Search Minerals Issues $367,562 Convertible Note to Indigenous Partner in Debt Settlement

Search Minerals Inc. (TSX.V: SMY) (OTC: SHCMF) has issued an unsecured convertible note totaling $367,562 to its Indigenous partner, the NunatuKavut Community Council, in full settlement of existing indebtedness under a prior note issued in October 2024, including accrued interest. According to interim CEO Jason Macintosh, the transaction does not provide new capital or cash proceeds but extends the company’s repayment obligations while consolidating existing debt. This move reflects continued support from the partner and the longstanding relationship tied to the company’s Newfoundland and Labrador projects.

The company is focused on finding and developing Critical Rare Earth Elements (CREE), Zirconium (Zr) and Hafnium (Hf) resources within the emerging Port Hope Simpson – St. Lewis CREE District of South-east Labrador. Search controls a belt 64 km long and 2 km wide that is road accessible, on tidewater, and located near 3 local communities. The company has completed a preliminary economic assessment report with resource estimates for FOXTROT and DEEP FOX, and is working on four exploration prospects along the belt: FOX MEADOW, SILVER FOX, FOX RUN and AWESOME FOX.

Search has continued to optimize its patented Direct Extraction Process technology with support from the Department of Energy and Mines, Government of Newfoundland and Labrador, and from the Atlantic Canada Opportunity Agency. The company has completed two pilot plant operations and produced highly purified mixed rare earth carbonate concentrate and mixed REO concentrate for separation and refining. The latest news and updates relating to SHCMF are available in the company’s newsroom at https://ibn.fm/SHCMF.

The convertible note issuance represents a strategic financial management decision that strengthens the partnership with the NunatuKavut Community Council while addressing existing obligations. This arrangement allows Search Minerals to maintain focus on its core exploration and development activities in Labrador without immediate cash outflow pressures. The relationship with Indigenous partners is particularly significant given the location of the company’s projects and the growing emphasis on meaningful Indigenous engagement in resource development projects across Canada.

For investors and stakeholders, this transaction demonstrates the company’s ability to manage its financial relationships while preserving operational continuity. The convertible note structure provides flexibility for both parties and underscores the mutual commitment to the long-term success of Search Minerals’ Labrador projects. As the company advances its exploration prospects and continues to develop its extraction technology, maintaining strong partnerships with local communities remains a critical component of its overall strategy in the region.