Kootenay Resources Announces Closing of First Tranche of Private Placement Financing

Executive Summary

• Kootenay Resources Inc. has closed the first tranche of its previously announced non-brokered private placement financing.
• The tranche generated gross proceeds of $483,175 through the issuance of 2,085,000 non-flow-through units and 2,686,590 flow-through units.
• Proceeds will be allocated to exploration activities on the Moyie Anticline Project and other properties, working capital, and general corporate purposes.

Key Details

• Gross proceeds: $483,175
• Non-flow-through (NFT) Units issued: 2,085,000 at $0.09 per unit
• Flow-through (FT) Units issued: 2,686,590 at $0.11 per unit
• Hold period: 4 months and 1 day from issuance, expiring October 24, 2026
• Finder's fees: $3,150 paid in cash to eligible finders
• Insider participation: Insiders subscribed to 265,000 NFT Units and 1,709,045 FT Units, constituting a related party transaction under MI 61-101
• Use of proceeds: Exploration on Moyie Anticline Project, other exploration properties (eligible for Canadian exploration expenses/flow-through mining expenditures), working capital, and general corporate purposes
• Regulatory status: Subject to final approval of the TSX Venture Exchange; securities not registered under the U.S. Securities Act of 1933