Barksdale Completes Amendments to Convertible Debentures and Warrants Held by Delbrook Capital Funds

On January 20, 2026, Barksdale Resources Corp. announced the completion of amendments to its existing convertible debentures and warrants held by Delbrook Capital Funds. - Debenture Restructuring: The company amended the terms of $1.5 million and $3.0 million in secured convertible debentures. While the full maturity details were outlined in the January 7 announcement (extended to December 31, 2028), this release confirms the closing of these amendments. - Warrant Issuance/Repricing: The company issued 7,000,000 new common share purchase warrants with an exercise price of $0.09 per share, valid for 36 months. This price is effectively at or slightly below the current market price of $0.10. - Context: This follows the January 7, 2026 news that Delbrook agreed to extend maturities, preventing a near-term debt wall.

This news is Material - Neutral. While it averts an immediate liquidity crisis, it highlights the company's precarious financial position. - Liquidity Runway: The primary positive is the avoidance of default. Extending the debt maturity to 2028 provides a two-year window to advance the Sunnyside project without the immediate threat of repayment. - Dilution and Cap Structure: The issuance of warrants at $0.09 creates an immediate "ceiling" on the stock price. With the stock trading at $0.10, these warrants are essentially in-the-money. Investors should expect selling pressure as the stock attempts to rise, as warrant holders may exercise and sell to lock in small gains. - Dependency on Lender: The restructuring cements Delbrook Capital's control over the company's future. The company is effectively working for the debt holder at this stage until a significant discovery is made to re-rate the share price above the debt overhang.

• Company: Barksdale Resources Corp. is a base metal exploration company focused on the acquisition and development of prospective base metal projects in the United States.
• Flagship Project: The Sunnyside Project in Santa Cruz County, Arizona.
• Thesis: Sunnyside is believed to host the extension of the world-class carbonate replacement deposit (CRD) system found at South32’s adjacent Hermosa project (Taylor and Peake deposits).
• Development Status: The company has secured a 51% interest and is working to earn up to 67.5% through drilling and cash payments. Recent drilling (Hole SUN24-002B) identified high-grade "exhaust" mineralization, suggesting proximity to the main system.