Mosaic Minerals Announces Closing of Oversubscribed Offering and Acquisition of the Golden Island Project

Executive Summary

• Mosaic Minerals closed a private placement raising $700,700 by issuing 6,008,571 flow‑through units at $0.07 each and 7,320,000 regular units at $0.05 each – 29% above the original $500k target.
• The company completed the acquisition of the Golden Island Project for $150,000 cash plus 5 M common shares and 2.5 M warrants issued to three prospectors.
• Proceeds will fund eligible Canadian exploration expenses on Golden Island, supporting a fully funded winter drilling campaign; historical work suggests notable historic resources and recent surface sampling shows high‑grade gold occurrences.

Key Details

• Financing Structure
• 6,008,571 Flow‑Through Units @ C$0.07 each → $420,600 gross.
• 7,320,000 Regular Units @ C$0.05 each → $366,100 gross.
• Total gross proceeds: $700,700 (29% above the previously announced $500k target).
• Warrant Terms – Flow‑Through Units
• Each FT Unit includes one common share and one purchase warrant.
• Warrant exercise price: C$0.09 per share; exercisable for 12 months from issuance.
• Warrant Terms – Regular Units
• Each Unit includes one common share and one purchase warrant.
• Warrant exercise price: C$0.07 per share; exercisable for 24 months from issuance.
• Finder’s Compensation
• Cash fee: $20,000 (8% of gross proceeds).
• Finder’s warrants: 285,714 warrants @ $0.07 exercise price, 24‑month term.
• Holding Period – All securities subject to a four‑month and one‑day hold period ending April 30 2026.
• Use of Proceeds – To incur eligible Canadian exploration expenses on the Golden Island Project that qualify as flow‑through mining expenditures; these expenses will be renounced to FT Unit subscribers effective December 31 2026.
• Acquisition Details – Golden Island Project
• Cash paid: $150,000.
• Equity issued: 5,000,000 common shares and 2,500,000 warrants to three independent prospectors (per prior disclosed agreement).
• Property description: Accessible year‑round via Regional Road 113; historic Tiblemont Island gold mine (1930s) with existing infrastructure remnants.
• Historical Resources (non‑NI 43‑101) – Approx. 391,000 t at 2.8 g/t Au to ~60 m depth (GM41028).
• Historic Drilling (SOQUEM 1982) – Notable intercepts:
• Hole 82‑2: 5.6 m @ 2.99 g/t Au (main zone).
• Hole 82‑6: 5.2 m @ 2.01 g/t Au; 2.9 m @ 2.97 g/t Au.
• Hole 82‑8: 5.1 m @ 2.39 g/t Au.
• Hole 82‑5 (adjacent): 4.7 m @ 1.31 g/t Au.
• 2024 Surface Sampling Results (Fall 2024) – Highest grades:
• Sample O0292991: 101.19 g/t Au (outcrop, quartz vein).
• Sample O0292994: 56.69 g/t Au (granodiorite with vertical vein).
• Sample O0292988: 7.50 g/t Au (zone T, trench).
• Exploration Outlook – Company plans a fully funded winter drilling campaign on Golden Island; recent quartz‑vein occurrences suggest a gold‑bearing corridor aligned with a high‑amplitude magnetic anomaly.

Notable Quotes

“We are very happy to close this private placement with interest exceeding our initial expectations. Encouraged by the current structural strength of the gold market, we are now focusing 100% of our efforts on a fully funded drilling campaign to be carried out on the Golden Island property in the coming winter months,” – Jonathan Hamel, President & CEO, Mosaic Minerals

Qualified Person: Gilles Laverdière, P.Geo., Vice‑President Exploration (NI 43‑101 qualified).