Komet Announces Shares FOR Debt Transaction

PRESS RELEASE TSX-V: KMT

For immediate release

KOMET ANNOUNCES SHARES FOR DEBT TRANSACTION

Montreal, Québec- July 9, 2020 – Komet Resources In c. (“Komet” or the “Corporation”) (TSX-V : KMT )

announces today that its board of directors has approved the settle ment of $2,556,718 of debts through the

issuance of common shares of the Corporation (the " Debt Settlement "). Pursuant to the Debt Settlement, the

Corporation would issue 21,305,983 common shares at a deemed price of $0.12 per share to a creditor, w hich

is a director and an officer of the Corporation.

The Corporation has currently no liquidities to repay such debts.

The creditor eligible to receive common shares as part of the shares for debt transaction is considered a “related

party” of the Corporation within the meaning of Multilateral Instrument 61-101 – Protection of Minorit y Security

Holders in Special Transactions (“MI 61-101”). The shares for debt transaction is exempt from the valu ation

requirement and the minority approval requirement prescribed in MI 61-101 based on the fact that the fair market

value of the related party participation in the sha res for debt transaction does not exceed 25% of the

Corporation’s market capitalization.

Shares issued as part of the shares for debt transaction will be subject to a statutory four-month hold period until

November 10, 2020.

The issuance of the shares is subject to receipt of the approval of the TSX Venture Exchange.

Investor Relations/information:

Mr. Robert Wares, Chairman and interim President: 514-951-4235 / [email protected]

Neither TSX Venture Exchange nor its Regulation Ser vices Provider (as that term is defined in policies of the TSX Venture Exchange)

accepts responsibility for the adequacy or accuracy of this release