Mr. Chad Ulansky reports

CANTEX CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Further to the news release of April 17, 2023, announcing a private placement, Cantex Mine Development Corp. has closed the first tranche of the offering, and has received $1,268,500 by the issuance of 1,601,351 flow-through units and 2,112,500 non-flow-through units. FT units were issued at 37 cents per FT unit, and units were issued at 32 cents per unit. Each FT unit is composed of a flow-through share and one-half of a non-flow-through warrant, and each unit is composed of one non-flow-through share and one-half of a warrant. Each whole warrant entitles the holder to acquire one common share of the company at a price of 45 cents for a term of two years from closing.

Proceeds from the tranche will be used to finance the coming drill program on the company's North Rackla project in the Yukon and for general working capital. The company is looking forward to closing a second tranche at a later date of up to $5-million.

The company was charged $6,475 in finders' fees in connection with the tranche and issued 7,000 finders' warrants. The finders' warrants have the same terms and conditions as the warrants issued in the offering.

The securities issued in the offering are subject to a four-month hold period, expiring on Aug. 29, 2023.

0974052 B.C. Ltd., a company over which Dr. Charles Fipke, the chairman and a control person of the company, exercises control and direction, subscribed for 1,562,000 units and 1,351,351 FT units for a total subscription price of $1-million. Vernon Frolick, a director of the company, subscribed for 31,250 units for a total subscription price of $10,000. Both B.C. Ltd. and Mr. Frolick acquired the units and FT units for investment purposes. The offering and the acceptance of the subscription by B.C. Ltd. and Mr. Frolick were approved by unanimous resolution of the board of directors of the company with Dr. Fipke and Mr. Frolick declaring their interests in the resolution and abstaining from voting. There was no formal valuation of the company done in connection with the offering, nor has there been such a formal valuation in the past 24 months. The company relied upon the exemptions contained in Section 5.5(b) and 5.7(b) of Multilateral Instrument 61-101 to avoid the formal valuation and shareholder approval requirements of MI 61-101. For the purposes of Section 5.5(b), the company does not have any securities listed on any of the stock exchanges set out in Section 5.5(b), and for the purposes of Section 5.7(b), the exemption was available as the consideration paid for the units subscribed for by B.C. Ltd. and Mr. Frolick was less than $2.5-million.

We seek Safe Harbor.