Company disposed of its major mineral exploration asset, the Kingsway Project, by selling it to New Found Gold Corp. ("New Found") for shares. Labrador sold 100% of its best gold project just as the price of gold and gold mineral exploration projects began a decade-long record run, demonstrating little business and investment acumen and industry foresight by Management. Labrador Gold received 5,263,157 shares with a deemed value of approximately $20,000,000.
• NEW FOUND SHARES SOLD AT A SIGNIFICANT LOSS – Over a 4 month period ending in April 2025, the Company liquidated ALL the New Found shares it acquired from the sale of the Kingsway Project for proceeds of $12,188,783, a loss of approximately $8M. The sale of shares was purportedly done to support the Company's "growth strategy" of "actively pursuing a significant gold project with substantial resource potential." A strategy the Board has been unable to deliver on and has now abandoned. To fully understand the depth of Management's incompetence, as at January 12, 2026, New Found's shares closed at $4.40 per share, resulting in an effective loss (opportunity cost) of approximately $10 million, had the shares been held until a strategic or accretive deal would have been pursued by the Company instead of liquidated early with no meaningful purpose. The investment prowess of the Board is clear. How then can they be trusted to run an investment company?
• RISKY AND DESPARATE NEW PLAN TO BECOME AN INVESTMENT ISSUER – MANAGEMENT'S POOR INVESTMENT TRACK RECORD - Having failed to give effective to its growth strategy and failed to make a proper decision on its singular material stock investment (the shares of New Found), the Board now seeks shareholder approval to pursue the Change of Business. Continuing as an "investment issuer" with the current Management team is a recipe for disaster and will likely lead to continued trading of the Company's shares at a discount to Net Asset Value. Management's inability to attract or incubate a meaningful project despite having a healthy treasury, the timing of the sale of the Company's key asset and the loss of approximately $8M on the "liquidation" of the New Found shares is concrete proof of Management's inability to manage an "investment issuer" and attract or generate quality "investments".
• FIRST PROPOSED INVESTMENT UNDER NEW STRATEGY IS CONFLICTED AND HIGH RISK – The Company seeks approval to make a $1M private placement investment in Northern Shield Resources Inc. ("NRN"), a company that has been in business for over twenty years and recycled from one failed grassroots project to the next. The Company would acquire shares of NRN at $0.06 per share – a 33.3% premium to the closing price of NRN's shares on the trading day before the deal was first announced and a 26.0% premium based on the volume weighted average price for the month prior to announcement. The decision to pursue the NRN investment is simply more evidence of Management's inability to identify good "investments" and to successfully pursue an investment issuer strategy. The transaction also raises serious concerns regarding conflicts as the Company announced the appointment of Mr. Quentin Hennigh as an Investment Advisor. It is worth noting that in August 2020, NRN announced that they would "tap into the geological expertise of Dr Quinton Hennigh." Accordingly, Mr. Hennigh would act as an investment advisor to both the Company and NRN.
• FAILURE TO HOLD TIMELY AGM – The Company was required to hold its 2025 AGM by September 27, 2025 in accordance with corporate law and the policies of the TSX Venture Exchange. Not only did they fail to do that, but they called a meeting for December 2, 2025, which in our view was simply to avoid responding to our request on August 7, 2025 to reconstitute the Board. We believe that they used this time to retain advisors and prepare for a costly proxy fight simply to entrench themselves at the expense of shareholders.

The Board and current Management have simply failed to create value for shareholders and have not been transparent. We believe that Labrador is one of the best opportunities to build a strong mineral exploration focused company in one of the best mineral exploration markets in decades. Labrador's approximate $18M treasury and shareholder base makes it one of the best opportunities for a qualified executive team to build immense shareholder value in the current commodity and mineral exploration sector. With the reconstitution of the Board, through the appointment of Kulwant Malhi, Ronald Wortel, Jean Lafleur, and Tara Asfour (the "Nominees"), the Company will pursue 100% interest acquisitions of advanced brownfield projects, not minority stakes in grassroots projects, to control the development, management, and value creation of its investments, and to ensure the best use of the Company's capital moving forward. We are currently reviewing brownfield mineral exploration projects where the Company's treasury can be deployed to create shareholder value and where the Company can transform itself into a serious mineral exploration and development company, not "an investment issuer" into a dog's breakfast of grassroots projects. Like all of Labrador's other shareholders, we will only be able to achieve a return on our investment upon the appreciation in value of Labrador's shares.

Our Nominees reflect our desire to strengthen Labrador's governance framework, explore opportunities in the mineral exploration sector, and improve shareholder value. The Company expects that, upon election, the Nominees will spearhead initiatives to enhance corporate governance and accelerate the restoration of value and strategic direction to Labrador.

Information Concerning the Nominees

The Concerned Shareholders' Nominees are Kulwant Malhi, Ronald Wortel, Jean Lafleur, and Tara Asfour. A brief biography for each of the Nominees is set out below:

Kulwant Malhi: Entrepreneur, venture capitalist, experienced board-level executive, and founder and chairman of BullRun Capital Inc., a Vancouver-based investment, corporate-development and technology-commercialization platform partnering with academia and industry to commercialize high-impact technologies spanning biomedical, mineral exploration and development, agricultural exploration and industrial sectors.

Ronald Wortel: Finance Executive, CEO of Goldeni Investment Intelligence, consulting senior mining equity research analyst with Zacks Small-Cap Research and senior mining analyst with Couloir Capital, with over 30 years of resources industry experience with roles as a mineral exploration corporate executive, in fund management, and as an equity research analyst.

Jean Lafleur - Professional geologist; seasoned industry executive with over 45 years of experience as a geologist in Canada and internationally, currently a Board Member at Scandium Canada, VP Exploration at TomaGold Corporation, Technical Advisor at Appian Capital Advisory, LaFleur Minerals, Copper Bullet Mines, Goldflare Exploration and Explo-Logik Inc.

Tara Asfour: Capital markets executive with over 12 years of experience specializing in investor relations, fundraising, business development, corporate communications and marketing. She has built her career across the resource and technology sectors, advising both public and private companies on capital markets strategy and growth.

Additional information concerning the Nominees can be found in an information document (the "Information Document") filed by the Concerned Shareholders under the Company's SEDAR+ profile at www.sedarplus.ca containing the disclosure required under section 9.2(6) of National Instrument 51-102 – Continuous Disclosure Obligations ("NI 51-102") in respect of the Nominees. Shareholders are strongly encouraged to review the Information Document.

Additional Information

The information contained in this press release does not and is not meant to constitute a solicitation of a proxy within the meaning of applicable corporate and securities laws. Although the Concerned Shareholders have requisitioned a meeting of shareholders to (i) remove three of the four directors of Labrador, and their appointed successors (namely James Borland, Trevor Boyd (Kevin Ramsay), and Roger Moss), (ii) fix the number of directors of Labrador at five and (iii) elect our Nominees (the "Requisition"), shareholders are not being asked at this time to execute a proxy in favour of the Nominees or any other resolution set forth in the Requisition. The matters set out in the Requisition are required to be included in the management proxy materials that the Company is required to file in connection with the Meeting.

The Concerned Shareholders are providing the disclosure required under section 9.2(4) of NI 51-102 and as noted above, have filed the Information Document under the Company's SEDAR+ profile at www.sedarplus.ca containing the disclosure required under section 9.2(6) of NI 51-102 in respect of the Nominees in accordance with corporate and securities laws applicable to public broadcast solicitations.

This press release and any solicitation made by the Concerned Shareholders in advance of the Meeting is, or will be, as applicable, made by the Concerned Shareholders, and not by or on behalf of the management of the Company.

The Concerned Shareholders are not soliciting proxies in connection with the Meeting at this time, and shareholders are not being asked at this time to execute proxies in favour of the Nominees (in respect of the Meeting) or any other resolution that is set forth in the Requisition or may be tabled at the Meeting. Proxies may be solicited by the Concerned Shareholders pursuant to an information circular sent to shareholders of the Company after which solicitations may be made by or on behalf of the Concerned Shareholders, by mail, telephone, fax, email or other electronic means, and in person by the Concerned Shareholders or their directors, officers, partners, employees and consultants, as applicable, or any proxy advisor that the Concerned Shareholders retain or by Nominees. The Concerned Shareholders may also solicit proxies in reliance upon the public broadcast exemption to the solicitation requirements under applicable corporate and securities laws, convey by way of public broadcast, including through press releases, speeches or publications, and by any other manner permitted under applicable Canadian laws. All costs incurred for any solicitation will be borne by the Concerned Shareholders.

The Concerned Shareholders are not requesting that shareholders submit a proxy at this time. Once the Concerned Shareholders have commenced a formal solicitation of proxies in connection with the Meeting, a registered shareholder that gives a proxy may revoke it: (a) by completing a proxy signed by the shareholder or by the shareholder's attorney authorized in writing bearing a later date and depositing it with the Company's transfer agent; or (b) by depositing an instrument of revocation in writing executed by the shareholder or by the shareholder's attorney authorized in writing: (i) at the registered office of the Company at any time up to and including the last business day preceding the day of the Meeting, or any adjournment of the Meeting, at which the proxy is to be used, or (ii) with the chairman of the Meeting prior to the exercise of the proxy; or (c) in any other manner permitted by law. Non-registered shareholders should contact their broker for assistance in ensuring that forms of proxies or voting instructions previously given to an intermediary are properly revoked.

None of the Concerned Shareholders or, to their knowledge, any of their associates or affiliates, has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter proposed to be acted on at the Meeting, other than the election of directors to the Board or the rejection of the Change of Business.

Labrador's registered office address is 82 Richmond Street East, Toronto, Ontario M5C 1P1. A copy of this press release and the Information Document may be obtained on Labrador's SEDAR+ profile at www.sedarplus.ca.

Disclaimer

The information contained or referenced herein is for information purposes only in order to provide the views of the Concerned Shareholders and the matters which the Concerned Shareholders believe to be of concern to shareholders described herein. The information is not tailored to specific investment objections, the financial situations, suitability, or particular need of any specific person(s) who may receive the information, and should not be taken as advice in considering the merits of any investment decision. The views expressed herein represent the views and opinions of the Concerned Shareholders, whose opinions may change at any time and which are based on analyses of the Concerned Shareholders.

About Coloured Ties Capital Inc.

Coloured Ties is a publicly traded Canadian-based venture capital firm focused on early-stage investments in companies in the junior resources and breakthrough and disruptive technologies. Coloured Ties' investment strategy is to invest early in multiple private and public companies across a variety of sectors that merit investment to advance promising ventures globally. Coloured Ties invests early-stage in promising projects, serving as the Founding or Early-Stage investor and providing investees with advisory services and access to the Company's ecosystem.

For further information, please contact:

Kal Malhi
Chief Executive Officer
kal@bullruncapital.ca
Ph: 604-805-4602

Neither the 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.

Forward-Looking Statements: Certain information in this news release may constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking statements and information generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "plans," "continue," or similar expressions suggesting future outcomes or events. Forward-looking information in this news release may include, but is not limited to, statements of the Company regarding (i) how the Company intends to exercise its legal rights as a shareholder of Labrador, and (ii) its plans to make changes to the Board and other matters pertaining to Labrador. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements and information are based will occur or, even if they do occur, will result in the plans, results or performance expected. We caution readers not to place undue reliance on forward-looking statements and information contained in this news release, which are not a guarantee of performance, events or results and are subject to a number of risks, uncertainties and other factors that could cause actual results, performance or events to differ materially from those expressed or implied by such forward-looking statements or information. These factors include general economic and market conditions, changes in law, changes in management, changes in the composition of the Board, actions of Labrador and its subsidiaries or competitors, the ability to implement business strategies and plans and pursue business opportunities and conditions in the mineral exploration industry. Shareholders are cautioned that all forward-looking statements and information involve risks and uncertainties, including those risks and uncertainties detailed in the continuous disclosure and other filings of Labrador with applicable Canadian securities regulators. We urge you to carefully consider those factors.

The forward-looking statements and information contained in this news release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements and information included in this news release are made as of the date hereof and the Concerned Shareholders undertake no obligation to publicly update such forward-looking statements or information to reflect new information, subsequent events or otherwise, except as required by applicable laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280214