Mr. Jeff Graw reports

LABRADOR RESOURCES LTD. ANNOUNCES REVISIONS TO THE PREVIOUSLY ANNOUNCED PROPOSED PRIVATE PLACEMENT, DEBT EXTENDING AGREEMENTS AND CREDIT FACILITY

Labrador Resources Ltd. has revised the terms to the proposed private placement and of the debt extension agreements previously announced (see Labrador news release dated Feb. 24, 2026) and an extension to its existing credit facility.

Proposed private placement

Labrador intends to proceed with the private placement of up to eight million common shares at a price of seven cents per common share for gross proceeds of up to $560,000. No warrants will be included in the proposed private placement.

The corporation may pay commissions of 6 per cent to qualified finders or agents, and may issue broker warrants for up to 6 per cent of the total number of common shares issued pursuant to the offering. Any broker warrant issued will entitle the holder to purchase a common share at a price of seven cents for a period of one year from the date of closing of the offering.

There is no minimum offering.

Proceeds from the offering will be used for general working capital purposes, debt servicing and expenses related to the offering.

The corporation will rely on the exemption for sales to purchasers advised by investment dealers. In that regard, the corporation confirms that there is no material fact or material change related to the corporation that has not been generally disclosed.

In addition to offering the common shares pursuant the exemption for sales to purchasers advised by investment dealers, the common shares are also being offered pursuant to other available prospectus exemptions, including sales to accredited investors. If subscriptions received for the offering based on all available exemptions exceed the maximum offering amount of $560,000, common shares will be allocated pro rata among all subscribers qualifying under all available exemptions.

The common shares and broker warrants that may be issued pursuant to the offering will be subject to a four-month-and-one-day hold period.

Completion of the offering remains subject to the approval of the TSX Venture Exchange.

Debt extending agreements

Labrador also announces that it has revised the terms of the debt extending agreements with the holders of a debenture, a note payable and a term loan that were announced in Labrador's Feb. 24, 2026, news release as follows:

1. None of the amounts owing will be convertible into common shares.
2. The maturity date of each instrument has been extended to Dec. 31, 2027.
3. An extension fee equal to 10 per cent of the amounts owing under each facility will be added to the principal amount owing as at Dec. 31, 2025.
4. The interest rate payable will increase to 12 per cent.

Credit facility

Labrador has negotiated an extension to the April 4, 2022, secured credit facility, such that advances under the credit facility may be made, up to the same $650,000 limit, until Dec. 31, 2027. No amounts are currently drawn under the credit facility. The credit facility interest rate has been increased to 12 per cent (from the current rate of 7 per cent). Other than the term extension and interest rate revision, all other terms of the credit facility remain unchanged.

About Labrador Resources Inc.

Labrador's common shares are listed on the TSX Venture Exchange under the symbol LTX.

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