Bonanza signs property agreements, cancels financings

Mr. Drew Burgess reports BONANZA MINING CORPORATION ANNOUNCES MINERAL PROPERTY PURCHASE AND SALE AGREEMENTS AND TERMINATES PREVIOUSLY-ANNOUNCED PRIVATE PLACEMENTS Bonanza Mining Corp. has negotiated two mineral property purchase and sale agreements regarding two mineral properties that are currently the subject of option agreements originally negotiated in 2018 and as subsequently amended. The first such agreement is with Christopher Graf, a director of the company, and is in respect of certain zinc-lead-silver mineral claims known as the Shag property, located in the Golden mining district of British Columbia in the southern Rockies, approximately 24 kilometres northeast of the town of Canal Flaps and 35 kilometres east of Radium Hot Springs. Pursuant to the original option agreement, the company completed the following: Made cash payments totalling $80,000 of the $110,000 provided for in the option agreement, representing a shortfall of $30,000; Issued 475,000 common shares in its capital stock of the 675,000 shares provided for in the option agreement, representing a shortfall of 200,000 shares; Incurred expenditures on the property totalling $517,000 of the $1-million in expenditures provided for in the option agreement, representing a shortfall of $483,000 in expenditures. The new agreement provides that the company will issue two million common shares to Mr. Graf and will have reserved in his favour a 3-per-cent net smelter return royalty on minerals produced from the property. The second such agreement is with Mr. Graf and with an individual who deals with the company on an arm's-length basis, and is in respect of certain zinc-lead-silver-copper mineral claims known as the Frog property, located in the Liard mining district of British Columbia, approximately 170 kilometres east of Imperial Metals-Newmont's Red Chris mine near Dease Lake, B.C., and about 70 kilometres east of the major Kutcho Creek copper-zinc massive sulphide project that is being developed by Capstone Mining Corp.'s subsidiary, Kutcho Copper Corp. Pursuant to the original option agreement, the company completed the following: Made cash payments totalling $75,000 of the $125,000 provided for in the option agreement, representing a shortfall of $50,000; Issued 475,000 common shares in its capital stock of the 675,000 shares provided for in the option agreement, representing a shortfall of 200,000 shares; Incurred expenditures on the property totalling $931,000 of the $1-million in expenditures provided for in the option agreement, representing a shortfall of $69,000 in expenditures. The new agreement provides that the company will issue a total of 2.2 million common shares to Mr. Graf and the arm's-length individual, and will have reserved in their favour a 3-per-cent net smelter return royalty on minerals produced from the property. Each of these mineral property purchase and sale agreements is subject to the company receiving formal acceptance from the TSX Venture Exchange therefor. Further information in this regard will be disseminated as it becomes available. The company also announces that it has terminated the unit private placement at a price of 2.5 cents per unit and the flow-through unit private placement at a price of three cents per flow-through unit, as previously announced on Nov. 14, 2025. The company is currently in the process of negotiating a replacement working capital private placement, with further information in that regard to be disseminated as it becomes available.