Hertz Energy Inc. Announces Closing of First Tranche of LIFE and Flow-Through Offering for Gross Proceeds of $1,000,000 and Extension of Private Placement

Executive Summary

• Hertz Energy closed the first tranche of its non‑brokered private placement, issuing 2,330,000 units for total gross proceeds of $1,000,000.
• The offering comprised 1,650,000 LIFE Units at $0.40 each ($660,000) and 680,000 FT Units at $0.50 each ($340,000).
• Proceeds are earmarked for exploration work on the Craig Silver Project (Yukon) and the Lake George Antimony‑Tungsten‑Gold (“Tungmony”) Project (New Brunswick), as well as working capital.

Key Details

• Units Issued – LIFE Offering: 1,650,000 units @ $0.40 per unit → $660,000 gross proceeds.
• Units Issued – FT Offering: 680,000 flow‑through units @ $0.50 per unit → $340,000 gross proceeds.
• Total Gross Proceeds: $1,000,000.

Each LIFE Unit includes:
  - 1 common share
  - ½ common‑share purchase warrant (right to buy ½ additional common share at $0.60, exercisable up to 24 months after closing; no accelerated expiry).

Each FT Unit includes:
  - 1 flow‑through common share (eligible for Canadian tax incentives)
  - ½ common‑share purchase warrant on the same terms as LIFE warrants.

• Broker Compensation: Cash commission of $67,200 (7% of gross proceeds) paid to qualified finders/brokers; issuance of 119,700 broker warrants (each for ½ common share at $0.60 exercise price, exercisable for 24 months).

• Statutory Hold Periods:
    - LIFE Units: no hold period.
    - FT Units: subject to a 4‑month + 1‑day hold period per Canadian securities law.

• Use of Proceeds:
    - Exploration at the newly announced Crag and Rod properties, including the Craig silver‑lead‑zinc deposit (Craig Silver Project) in east‑central Yukon.
    - Exploration at the Lake George Antimony–Tungsten–Gold Project (Tungmony Project) in New Brunswick, surrounding the historic Lake George antimony mine.
    - General working capital.

• Project Highlights Mentioned:
    - Recent option agreement to acquire 100% of the Craig Silver Project, a high‑grade silver‑lead‑zinc corridor with multiple under‑explored zones (Discovery, Trent, Azure, Nadaleen, Scott).
    - Historical drilling at Craig has returned intervals >200 g/t Ag with significant Pb/Zn values (refer to Jan 28 2026 release).

• Extension: Company received an extension to close the remaining tranche(s) of the LIFE and FT offerings on or before May 11 2026.

• Regulatory Notice: Securities are not registered under U.S. securities laws; cannot be offered/sold in the United States absent exemption/registration.

Notable Quotes

(No direct CEO quotes were included in this release.)