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Red Pine Closes C$11,000,358 “Bought Deal” Private Placement

Red Pine Exploration Inc. is pleased to announce that it has closed its previously announced “bought deal” private placement offering for gross proceeds of C$11,000,358, including the exercise in full of the Underwriters’ Option (as defined in the press release of the Company dated September 5, 2024). The Offering consisted of

  1. 33,336,000 common shares of the Company at a price of C$0.090 per Non-FT Share,
  2. 28,572,000 tranche 1 flow-through common shares  of the Company at a price of C$0.105 per Tranche 1 FT Share, and
  3. 39,683,000 tranche 2 flow-through common shares (the “Tranche 2 FT Shares” and together with the Non-FT Shares and Tranche 1 FT Shares, the “Offered Shares”) of the Company at a price of C$0.126 per Tranche 2 FT Share.

The Offering was conducted on a “bought deal” basis by a syndicate of underwriters led by Haywood Securities Inc. as co-lead underwriter and sole bookrunner, and including Research Capital Corporation, as co-lead underwriter (together with Haywood, the “Underwriters”).

The gross proceeds from the sale of Tranche 1 FT Shares and Tranche 2 FT Shares will be used by the Company to incur eligible “Canadian exploration expenses” that will qualify as “flow-through mining expenditures” as such terms are defined in the Income Tax Act (Canada) and “eligible Ontario exploration expenditures” as defined in the Taxation Act, 2007 (Ontario) (collectively, the “Qualifying Expenditures”) related to the Company’s projects in Ontario. All Qualifying Expenditures will be renounced in favour of the subscribers of the Tranche 1 FT Shares and Tranche 2 FT Shares effective December 31, 2024. The net proceeds from the sale of Non-FT Shares will be used by the Company for general working capital and corporate purposes, and for exploration at the Wawa Gold Project in Ontario.

In consideration for their services, the Underwriters received a cash commission equal to 6.0% of the gross proceeds from the Offering and that number of non-transferable compensation options (the “Compensation Options”) as is equal to 6.0% of the aggregate number of Offered Shares sold under the Offering. Each Compensation Option is exercisable to acquire one common share of the Company at a price equal to C$0.090 for a period of 24 months from the closing date of the Offering.

The Offering was made by way of private placement in Canada. The securities issued under the Offering are subject to a hold period in Canada expiring four months and one day from the closing date of the Offering. The Offering is subject to final acceptance of the TSX Venture Exchange.

Pursuant to the Investor Rights Agreement between the Company and Alamos Gold Inc. (“Alamos”) dated December 20, 2019, Alamos has exercised its right to maintain its pro rata ownership interest of the Company’s common shares on a partially diluted basis, purchasing 13,763,530 Non-FT Shares at a price of C$0.09 per share for a total purchase price of C$1,238,717.70 (the “Alamos Transaction”). Prior to the closing of the Alamos Transaction, Alamos held 25,837,536 common shares and no other securities of Red Pine, representing a securityholding percentage of approximately 13.55%, on an undiluted basis. Following the closing of the Alamos Transaction, Alamos has beneficial ownership of, or control and direction over, 39,601,066 common shares of Red Pine, representing a securityholding percentage of approximately 13.55%, on an undiluted basis. Alamos acquired the Non-FT Shares for investment purposes, which investment will be evaluated and may be increased or decreased from time to time at Alamos’ discretion. A copy of Alamos’ early warning report will be available on Red Pine’s SEDAR+ profile available at www.sedarplus.ca or can be requested by contacting Scott K. Parsons, Senior Vice President, Corporate Development and Investor Relations, at [email protected], 416-368-9932 (ext. 5439) or by mail at Brookfield Place, 181 Bay Street, Suite 3910, Toronto, Ontario M5J 2T3. Please see the news release of the Company dated December 31, 2019 for further information in respect of the Investor Rights Agreement.

The purchase of securities by certain insiders of the Company constitutes a “related party transaction” within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such insider participation. The Company did not file a material change report more than 21 days before the closing of the Offering because the details of the insider participation were not finalized until closer to the closing and the Company wished to close the Offering as soon as practicable for sound business reasons.

The Offered Shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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