Search Minerals Announces Unsecured Convertible Note Issuance with Indigenous Partner to Settle Existing Indebtedness

Executive Summary

• Search Minerals has issued an unsecured convertible note to its Indigenous Partner, the NunatuKavut Community Council (NCC), in the amount of $367,562.
• The transaction is a non-cash refinancing used to fully settle existing indebtedness and accrued interest from a prior convertible note issued in October 2024.
• No new capital was raised through this transaction; it serves to consolidate obligations and extend repayment timelines.

Key Details

• Principal Amount: $367,562 (includes $67,562 in capitalized accrued and unpaid interest from the previous note).
• Interest Rate: 15% per annum.
• Maturity Date: One year from the date of acceptance by the TSX Venture Exchange (TSXV).
• Conversion Terms:
  • Principal amount is convertible into common shares at $0.50 per share.
  • Interest is convertible at a price permitted by TSXV policies.
• Hold Period: Shares issued upon conversion are subject to a statutory hold period of four months and one day.
• Cash Impact: No new funds were advanced to the Company; no net new capital was raised.
• Counterparty: NunatuKavut Community Council (NCC), identified as a non-arm's length party.
• Approval/Status: Approved by the Board of Directors on January 27, 2026; issuance is subject to TSXV acceptance.

Notable Quotes

• Jason Macintosh, Interim CEO: "The refinancing and consolidation of our existing obligations to NCC is indicative of the importance of our project to NCC, and to the Province of Newfoundland and Labrador."