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Muzhu announces Closing of First Tranche of Financing and Upsize of Private Placement Offering

Financings

MUZHU MINING ANNOUNCES CLOSING OF FIRST TRANCHE OF FINANCING AND UPSIZE OF PRIVATE

PLACEMENT OFFERING TO ADVANCE THE EVERETT TITANIUM PROJECT IN QUEBEC

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Vancouver, British Columbia – December 11, 2025 – Muzhu Mining Ltd. (CSE: MUZU) (OTCPK: MUZU.F) (FSE:Y33)

("Muzhu" or the “ Company”), is pleased to announce that the Company has closed the first tranche of its

previously announced non-brokered offering (the “Offering”) for gross proceeds of $250,000, pursuant to which

the company issued 3,125,000 flow-through units of the Company (the “FT Units”) at a price of $0.08 per FT Unit.

In addition, due to strong investor demand, the company has upsized the Offering from aggregate gross proceeds

of $750,000 to $1,000,000. The Offering shall consist of securities of the Company (the “Offered Securities”) for

aggregate gross proceeds to the Company of up to $1,000,000 in a combination of:

a) up to $500,000 in units of the Company (the “Units”) at a price of $0.06 per Unit. Each Unit will consist of

one common share of the Company (a “ Common Share”) and one Common Share purchase warrant (a

“Warrant”); and

b) up to $500,000 in flow-through units of the Company (the “FT Units”) at a price of $0.08 per FT Unit. Each

FT Unit will consist of one Common Share that will qualify as “flow -through shares” within the meaning

of subsection 66(15) of the Income Tax Act (Canada) (the “Tax Act”) and one Warrant.

Each Warrant shall entitle the holder thereof to purchase one Common Share (a “Warrant Share”) at an exercise

price of $0.10 per Warrant Share at any time up to 24 months following the closing of the Offering.

The net proceeds from the sale of Units will be used to fund the initial option payment for the Everett titanium

property in Quebec (the “Everett Property”), working capital and general corporate purposes. The gross proceeds

from the sale of FT Units will be used for surface exploration, metallurgical testing, and verification of historical

exploration work at the Everett Property. Upon permitting, diamond drilling is planned for selected locations in

the northern extremity of the Everett oxide body.

The entire gross proceeds from the issue and sale of the FT Units will be used for Canadian Exploration Expenses

(“CEE”) as “flow -through critical mineral mining expenditures” as such term is defined in the Tax Act (the

“Qualifying Expenditures”), which will be incurred on or before December 31, 2026 and renounced with an

effective date no later than December 31, 2025 to the initial purchasers of FT Units, and if the Qualifying

Expenditures are reduced by the Canada Revenue Agency, the Company w ill indemnify each FT Unit subscriber

for any additional taxes payable by such subscribers as a result of the Company’s failure to fully renounce the

Qualifying Expenditures as agreed.

A subsequent tranche of the Offering is anticipated to close on or about December 23, 2025 ("Closing"), or such

later date, or dates as the Company may determine. The Closing is subject to certain conditions including, but not

limited to, the receipt of all necessary regulatory and other approvals, including the approval of the Canadian

Securities Exchange (the “Exchange”).

The Company will pay finder’s fees to certain eligible finders (each, a “ Finder”) consisting of a cash fee equal to

8.0% of the aggregate gross proceeds of subscriptions facilitated by such Finder; and issue such number of finder's

warrants (a "Finder's Warrant") that is equal to up to 8.0% of the number of Offered Securities sourced by the

Finder, with each Finder's Warrant entitling the holder thereof to purchase one Unit at an exercise price of $0.06

for a period of 24 months following the Closing. All securities issued pursuant to the Offering will be subject to a

hold period of four months and one day from the date of Closing. The Offering and payment of finders' fees are

both subject to approval by the Exchange.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or

in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration

under the securi ties laws of such jurisdiction. The securities being offered have not been, nor will they be,

registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or

sold within the United States or to, or for the a ccount or benefit of, U.S. persons absent registration or an

applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.

ON BEHALF OF THE BOARD OF DIRECTORS

Dwayne Yaretz, CEO

Muzhu Mining Ltd.

Phone: 778-709-3398

Email: [email protected]

Website: www.muzhumining.ca

About Muzhu Mining Ltd.

Muzhu is a Canadian publicly traded exploration company focused on advancing the Everett titanium deposit in

Quebec. Muzhu also holds a 100 -per-cent interest in the Sleeping Giant South project, located in the Abitibi

greenstone belt, approximately 75 kilometres south of Matagami, Que. As well, Muzhu is currently assessing two

option agreements to acquire up to 80 per cent of the s ilver, zinc, lead XWG and LMM properties, and an

exploration agreement at the WLG mine, all located in Henan province, China.

For more information, please visit our website at www.muhzumining.ca.

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange)

accepts responsibility for the adequacy or accuracy of this release.

This news release contains certain statements which constitute forward-looking statements or information under

applicable Canadian securities laws, including statements relating to the expected size of the Offering, the

anticipated timing of closing the Offering, the ability of Muzhu to satisfy all conditions to closing the Offering, and

the expected use of proceeds from the Offering. Such forward-looking statements are subject to numerous known

and unknown risks, uncertainties and other factors, some of which are beyond Muzhu’s control, which could cause

actual results or events to differ materially from those stated, anticipated or implied in the forward -looking

statements. These risks and uncertainties include general economic and capital markets conditions, stock market

volatility, the ability of Muzhu to obtain necessary consents for the Offering, including the approval of the

Exchange, and the ability of Muzhu to complete the Offering on the terms expected or at all. Although Muzhu

believes that the forward-looking statements in this news release are reasonable, they are based on factors and

assumptions, based on currently available information, concerning future events, which may prove to be

inaccurate. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no

assurance can be provided as to future plans, operations, results, levels of activity or achievements. The forward-

looking statements contained in this news release are made as of the date of this news rele ase and, except as

required by applicable law, Muzhu does not undertake any obligation to publicly update or to revise any of the

forward-looking statements, whether as a result of new information, future events or otherwise.

The securities referred to in this news release have not been, nor will they be, registered under the United States

Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account

or benefit of, U.S. pe rsons absent U.S. registration or an applicable exemption from the U.S. registration

requirements. This news release does not constitute an offer for sale of securities, nor a solicitation for offers to

buy any securities.