iMetal Resources Announces Flow-Through Financing

On December 8, 2025, iMetal Resources Inc. announced a non-brokered private placement to raise up to CAD $520,000 through the sale of 4,000,000 flow-through (FT) units at a price of $0.13 per unit. Each FT unit consists of one flow-through common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable at $0.20 for a period of 24 months from the date of issue. The proceeds from this financing are specifically earmarked to conduct exploration on the Company's Gowganda West Property in Ontario, Canada. The financing is subject to exchange approval and has a four-month-and-one-day hold period.

This announced flow-through financing is a necessary, albeit routine, event for iMetal Resources. It directly addresses the company's ongoing need for capital to fund its exploration activities, specifically at the flagship Gowganda West project.

In the context of previous news: * The company recently completed its 2025 Phase I drilling program at Gowganda West (announced 2025-11-27), with assays pending. This new financing is for further exploration, indicating a continued commitment to the project and a need for funds beyond what was raised for the recently completed program. * iMetal's financial statements show a consistent reliance on private placements to fund operations. The audited annual statements (May 31, 2025) reported cash of $157,878 and a net loss of $1.11 million for the year. The most recent interim statements (August 31, 2025) showed cash increased to $704,298, reflecting the closing of two significant private placements in July ($1.52 million at $0.10) and September ($1.12 million at $0.105), which brought in approximately $2.64 million in gross proceeds. However, as of August 31, 2025, the company's current liabilities, including accounts payable ($915,573) and due to related parties ($165,658), totaled approximately $1.08 million, exceeding its cash balance. This indicates the company's cash position is precarious and new capital is consistently required to meet obligations and fund operations. * The unit price of $0.13 for this flow-through financing is slightly higher than the $0.10 and $0.105 prices of the large private placements closed in July and September 2025. This is a modest positive, suggesting that the market (or at least the specific investors in this FT offering) is willing to pay a slightly higher premium for FT shares, likely due to the tax benefits associated with flow-through shares. * The financing, while enabling continued exploration, also leads to further dilution for existing shareholders. The 4 million new shares represent approximately 11% dilution based on the current issued share count of ~36.15 million shares. The 2 million new warrants (half-warrant per unit) add to the substantial pool of outstanding warrants, posing a significant overhang if the share price were to increase above the $0.20 exercise price.

Overall, the news is positive in that it ensures the company can continue its core exploration activities at Gowganda West, a critical function for a junior explorer. However, it also underscores the company's persistent need for external financing due to a high cash burn rate and a weak balance sheet where current liabilities frequently outstrip cash reserves. The materiality is routine because capital raises are a standard part of life for exploration companies, and this raise, while helpful, is not transformative given the company's overall financial situation and the modest amount being sought relative to its ongoing capital requirements.

iMetal Resources Inc. is a Canadian exploration company primarily focused on its Gowganda West Property, a gold-prospective project located in the Shining Tree Camp of the southern Abitibi greenstone gold belt in Ontario, approximately 100 kilometers south-southeast of Timmins. The company's strategy involves testing discovery zones along strike and dip, and exploring for additional bands of mineralization. The project is contiguous with McFarlane Lake Mining Ltd.'s Juby deposits and the Knight project (Orefinders Resources Inc. and Agnico Eagle Mines Ltd. strategic partnership), suggesting regional prospectivity.

In addition to gold exploration, iMetal Resources is in the process of diversifying into critical minerals. It has signed a Letter of Intent (LOI) to acquire a 100% interest in the Cemernica mining concession in Bosnia and Herzegovina, which hosts a historical antimony-silver-zinc deposit. This move aims to capitalize on the growing strategic importance of antimony as a critical mineral.

The company is an early-stage explorer, relying on capital raises to fund its geological programs and general corporate expenses.