Northern Lights Completes Shares for Debt Settlement

• Northern Lights Resources Corp. completed a shares-for-debt settlement on April 24, 2026.
• Total debt extinguished was $195,600 CAD.
• Issuance of 1,630,000 common shares at a deemed price of $0.12 per share.
• Insiders participated in the settlement for $21,600 (representing 180,000 shares).
• All settlement shares are subject to a four-month and one-day statutory hold period.
• The transaction was announced previously on April 9, 2026, as part of a broader financing strategy involving the sale of a Medicine Springs royalty for $2.2 million USD.

• Confirmation of Known Terms: The news confirms the closing of a debt settlement announced on April 9, 2026. No new terms or surprises were introduced in this release compared to the prior announcement.
• Dilution Impact: Issuance of 1.63 million shares represents dilution but is priced at the current market rate ($0.12), indicating fair value rather than a discount. Given the company recently raised $2.2 million USD from royalty sales and $400,000 CAD via private placement, this debt reduction is minor relative to total capital raised.
• Balance Sheet Health: Extinguishing $195,600 of liability improves net working capital and reduces interest/obligation burdens, though the absolute value is small compared to cash reserves from the royalty sale.
• Insider Confidence: Insider participation ($21,600) signals management confidence in the company's trajectory but constitutes a related party transaction exempted under MI 61-101 due to size thresholds.
• Market Reaction Expectation: As the terms were public on April 9 and execution is now complete, the market likely priced this in previously. The news serves as risk mitigation (removing uncertainty) rather than value creation.

• Flagship Projects: Pup Copper Project (Yukon), Horetzky Copper Project (BC), Secret Pass Gold Project (Arizona).
• Medicine Springs Project: Previously held 1% NSR royalty in Nevada; sold to Torex Gold Resources Inc. for $2.2 million USD, retaining no further interest.
• Pup Project Status: Petal Zone advanced to drill-decision status with soil anomalies up to 2,962.9 ppm Cu and grab samples up to 3.799% Cu.
• Geological Setting: Pup located in Yukon Tanana Terrane (Cu-Au porphyry/VHMS potential); Secret Pass in historic Oatman-Katherine gold district.