VanadiumCorp Resource Gets Final Approval, Closes Private Placement Financing

Financing Closing Details

• VanadiumCorp Resource Inc. received final TSX Venture Exchange approval to close the second tranche of its non-brokered private placement financing on May 11, 2026.
• Total aggregate gross proceeds from the two-tranche financing amount to $635,000 CAD.
• The offering consisted of 5,291,666 units issued at $0.12 per unit (including the first tranche announced in April).
• Each unit comprises one common share and one common share purchase warrant.

Warrant Terms and Structure

• Warrants are exercisable at a price of $0.22 per share for two years from the date of issue.
• Acceleration clause applies if shares close at or above $0.50 for 10 consecutive trading days following the expiration of the 4-month hold period.
• No finder's fees were paid in connection with this financing.

Related Party Transaction

• Two investors became Insiders as a result of their participation, classified as a "related party transaction" under MI 61-101.
• The Company expects exemption from formal valuation and minority shareholder approval requirements because the transaction does not exceed 25% of the Company’s market capitalization.

Use of Proceeds

• Funds are designated for working capital and general corporate purposes to support ongoing operations and exploration activities.

Expected Nature of Announcement

• The financing was previously announced on April 6, 2026 ($700k target), filed for approval on May 7, 2026, and closed on May 11, 2026.
• As a closing of a previously disclosed transaction, the market impact is expected to be limited as the information was not new or unexpected at the time of release.

Capital Dilution Context

• The company has executed multiple financings in rapid succession throughout 2025 and early 2026 ($440k, $500k, $396k, $1.4M FT, $700k non-brokered).
• This specific raise of $635,000 is incremental but adds to the cumulative dilution pressure on existing shareholders given the share price has declined significantly from October 2025 highs ($0.34) to current levels ($0.10).

Cash Runway Implications

• While positive for immediate liquidity, $635,000 is a modest amount for a mining company with pilot plant ambitions and exploration programs across multiple properties (Lac Dore, Iron-T, Lac Laura).
• The cash extends the runway but does not materially alter the long-term capital requirements needed to advance projects to production or NI 43-101 resource definition.

Market Reaction Analysis

• Stock price closed at $0.10 on May 11, following a low of $0.09 in early May.
• The lack of significant upside reaction suggests the market views this financing as standard maintenance rather than value-accretive news, consistent with the "Routine" classification.

Flagship Project: Lac Dore Vanadium Project

• Location: 100%-owned property in Quebec.
• Historical Resource (2020): Measured & Indicated of 214.93 Mt @ 0.40% V2O5, 27.1% Fe, 7.1% TiO2; Inferred of 86.91 Mt @ 0.40% V2O5.
• Current Status: Resource model update underway to revise the historical estimate. Ambient Noise Tomography (ANT) survey completed in April 2026 identified a laterally continuous low-velocity corridor coinciding with surface mineralization.

Secondary Projects

• Iron-T Project: Vanadium-titanium source; compiling and re-evaluating historical data for AI-driven modeling. Historical inferred resource of 14.38 Mt @ 0.42% V2O5 (Genesis Zone).
• Lac Laura Property: Gold-focused property in the Chapais mining district; undergoing evaluation program to reinterpret legacy data.

Technology: VEPT™

• Status: Canadian patent application allowed (No. 3,032,329); IP protected in US, South Africa, Australia, India, and Canada.
• Testing: Active testing underway with an Australian partner; laboratory work at Electrochem Technologies & Materials Inc. facilities in Quebec.