Hertz Energy Inc. Options 100% Interest in High-Grade District-Scale Crag and Rod Properties in Yukon

Vancouver, British Columbia--(Newsfile Corp. - January 28, 2026) - Hertz Energy Inc. (CSE: HZ) (OTCQB: HZLIF) (FSE: A340) ("Hertz Energy" or the "Company") is pleased to announce that is has entered into an Option Agreement with Strategic Metals Ltd. to acquire a 100% interest in the Crag and Rod properties, together with and including the Craig silver-lead-zinc deposit (collectively, the "Project"), located in east-central Yukon.

The Crag and Rod projects are situated within the Craig Belt, a prospective sub-belt of the ~175-kilometre-long Rackla Belt, a region recognized for hosting some of Yukon's highest-grade silver-lead-zinc and gold mineralization (Figure 1). The Project represents one of the most compelling high-grade polymetallic exploration opportunities in the district, situated within a regionally significant structural corridor associated with the Dawson Thrust Fault, a major crustal-scale structure interpreted to control mineralizing fluid flow.

The Craig Deposit is a drill-defined silver-lead-zinc asset that remains open along strike and at depth, offering significant potential for resource expansion. Historical drilling has returned numerous high-grade intercepts, including intervals exceeding 200 g/t silver with substantial lead and zinc values.

Historical diamond drilling at the Craig Deposit intersected high-grade base-metal mineralization, including (source: Strategic Metals Ltd.):

• 4.26 metres grading 24.1% Zn, 4.3% Pb and 48 g/t Ag
• 8.31 metres grading approximately 102 g/t Ag, 4.8% Pb and 4.4% Zn

In addition to base-metal mineralization, historical geochemical and mineralogical studies identified gold-bearing arsenic sulphide assemblages, with rock samples returning elevated gold values locally up to approximately 9.5 g/t Au, suggesting Carlin-style gold affinity.

In addition to the Craig Deposit, the Project includes a 14-kilometre mineralized corridor hosting multiple under-explored zones such as Discovery, Trent, Azure, Nadaleen, and Scott. These zones exhibit Mississippi Valley-type (MVT) and vein-hosted base-metal mineralization, as well as Carlin-style pathfinder geochemistry, highlighting strong potential for new discoveries across the broader land package.

The surrounding claims that include Crag and Rod cover approximately 31,200 hectares of highly prospective ground, providing Hertz with a large, consolidated land position in a proven and mining-friendly jurisdiction. The consolidation of the Craig Deposit with the Crag and Rod project areas significantly strengthens Hertz's strategic footprint within the Rackla Belt and positions the Company for district-scale exploration success. The Rod Project is positioned adjacent to the Crag Project and expands the prospective structural corridor. Historical exploration documents multiple styles of mineralization including silver-dominant veins, stratiform base-metal occurrences, and structurally controlled polymetallic systems. Historical soil geochemical surveys outlined very strong multi-element anomalies, including values of (source: Yukon Exploration and Geology 2009):

• Silver values of 20 to 293 ppm
• Antimony values of 20 to 918 ppm
• Lead values of 1,000 to 20,700 ppm
• Zinc values up to 60,400 ppm

Rock sampling and trenching at several Rod showings returned significant historical assays including up to 193 g/t Ag with multi-percent Zn over ~1.0 metre. Together, the Crag and Rod properties form a contiguous, district-scale land position prospective for both base-metal and precious-metal discoveries. The combination of historical high-grade drill intercepts, multiple mineralization styles, kilometre-scale structural and geochemical trends, and extensive areas lacking modern drill testing supports the exploration potential of the Crag-Rod project areas.

Hertz Energy views the Craig Deposit, along with the broader Crag and Rod projects, as a cornerstone acquisition and a critical step in advancing the Company's portfolio of high-quality, critical mineral exploration assets. High-grade silver deposits are increasingly rare, and demand for silver, zinc, and lead continues to grow due to their critical roles in clean energy, electrification, and industrial applications. Located in a politically stable, Tier-1 jurisdiction, the Craig Deposit and broader Crag and Rod properties offers an attractive value proposition, combining high grades, established mineralization, and substantial exploration upside.

Figure 1: Craig Deposit, including Rod and Crag properties, on Rackla Belt, Yukon. Credit: Strategic Metals Ltd.

To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/9656/281957_hertzfig1.jpg

Figure 2: Rod and Crag property soil geochemistry. Credit: Strategic Metals Ltd.To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/9656/281957_d6229cbec413db6e_002full.jpg

Figure 3: Crag property mineralization. Credit: Strategic Metals Ltd.To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/9656/281957_d6229cbec413db6e_003full.jpg

Option Agreement Terms

Under the Option Agreement executed January 27, 2026, Hertz Energy Inc. will earn a 100% interest in the Crag and Rod Properties (which include the Criag Deposit) from Strategic Metals Ltd. for a total consideration of $2.35 million (the "Transaction"), comprised of $100,000 in cash upon execution, 2,500,000 common shares of Hertz issued within 10 business days of execution at a deemed value of $0.30 per share, and an additional $1.5 million payable in cash or Hertz common shares (at the Company's election) on or before the earlier of (i) ten days following receipt of a Yukon quartz mining land use permit to conduct drilling or (ii) the first anniversary of the agreement. Upon exercise of the Option, Strategic Metals Ltd. shall retain a 2.0% Net Smelter Returns (NSR) royalty on all mineral production from the properties, whereby Hertz has the right to buy down 50% of the royalty (reducing it to a 1.0% NSR) at any time prior to a production decision by delivering 500 ounces of gold or the cash equivalent to Strategic Metals Ltd.

The parties to the Option Agreement are at arm's length and there are no finder's fees payable associated with the Transaction.

Cautionary Statements

All scientific and technical information contained in this news release are historical in nature unless otherwise stated. Historical results referenced herein have not been verified by the Company's Qualified Person and should not be relied upon.

Qualified Person Statement

All scientific and technical information in this news release has been reviewed and approved by Paul Ténière, P.Geo., a Geological Consultant to the Company and considered a Qualified Person for the purposes of NI 43-101.

About Hertz Energy Inc.

The Company is a British Columbia based junior exploration company primarily engaged in the acquisition and exploration of energy metals mineral properties. The Company's lithium exploration projects include the Agastya Lithium Project in James Bay, Québec. Hertz Energy's 100% owned Harriman Antimony Project in the Gaspé Region of Quebec and the Lake George Antimony-Gold-Tungsten Project in New Brunswick are part of the Company's growing property portfolio.

For further information, please contact Mr. Kal Malhi or view the Company's filings at www.sedarplus.ca.

On Behalf of the Board of Directors

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Statement Regarding "Forward-Looking" Information

This news release includes certain statements that may be deemed "forward-looking statements". Forward-looking statements in this news release include but are not limited to, statements about the Offering and the Company's expectations with respect to the foregoing. Factors that could cause future results to differ materially from those anticipated in forward-looking statements in this news release include the tax treatment of the FT Shares. All statements in this new release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "Deposits", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, political and regulatory risks associated with mining and exploration, risks related to environmental regulation and liability. the potential for delays in exploration or development activities or the completion of feasibility studies, risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits, risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, results of prefeasibility and feasibility studies, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those Deposited in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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