On May 31, 2023, New Break Resources Ltd. closed the transaction. The company issued 3,338,000 flow-through shares at an issue price of CAD 0.15 per flow-through share for the gross proceeds of CAD 500,700. The company paid cash finder fee of CAD 12,915 and issued an aggregate of 51,000 finder warrants.

Each finder warrant is exercisable into one common share of the company at a price of CAD 0.15 for a period of twenty-four months. All securities issued pursuant to this private placement are subject to a statutory hold period of four months and one day expiring on October 1, 2023, in accordance with applicable Canadian Securities Laws. The completion of the Financing is subject to certain conditions including, but not limited to, the receipt of all required regulatory approvals including final approval of the Canadian Securities Exchange.

John Ross and Patricia Quigley invested for 1,350,000 common shares at an issue price of CAD 0.15 per share for gross proceeds of CAD 202,500 in the transaction, prior to the investment, the investor beneficially owned or exercised control or direction over 3,948,800 Shares and 187,500 common share purchase warrants, representing 9.21% and 9.61% of the outstanding Shares of the Issuer on an undiluted and partially diluted basis, respectively. After completion of the transaction, the investors beneficially owned or exercised control or direction over 5,298,800 Shares and 187,500 Warrants, representing 11.47% and 11.83% of the outstanding Shares of the Issuer on an undiluted and partially diluted basis, respectively.