Mr. Brian Kerzner reports

INDICO RESOURCES PROVIDES CORPORATE UPDATES

Indico Resources Ltd. has provided the following updates.

Share consolidation

As detailed in the company's information circular dated Sept. 20, 2023, the company has applied to the TSX Venture Exchange to proceed with a share consolidation at a ratio of 40 preconsolidated common shares in the capital of the company to one postconsolidated share.

The effective date of the consolidation will be Jan. 17, 2024. The company's name and trading symbol will remain unchanged after the consolidation. The new Cusip number will be 455937102, and the new ISIN number will be CA4559371022 for the postconsolidation shares. The total issued and outstanding number of shares postconsolidation will be approximately 3,675,087, subject to rounding for fractional shares.

No fractional shares will be issued in connection with the consolidation. In the event a holder of shares would otherwise be entitled to receive a fractional share in connection with the consolidation, the number of shares to be received by such shareholder will be rounded down to the next whole number if that fractional share is less than one-half of a share, and will be rounded up to the next whole number if that fractional share is equal to or greater than one-half of a share.

The exercise or conversion price, and the number of shares issuable under any of the company's outstanding convertible securities, will be proportionately adjusted upon the effectiveness of the consolidation.

Registered shareholders that hold physical share certificates will receive a letter of transmittal requesting that they forward preconsolidation share certificates to the company's transfer agent, Computershare Trust Company, for exchange for new share certificates representing shares on a postconsolidation basis. Shareholders who hold their shares through a broker or other intermediary, and do not have shares registered in their own name will not be required to complete a letter of transmittal.

Shares-for-debt issuance

As detailed in the circular, the company will additionally be applying to the TSX-V for approval of a proposed shares-for-debt transaction, whereby the company will be issuing shares to certain lenders to extinguish outstanding debt. The shares-for-debt issuance will be effective postconsolidation. Further details of the shares-for-debt transaction will be announced in due course.

Convertible loan facility

Pursuant to the company's prior news release dated Nov. 29, 2023, the company is announcing amendments to certain terms of the $60,000 convertible loan facility. The conversion price is amended to 20 cents. Additionally, while the principal amount of the convertible loan and any interest shall continue to be repayable out of the proceeds of the next financing the company completes, the convertible loan has been amended to provide that the conversion period will expire no later than Sept. 22, 2027. Conversion shares will be issued on a postconsolidation basis. Certain lenders of the convertible loan are non-arm's length to the company.

The convertible loan remains subject to TSX-V approval. The terms of the convertible loan remain subject to change pending TSX-V review.

About Indico Resources Ltd.

Indico is a mineral resource exploration company focused on the discovery and exploration of porphyry copper gold deposits.

We seek Safe Harbor.