Metalsource Mining Inc. completed a non-brokered private placement on December 31, 2025, issuing 3,400,000 units at $0.30 per unit for gross proceeds of $1,020,000. Each unit comprises one common share and one-half of a warrant, with each whole warrant exercisable at $0.40 for a two-year term. The units are subject to a four-month and one-day hold period under Canadian securities laws, and no finder’s fees were paid in connection with the offering.

Eric Sprott, through his vehicle 2176423 Ontario Ltd., subscribed for all 3,400,000 units for total consideration of $1,020,000. Prior to the closing, Sprott beneficially held or controlled 7,500,000 shares and 3,750,000 warrants, representing 12.7% of the outstanding shares on a non-diluted basis and 17.9% on a partially diluted basis. Post-closing, his holdings increased to 10,900,000 shares and 5,450,000 warrants, raising his non-diluted stake to 17.5% and partially diluted stake to 24.1%.

Following the private placement, Metalsource filed an early warning report with SEDAR+ to reflect the change in Sprott’s ownership. The report, available on the Metalsource profile at www.sedarplus.ca, details the increase in beneficial ownership and affirms that the securities are held for investment purposes. Sprott retains the option to acquire or dispose of additional securities in the future, depending on market conditions and strategic considerations.

Proceeds from the offering will advance exploration at the Silver Hill and Byrd-Pilot silver projects in North Carolina, with an emphasis on expanding Silver Hill’s resource potential. Metalsource will also continue development work on its Aruba manganese project in Botswana’s Kalahari Desert, covering 4,663 square kilometers, prospective for platinum group metals, gold, silver and manganese. Remaining funds will support general working capital requirements.