Engineer Gold Announces Private Placement

• Event: Private Placement Financing announced May 8, 2026.
• Offering Size: Up to 10 million units for gross proceeds of up to $1.5 million CAD.
• Price: Units priced at $0.15 each (slight discount to recent market price of ~$0.16).
• Unit Composition: Each unit includes one common share and one share purchase warrant.
• Warrant Terms: Exercise price of $0.20, expiring three years from closing. Acceleration clause triggers if shares close at $0.35 for 10 consecutive days.
• Use of Proceeds: General working capital and exploration activities at the Engineer Gold Project in British Columbia.
• Hold Period: All securities subject to a statutory four-month-and-one-day hold period.

• Dilution Impact: The issuance of 10 million units represents approximately a 38% increase in the existing share count (based on 26.1 million shares outstanding per June 2025 presentation). This is significant dilution for a pre-revenue junior miner.
• Capital Sufficiency: $1.5 million is a modest raise relative to the scope of operations described, which includes multi-phase drilling, dewatering, and potential bulk sampling. It may only fund short-term exploration rather than full project development.
• Market Context: The financing price ($0.15) was slightly below the closing market price ($0.16), indicating a discount to clear the placement but not a distressed fire-sale.
• Strategic Value: No strategic investors (e.g., Sprott, Lundin) were named in this transaction. It is a non-brokered private placement likely targeting existing shareholders or small institutional investors.
• Progression Validation: The financing validates the April 2026 drilling plan announcement. Without capital, the planned summer program would be stalled; thus, it enables execution but does not fundamentally alter the project's risk profile.

• Company: Engineer Gold Mines Ltd. (TSX.V: EAU).
• Flagship Project: Engineer Gold Project in British Columbia's "Golden Triangle" (18,319 hectares).
• Project Status: Development / Bulk-sample permitting phase.
• Historical Production: 18,000 oz Au and 9,000 oz Ag averaging 39 g/t Au and 18 g/t Ag (1912–1927).
• Current Resources: Inferred resource of 41,000 tonnes @ 19.0 g/t Au at the Engineer Mine; TAG Property has Indicated/Inferred resources around 2.97 g/t Au.
• Infrastructure: Existing underground workings and a 30 t/d gravity-separation mill on site (expandable).
• Targets: Engineer Gold Mine, Wann River Prospect, TAG Property, Happy Sullivan Target.