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CDA.V ·

Canuc Receives Conditional Approval for Acquisition of Full Circle Energy Ltd.

Mergers & Acquisitions

www.canucresources.ca

6939553 v6

FOR IMMEDIATE RELEASE TSX-V: CDA | CNUCF | WKN: A14 ZX4

October 16th, 2018 Shares Outstanding: 50,434,150

ISIN: CA1389093040

Canuc Receives Conditional Approval for Acquisition of Full Circle Energy Ltd.

Canuc Resources Corporation (“ Canuc” or the “ Company”) (TSX-V: CDA) is pleased to

announce that it has received conditional approval from the TSX Venture Exchange (the

“Exchange”) for the previously announced acquisition of Circle Energy Ltd. (“Full Circle”).

On October 15th, 2018 the Company received a letter fr om the Exchange providing approval for

the acquisition, conditional on provision of: final ex ecuted copies of the material contracts and

agreements from the Company, and payment of f iling fees. In accordance with the terms of the

transaction a wholly-owned subsidiary of the Company will amalgamate with Full Circle in

consideration of the issuance of 11,810,000 Canuc common shares to the shareholders of Full

Circle. The amalgamated entity will continue under the name of Full Circle Energy Ltd., an Ontario

corporation. It is anti cipated that completion of the transaction will o ccur promptly upon receipt

by the Company of the final approval of the Exchange.

Full Circle’s principal corporate assets consist of 6 sections of undeveloped oil prospective acreage

in southwest Saskatchewan, and a Farmin agreem ent that references a further 6.3 contiguous

sections of adjacent land. Full Circle’s Farmin agreement considers drilling a well to earn a 100%

working interest (WI) in 1.5 sections of land. An additional 4.8 sections make up an Area of Mutual

Interest (AMI). The AMI lands can be developed 75%/25% in favor of Canuc.

About Canuc

Canuc is a junior resources company exploring the San Javier Silver-Gold Project in Sonora State,

Mexico. The Company generates cash flow from natural gas production in Central West Texas,

where Canuc has an interest in nine producing gas wells and has rights for further in field

developments. The Company also owns six sec tions of undeveloped pros pective oil acreage in

southwest Saskatchewan and has rights to a Farmi n, and an Area of Mutual Interest (AMI), for a

further 6.3 contiguous sections of land.

For further information please contact Canuc Resources Corporation:

(416) 548 – 9748

[email protected]

Disclaimer and Forward-Looking Statements

This news release contains forward-looking statements with in the meaning of applicable securities laws relating to

the Transaction, including statements regarding the terms and conditions of the Transaction. Readers are cautioned

not to place undue reliance on forwar d-looking statements. Actual results and developments may differ materially

from those contemplated by these statements depending on, among other things, the risk that the parties will not

proceed with the Transaction, that the ultimate terms of the Transaction will differ from those currently contemplated,

and that the Transaction will not be successfully completed for any reason (including the failure to obtain the required

www.canucresources.ca

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approvals or clearances from regulatory authorities, including the Exchange). If the Transaction is not completed,

and the Company continues as an independent entity, there is the risk that the announcement of the Transaction and

the dedication of substantial resources of the Company to the completion of the Transaction could have an adverse

impact on the Company’ s existing business and strategic relationships, operating results and business generally. When

used in this news release, the words “estimate”. “proj ect”, “anticipate”, “expect”, “intend” “be lieve”, “hope”,

“may” and similar expressions, as well as “will”, “shall” and other indications of future tense, are intended to identify

forward-looking statements. The forward-looking statements are based on current expectations and apply only as of

the date on which they were made. The statements in this ne ws release are made as of the date of this release.

Additional information identifying risks and uncertainties is contained in Canuc's filings with the Canadian securities

regulators, which are available at www.sedar.com.

Completion of the Transaction is subject to Exchange acceptance. There can be no assurance that the Transaction

will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the fili ng statement to be prepared in connection with the

Transaction, any information released or received with respect to the Transaction may not be accurate or complete

and should not be relied upon.