SOMA GOLD REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2026

VANCOUVER, BC, Aug. 28, 2026 /CNW/ -- Soma Gold Corp. (TSXV: SOMA) (WKN: A2P4DU) (OTC: SMAGF) (the "Company" or "Soma") is pleased to report that it has filed its condensed interim consolidated financial statements for the three and six months ended June 30, 2026, and the corresponding management's discussion and analysis ("MD&A"). The Company's financial results for the second quarter of 2026 ("Q2 2026") and for the six months ended June 30, 2026 ("YTD 2026") in comparison to the same respective periods in 2025 ("Q2 2025" and "YTD 2025") are summarized below (all amounts in CAD unless specified):

KEY OPERATING AND FINANCIAL STATISTICS

• Revenue for Q2 2026 decreased to $20.4 million (Q2 2025 - $23.0 million), representing a $2.6 million or 11% decrease. Revenue for YTD 2026 decreased to $42.9 million (YTD 2025 - $50.9 million), representing an $8.0 million or 16% decrease.

• Income from Mine Operations decreased by $3.7 million to $2.0 million in Q2 2026 (Q2 2025 - $5.7 million) while gross margin decreased from 25% in Q2 2025 to 10% in Q2 2026. The Company produced and sold fewer gold equivalent ounces and incurred higher production costs. The reduction in sales volume was partially offset by a higher average realized gold price, as shown in the Key Operating and Financial Statistics table below.

• Adjusted EBITDA⁽¹⁾ was $2.1 million in Q2 2026 (Q2 2025 - $8.9 million) and $6.8 million in YTD 2026 (YTD 2025 - $22.3 million). Unadjusted EBITDA⁽¹⁾ was $0.7 million in Q2 2026 (Q2 2025 - $9.1 million) and $4.7 million in YTD 2026 (YTD 2025 - $21.5 million).

• Net loss for Q2 2026 was $3.9 million compared to net income of $1.6 million in Q2 2025. Net loss for YTD 2026 was $6.0 million compared to net income of $4.8 million in YTD 2025.

• The average realized cash margin⁽¹⁾ was US$969 per ounce ("oz") in Q2 2026 (Q2 2025 – US$1,598 per oz) and US$1,256 per oz in YTD 2026 (YTD 2025 – US$1,628 per oz).

• Adjusted EBITDA⁽¹⁾ per share was $0.02 in Q2 2026 (Q2 2025 - $0.10) and $0.06 in YTD 2026 (YTD 2025 – $0.24).

• Soma had working capital (current assets less current liabilities) of $12.9 million as at June 30, 2026 (December 31, 2025 - $17.2 million) and short-term cash resources of $7.2 million (consisting of cash and short-term investments) (December 31, 2025 - $8.0 million).

Geoff Hampson, Soma's President and CEO, states, "The Company continued to work through various operational challenges during the first half of 2026 as it resumed operations after the labour strike in Q4 2025. The mill throughput during the period was 4.0% below the same period in the previous year. Production of gold ounces was further impacted by a sharp reduction in the average grade at the Cordero mine. Although the gold grade fell from 5.55 gpt to 3.99 gpt between Q2 2025 and Q2 2026, the grade improved from 3.58 gpt in Q1 2026. The average grade at Cordero is expected to increase in the second half of 2026 as the operations team enters a higher-grade area of the mine. Gold equivalent ("AuEq") ounces produced during the quarter were 3,783 as compared to the forecast of 3,828 AuEq ounces, which is an encouraging result despite the challenges. The feed material from the other small mines on the Company's property and third-party ore ("TPO") have recently arrived and are expected to ramp up production for the remainder of 2026 and beyond. As we ramp up production, we expect to reduce the attributable cash cost per ounce of gold sold."

KEY OPERATING AND FINANCIAL STATISTICS

STOCK OPTION GRANT

Soma also announces that on August 28, 2026, it granted an aggregate of 700,000 incentive stock options (the "Options") to two officers of the Company under its Equity Incentive Plan. The Company granted 500,000 Options to its Chief Financial Officer, exercisable at $0.64 per share, and 200,000 Options to its Vice-President, Finance, exercisable at $0.79 per share. The Options have a term of five years, expiring August 28, 2031, and vest as to one-third on each of the first, second and third anniversaries of the date of grant. The grant of Options remains subject to acceptance by the TSX Venture Exchange.

EQUITY INCENTIVE PLAN

The Company is providing an update to its March 12, 2026, news release, which announced the grant of 76,756 deferred share units ("DSUs") under the Company's Equity Incentive Plan. The Equity Incentive Plan in effect at the time did not provide for the grant of DSUs. The board of directors has since approved an amended and restated Equity Incentive Plan that expressly provides for the grant of DSUs and has resolved, subject to the requisite approvals, to qualify and ratify under the amended and restated plan all DSUs previously granted by the Company. The amended and restated Equity Incentive Plan and the prior DSU grants remain subject to acceptance by the TSX Venture Exchange and separate shareholder approval at the Company's next meeting of shareholders, and no rights under the DSUs may be exercised before the requisite approvals are obtained. Further information concerning the amended and restated Equity Incentive Plan and the prior DSU grants will be included in the Company's management information circular for that meeting.

QUALIFIED PERSON STATEMENT

Mr. Chris Buchanan, P.Geo, is Soma's Vice-President, Exploration and a Qualified Person as defined by National Instrument 43-101. Mr. Buchanan has reviewed and approved the technical and scientific information disclosed in this news release.

ABOUT SOMA GOLD

Soma Gold Corp. (TSXV: SOMA) is a mining company focused on gold production and exploration. The Company owns two adjacent mining properties in Antioquia, Colombia, with a combined milling capacity of 675 TPD (Permitted for 1,400 TPD). The El Bagre Mill is currently operating and producing. Internally generated funds are being used to finance a regional exploration program.

With a solid commitment to sustainability and community engagement, Soma Gold Corp. is dedicated to achieving excellence in all aspects of its operations.

The Company also owns an exploration property near Tucuma, Para State, Brazil that is currently under option to Ero Copper Corp.

On behalf of the Board of Directors

"Geoff Hampson"
Chief Executive Officer and President

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.

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This news release refers to certain financial measures, such as EBITDA, Adjusted EBITDA, average realized price per ounce of gold sold, and total cash costs per ounce of gold sold which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures may differ from those made by other companies and accordingly may not be directly comparable to such measures as reported by other companies. These measures have been derived from the Company's financial statements because the Company believes that they are of benefit in understanding the Company's results. For a complete explanation of these measures, please refer to Non-IFRS Financial Performance Measures disclosure included in the Company's MD&A for the three months and six months ended June 30, 2026 and 2025 which can be accessed at www.sedarplus.ca.

All statements, analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change except as required by applicable laws. Investors should not place undue reliance on forward-looking statements.

SOURCE Soma Gold Corp.

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