Search Minerals Completes Convertible Loan Transaction

Core Points - Search Minerals Inc. has closed a convertible loan transaction with Petra Holdings Company Inc. for a total principal amount of $3,000,000 [1] - The initial drawdown of the loan is $750,000, with the remaining $2,250,000 available for future drawdowns [1][2] - The loan proceeds will be utilized for the development of the Foxtrot and Deep Fox mining projects, including equipment acquisition, site operations, and general working capital [2] Loan Details - The outstanding principal amount of the loan is due on November 12, 2028, with an interest rate of 15% per annum, payable quarterly [3] - The loan can be converted into common shares at Petra's option, with a conversion price of $0.50 per share for the first year, and thereafter based on the average closing price [4] - Any shares issued upon conversion will be subject to a hold period ending on March 13, 2026 [4] Governance and Information Rights - Petra is entitled to nominate a director, Michael Pearson, as long as there is at least $500,000 principal amount outstanding or Petra owns at least 5% of the common shares [5] - The company will provide Petra with copies of all continuous disclosure documents filed on SEDAR+ [6] Company Overview - Search Minerals focuses on exploring and developing Critical Rare Earth Elements (CREE) and transition metals in the Port Hope Simpson - St. Lewis CREE District of South-East Labrador [7] - The company controls two deposits (Foxtrot and Deep Fox) and several other CREE prospects along a 64-kilometer belt [7][8]