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War Eagle Mining Completes Merger with Champagne Resources Limited

Mergers & Acquisitions

TSXV:WAR CUSIP. No. 933901209

WAR EAGLE MINING COMPLETES MERGER WITH

CHAMPAGNE RESOURCES LIMITED

Vancouver, British Columbia – February 13, 2018 - War Eagle Mining Company Inc. (TSXV - WAR)

(“War Eagle” or the “Company”) is pleased to announce the completion of the previously announced

amalgamation with Champagne Resources Limited (“Champagne”), a private Ontario company, pursuant to

which War Eagle has acquired all of the iss ued and outstanding common shares of Champagne. The

amalgamated company, which will be called “Champagne Re sources Limited”, will continue as a wholly-

owned subsidiary of War Eagle. The amalgam ation was overwhelmingly approved by Champagne

Shareholders at a special meeting held on February 8, 2018 by a vote of approximately 72% of the shares

outstanding, 100% in favour. There were no dissenting shareholders.

On closing of the amalgamation, 21,990,276 common shares of War Eagl e were issued to shareholders of

Champagne such that the existing s hareholders of War Eagle on the comp letion of the amalgamation own

50% of the outstanding shares of War Eagle and the former shareholders of Champagne own the remaining

50%. The outstanding share capital of War Eagle post the amalgamation is 43,980,552 common shares on a

non-diluted basis. Outstanding Champagne share purchas e warrants and options were converted into War

Eagle securities such that 6,086,045 share purc hase warrants and stock options to purchase 1,215,659

common shares were issued at exercise prices ranging from $0.13 to $0.86 with ex piry dates of August 9,

2019 for the share purchase warrants and May 5, 2021 in respect of the stock options.

Danièle Spethmann has been appointed as President and CEO of War Eagle. The board of directors of War

Eagle now comprises Paul Carroll, Executive Chairman, Malcolm Bu rke, William Hamilton, Danièle

Spethmann and Peter Winnell. On completion of the amalgamation, Donald Padgett resigned from the War

Eagle board of directors to accommodate incoming Champagne representatives.

The TSX Venture Exchange (“TSXV”) has granted final approval for War Eagle’s transaction with

Champagne. As a condition to final TSXV approval, War Eagle filed an updated National Instrument 43-101

technical report on Champagne’s 100% owned Goodfish Ki rana Project at Kirkland Lake which report has

been filed on War Eagle’s SEDAR profile.

Danièle Spethmann, newly-appointed President and CEO of War Eagle commented, “We are very pleased

to have completed this amalgamation which facilitates the advancement of explor ation activities on the

Company’s Goodfish Kirana property. With the amalgamat ion completed, we will now focus on exploration

work including assaying existing drill cores and undertaking airborne and ground geophysics programs

supported by the Ministry of No rthern Development and Mines’ Junior Exploration Assistance Program

(JEAP) initiative.”

About War Eagle

War Eagle is a TSX Venture Exchange listed company focused on the exploration of mineral resource

properties in northern Ontario with a focus on gold deposit s. The Company has a significant land position in

the Kirkland Lake Gold Camp five kilometres from the center of the Town of Ki rkland Lake. The Company’s

Goodfish Kirana Project is a 10 km long by 3 km wide land package with numerous historical gold showings

and significant structural breaks that has been under-explored with modern technology providing for an

exciting and unique discovery opportunity.

Danièle Spethmann, P. Geo., President and CEO of War E agle, is a “qualified person” within the meaning of

National Instrument 43-101 and has reviewed and approved the technical information in this news release.

TSXV:WAR CUSIP. No. 933901209

For additional information please contact:

War Eagle Mining Company Inc.

Danièle Spethmann, P.Geo

President and CEO

+1 (647) 344-3433

Malcolm Burke

Director

+ 1 (604) 220-2000

[email protected] | www.wareaglemining.com

This news release was prepared by management of War Eagle, which takes full responsibility for its contents

as it relates to War Eagle.

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 release.

Forward-Looking Statements: This press release contains forward-looking statements. Forward-looking statements are

frequently characterized by words such as "plan", "expect", "pro ject", "intend", "believe", “anticipate", "estimate", "may",

"will", "would", "potential", "proposed" and ot her similar words, or st atements that certain event s or conditions "may" or

"will" occur. The forward-looking st atements are based on certain key expec tations and assumptions made by the

Company. Although War Eagle believes that the expectations and assumptions on wh ich the forward-looking statements

are based are reasonable, undue reliance s hould not be placed on the forward-l ooking statements because War Eagle

can give no assurance that they will prove to be correc t. Since forward-looking stat ements address future events and

conditions, by their very nature they in volve inherent risks and uncertainties. Actual results could differ materially from

those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-

looking statements in this press rel ease are those set out in the Company’s management discussion and analysis of the

financial condition and results of operations for the year ended March 31, 2017 and the second quarter ended September

30, 2017, which are available at www.sedar.com. The forward-looking statements contained in this press release are

made as of the date her eof and War Eagle undertakes no obligation to updat e publicly or revise any forward-looking

statements or information, whet her as a result of new information, future events or otherwise, unless so required by

applicable securities laws.