Mr. Kaan Camlioglu reports

LABRADOR RESOURCES INC. EXTENDS DEBT, PROMISSORY NOTE, AND CREDIT FACILITY TERMS

Labrador Resources Inc. has extended its financial agreements, which originally came into existence as part of the corporation's change of business, which closed on Feb. 2, 2023. Labrador Resources is committed to managing its financial commitments while focusing on its core business objectives.

Extension of debt with Tailwind Capital Partners Inc.

As part of the change of business, Tailwind Capital originally acquired debt obligations from various creditors. The terms of this agreement have been extended, moving the maturity date to Feb. 28, 2025. This extension aligns with the company's strategic initiatives and provides the corporation with an additional two years to meet its financial obligations. As of July 31, 2023, the debt obligations amounted to $296,883, inclusive of interest. Interest is payable at a rate of 7 per cent per annum.

Promissory note extension with Kasten Energy Inc.

In conjunction with the change of business, Labrador Resources executed a promissory note with Kasten. The terms of this promissory note have been extended, with the principal sum and interest now due and payable on or before Feb. 28, 2025. These revisions accommodate changes in the amended and restated purchase and sale agreement dated Feb. 2, 2023. On Feb. 2, 2023, a promissory note was issued in the amount of $232,000 and fair value of $200,577. Interest is payable on the promissory note at a rate of 7 per cent per annum. As at July 31, 2023, the fair value of the promissory note was $214,656.

Extension of credit facility with KSS Capital Partners Inc.

Labrador Resources has also extended the terms of its credit facility with KSS Capital. On April 4, 2022, the company entered a commitment letter regarding a two-year credit facility of $500,000, which was increased to $650,000 on Oct. 25, 2022. The credit facility bears an interest rate of 7 per cent per annum. The terms of this agreement have been extended, moving the maturity date to Feb. 28, 2025. This extension ensures that the corporation continues to have access to vital financial resources to support its operations.

Extension of note payable with KSS Capital

Labrador Resources is also pleased to announce the extension of a promissory note to KSS Capital, previously issued on Feb. 2, 2023, in relation to advances made under the credit facility. The terms of this agreement have been extended, moving the maturity date to Feb. 28, 2025.

As at July, 2023, the promissory note carried a value of $54,536 inclusive of interest in relation to advances made under the credit facility.

These extensions provide Labrador Resources with the necessary financial flexibility to pursue its growth and expansion strategies. They demonstrate the corporation's commitment to working closely with its financial partners to manage its financial commitments effectively.

Kaan Camlioglu, chief executive officer of Labrador Resources, highlighted the importance of these extensions, stating, "Our ability to adapt and extend our financial commitments underscores our dedication to long-term success and responsible financial management."

The extension of these financial terms is a positive step forward for Labrador Resources, allowing the corporation to navigate its financial obligations while focusing on its core operations.

Reference to prior news release

This announcement follows Labrador Resources' prior news release, which detailed the completion of the change of business and the acquisition of oil and gas assets, including the Atlee Buffalo property.

About Labrador Resources Inc.

Labrador Resources is a publicly listed oil and gas issuer with approximately $8-million in tax loss carryforwards and an oil and gas property located in the Atlee Buffalo area of Alberta.

Additional information

For additional information regarding the corporation and the change of business, please refer to the filing statement of the corporation dated Nov. 30, 2022, which is available under the corporation's profile on SEDAR+.

Cautionary note

Investors are cautioned that, except as disclosed in the filing statement prepared in connection with the change of business, any information released or received with respect to the change of business may not be accurate or complete and should not be relied upon. Trading in the securities of the corporation should be considered highly speculative.

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