Hemlo Mining Announces Adoption of Shareholder Rights Plan

Core Viewpoint - Hemlo Mining Corp. has adopted a shareholder rights plan to protect against potential take-over bids and ensure fair treatment of all shareholders [1][2]. Summary by Sections Shareholder Rights Plan - The Rights Plan was approved by the Board and is effective as of February 9, 2026, with no specific take-over bid prompting its implementation [1][2]. - The plan aims to prevent "creeping bids" that could lead to the accumulation of over 20% of the Company's shares without a formal bid [2][3]. Rights Issuance - Each common share outstanding as of the effective time will have one right attached, and this will apply to shares issued after the Effective Date [3]. - Rights become exercisable if a person or group acquires 20% or more of the shares without complying with the "Permitted Bid" provisions, allowing existing rights holders to purchase additional shares at a discount [3]. Ratification and Duration - The Rights Plan must be ratified by shareholders within six months, with a recommendation for ratification expected at the next annual meeting in June 2026 [4][5]. - If ratified, the plan will be reconfirmed at annual meetings in 2029 and 2032, expiring after the 2035 annual meeting [4]. Company Background - Hemlo Mining recently acquired the Hemlo Gold Mine from Barrick Mining for up to US$1.1 billion, located 35 kilometers east of Marathon, Ontario, with a production history of approximately 25 million ounces of gold since 1985 [6]. - The Company aims to establish itself as a leading mid-tier gold producer in Canada, focusing on maximizing the value of the Hemlo Gold Mine and pursuing aggressive exploration [6].