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Kootenay Resources Announces Closing of First Tranche of Private Placement Financing

Financings

June 24, 2026

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR

DISSEMINATION IN THE UNITED STATES.

Kootenay Resources Announces Closing of First Tranche of Private Placement Financing

Kootenay Resources Inc. (TSXV: KT RI) (the “Company” or “Kootenay”) is pleased to

announce that, further to its news releases dated May 20, 2026, the Company ha s closed the first

tranche (the “First Tranche”) of its previously announced non-brokered private placement financing

for gross proceeds of $483,175 through the issuance of 2,085,000 non-flow through common shares

of units the Company (each, a “NFT Unit”) at a price of $0.09 per Unit and through the issuance of

2,686,590 flow-through common shares of units of the Company (each, a “FT Unit”) at a price of

$0.11 per FT Unit (the “Private Placement”).

All securities issued pursuant to the First Tranch e are subject to a hold period of four months and

one day from the date of issuance, expiring on October 24, 2026, in accordance with applicable

securities laws. In connection with the Private Placement, the Company paid cash finder’s fees of

$3,150 to certain eligible finders on a portion of the Privat e Placement, in ac cordance with the

policies of the TSX Venture Exchange.

Certain insiders of the Company participated in the Offering and subscribed for an aggregate of

265,000 NFT Units and an aggregate of 1,709,045 FT Units. Such participation constitutes a “related

party transaction” within the meaning of Multilate ral Instrument 61-101 – Protection of Minority

Security Holders in Special Transactions (“MI 61-101”). The Company is relying on the exemptions

from the formal valuation and mi nority shareholder approval require ments contained in sections

5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as ne ither the fair market va lue of the securities

issued to, nor the consideration paid by, such insiders exceeds 25% of the Company’s market

capitalization.

The Company intends to use the proceeds from the Private Placement for exploration activities on

its Moyie Anticline Project, other exploration properties (eligible for “Canadian exploration

expenses, which are flow-through mining expenditu res), working capital and general corporate

purposes.

None of the securities sold under the First Tranche have been or will be, registered under the United

States Securities Act of 1933, as am ended (the “U.S. Securities Act”), or any state securities laws,

and accordingly, may not be offered or sold within the United States except in compliance with the

registration requirements of the U.S. Securities Ac t and applicable state s ecurities requirements or

pursuant to exemptions therefrom. This press rel ease does not constitute an offer to sell or a

solicitation to buy any securities in any jurisdiction.

The First Tranche and any subsequent tranches re main subject to the fina l approval of the TSX

Venture Exchange.

Background

Kootenay Resources Inc’s stated mission is the discovery of a Tier One deposit and as such focuses

on those areas with demonstrated geologic potential for such deposits. The Company is exploring

two regions, in the southeastern portion of BC on its flagship Moyie Anticline property and in Central

BC with its generative program including several promising gold-si lver-copper properties in the

Nechako plateau of centra l British Columbia. Kootenay Res ources Inc. welcomes partners for

exploration projects and currently has one mineral property under option to Centerra Gold Inc., and

three Nechako projects under option to fellow junior explor ation company Rokmaster Resources

Corp.

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.

About Kootenay Resources Inc.

Kootenay is an exploration company actively engaged in the exploration and discovery mineral projects in

British Columbia, Canada. The Company was formed as a spin-out of Kootenay Silver Inc in which

prospective Canadian assets were transferred to Kootenay Resources Inc. The transaction was completed in

October 2021. Kootenay Silver currently holds 5.4 million common shares of Kootenay.

On behalf of the board of directors of the Company:

James McDonald,

Director

For additional information, please contact:

James McDonald, Director at 403-880-6016

Raj Kang, Director at 604-601-5650

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this news release has been prepared as at June 22, 2026. Certain statements in this news

release, referred to herein as "forward-looking statem ents", constitute "forward-looking statements" under

the provisions of Canadian provincial securities laws. These statements can be identified by the use of words

such as "expected", "may", "will" or similar terms.

Forward-looking statements are n ecessarily based upon a number of fa ctors and assumptions that, while

considered reasonable by Kootenay as of the date of su ch statements, are inherently subject to significant

business, economic and competitive uncertainties and con tingencies. Many fact ors, known and unknown,

could cause actual results to be materially different from those expressed or implied by such forward-looking

statements. Readers are cautioned not to place undu e reliance on these forward-looking statements, which

speak only as of the date made. Except as otherwi se required by law, Kootenay expressly disclaims any

obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any

change in Kootenay 's expectations or any change in events, conditions or circumstances on which any such

statement is based. More particularly, this news relea se contains statements concerning the anticipated

Private Placement. Accordingly, there is a risk that the Private Placement will not be completely sold, or the

Private Placement will be completed within the anticipated time or at all.

2026 number 03