Hispania Resources Inc. Announces Financial Update

The news release dated December 22, 2025, details a comprehensive financial restructuring. Key actions include: - Management and team members voluntarily cancelled over $1.19 million in accrued fees and payables. - Completion of a shares-for-debt transaction totaling $666,062 (6,660,620 shares at $0.10 per share) to settle debt with insiders and consultants. - Closing of an equity financing totaling $875,000. - Total balance sheet improvement of approximately $2.7 million. - CEO Norm Brewster cited improved commodity prices (copper, zinc, tin, tungsten, silver) as a catalyst for these financial moves to support projects in Spain.

This update is Material - Positive because it addresses a looming insolvency crisis. Reviewing the September 30, 2025, interim financials, the company had a working capital deficiency and an equity deficiency of over $2 million. - Debt Reduction: Eliminating $1.86 million in liabilities (cancellation + conversion) significantly reduces the "Due to Related Parties" overhang, which stood at $1.96 million in Q3 2025. - Dilution: While the shares-for-debt was completed at $0.10 (above the current $0.09 market price), the issuance of 6.66 million shares plus the shares from the $875k financing significantly increases the share count from the 58.5 million reported in September. - Credibility: Management's voluntary cancellation of $1.19 million in fees is a rare "skin-in-the-game" move that demonstrates a commitment to company survival rather than self-enrichment.

Hispania Resources focuses on base and specialty metals in Spain. - Flagship Project: Otero (Copper/Zinc). - Other Assets: Lumbrales (Tin), Puebla de la Reina (Copper/Zinc), and Herrerias (Royalty/Investigation). - Status: The company is in the early exploration stage. Most property acquisitions were pending final Spanish mining authority transfers as of the last audited statements.