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Mineral Hill Announces First Tranche Completion of Private Placements

Financings

Tel :604-617-6794

Fax:604-568-9844

Email:[email protected]

Toronto: TSX-V: MHI

Frankfurt: MLN / WKN: A1JKJN

OTC Market (US): MHIFF

NEWS RELEASE

Vancouver, BC, Canada – August 16, 2021

MINERAL HILL ANNOUNCES FIRST TRANCHE COMPLETION

OF PRIVATE PLACEMENTS

Mineral Hill Industries Ltd. (“Mineral Hill” or “Company”), listed on the TSX Venture Exchange

(“TSXV”) under the trading Symbol “MHI”, and on the Deutsche Boerse, Frankfurt under the trading Symbol

“MLN” wishes to announce the it has completed the initial tranche of CAD 101,000 of its private placement

offering of Flow-Through shares (“FTS”) at CAD 0.30 per share for its exploration development under the

Earn-In Agreement referred to as “PP1b” in the News Release of April 27, 2021. These FTS qualify as “flow-

through mining expenditures” under the Income Tax Act (Canada).

The Company has also completed the initial tranche of CAD 100,083 for the private placement offering

of security units referred to as “PP1a” in the News Release of April 27, 2021 to be used as general working

capital. The PP1a security units are priced at CAD 0.225 per unit and consist of one common share and one

transferable share purchase warrant (the “Warrant”) with an overall exercise period of tw o (2) years

subsequent to the to be announced Closing Date of PP1a. Each Warrant will entitle its holder to purchase one

common share of the Company at a price of CAD 0.30 per share if exercised within the first year of the

Closing Date and at a price of CAD 0.34 per share if exercised within the second year following the Closing

Date. The Warrants will not be listed for trading on the TSXV and the common shares being issued will have

a trading restriction of four months subsequent to the issuance date.

The Company’s average closing price on the TSXV since the resumption of trading on April 15, 2021

including to today’s closing is Can$ 0.228.

In Accordance to the executed Earn-In Agreement announced on December 24, 2020 the Company has

the irrevocable option to acquire an initial 20% interest in the Apex-Claims (the “First Apex Option”)

conditional upon (i) incurring or funding $84,728 of exploration expenditures on the Apex Claims, (ii)

receiving TSXV approval, (iii) paying to the Owner $10,000 cash, and (iv) issuing 100,000 common shares

to the Owner.

After exercising the First Apex Option, the Owner will grant the Company a second option to acquire a

further 80% interest in the Apex Claims by: (a) paying to the Owner $15,000 cash; (b) issuing 150,000

common shares to the Owner; and (c) incurring or funding $125,000 of exploration expenditures on the Apex

Claims within two years of the TSXV approval.

Closing of the Offering is subject to the TSXV approval and all securities issued under the private

placement offering will be subject to a statutory hold period of four months plus a day following the date of

closing.

Certain directors and officers of the Company may acquire units under the private placement. Any such

participation would be considered to be a “related party transaction” as defined under Multilateral Instrument

61-101 (“MI 61-101”). The transaction will be exempt from the formal valuation and minority shareholder

approval requirements of MI 61-101 as neither the fair market value of any units issued to or the consideration

#170- 422 Richards Street,

Vancouver, BC, Canada, V6B 2Z4

www.MineralHill.com

Tel :604-617-6794

Fax:604-568-9844

Email:[email protected]

2

paid by such persons will exceed 25% of the Company’s market capitalization. This private placement is subject

to regulatory approval.

ABOUT MINERAL HILL INDUSTRIES LTD

Mineral Hill is a publicly traded junior mining company focused on the acquisition, exploration and

development of mineral resource properties, with a primary objective of developing the Dot-Apex Claim Group

(“Apex Claims”) and the Master-ACE Claim Group (“ACE Claims”), located in south-western British

Columbia. The Apex Claims consist of contiguous claim cells totalling 2,406.13 hectares and the ACE Claims

totalling 695.09 hectares.

The Company seeks Safe Harbor

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

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

release.

This news release may contain forward -looking statements based on assumptions and judgments of

management regarding future events or results. Such statements are subject to a variety of risks and

uncertainties which could cause actual events or results to differ materially from those reflected in the forward-

looking statements. There is no assurance the private placement, property option or reinstatement of trading

referred to above will close on the terms as stated, or at all. The Company disclaims any intention or obligation

to revise or update such statements.

The securities which may be offered have not been, nor will be, registered under the United States Securities

Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons without

registration or applicable exemption from the registration requirement of such Act. This release does not

constitute an offer for sale of such securities in the United States of America.

FOR FURTHER INFORMATION CONTACT: Dieter Peter, President & CEO; Phone: (604) 617-6794