New Break Receives $2,000,520 from the Early Exercise of Warrants

Executive Summary

• New Break Resources completed the acceleration and full exercise of 15,796,000 common share purchase warrants, generating aggregate gross proceeds of $1,933,020 at $0.12 and $0.15 per share.
• An additional 337,500 warrants were exercised for $67,500, bringing total cash raised to approximately $2.0 M and increasing treasury balance to about $2.2 M.
• Post‑exercise, the company has 86,202,100 common shares outstanding; only 2,236,350 warrants remain outstanding, and a control person now holds 23.94% of the issued share capital.

Key Details

• Warrant Acceleration: 15,796,000 warrants accelerated per the “Acceleration Event” (CSE price ≥ $0.25 for five non‑consecutive days). Expiry date moved to 20 calendar days after notice (October 14 2025).
• Exercise Prices & Proceeds:
• 14,546,000 warrants exercised at $0.12 per share → $1,745,520 gross proceeds.
• 1,250,000 warrants exercised at $0.15 per share → $187,500 gross proceeds.
• 337,500 warrants (strike $0.20) exercised → $67,500 gross proceeds.
• Total Gross Proceeds: $1,933,020 (accelerated) + $67,500 = ≈ $2.0 M.
• Post‑Exercise Share Count: 86,202,100 common shares issued and outstanding.
• Remaining Warrants: 2,236,350 warrants outstanding: 736,350 at $0.20 and 1,500,000 at $0.25 per share.
• Related Party Transaction: Control persons John Ross and Patricia Quigley exercised 2,075,000 warrants at $0.12 and 1,000,000 at $0.15, representing a related‑party transaction exempted under MI 61‑101 (exceeds <25% of market cap). Their ownership now totals 23.94% of common shares.
• Hold Periods:
• 1,252,000 newly issued shares locked until October 28 2025.
• 6,188,000 newly issued shares locked until January 6 2026.
• Use of Proceeds: Not explicitly detailed; proceeds added to treasury for general corporate purposes and ongoing exploration activities on the Moray gold project and other assets.
• Regulatory Notice: Securities not registered under U.S. securities laws; offering limited to non‑U.S. persons.

Notable Quotes

(No direct quotes included in the release.)