CHF WEEKLY ROUNDUP: Oct. 12 - 16, 2026

The Halloween season is approaching, and investors may be worried about the spooky “October Effect” on stock prices. While nine of history’s twenty largest single-day percentage declines in the Dow Jones Industrial Average (DJIA) occurred in October, the S&P 500 has also gained value in October more often than it has declined. Average October performance throughout the past 96 years actually shows a slight gain. This week, most global markets posted a positive performance, with a mid-week selloff following higher-than-expected U.S. inflation results; that dip was quickly recovered, but there was some severe selling. Technology-led markets, including the NASDAQ and Asian markets, struggled with concerns about the sustainability of the AI investment boom. A new report suggested that many AI data center operators may not generate enough revenue through 2030 to cover costs and earn healthy returns, prompting investors to lower growth expectations as concerns grew that the AI boom could slow. Look for more volatility in the AI/Tech sector.

The TSX Composite gained 1.3% in a shortened Thanksgiving Day week. The Venture exchange index fell 3.2%, mostly on the mid-week selloff, as gold and mining issuers dropped sharply after the U.S. inflation report spooked markets. Metal prices have recovered during the past two days, pushing the Venture index up 2%. Canada’s economy shed a net 68,300 jobs in September, and the unemployment rate edged up to 6.5% from 6.4% in August. The unexpected drop follows a 41,700-job decline in August. Canada has lost a net 41,200 jobs so far this year, compared with a gain of 211,300 in the same period of 2025. For almost a year, Canadian borrowers have experienced relatively stable interest rates. While the Bank of Canada (BoC) has held its policy rate at 2.25% through seven straight rate decisions, pressure from inflation, rising fuel prices and costs due to a protracted trade war are taking a toll. A growing number of economists and bond traders predict a rate hike on October 28, 2026, while others see steady rates through the rest of the year before rising in 2027.

In U.S. markets this week, the Dow Jones Industrial Average was up 0.7%, the S&P 500 was down 0.9%, and the NASDAQ Composite was down 2.2% at yesterday's close. U.S. Treasury bond yields fell to their lowest levels in several weeks on Thursday as investors appeared to shift their attention from inflation to concerns about the impact of high borrowing costs on economic growth. The yield on the U.S. 10-year bond fell to its lowest level in three weeks, despite fresh data showing the American economy remained strong and inflation remained a concern. Bond market volatility isn't going away, but for now yields appear to have reached a level where investors are satisfied with the return and are buying. The U.S. dollar (USD) spiked to a new high for the year on Wednesday on the expectation of coming Federal Reserve (Fed) rate increases following a report that the Consumer Price Index rose 3.7% in September from a year earlier. Markets currently expect the Fed to hold rates steady at its upcoming October 28, 2026, meeting, while futures pricing suggests the federal funds rate could rise from the current 3.88% to about 4.1% by January 2027. While the Fed’s actions aim to stabilize inflation, they may not address the root causes and could harm consumers or produce something worse: a recession.

Gold was pushed below USD$4,100/oz before returning to USD$4,160/oz on Wednesday, the lowest it's been since August 4, 2026. This morning, spot gold traded near USD$4,168.70/oz, and spot silver traded near USD$57.76/oz. Gold remains resilient despite near-term interest rate pressures, geopolitical tensions and their impact on energy prices, investor expectations around inflation and the Fed’s uncertain future path. All of these remain key drivers of gold’s short-term moves. Sudden price drops such as this week should be seen as buying opportunities. However, following a disciplined investment program to accumulate and hold physical gold monthly or quarterly lets you average costs over time and avoid reacting emotionally to market moves. Use the undervalued equities for income and trading; bullion for security.

Copper still faces labour-related supply issues in Chile and restricted acid delivery from the Middle East. This has the price a bit down from its recent high, opening today at USD$6.63/lb. Nickel prices have continued to decline since early May, reaching USD$6.91/lb this week as oversupply hits the market. Other base and industrial metals are also showing price weakness on lower Chinese demand.

Cobalt has settled at USD$17.85/lb as demand has fallen off. Lithium continues to slide, reaching USD$15.60/kg amid uncertainty about oversupply. Many battery materials indices are lower on rising global supply from new and restarted mines, and weaker-than-expected EV demand, especially in China. Market sentiment is reacting to oversupply forecasts, policy uncertainty and concerns about alternative battery chemistries.

Uranium prices have been creeping up during the last two months, reaching USD$90.30/lb.

We are pleased to present our roundup of client news from October 12 to 16, 2026.

Mining

On October 15, 2026, Rocky Shore Gold Ltd. (CSE: RSG) announced that it has closed the second and final tranche of its non-brokered private placement.

Under the final tranche, the Company raised gross proceeds of CAD$1,977,925.50 and issued 13,186,170 common shares of the Company that qualify as "flow-through shares", at an issue price of CAD$0.15 per FT Share. All securities issued in connection with the final tranche are subject to a statutory hold period expiring February 16, 2027. In total, the Company has issued and sold an aggregate of 34,702,504 FT Shares for aggregate gross proceeds of CAD$5,205,375.60 pursuant to the Offering. The proceeds from the Offering will be used for the exploration and advancement of the Company's projects in central Newfoundland.

The Prospectors and Developers Association of Canada (PDAC) has offered the following list of recommendations that would help bolster the competitiveness of Canada’s mineral exploration and development industry as a part of Finance Canada’s pre-budget 2026 consultations:

1. Eliminate the gap in flow-through share (FTS) eligibility between the Canadian Exploration Expense (CEE) and Canadian Development Expense (CDE) categories by “expanding eligible activities under CEE to include the costs of technical studies, such as engineering, economic and feasibility studies” that are required to establish mineral reserves and make mine development decisions.

2. Amend the Income Tax Act to make both the Mineral Exploration Tax Credit (METC) and the Critical Mineral Exploration Tax Credit (CMETC) permanent or renew these credits for a minimum of 10 years,

3. Commit a minimum of $30 million per year on an ongoing basis to fund continuation of the Targeted Geoscience Initiative (TGI) program, renewal of the Geo-Mapping for Energy and Minerals (GEMS) program,

4. Amend section 248(1) of the Income Tax Act by expanding the definition of a “mineral resource” to capture all minerals that are on Canada’s critical minerals list and that are eligible under the CMETC.

Save the Date

We're excited to remind you that Rocky Shore Gold (CSE: RSG | OTCQB: RSGLF) will be participating in the GCFF Annual Wealth Conference tomorrow!

📅 Date: Saturday, October 17, 2026 🕗 Time: 8:00 AM – 5:00 PM 📍 Location: Sheraton Parkway Toronto North Hotel & Suites, Richmond Hill, Ontario 📌 Visit Us at Booth #401

🔔 REGISTRATION IS NOW CLOSED!

Thank you to everyone who registered! We look forward to connecting with investors, industry professionals, and fellow attendees.

Be sure to stop by Booth #401 to meet the Rocky Shore Gold team and learn more about our company and latest developments.

See you tomorrow!