Mr. Alfredo Plasencia reports

MEDALLION RESOURCES EXTENDS MATURITY OF UNSECURED PROMISSORY NOTES

The holders of Medallion Resources Ltd.'s $1.15-million (U.S.) principal amount unsecured promissory notes originally due Aug. 2, 2023 (see press release dated Aug. 4, 2022), have agreed to extend the maturity date to Oct. 31, 2023.

In light of recent market conditions and the company's decision to pursue financing alternatives other than listing on Nasdaq Capital Markets, the amended notes cancel the convertibility features and the issuance of warrants to purchase shares had the company completed a public offering on a United States national securities market and delisting from the TSX Venture Exchange prior to Aug. 2, 2023.

In consideration for the extension and cancellation of equity-related rights as mentioned herein, the company has agreed to pay the note holders a loan bonus of $100,000 (U.S.) capitalized in the notes on Aug. 2, 2023, and to increase the interest rate to 15 per cent per annum for the period from Aug. 2, 2023, to Oct. 31, 2023. The total amount due on Oct. 31, 2023, will be $1,356,531 (U.S.) ($1,795,000 at the current exchange rate).

The loan extension provides the company with additional time as it seeks to secure $5-million (U.S.) financing by Sept. 30, 2023 to fulfill its commitment under the technology license agreement with Purdue Research Foundation.

Alfredo Ramos Plasencia, chief executive officer, said, "We are in active discussion with potential financing sources seeking to secure sufficient funding to enable us to execute our strategic plan to provide commercial separation of magnet rare earths that we laid out in more detail in our press release dated March 30, 2023."

About Medallion Resources Ltd.

Medallion Resources has exclusively licensed patented displacement chromatography methodologies, developed by Purdue University from Purdue Research Foundation, to separate minerals including rare earth elements from all raw material feedstocks excluding coal sources and excluding recycled materials from manufacturing wastes and recyclates from battery and magnet sources. Separately, Medallion has developed a proprietary process and related business model to achieve low-cost extraction of rare earth elements from monazite, a phosphate mineral that is a common byproduct of heavy mineral sand operations.

Rare earth elements are critical inputs to electric and hybrid vehicles, robotics, electronics, imaging systems, wind turbines, and strategic defence systems. Medallion is committed to following best practices and accepted international standards in all aspects of mineral transportation, processing and the safe management of waste materials. Medallion utilizes life cycle assessment methodology to support investment and process decision making.

We seek Safe Harbor.