Mr. Patrick Cole reports

ARMADA MERCANTILE LTD. ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Armada Mercantile Ltd. has completed a non-brokered private placement pursuant to which it will issue common shares to raise gross proceeds of $250,000 (U.S.). The private placement consisted of 757,575 common shares of the company, representing approximately 3.9 per cent of the 19,104,409 million common shares issued and outstanding prior to the completion of the private placement, at a price of 33 U.S. cents per common share, which is equivalent to the closing price of the company's common shares on the Canadian Securities Exchange on March 21, 2024. Following completion of the private placement, the company has 19,861,984 common shares issued and outstanding.

All common shares issued in the private placement are subject to a hold period in Canada of four months and one day from the closing of the private placement. All common shares issued in the United States will be subject to resale restrictions under U.S. federal and state securities laws.

The chief executive officer participated for $250,000 (U.S.) and, as such, is a related party of the company. The private placement was a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company is relying upon exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 on the basis that the fair market value of the shares issued to such shareholders does not exceed 25 per cent of the company's current market capitalization. Pursuant to CSE policy, the company shall not issue the common shares until five business days after March 21, 2024.

We seek Safe Harbor.