Mr. William Pettigrew reports

FINANCING AND DEBT CONVERSION

Due to unforeseen circumstances beyond its control, Midasco Capital Corp. was unable to complete the previously announced non-brokered private placement and debt settlement agreement (March 1, 2021, news release) within the required time frame under TSX Venture Exchange policies.

The company, however, intends to issue by way of a non-brokered private placement to accredited investors up to 2.5 million units of the company at a price of 10 cents per unit. Each unit will consist of one common share and one common share purchase warrant. Each purchase warrant will entitle the holder to purchase one additional common share at a price of 15 cents per share for a period of 12 months from the closing of the transaction. Following the completion of the transaction, in the event that the closing price of the company's common shares is at or above 40 cents per share for a period of 10 consecutive trading day, the company will have the option to provide notice to the warrantholders to accelerate the expiry date of the warrants to the date that is 30 days following the date such notice is provided. The net proceeds of the private placement will be used to perform due diligence on various business opportunities in all market sectors and for general corporate and working capital purposes.

The company also intends to enter into debt settlement agreements with a number of its creditors to settle in full approximately $169,500 in outstanding debt in exchange for approximately 1,695,000 common shares at a price of 10 cents per common share.

Both the debt settlement and the private placement are subject to regulatory approval. All securities issued hereunder will be subject to a four-month statutory hold period.

We seek Safe Harbor.