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Arctic Hunter Announces $250,000 Non-Brokered Private Placement

Financings

ARCTIC HUNTER ENERGY INC.

Suite 1610 - 675 West Hastings Street · Vancouver · British Columbia · V6B 1N2

Telephone: (604) 681-3131

NEWS RELEASE

January 8, 2018 TSX-V Trading Symbol: AHU

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ARCTIC HUNTER ANNOUNCES $250,000 NON-BROKERED PRIVATE PLACEMENT

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VANCOUVER, B.C. – Arct ic Hunter Energy Inc. (TSX-V: AHU) (“ Arctic Hunter ” or the

“Company”) announces a non-brokered private placement financing of 2,500,000 units (the “Units”) at

a price of CDN $0.10 per Unit to raise gross pro ceeds of up to CDN $250,000 (the “Offering”). Each

Unit will consist of one (1) comm on share and one (1) common share purchase warrant, each warrant

exercisable at a price of $0.15 per share for a period of two (2) years from the date of issuance. The

private placement is subject to approval from the TS X Venture Exchange and all of the securities issued

pursuant to the private placement will be subject to a four month hold pe riod from the date of issue in

accordance with applicable securities laws.

The Company has agreed to pay a finders’ fee to arm’s length parties for services rendered in respect of

the Offering. The finder’s fee will consist of a cash fee equal to 8% of the gross proceeds of the Offering

and finder’s warrants equal in number to 8% of the units sold under the Offering. Each finder’s warrant

will entitle the holder to acquire one common share of the Company at a price of $0.15 per share for a

period of two (2) years from the date of issuance.

The Company intends to use the proceeds of the Offe ring for any costs associated with the completion

of the San Javier Mill flotation plant, acquisition of associated assets, metallurgical testing, final

completion of corporate registration at the Foreign Investment Registrar, fi nal registration of the

Company before the Mining Director ate in Mexico City, and any outst anding legal, accounting costs

and general working capital.

In addition to other prospectus exemptions commonl y relied on in private placements, the Offering will

be available to existing shareholde rs of the Company who, as of the close of business on January 5,

2018, held common shares of the Company (and who c ontinue to hold such common shares as of the

closing date), pursuant to the prospectus exemption set out in BC Instrument 45-534 - Exemption From

Prospectus Requirement for Certain Trades to Existing Security Holders and in similar instruments in

other jurisdictions in Canada (the “ Existing Shareholder Exemption ”). The Existing Shareholder

Exemption limits a shareholder to a maximum inve stment of CAD$15,000 in a 12-month period unless

the shareholder has obtained advice regarding the suitabi lity of the investment and, if the shareholder is

resident in a jurisdiction of Canada , that advice has been obtained from a person that is registered as an

investment dealer in the jurisdiction. If the Comp any receives subscriptions from investors relying on

the Existing Shareholder Exemption exceeding the maximum Offering, the Company may adjust the

subscriptions received on a pro-rata basis.

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The Company will also make the Offering available to certain subscribers pursuant to BC Instrument

45-536 - Exemption From Prospectus Requirement for Certain Distributions Through an Investment

Dealer (the “Investment Dealer Exemption ”). In accordance with the re quirements of the Investment

Dealer Exemption, the Company confir ms that there is no material f act or material change about the

Company that has not been generally disclosed.

THE SAN JAVIER MILL - SONORA STATE, MEXICO

The Company has paid the sum of USD $250,000 and has successfully acquired a 30% interest in Real

de Rebeico Gold S.A. de C.V. (“Rebeico Gold”), wh ich owns an interest in a State owned 100 ton per

day flotation mill situated near the city of Herm osillo in Sonora State, Mexico. The formal option

agreement with Rebeico Gold of Sonora, Mexico allo ws Arctic Hunter to earn the initial 30 % interest

for USD $250,000 (earned and vested), and an additiona l 20% interest (for up to a 50% interest) in

Rebeico Gold for an additional USD $250,000. Rebeico Go ld holds the right to operate the strategically

located San Javier Mill and the right to receive its pro-rata production proceeds derived therefrom

pursuant to an assignment agreement between Rebeico and Exlporacion y Desarollo del Desierto, S.A de

C.V. (“EDDSA”) dated April 24, 2017. EDDSA holds the operating rights and the right to receive all

proceeds from the San Javier Mill, and the right to conduct ancillary activities on the project site

pursuant to a 10 year lease agreement between EDDSA and the state of Sonora, Mexico, dated February

24, 2015. The San Javier Mill Project site is located w ithin the heart of the prol ific Sierra Madre Gold

belt and mining district of northern Mexico and is easily accessed by paved highwa y from the City of

Hermosillo, Mexico. The San Javier Mill is a former working and operational State owned flotation mill

that is surrounded by a region that has had widespread historical mining, dating back from colonial

times through to the 21 st century. The Mill formerly serviced many of the working gold, copper and

silver mineral concessions and mines located in this mining region in the past.

ABOUT ARCTIC HUNTER – OIL AND GAS PRODUCTION & MINING PRODUCTION

The Company is a Canadian Oil & Gas exploration and mining resource development Company that is

now focused in developing its’ production capabil ities, obtaining potential fu ture production revenues,

discovering and advancing high grad e gold, silver and copper deposits and mining concessions situated

within this large mining district in Sonora, Mexico. The Company has now successfully acquired a 30%

interest in Rebeico Gold of Sonora, Mexico, and has been granted the option to earn up to a 50% interest

in Rebeico Gold. Rebeico Gold holds the right to operate the San Javier Mill, strategically located in the

Sierra Madre Gold Belt, and the right to receive production proceeds derived therefrom pursuant to an

assignment agreement dated April 24, 2017 between Rebeico Gold and Exploracion y Desarollo del

Desierto, S.A. de C.V (“EDDSA”). The Company is now strategically positioned, to identify and

capture all potential milling and direct-ship mining opportunities situated in the region. The Company

identifies, acquires and finances th e acquisition, exploration and development of mining and oil and gas

assets primarily situated in Western Canada, the Un ited States and Mexico. The Company is continually

reviewing future mining production and exploration opportunities, by identifyi ng low risk exploration

through selective acquisitions and development of mi ning, petroleum and natural gas resource assets

situated in these favorable resource jurisdictions.

The Company has qualified management and has Oil & Gas and Mining teams of professionals seasoned

in production, field exploration and drilling. The Company has the necessary manpower in place to

develop its natural resource properties and manage its production properties. The Company is committed

to minimizing risk through the selective acquisition, exploration and development of petroleum and

natural gas resource and mining assets.

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FOR FURTHER INFORMATION, PLEASE CONTACT:

Tim Coupland, President and CEO

Arctic Hunter Energy Inc.

Tel: (604) 681-3131

[email protected]

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

Policies of the TSX Ventur e Exchange) accepts respon sibility for the adequacy or accuracy of this

release.