Sun Valley Announces Massive Shareholder Support for Positive Change at Canagold; Reminds shareholders to vote only for the BLUE proxy

Vancouver, British Columbia–(BUSINESS WIRE)–Sun Valley Investments (“Valley of the Sun”), a long-term, strategic investor in Canagold Resources Ltd. (TSX: CCM) (“Canagold“or the”Company”), thanks Canagold shareholders for the overwhelming support it has received so far and reminds shareholders to only vote BLUE Proxy FOR Sun Valley nominees by the proxy deadline on Thursday, July 14, 2022 at 5:00 p.m. ET.

Mr. Bradford Cooke and the Board of Directors of Canagold (the “Plank”) tried to convince shareholders to ignore decades of value destruction, inexplicable stock swaps at Canagold and other companies, empty disclosures and blatant disregard for good governance. Enough is enough. We’ve heard from many frustrated shareholders who vote with Sun Valley – join us in voting only the BLUE proxy. By Voting the BLUE Proxy, Canagold Shareholders Can Send a Clear Message to the Board: It’s Time to Put Shareholders’ Interests First.

The real capital that Canagold deserves

Sun Valley is committed to funding Canagold and we have the financial strength to support the company. Despite efforts by Mr. Cooke and the board to mislead shareholders, the fact remains that Sun Valley offered C$7.6 million in equity to the company at a premium to at market prices – a 20% premium to the market price or a 60% premium on a flow-through basis.

As such, we stand ready to provide Canagold with the capital needed to rescue New Polaris from the 28-year hiatus at the hands of Mr. Cooke and finally move it forward. The capital would also prevent Canagold from taking a second royalty which would further destroy shareholder value and sustain Canagold through the 2022 drilling season, preventing Canagold from entering an inevitable hibernation under current management.

The real plan that Canagold deserves

Unlike Canagold’s non-existent plan, Sun Valley’s strategic plan is focused on delivering results on time and on budget. Our goal is to save this year’s drilling season and start drilling again at New Polaris so that a mine can be built.

The three-step plan below outlines our plan for New Polaris:

Step 1

  • Stop all royalty talk, ending the destruction of shareholder value

  • Introduce a credible financing option to fund Canagold’s operations and the project

2nd step

  • Submit a feasibility study with a view to a completion period of 18 months

  • Begin the authorization process in the second quarter of 2023

Step 3

  • Continue drilling in 2022/2023 to expand the Company’s resource base and convert existing inferred mineral resources to indicated mineral resources

Sun Valley has a proven track record of developing assets from exploration to production.

Like all shareholders, Sun Valley believes in the potential of New Polaris, and only by advancing it in a timely manner will it deliver value to all shareholders. We believe that the feasibility study will result in a steady increase in the share price.

The real leadership that Canagold deserves

Canagold said the Company “needs an independent and experienced board” – and we agree. Sun Valley’s highly experienced and qualified director candidates, Dr. Carmen Latvian, Ms. Sofia Bianchi and Mr. Andrew Trow, would bring fresh perspectives, technical experience and, most importantly, much-needed independent governance and oversight. to turn around Canagold.

It’s time to save your investment and press play on a business that’s been on hiatus for 35 years. Once elected, our Independent Directors will put Canagold on the right path. Our director nominees are respected industry leaders with relevant expertise in metals and mining, operations and business improvement, and corporate finance, and are the best candidates to turn around Canagold, deliver results and lead us to the long-awaited New Canagold.

VOTING ONLY THE BLUE PROXY

Hurry up. Vote now for the new Canagold. As announced on July 7, 2022, ISS recommends that Canagold shareholders vote FOR change using Sun Valley BLUE agent only.

Please vote by the proxy voting deadline on Thursday, July 14, 2022 at 5 p.m. ET. If you have any questions or need assistance voting, contact Kingsdale Advisors at 1-888-213-0093 or [email protected]

Advisors

Kingsdale Advisors acts as Sun Valley’s strategic shareholder and communications advisor. McMillan LLP is acting as legal counsel to Sun Valley.

About Sun Valley

Sun Valley is a private equity firm focused on the precious metals industry with holding companies and branches in the Americas, Europe and Asia. Sun Valley seeks to invest in sustainable development projects and operations with growth potential, low cash costs of production or the operational flexibility to protect against volatility in commodity markets.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable securities laws. In general, forward-looking information refers to the disclosure of future conditions, courses of action and events. All statements in this press release that are not clearly historical in nature or necessarily dependent on future events are forward-looking, and use of any of the words “anticipates”, “believes”, “expects to, “intends”, “plans”, “will”, “would” and similar expressions are intended to identify forward-looking statements. These statements are based on Sun Valley’s current expectations and information currently available. Forward-looking statements are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based on assumptions about future events which may not prove to be accurate. Sun Valley undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

Disclaimer

The information contained or referenced herein is for informational purposes only to provide Sun Valley’s views and the matters that Sun Valley believes are of concern to shareholders described herein. The information is not tailored to any specific investment objectives, financial situation, suitability or particular needs of any specific person(s) who may receive the information, and should not be construed as advice when considering the merits of an investment decision. The views expressed herein represent the views and opinions of Sun Valley, the views of which may change at any time and are based on analyzes by Sun Valley and its advisors.

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