Mr. Timothy McCutcheon reports

KENADYR AND KARUS MUTUALLY AGREE TO TERMINATE ARRANGEMENT AGREEMENT

Kenadyr Metals Corp. has provided an update on the mutual termination of the arrangement agreement entered into with Karus Gold Corp. on Dec. 28, 2022, in respect of the proposed transaction with Karus previously announced on Dec. 30, 2022.

Given the challenging market conditions for gold equities and other factors, Kenadyr was unable raise sufficient capital to meet the closing conditions and to complete the transaction. As a result, Kenadyr and Karus have agreed to mutually terminate the arrangement agreement.

Timothy McCutcheon, chief executive officer and director, stated: "Despite our intense efforts to raise funding for the proposed transaction and flexibility from both sides to explore alternative paths to completion, market conditions were such that we could not get to close. We wish Karus well and thank them for their support. Kenadyr will continue to seek a path for corporate development."

We seek Safe Harbor.