Mr. Sean Kingsley reports

GOLD HUNTER ANNOUNCES INTENTION FOR SHARE DISTRIBUTION FOLLOWING TRANSACTION WITH FIREFLY METALS

Gold Hunter Resources Inc. has provided an update on its strategic transaction with FireFly Metals Ltd. (see the company's Dec. 21, 2023, news release). Gold Hunter is proceeding with plans for a share distribution to its shareholders, contingent upon the successful closing of the transaction and obtaining necessary regulatory approvals.

Details of the transaction

This planned distribution is in connection with the share purchase and sale agreement with FireFly, an Australian-based company listed on the Australian Securities Exchange. This agreement, initially announced on Dec. 21, 2023, entails FireFly acquiring all common shares of 1451366 B.C. Ltd., a wholly owned subsidiary of Gold Hunter. In return, Gold Hunter will receive 30,290,624 common shares in FireFly, valued at $15-million.

Share distribution plan

Gold Hunter is committed to distributing a significant portion of the FireFly consideration shares to the Shareholders. Subject to the total number of FireFly consideration shares acquired in the transaction, the company plans to allocate approximately 90 per cent of these shares for distribution. The precise allocation of FireFly consideration shares to be distributed will be determined by the record date or finalized at the special meeting (as defined herein) on March 8, 2024. This decision is also dependent on tax consultations and strategic planning for the company's future. The shareholders can expect further details and confirmation of the exact share distribution numbers at these critical junctures.

Gold Hunter is preparing to announce the record date for the upcoming distribution of FireFly consideration shares. The shareholders who are registered on this record date will be eligible for a pro rata distribution. This means that each shareholder will receive an allocation of FireFly consideration shares proportionate to their current shareholding in Gold Hunter. For example, if a shareholder holds 5 per cent of Gold Hunter's shares, they will receive 5 per cent of the total FireFly consideration shares distributed.

Chief executive officer's statement

Sean Kingsley, president and CEO, comments: "This method of distribution aligns seamlessly with the structure of the FireFly purchase agreement and is the most effective approach to maximize value for our shareholders. By distributing the FireFly consideration shares in this manner, we ensure that all shareholders are treated equitably and share in the benefits of the FireFly transaction.

"Our partnership with FireFly represents a significant opportunity, as they will now control the majority of the prospective Baie Verte Peninsula VMS [volcanogenic massive sulphide] district in Newfoundland. FireFly's recent announcement of impressive initial drill results demonstrates the districts potential. Their ongoing efforts highlight Gold Hunter's strategy to maximize shareholder value. I am personally excited to be a long-term shareholder of FireFly as they aggressively develop this promising district."

Shareholder meeting announcement

A special meeting of shareholders will be convened on March 8, 2024, to seek approval, by special resolution, of the transaction and the distribution. The company is preparing to circulate a notice of the special meeting and information circular to the shareholders with details regarding the transaction and distribution, and provide voting instructions for attending the special meeting.

Marwan I option agreement update

Following the announcement on Dec. 21, 2023, Gold Hunter is pleased to provide an update to the status of the amended mineral property option agreement, originally dated Jan. 17, 2022. This amendment involves Gold Hunter and Unity Resources Inc., along with individuals Gary Lewis, Jerry Jones, Nicholas Rodway, Aubrey Budgell and Paul Delaney (collectively known as the optionors), granting Gold Hunter the option to acquire a 100-per-cent interest in the Marwan I claim group located in Newfoundland and Labrador.

Gold Hunter has partially exercised the option by issuing six million common shares to the optionors, to be held in escrow and released upon the closing of the transaction. If the transaction does not close by July 1, 2024, these common shares will be cancelled, and the option agreement will revert to its original form. Additionally, a cash payment of $500,000 is agreed to be paid by July 1, 2024, to fully exercise the option, with terms adjusted if Gold Hunter completes the transaction. The original finder's free agreement related to the Marwan I option agreement has also been updated to reflect these terms. This update is part of the company's continuing commitment to transparent and prudent management of its agreements and obligations.

About FireFly Metals Ltd.

FireFly is an emerging leader in the copper-gold sector, focused on advancing the high-grade Green Bay copper-gold project in Newfoundland and Labrador, Canada, which it acquired earlier this year for $65-million (Australian). Immediately after acquiring this project, the company launched a 40,000-metre drill program, demonstrating an aggressive commitment to expanding the deposit. This approach aligns very well with Gold Hunter's surrounding mineral claims that are being acquired as it gives FireFly a true district-scale opportunity to build an exciting VMS camp. Additionally, FireFly Metals holds a 70-per-cent interest in the high-grade Pickle Crow project in the world-class Uchi subprovince of Ontario, Canada.

About Gold Hunter Resources Inc.

Gold Hunter Resources is a mineral exploration company committed to the evaluation and development of mineral-rich regions in Newfoundland and Labrador, as well as Ontario, Canada. Its operations are concentrated in areas known for their abundant mineral resources. The company is dedicated to unveiling the full potential of its project sites in a manner that prioritizes responsibility and sustainability.

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