Search Minerals Closes Initial Tranche of Non-Brokered Private Placement Financing and Announces Upsized Unit Financing

Search Minerals Inc. closed the initial tranche of its non-brokered private placement on August 7, 2026, raising C$615,000 in gross proceeds. The company upsized the standard Unit Financing by C$100,000 due to investor demand, bringing the total potential size to C$300,000. The initial tranche consisted of 851,064 standard units at C$0.235 (generating C$200,000) and 1,537,037 critical mineral flow-through units at C$0.27 (generating C$415,000). Proceeds are allocated to eligible Canadian exploration expenses for the Foxtrot and Deep Fox projects (flow-through) and working capital/general corporate purposes (standard units). Each unit includes a warrant exercisable at C$0.35 per share, valid for 36 months from issuance. Petra Holdings Company Inc., controlled by director Michael Pearson, participated in the initial tranche. The company expects to close the remaining C$485,000 in subsequent tranches. Securities are subject to a hold period expiring December 7, 2026.

Search Minerals Inc. (SMY) is following up on its July 13, 2026 announcement of a C$1,000,000 private placement, with the closing of the initial tranche expected as an incremental event. The C$615,000 raise provides immediate liquidity but does not resolve the company's structural cash burn or the C$6.17M working capital deficiency reported as of May 31, 2026.

The pricing at C$0.235/C$0.27 trades at a discount to the recent market range of $0.20-$0.24, indicating a need to incentivize capital despite the stated "strong demand." The dilution from this tranche, consisting of approximately 2.4M new shares and warrants on a fully diluted basis, is material but standard for pre-revenue explorers. The news extends the operational runway and confirms continued investor and partner participation, though it does not alter the fundamental going-concern risk profile.

Search Minerals Inc. (SMY) is a Canadian mineral exploration and development company focused on the Foxtrot and Deep Fox Critical Rare Earth Element (CREE) projects in southeastern Labrador. The project sits within the 63-kilometre-long Fox Harbour Volcanic Belt, a road-accessible, tidewater district.

The company has completed a Preliminary Economic Assessment (PEA) indicating a post-tax NPV8 of C$1.31 billion and a post-tax IRR of 41.5%, based on a 26+ year mine life. Operations are in the exploration and pre-feasibility stage. The company utilizes a patented Direct Extraction Process, validated through two pilot plant campaigns.

Near-term milestones include a demonstration plant (target Q2 2027) and a feasibility study (target Q2 2028), with commercial production targeted around 2030.