Puma shareholder Kinross increases interest to 14.8%

Executive Summary

• Puma Exploration Inc. announced that Kinross Gold Corp. has exercised its right under an Investor Rights Agreement (IRA) to increase its equity stake in Puma from 9.1% to 14.8% (undiluted) via a non-brokered private placement.
• Kinross agreed to purchase 12.5 million units at $0.16 per unit, generating gross proceeds of $2 million. The transaction is expected to close on or about December 24, 2025, subject to regulatory approvals.
• The release also details significant exploration progress at the Williams Brook project, including drilling results at the Lynx Gold Zone and scheduled 2026 drilling campaigns, alongside a $3-million fully financed program.

Key Details

• Transaction Structure: Non-brokered private placement subscription agreement entered into on Dec. 22, 2025.
• Investor: Kinross Gold Corp.
• Units Purchased: 12.5 million units.
• Price: $0.16 per unit.
• Gross Proceeds: $2,000,000.
• Post-Closing Stake: Kinross increases ownership from 9.1% to 14.8% (undiluted) and 17.4% (partially diluted).
• Securities Composition: Each unit consists of one common share and one-half common share purchase warrant.
• Warrant Terms:
  • Each warrant is exercisable to purchase one common share at $0.25 per share.
  • Expiry: 24 months following closing.
  • Acceleration Clause: Puma may accelerate warrant expiry to 30 days after notice if the TSX Venture Exchange closing price is $\ge$ $0.40 for 30 consecutive trading days.
• Hold Period: All securities subject to a statutory hold period of four months and one day.
• Use of Proceeds: Support exploration activities on Puma's projects (not optioned to Kinross) and general corporate/working capital requirements.
• Finders' Fees: None.
• Future Rights: Kinross retains the right to participate in future financings to maintain ownership or increase holding up to 19.9% of total issued and outstanding shares.
• Williams Brook Exploration Progress:
  • Inaugural year drilling exceeded 3,600 metres at the Lynx Gold Zone (LGZ).
  • LGZ extended 50 metres to the southwest; mineralization depth increased to 300 metres.
  • Assay results from this campaign are pending.
  • Surface exploration identified high-grade mineralization at the Lion Gold Zone and Jonpol property.
• 2026 Exploration Plans:
  • Q1 Program: 1,500 metres of drilling on Lion and Jaguar gold zones.
  • Fall Program: Potential second campaign testing new targets from summer surveys.
  • Joint Technical Committee is confirming targets for a $3-million fully financed program at Williams Brook.
• Post-Closing Holdings: Kinross will hold 29,550,577 common shares and 6.25 million warrants.

Notable Quotes

• "We are very pleased to have strong support from Kinross. Having just celebrated the first anniversary of our option agreement on Williams Brook, this increased commitment reflects Kinross's confidence in Puma and aligns with our objectives. These funds will enable Puma to focus on our McKenzie gold project and other assets in northern New Brunswick." — Marcel Robillard, President and CEO of Puma