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FDR.V ·

Default Announcement Pursuant to National Policy 12-203

Regulatory & Compliance

Default Announcement Pursuant to National

Policy 12-203

Vancouver, British Columbia--(Newsfile Corp. - December 30, 2021) - Founders Metals Inc. (TSXV:

FDR) ("Founders" or the "Company") announced today that it will not be in a position to file its audited

annual financial statements, management's discussion and analysis and related certifications for the

fiscal year ended August 31, 2021 (the "Annual Statements") on or before the filing deadline of

December 29, 2021, as the Company's auditors are unable to complete the Annual Statements by the

filing deadline through no fault of the Company.

Accordingly, the Company has requested the issuance of a management cease trade order under the

provisions of National Policy 12-203

Cease Trade Orders for Continuous Disclosure Defaults

("NP 12-

203") so as to permit the continued trading in the Company's common shares by persons other than

insiders and employees of the Company. The Company is working closely with its auditor, and expects

to complete and file the audit of the Annual Statements by January 31, 2022.

The Company confirms that it intends to satisfy the provisions of section 4.4 of NP 12-203 and issue bi-

weekly default status reports for so long as the Company remains in default of the financial statement

filing requirement. Such report will disclose any material changes to the information in this release; all

actions taken by the Company to remedy the default; particulars of any failure by the Company to fulfill

these provisions; any subsequent defaults of the Company requiring a default announcement; and any

other material information concerning the affairs of the Company not previously disclosed. The Company

is not be subject to any insolvency proceedings nor is there in other material information concerning the

affairs of the Issuer that has not been generally disclosed.

About Founders Metals Inc.

Founders Metals Inc. is a Canadian exploration company focused on advancing the resource potential of

the Elmtree Gold Project in northeastern New Brunswick. The road-accessible project consists of three

expansion-ready gold deposits and numerous additional exploration targets. Founders is a member of

the Metals Group of companies, an award-winning team of professionals who prioritize technical

excellence, careful project selection, and uncompromising corporate governance. The team has a

recognized ability to capitalize on investment opportunities and deliver shareholder returns.

For further information, please contact:

Nick Stajduhar, Director

Telephone: +1 (780) 701-3216

Email:

[email protected]

FORWARD-LOOKING INFORMATION

Certain statements contained in this press release constitute forward-looking information. These

statements relate to future events or future performance. The use of the word, "will" and similar

expressions and statements relating to matters that are not historical facts are intended to identify

forward-looking information and are based on the Company's current belief or assumptions as to the

outcome and timing of such future events. Actual future results may differ materially. In particular, this

news release contains forward-looking information relating to the anticipated date for filing the annual

financial statements for the year ended August 31, 2021 and related management's discussion and

analysis.

Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or

projections set out in forward-looking information. Those assumptions and factors are based on

information currently available to the Company. The Company cautions the reader that the above list of

risk factors is not exhaustive. Those assumptions and factors are based on information currently

available to the Company. The forward-looking information contained in this release is made as of the

date hereof and the Company is not obligated to update or revise any forward-looking information,

whether as a result of new information, future events or otherwise, except as required by applicable

securities laws, or as otherwise may be disclosed in this news release. Because of the risks,

uncertainties and assumptions contained herein, investors should not place undue reliance on forward-

looking information. The foregoing statements expressly qualify any forward-looking information

contained herein.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

releas

e.

Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any

failure to comply with this restriction may constitute a violation of U.S. securities laws.

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/108709