FREDONIA ANNOUNCES CLOSING OF OVERSUBSCRIBED C$7M BEST EFFORTS PRIVATE PLACEMENT

On February 4, 2026, Fredonia Mining Inc. announced the closing of an oversubscribed "best efforts" private placement for gross proceeds of C$7,000,000. This is a significant increase from the original C$5,000,000 announced on January 23, 2026, and the subsequent upsized target of C$6,000,000 on January 26, 2026. The financing consisted of 17,500,000 units priced at C$0.40 per unit. Each unit includes one common share and one warrant exercisable at C$0.56 for 36 months. Insiders (directors and officers) participated in the round. Funds are earmarked for the El Dorado Monserrat (EDM) Project in Argentina and general working capital.

The impact is Material - Positive for three primary reasons: - Solvency Crisis Averted: Financial statements from June 30, 2025, showed a working capital deficit and only C$355,607 in cash against C$815,014 in liabilities. This C$7M injection is transformative for the company's survival. - Strong Market Demand: The upsizing from C$5M to C$7M indicates significant investor appetite at the C$0.40 level, which currently acts as a psychological floor for the stock. - Operational Resumption: The company previously had minimal cash to conduct meaningful exploration. This capital allows for a sustained drill program at EDM, the only way to create value in a junior explorer. - Dilution Trade-off: While the 17.5M new shares represent nearly 38% dilution to the existing 45.6M share base, the oversubscription suggests the market views the project potential as outweighing the share count increase.

Fredonia Mining Inc. is focused on gold and silver exploration in the Deseado Massif of Santa Cruz, Argentina. - Flagship Project: El Dorado Monserrat (EDM). - Location: Proximal to AngloGold Ashanti’s Cerro Vanguardia mine. - Status: Exploration stage with several known mineralized zones (Main Veins, Monserrat West). - Secondary Project: El Aguila (subject to a 1% Net Profit Interest royalty).