P2 Gold: Car Body Zone Metallurgy and Drill Results Support Plans to Accelerate Mining and Cash Flow; Gabbs Project Update

P2 Gold: Car Body Zone Metallurgy and Drill Results Support Plans to Accelerate Mining and Cash Flow; Gabbs Project Update

VANCOUVER, BC, Aug. 25, 2026 /CNW/ -- P2 Gold Inc. ("P2" or the "Company") (TSXV: PGLD) (OTCQB: PGLDF) reports results from three diamond drill holes (GBD-011, GBD-013 and GBD-014) and metallurgical test results for the Car Body Zone at its gold-copper Gabbs Project in Nevada, and provides updates on the Gabbs Project feasibility study underway.

Metallurgical Results from Car Body Zone

Three separate diamond drill holes were completed to provide samples for the Feasibility Study Metallurgical Test Program for the Car Body Zone which included three columns of oxide mineralization, each containing approximately 31.5 kg at a nominal particle size of 6.1 mm. See Table 1 for oxide sample column test leach results.

Table 1: Oxide Sample Column Test Leach Results⁽¹⁾⁽²⁾

Metallurgical Drilling Highlights

Select drill results (see Table 5 below for total drill results) from holes GBD-011 and GBD-014 drilled at the Car Body Zone include:

• Hole GBD-011 intersected 0.76 g/t gold over 39.62 meters starting 9.14 meters downhole, including 13.72 meters grading 1.62 g/t gold starting 13.72 meters downhole;
• Hole GBD-014 intersected 0.78 g/t gold over 28.19 meters starting 5.33 meters downhole, including 4.57 meters grading 3.08 g/t gold starting 19.81 meters downhole

Plan maps and sections for Car Body Zone drill holes GBD-011, GBD-013 and GBD-014 are set out below.

Plans for Gabbs Updated Mineral Resource Estimate, Feasibility Study and Milestones to Production

Since the start of the Gabbs Project Infill and Expansion Drill Program in October 2025, a total of 86 RC drill holes has been drilled, with 28 holes drilled at the Sullivan Zone and 58 holes drilled at the Lucky Strike Zone.  Drilling at both Lucky Strike and Sullivan has continued to confirm expectations for mineralization controls.  The Sullivan Zone remains open downdip where drilling is underway, while the Lucky Strike Zone remains open in all directions, with drilling focused on the western half of the zone which appears to be thickening as drilling extends the high-grade core of the zone to the southwest. (See news release dated August 12, 2026, P2 Gold Intersects 0.78 g/t Gold and 0.29% Copper Over 79.25 Meters, Including 1.28 g/t Gold and 0.34% Copper over 21.34 meters at the Heart of the Lucky Strike Zone.) 

The results from the additional drilling at the Sullivan and Lucky Strike zones will be included in the planned updated Mineral Resource estimate (the "updated MRE") for the Gabbs Project, which is now expected to be announced in the fourth quarter of this year.  The updated MRE will form the basis of a feasibility study on placing Gabbs in production, which is now expected to be completed in the first quarter of 2027.  Permitting baseline studies are underway to support the Mining Plan of Operations and are proceeding as planned.  Permitting continues to be the critical path to production, and the permitting timeline to production remains on track.

The Sullivan and Lucky Strike zones contain the bulk of the Gabbs Project Mineral Resources and are interpreted to be sills associated with an alkaline gold-copper porphyry.  The current Mineral Resource estimates for the Sullivan and Lucky Strike zones are set out in Tables 2 and 3, respectively.  

Table 2:  Sullivan Zone Mineral Resource Estimate April 2024^{(1)(2)(3)(4)*}

Table 3:  Lucky Strike Zone Mineral Resource Estimate April 2024^(1)*

The Car Body Zone is a low sulphidation epithermal gold deposit with minor silver mineralization that remains open along strike to the east.  The Car Body Zone will be included in the planned updated MRE for the Gabbs Project.  The current Mineral Resource estimate for the Car Body Zone is set out in Table 4.

Table 4:  Car Body Zone Mineral Resource Estimate April 2024^(1)*

The Car Body Zone and Plans to Accelerate Production at Gabbs

As the metallurgical results from the Car Body Zone demonstrate positive leach kinetics and the Car Body Zone does not contain material amounts of copper mineralization (eliminating the need for the use of a SART plant to treat solution from Car Body mineralization), planning is underway to bring forward cash flow from Car Body Zone gold production to the construction phase of the Gabbs Project.  Current plans contemplate the use of contract crushing and mining as well as a leased portable carbon-in- column plant to allow the stacking and irrigating of Car Body Zone mineralization as soon as sufficient liner has been placed at the planned heap leach facility for the Project.  Conceivably, the Gabbs Project could generate cash flow from Car Body Zone operations in roughly six months from the commencement of Project construction.  The Feasibility Study will include a discussion on accelerating mining and cash flow from the Car Body Zone.

"Our plans to advance our gold-copper Gabbs Project to production have been progressing well to date on several fronts," commented Joe Ovsenek, President & CEO of P2. "Drilling at Lucky Strike has contributed substantially to the prospect for gold and copper mineral resource expansion at Gabbs ahead of the completion of the feasibility study.  The Car Body Zone, though significantly smaller than the Lucky Strike and Sullivan Zones, has demonstrated the potential to contribute meaningfully to the economics of Gabbs by providing cash flow from gold leaching during the Project's construction phase.  The critical path to production at Gabbs is permitting, and baseline studies underway for the Mining Plan of Operations have been proceeding along our timeframe as planned. With an expanding project profile and solid economics, the Gabbs Project is on track to become one of Nevada's most exciting near-term gold-copper producers."

Table 5: Selected Gabbs Drill Results, August 2026 (GBD-011, GBD- 013 and GBD-014)^{(1, 2)}

Qualified Person

Ken McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, P2 Gold, is the Qualified Person, as defined by National Instrument 43-101, responsible for the Gabbs Project.  Mr. McNaughton has reviewed, verified, and approved the scientific and technical information in this news release.

About P2 Gold Inc.

P2 Gold is a mineral exploration and development company focused on advancing its gold-copper Gabbs Project on the Walker Lane Trend in Nevada, where work to support a feasibility study is underway.  A positive preliminary economic assessment (see footnote below) has outlined a long-life, mid-size mine at Gabbs with annual average production of 109,000 ounces gold and 33 million pounds copper, processing 9 million tonnes per year over a 14.2-year mine life.  The feasibility study is advancing using a nominal production rate of 12 million tonnes per year targeting average annual production of 150,000 ounces gold and 45 to 50 million pounds of copper per year.  The Gabbs Project has excellent infrastructure with access via paved Hwy 361, and power and water on site.  All zones on the property remain open and an infill and expansion drill program is underway. On completion of drilling, an updated Mineral Resource estimate will be prepared for Gabbs, which is expected to be completed in the fourth quarter.

*Please see NI 43-101 Technical Report, "Preliminary Economic Assessment Gabbs Heap Leach and Mill Project" Nye County, Nevada, USA; Effective date of October 7, 2025, Report date November 20, 2025 available on the Company's web site www.p2gold.com and SEDAR+.

Neither the TSX Venture Exchange (the "Exchange") nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information

This press release contains "forward-looking information" within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, information with respect to the Company's expectations, strategies and plans for the Gabbs Project including the Company's planned expenditures and exploration and development activities.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made as well as the other assumptions disclosed in this news release.  Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information and risks associated with mineral exploration, including the risk that actual results and timing of exploration and development will be different from those expected by management.  See "Risk Factors" in the Company's annual information form for the year ended December 31, 2025, dated March 19, 2026 filed on SEDAR+ at www.sedarplus.com for a discussion of these risks.

The Company cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information.

Except as required by law, the Company does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.

SOURCE P2 Gold Inc.