Blue Moon Metals Inc. ("Blue Moon" or the "Company") ((TSXV:MOON, NASDAQ:BMM), (TSXV:MOON, NASDAQ:BMM)), is pleased to announce its board of directors has approved a final investment decision on the construction for its Nussir project ("Project"), located in northern Norway. The recent Feasibility Study on the Project announced on April 16, 2026, highlighted a 13-year mine life with a nominal 6,000 tonne per day underground mine and processing facility with ore production starting in Q3-2027. Furthermore, recently announced exploration success at the Project (see release dated April 15, 2026), highlights the potential upside and longevity of the asset in addition to the potential mine life extensions discussed in the Feasibility Study. The Company expects the remaining US$184M of estimated capital costs required to complete the Project will be covered by the Company's existing cash on hand, available undrawn amounts on the US$140M project finance package which was previously announced on August 19, 2025, and proceeds from the Company's bought deal equity financing announced concurrently herewith and described further below.

Separately, the Company is pleased to announce that its board of directors has agreed to initiate the planning stages to allow for potential production resumption at Blue Moon's Springer Mine and Mill complex ("Springer") in Nevada. The Company completed its acquisition of Springer on February 10, 2026. Springer is a tungsten production facility consisting of an existing 1,300-ft vertical shaft and underground workings, a nominal 1,200 ton per day mill with rod/ball mills, grinding and flotation circuits, and a decommissioned Ammonium Paratungstate ("APT") circuit including autoclave and related reagent systems. Springer continues to hold required water rights for the complex, and Blue Moon is actively advancing the permitting process to support the operation restart as soon as possible. From 1914 to 1958, Springer was one of the largest tungsten producing mines in the United States and is one of the highest grade tungsten deposits in the world. The deposit is located entirely on private fee lands. The historical mineral resource on the Property covering only two underground mechanized mining scheelite beds is: (1)(2)(3)

  • Historical estimate of indicated resources of 355,000 tons @ 0.537% WO3
  • Historical estimate of inferred resources of 1,933,600 tons @ 0.493% WO3

Tungsten prices have risen from US$500/MTU to over US$3000/MTU over the last 7 months.4 In the opinion of the Company, this rise is due to strong military and powder metallurgy requirements and reduced exports from China, which accounts for approximately 80% of global tungsten supply.5 With most of the permits still in place at Springer and the infrastructure at Springer in good condition, the Company is evaluating various plans with a goal of fast-tracking the facility back to production, with a target of Q4-2027. Management of Blue Moon has prepared an internal preliminary restart cost estimate of US$50M, which is expected to be covered primarily through anticipated strategic financing activities and current cash on hand. Through its internal modelling, management of Blue Moon believes that the Springer complex could achieve potential production of 107,000 to 124,000 MTU within a good quality scheelite concentrate, subject to certain assumptions and qualifications, as more particularly set out below under the heading "Cautionary Statement Regarding - Forward Looking Statements". This would represent a material component of the domestic U.S. market and Springer would become the only major producer in North America. Management estimates the cash costs net of molybdenum production to be in the US$300-400/MTU range. Blue Moon is also evaluating the restart of the APT plant for 2028, and is reviewing strategic alternatives, including joint ventures with other western world tungsten producers and potential downstream partners and adding a powder metallurgy facility next to the APT plant.6

The board of directors' approval of operations to resume commercial production at Springer was made without the Company having declared commercial production mining at Springer and without the benefit of a current feasibility study of mineral reserves demonstrating economic and technical viability. Though management believes, based on the internal work and estimates mentioned above, that such activities will result in an economically viable operation at Springer, there may be significant uncertainty of achieving any particular level of recovery of material and the cost of such recovery may be materially higher than we currently expect. The Company's current expectations about recovery, cost of recovery and other matters regarding commercial production are subject to certain assumptions and qualifications, as more particularly set out below under the heading "Cautionary Statement Regarding - Forward Looking Statements". The Company cautions that, historically, mineral projects that are advanced to commercial production without the benefit of a current feasibility study have a much higher risk of economic and technical failure. There is no guarantee that commercial production will re-commence at Springer, continue as anticipated or at all, that the expected capex estimate will be realized, that anticipated production profile will be achieved or that the expected cash costs will be accurate. The failure to commence or continue production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations at Springer.

Bought Deal Equity Financings

Public Offering

Blue Moon is also pleased to announce that it has entered into a letter agreement with Scotiabank, ATB Cormark Capital Markets and Canaccord Genuity, on behalf of a syndicate of underwriters (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a "bought deal" basis from the Company, 10,000,000 common shares of Blue Moon ("Common Shares") at a price of C$10.00 per Common Share (the "Offering Price") for gross proceeds of C$100,000,000 (the "Public Offering"). Such Common Shares will be offered to the public in each of the provinces and territories of Canada (except Quebec) under a prospectus supplement (the "Supplement") to the Company's short form base shelf prospectus dated September 23, 2025 (the "Shelf Prospectus"), and in the United States pursuant to a U.S. prospectus supplement (the "U.S. Prospectus Supplement") to the Company's Shelf Prospectus forming part of the Company's U.S. registration statement on Form F-10.

Blue Moon has granted the Underwriters an over-allotment option (the "Over-Allotment Option") to purchase, on the same terms and conditions of the Public Offering, up to an additional 1,300,000 Common Shares at the Offering Price. The Over-Allotment Option is exercisable, in whole or in part, by the Underwriters at any time until and including 30 days after closing of the Public Offering.

The Public Offering is expected to close on or about May 6, 2026, and is subject to customary closing conditions, including all necessary stock exchange and other regulatory approvals.

In connection with the Public Offering, the Company intends to file the Supplement with the securities regulatory authorities in each of the provinces and territories of Canada (except Quebec). Copies of the Shelf Prospectus can be found, and the Supplement to be filed in connection with the Public Offering will be available, under the Company's profile on SEDAR+ at www.sedarplus.ca, within two business days of the date hereof, in accordance with the "access equals delivery" provisions of applicable Canadian securities legislation. Alternatively, you may request it in Canada from Scotiabank by mail at 40 Temperance Street, 6th Floor, Toronto, Ontario M5H 0B4, attn: Equity Capital Markets, by email at [email protected] or by telephone at (416) 863-7704 and in the United States from Scotia Capital (USA) Inc. by mail at 250 Vesey Street, 24th Floor, New York, NY 10281, Attention: Equity Capital Markets, or by telephone at (212) 255-6854, or by email at [email protected]. The Shelf Prospectus contains, and the Supplement will contain, important detailed information about the Company and the Public Offering including the proposed use of proceeds therefrom. Prospective investors should read the Supplement and accompanying Shelf Prospectus and the documents incorporated by reference therein before making an investment decision.

The Company has filed a registration statement on Form F-10 (including the Shelf Prospectus) and a preliminary U.S. Prospectus Supplement with the U.S. Securities and Exchange Commission (the "SEC") for the Public Offering to which this communication relates. Before you invest, you should read the Shelf Prospectus, the preliminary U.S. Prospectus Supplement and other documents the Company has filed with the SEC for more complete information about the Company and the Public Offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Company, any underwriter or any dealer participating in the Public Offering will arrange to send you the base shelf prospectus, and any applicable shelf prospectus supplement, or you may request it in Canada from Scotiabank by mail at 40 Temperance Street, 6th Floor, Toronto, Ontario M5H 0B4, attn: Equity Capital Markets, by email at [email protected] or by telephone at (416) 863-7704 and in the United States from Scotia Capital (USA) Inc. by mail at 250 Vesey Street, 24th Floor, New York, NY 10281, Attention: Equity Capital Markets, or by telephone at (212) 255-6854, or by email at [email protected].

Concurrent Private Placement

In addition to the Public Offering, the Underwriters have also agreed to purchase, on a "bought deal" basis from the Company, or arrange substitute purchasers to purchase, in one or more tranches, 5,000,000 Common Shares at a price of C$10.00 per Common Share on a private placement basis (the "Concurrent Private Placement") for gross proceeds of approximately C$50 million. The Concurrent Private Placement will be conducted: (i) in each of the provinces and territories of Canada pursuant to available exemptions to the prospectus requirement under applicable Canadian securities laws, (ii) in the United States on a private placement basis pursuant to one or more exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and (iii) in such other jurisdictions outside of Canada and the United States, in each case in accordance with all applicable laws, provided that no prospectus, registration statement or similar document is required to be filed in such jurisdiction. Common Shares sold pursuant to the Concurrent Private Placement will be subject to a statutory four month hold period in Canada under applicable Canadian securities legislation. Common Shares sold pursuant to the Concurrent Private Placement in the U.S. or to U.S. persons (as defined under Regulation S under the U.S. Securities Act) will be restricted securities under applicable U.S. securities laws.

The Concurrent Private Placement is expected to close on or about May 6, 2026 and is subject to customary closing conditions, including all necessary stock exchange and other regulatory approvals. The closing of the Public Offering is not conditional on the closing of the Concurrent Private Placement.

The aggregate gross proceeds raised in the Public Offering and the Concurrent Private Placement will be approximately C$150 million (or approximately C$163 million in the event the Over-Allotment Option is fully exercised). The net proceeds from the Public Offering and the Concurrent Private Placement are expected to be used for construction capital at Nussir and Blue Moon, development capital for the Springer Tungsten and Apex projects, additional exploration at the foregoing projects, working capital, US growth activities and general and administrative and corporate activities, as will be further described in the Supplement.

In consideration for the services provided by the Underwriters in connection with the Public Offering and the Concurrent Private Placement, the Company has agreed to pay the Underwriters a cash commission equal to 5.0% of the aggregate gross proceeds of the Public Offering (including in respect of any exercise of the Over-Allotment Option) and the Concurrent Private Placement. The cash commission payable on subscriptions by certain select purchasers shall be reduced to 2.5%.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Qualified Persons

The technical and scientific information in this news release has been reviewed and approved by Mr. Reza Ehsani, P.Eng., Senior Vice President, Projects of Blue Moon, and a non-Independent Qualified Person, as defined by NI 43-101.