Providence Gold Mines Inc. La Dama de Oro Gold & Financing Update

The news release dated January 9, 2026, provides an operational and financial update for the La Dama de Oro project in California. Key points include: - Completion of road repairs required after flooding in Southern California, restoring property access. - Increase and extension of a previously announced non-brokered private placement. - The financing is now aimed at raising $150,000 through the issuance of 3,000,000 units at $0.05 per unit. - Each unit includes one common share and one 24-month warrant exercisable at $0.05. - Proceeds are earmarked for general administration, sampling, and work related to a permitted 1,000-ton bulk sample.

The impact of this specific news is marginal but necessary for survival. - Operational: Restoring road access is a prerequisite for the bulk sample agreement with Easy Mining Company Ltd announced in December 2025. Without access, the 50/50 profit-sharing deal on the 1,000-ton sample was stalled. - Financial: The financing is extremely small ($150,000). While it provides a tiny runway, the company's financial state remains dire. As of September 30, 2025, the company had only $5,927 in cash and a working capital deficiency. - Dilution: Issuing units at $0.05 with a $0.05 warrant is highly dilutive and suggests a lack of leverage with investors. The warrant exercise price being equal to the share issue price provides an immediate "free look" for participants if the stock moves at all.

Providence Gold Mines Inc. is a junior exploration company focused on the La Dama de Oro gold-silver property in the Silver Mountain mining district, California. - Flagship Project: La Dama de Oro. - Status: Early-stage exploration. The property has historical production but no modern NI 43-101 compliant resource. - Recent Pivot: The company terminated its lease on the Tuolumne property in April 2025 after a massive $2.6 million impairment, shifting all focus to La Dama de Oro.