Mr. Murray Nye reports

DEMESNE ANNOUNCES CLOSING OF FOURTH AND FINAL TRANCHE OF PRIVATE PLACEMENT FINANCING AND ADDITIONAL CORPORATE DEVELOPMENTS

Demesne Resources Ltd. has completed the fourth and final tranche of its previously announced non-brokered private placement financing. Pursuant to the fourth tranche, the company issued 1,740,884 common shares of the company at a price of 25 cents per common share for gross proceeds of approximately $435,221.

The company received gross proceeds of approximately $2,010,622 under the oversubscribed offering across all tranches.

In connection with the fourth tranche, the company paid finders' fees to eligible finders consisting of $11,200 in cash and 44,800 common share purchase warrants. Each finder's warrant is exercisable to acquire one common share of capital of the company at an exercise price of 25 cents per common share for a period of 12-months.

The company will use the net proceeds from the offering to finance certain payments pursuant to an option agreement in connection with the IMA mine project, certain payments pursuant to an option agreement in connection with the Star project, work-program-related expenses, marketing and corporate development, and for general working capital purposes. All securities issued in connection with the fourth tranche are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

Additional corporate developments

The company also announces, in accordance with Canadian Securities Exchange policies, that it has entered into a marketing agency agreement with an arm's-length firm, Global One Media Ltd. to provide, among other things, social media management, marketing and distribution services to the company. The marketing agreement has an initial term of six months that began on Nov. 1, 2024, and the company will pay Global One a monthly retainer fee of $3,700 (U.S.), excluding any spending on advertisements. Global One Media does not have any interest, directly or indirectly, in the company or its securities, or any right or intent to acquire such an interest.

The company has also entered into an advertising agreement with Gold Standard Media LLC (GSM) to provide, among other things, landing pages, digital marketing, e-mail marketing and influencer marketing. The advertising agreement has a term of six months that will begin on Jan. 27, 2025, and the company will pay GSM a total $400,000 (U.S.) and has granted 850,000 stock options. Either party has the right to terminate this to advertising agreement at any time.

About Demesne Resources Ltd.

Demesne Resources is a British Columbia-based company involved in the acquisition and exploration of magnetite mineral properties. The company's Star project consists of five contiguous mineral titles covering an area of approximately 4,615.75 hectares located in the Skeena mining division, British Columbia, Canada. The company has entered into an option agreement pursuant to which it is entitled to earn an undivided 100-per-cent interest in the Star project. Demesne has also entered into an option agreement, pursuant to which it can acquire a 100-per-cent interest (subject to a 2-per-cent royalty) in and to the IMA mine project, a past-producing underground tungsten mine situated on 22 patented claims located in east-central Idaho, United States.

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