Search Minerals Inc. Settles $799,550 in Debt Through Share Issuances to Strengthen Balance Sheet

Search Minerals Inc. (TSX.V: SMY) (OTC: SHCMF) has entered into agreements to settle an aggregate $395,496 in outstanding indebtedness through the issuance of 790,992 common shares at a deemed price of $0.50 per share. This transaction preserves cash and strengthens the company's balance sheet, with the shares subject to a four-month-and-one-day statutory hold period and TSX Venture Exchange approval. The company also confirmed it has received TSX Venture Exchange approval to settle an additional $404,054 in debt owed to LeadFX through the issuance of 808,107 common shares issued Dec. 1, 2025, which are subject to a four-month hold period, fully extinguishing that obligation.

The total debt settlement of $799,550 through share issuances represents a strategic financial move that reduces the company's liabilities while maintaining operational capital for its exploration activities. This approach allows Search Minerals to conserve cash resources that can be redirected toward advancing its critical rare earth elements projects in Labrador. The company's focus on exploring for and developing Critical Rare Earths Elements (CREE) as well as transition metals Zirconium (Zr) and Hafnium (Hf) within the emerging Port Hope Simpson – St. Lewis CREE District of South-East Labrador requires substantial capital investment, making debt reduction through non-cash means particularly valuable.

Search Minerals controls two deposits (Foxtrot and Deep Fox), two drill ready prospects (Fox Meadow and Silver Fox) and numerous other CREE prospects, including Fox Valley, Foxy Lady and Awesome Fox, along a 64 kilometre long belt forming a CREE District in Labrador. The company also controls additional CREE assets in the Red Wine CREE District of central Labrador, including the drill ready Two Tom Lake CREE-Be-Nb deposit, the Mann #1 CREE-Nb-Be prospect and Merlot CREE Prospect. These assets represent significant potential value in the growing critical minerals sector, where rare earth elements are essential for various technologies including electric vehicles, renewable energy systems, and defense applications.

The debt settlement transactions come at a time when global demand for critical minerals continues to grow, particularly as nations seek to secure supply chains for materials essential to the clean energy transition. By strengthening its balance sheet through these share-based debt settlements, Search Minerals positions itself to better capitalize on opportunities within the critical minerals sector. The company's latest news and updates relating to SHCMF are available in the company's newsroom at https://ibn.fm/SHCMF, while the full press release can be viewed at https://ibn.fm/yoqN2. These financial maneuvers demonstrate the company's commitment to prudent capital management while pursuing its strategic objectives in the critical minerals space.