Discovery Alaska Reports $459,211 Loss, Raises $354K with $900K Placement Pending

Exploration Setbacks and Write-Offs Weigh on FY2026 Results

Discovery Alaska Limited (ASX:DAF) reported a net loss of $459,211 for the year ended 30 June 2026, compared to a $313,994 loss in FY2025. The widening deficit primarily reflects a $105,824 write-off of the Chulitna Gold Project in Alaska, where no exploration activities took place during the year amid strategic review. Exploration and evaluation expenses, including a $78,657 outlay on the Boulder Creek Gold-Silver Project option fee and share issuance, also contributed to the loss.

Operating cash outflows totalled $172,575, with investing activities consuming a further $126,768. At year-end, Discovery Alaska held $316,124 in cash, a modest increase from $279,917 the prior year, supported by capital raises.

Capital Raising Boosts Funding Amid Going Concern Concerns

The company completed a private placement in February 2026, issuing 22.1 million shares at $0.016 each and raising $354,000 before costs. This placement included 4.4 million free attaching options exercisable at $0.05 until February 2029. Subsequently, Discovery Alaska secured firm commitments from sophisticated investors to raise $900,000 through a 100 million share placement at $0.009 per share, representing a 43.75% discount to the previous raise. The placement is structured in two tranches, with 6.6 million shares issued under existing placement capacity and the remaining 93.4 million shares subject to shareholder approval at the upcoming AGM in October 2026.

Despite these capital injections, the auditor highlighted material uncertainty regarding the company's ability to continue as a going concern, citing ongoing losses and the need for further funding. Directors have deferred 50% of their fees to assist cash flow, underscoring the tight financial position.

Boulder Creek Project Delivers Promising High-Grade Assays Ahead of Drilling

Discovery Alaska advanced its Boulder Creek Gold-Silver Project in Idaho, USA, securing an option to acquire 100% interest in a 640-acre state lease near Boise. Rock sampling returned exceptional assay results, including 767 grams per tonne silver and 11.67 grams per tonne gold, confirming historical anomalous zones identified by Nerco Inc. in the 1980s. The company has staked an additional 20 BLM claims covering 413 acres adjacent to the lease to capture potential strike extensions of the mineralised structures.

Preparations for an initial drilling campaign are underway, with geological consultants arranging permits, access roads, and rig sourcing targeting the summer drilling season. The project’s proximity to the historical mining town of Silver City and its epithermal vein-hosted gold-silver potential provide direct leverage to precious metals prices. These developments build on earlier announcements detailing the project’s assay results and exploration plans Rock samples include 767g/t silver and Drill program planning underway.

Cuddingwarra Gold Project Acquisition Expands WA Footprint

In a significant strategic move, Discovery Alaska entered into a binding Share Purchase Agreement in August 2026 to acquire 100% interest in the Cuddingwarra Gold Project near Cue, Western Australia. The project comprises eight prospecting license applications covering 13.86 square kilometres in the Murchison Goldfields, neighboring the historical Cuddingwarra Gold Mine and major producers such as Westgold Resources and Caprice Resources.

The acquisition consideration totals $720,000 in DAF shares and $35,000 in cash, subject to shareholder approval, prospecting license grants, and completion of a capital raising. The company plans to leverage the project's proximity to regional processing infrastructure to fast-track exploration. This acquisition, alongside the pending $900,000 placement, signals Discovery Alaska’s intent to diversify and strengthen its portfolio Binding agreement to acquire 100%.

Corporate Governance and Remuneration Stability

The board remains unchanged with three non-executive directors: Peter Lloyd, Jerko Zuvela, and Alan Thomas, whose combined fees totalled $102,000 for the year, with half deferred to support cash flow. No executive directors are appointed, and remuneration packages exclude performance-based incentives, aligning with the company's early-stage exploration status.

Audit services were provided by Criterion Audit Pty Ltd, which issued an unqualified opinion on the financial statements but flagged the going concern uncertainty. No non-audit services were conducted during the year.

Risks and Outlook

Discovery Alaska continues to navigate the inherent risks of mineral exploration, including regulatory approvals, environmental compliance in the USA, and the speculative nature of early-stage projects. The company’s ability to fund ongoing exploration and acquisitions hinges on successful capital raises and shareholder support.

Upcoming catalysts include shareholder approval for the Cuddingwarra acquisition and placement, execution of the Boulder Creek drilling program, and assay results from initial drill holes. These developments will be critical in shaping the company’s trajectory and investor sentiment amid a challenging funding environment.