Toronto, Ontario–(Newsfile Corp. – July 30, 2026) – Paragon Advanced Labs Inc. (TSXV: PALS) (“Paragon” or the “Company”) is pleased to announce that it has entered into a memorandum of understanding (the “MOU”) with McEwen Inc. (NYSE: MUX) (TSX: MUX) (“McEwen”) establishing a strategic partnership for the development of advanced laboratory services, including, PhotonAssay™ supporting McEwen’s Gold Bar Mine Complex in Eureka, Nevada (the “Project”). The MOU also considers establishing PhotonAssay™ laboratory services at McEwen’s Fox Complex in Timmins and McEwen’s El Gallo Mine in Mexico. A successful rollout under the MOU would double Paragon’s PhotonAssay™ capacity to 6 units, with additional units in the Company’s growth pipeline.

As part of the MOU, McEwen has acquired land in Eureka, Nevada and will be responsible for the construction of two separate laboratory buildings: an accredited commercial laboratory to be equipped and operated by Paragon (the “Paragon Lab”), and a second independent facility owned and operated by McEwen, dedicated exclusively to its mine site.

As part of the agreement Paragon will install a PhotonAssay™ machine at the Paragon Lab, together with sample preparation and other advanced analytics, and will be responsible for staffing, training and ongoing operations. The PhotonAssay™ will serve McEwen’s grade control and exploration activities – while remaining fully available to Paragon’s third-party clients across the region.

In consideration for McEwen’s purchase of the land and construction of the buildings, and in lieu of rent, Paragon will grant McEwen a royalty of gross revenues generated by the Paragon Lab from clients other than McEwen. The parties intend to enter into a definitive royalty and services agreement addressing, among other things, royalty grant, laboratory pricing, service commitments, shared infrastructure obligations and governance procedures (the “Definitive Agreement”).

The transactions contemplated by the Definitive Agreement will constitute a “related party transaction” under applicable securities legislation. Paragon will avail itself of an exemption from the formal valuation requirements contained in applicable legislation, and shall seek disinterested shareholder approval of the Definitive Agreement by way of written consent, to satisfy the minority shareholder requirement of applicable legislation. The Definitive Agreement will also be subject to the approval of the TSX Venture Exchange.

Importantly, the MOU contemplates that, following completion of the Project and subject to performance benchmarks, the parties intend to collaborate on similar laboratory developments at McEwen’s Fox Complex in Ontario and their El Gallo Mine Mexico, in each case with Paragon installing a PhotonAssay™ unit.

Highlights of the MOU:

• Capital-light expansion: McEwen funds land acquisition and construction of buildings; Paragon’s investment is focused on analytical equipment and operations.
• Anchor client with commercial upside: The Paragon Lab will serve McEwen’s Nevada exploration programs while operating as a full commercial laboratory for third-party clients.
• Aligned economics: A royalty on third-party gross revenues, payable in lieu of rent, aligns both parties’ interests in growing the Paragon Lab’s commercial business.
• Advanced technology: Deployment of PhotonAssay™ technology alongside conventional fire assay and ICP capabilities strengthens Paragon’s Nevada service offering.
• Scalable model: The Nevada framework is intended to serve as a template for potential future laboratory developments at McEwen’s Ontario and Mexico operations.

Peter Shippen, Chief Executive Officer of Paragon, stated: “We are deeply appreciative of the continued partnership from McEwen Inc., our largest shareholder. This MOU derisks a significant portion of our future deployment schedule while providing our shareholders the commercial upside as we scale utilization of these labs. This partnership pairs Paragon’s operating expertise and technology investment with McEwen’s infrastructure commitment, as MUX looks to double its production by 2030.”

Completion of the Project remains subject to, among other things, construction, permitting, and the negotiation and execution of the Definitive Agreement and a commercial lease on mutually agreed terms.

About Paragon Advanced Labs Inc.

Paragon Advanced Labs Inc. provides innovative analytical technologies to the global mining industry. By embracing new technology, the Company is addressing critical capacity bottlenecks in mineral assaying through the deployment of PhotonAssay™ technology and complementary analytical solutions. The Company delivers faster, more accurate, and cost-effective mineral analysis for mining operators worldwide.

ON BEHALF OF THE BOARD OF DIRECTORS OF PARAGON ADVANCED LABS INC.

Peter Shippen
Chief Executive Officer and Director
Paragon Advanced Labs Inc.

Forward-looking Statements

This news release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on expectations, estimates and projections as of the date of this news release and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this release may include, but are not limited to, statements regarding the Company’s plans, business objectives, strategy, financial or operational performance, exploration or development programs, future market conditions, and other future events or conditions.

Forward-looking statements are often identified by words such as “anticipate,” “believe,” “expect,” “estimate,” “intend,” “may,” “plan,” “project,” “should,” “will,” and similar expressions. These statements are not guarantees of future performance and involve risks and uncertainties, including those described in the Company’s public filings available under its profile on SEDAR+. Readers are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly, are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.

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