Mr. Michael Farrant reports

NEW BREAK ANNOUNCES CLOSING OF PROPERTY ACQUISITION, GRANT OF STOCK OPTIONS AND EARLY WARNING NOTICE

New Break Resources Ltd. has closed the acquisition of an additional 2,460 hectares of mineral claims contiguous with its Moray property, located approximately 49 kilometres south of Timmins, Ont., and 32 kilometres northwest of the Young-Davidson gold mine operated by Alamos Gold Inc. The acquisition, which increases the company's land position at Moray to approximately 5,354 hectares, closed on May 23, 2023, through the issuance of 1.5 million common shares of New Break and aggregate cash payments of $80,000 to the property vendors (see the news release dated May 15, 2023).

Early warning notice of greater than 10-per-cent securityholder

The company also announces that in connection with the closing of its non-brokered flow-through financing (see the news release dated June 1, 2023) and in accordance with National Instrument 62-103 (the Early Warning System and Related Take-Over Bid and Insider Reporting Issues), on May 31, 2023, John Ross and Patricia Quigley now beneficially own or exercise control or direction over 10 per cent of the issued and outstanding common shares of the company.

Prior to the acquisition of 1.35 million shares as part of the F-T offering, the acquiror beneficially owned or exercised control or direction over 3,948,800 shares and 187,500 common share purchase warrants, representing 9.21 per cent and 9.61 per cent of the outstanding shares of the issuer on an undiluted and partially diluted basis, respectively. After completion of the acquisition, the acquiror beneficially owned or exercised control or direction over 5,298,800 shares and 187,500 warrants, representing 11.47 per cent and 11.83 per cent of the outstanding shares of the issuer on an undiluted and partially diluted basis, respectively.

The acquisition of the shares by the acquiror was made for investment purposes. Depending on market and other conditions, the acquiror may from time to time in the future increase or decrease the respective ownership, control or direction over securities of the company through market transactions, private agreements or otherwise. As the number of shares the acquiror owned or controlled, directly or indirectly, now exceeds 10 per cent of the issued and outstanding shares on a partially diluted basis, in satisfaction of the requirements of the National Instrument 62-104 (Take-Over Bids And Issuer Bids) and NI 62-103, an early warning report for the acquiror will be filed on the company's SEDAR profile.

Grant of stock options

The company also announces that it has granted incentive stock options to two consultants, with such options entitling the holders thereof to acquire an aggregate of up to 300,000 common shares in the capital of the company at an exercise price of 10 cents in accordance with the company's 10-per-cent rolling incentive stock option plan. The options are exercisable for a five-year term expiring on June 1, 2028, and vest immediately.

About New Break Resources Ltd.

New Break is a Canadian mineral exploration company with a dual vision for value creation. In Northern Ontario, New Break is focused on its Moray project, in a well-established mining camp, within proximity to existing infrastructure, while at the same time, through its prospective landholdings in Nunavut, it provides its shareholders with significant exposure to the vast potential for exploration success in one of the most up-and-coming regions in Canada for gold exploration and production. New Break is supported by a highly experienced team of mining professionals committed to placing a premium on environmental, social and corporate governance. New Break began trading on the Canadian Securities Exchange on Sept. 7, 2022, under the symbol NBRK.

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