Announces Private Placement of Convertible Promissory Notes

Canadian North Resources Inc. has authorized a private placement of Series 1 Convertible Promissory Notes with an aggregate principal of up to $2,000,000. The notes carry a 10% annual interest rate and are set to mature on July 31, 2027. Conversion is priced at $0.25 per common share, which could result in the issuance of up to 8,000,000 new shares.

The transaction is classified as a related party transaction involving a director and utilizes an exemption from minority shareholder approval under Multilateral Instrument 61-101. Proceeds from the offering are designated for working capital. This move follows the company’s FY2025 results, which reported only $12,055 in cash and a net loss of $711,866.

Canadian North Resources Inc. (CNRI) issued a non-earnings release focused on corporate financing, a move entirely expected given the company’s reported cash balance of $12,055 and a working capital deficit of $836,761. The financing involves the issuance of up to 8,000,000 shares, representing approximately 7% dilution to the existing 114.3M share base.

The conversion price of $0.25 is above the current trading price of $0.17 but below the late June/early July trading range of $0.18-$0.20, indicating a modest discount to recent market levels to attract capital. The transaction relies on a related party transaction exemption without minority shareholder approval, a structure that introduces governance concerns but is standard for small-cap financings under MI 61-101.

The news does not alter the fundamental project status or metallurgical outlook; it solely addresses a critical liquidity gap. This is not an earnings release, meaning there are no new results to assess. Prior-period context includes a FY2025 net loss of $711,866 and cash of $12,055.

Canadian North Resources Inc. is advancing its 100%-owned Ferguson Lake Project in the Kivalliq region of Nunavut, Canada. The project targets nickel, copper, cobalt, and PGMs (palladium, platinum, rhodium) within an emerging mining district near operating mines like Meadowbank and Meliadine.

An updated NI 43-101 resource estimate from March 2024 defines 66.1 million tonnes of indicated resources (0.47% Ni, 0.75% Cu, 0.05% Co, 1.10 g/t Pd) and 25.9 million tonnes of inferred resources.

Metallurgical testing has demonstrated exceptional bench-scale bioleaching results: - 99% nickel extraction - 98% cobalt extraction - 90.6% copper extraction

These extractions were achieved at low temperatures (52-65°C) without external heat or acid addition. The company has no production history and is transitioning from advanced exploration toward a pre-feasibility study.