Mr. Christian Timmins reports

PEGASUS RESOURCES INCREASES PRIVATE PLACEMENT OFFERINGS

In response to overwhelming interest, Pegasus Resources Inc. has applied to increase the size of both the non-brokered flow-through private placement and the non-brokered flow-through private placement initially disclosed on Nov. 10, 2023.

Non-flow-through offering:

• Initial offering: up to four million units at a price of 16 cents per unit;
• Revised offering: now extended to five million NFT units, aiming to raise aggregate gross proceeds of up to $800,000; each NFT unit consists of one common share of the company and one share purchase warrant, entitling the holder to acquire an additional common share of the company at a price of 20 cents for a period of 24 months from the date of issuance.

Flow-through offering:

• Initial offering: up to five million units at a price of 20 cents per unit;
• Expanded offering: now increased to six million FT units, with the goal of raising aggregate gross proceeds of up to $1.2-million; each FT unit consists of one common share of the company that qualifies as a flow-through share (for purposes of the Income Tax Act (Canada)) and one non-flow-through share purchase warrant, entitling the holder to acquire an additional common share of the company at a price of 28 cents for a period of 24 months from the date of issuance.

The company intends to use the gross proceeds of the FT offering to incur Canadian exploration expenses and flow-through critical mineral mining expenditures as defined in the Income Tax Act (Canada) and proposed amendments thereto on its Saskatchewan Athabasca basin properties to conduct a proposed 1,500-metre, 10-hole drill program in 2024. In addition, a ground program at the Mozzie Lake property will include rock sampling, prospecting and geological mapping this spring/summer. The goal of this program will be to confirm historical data and possible rare earth potential.

Proceeds from the NFT offering will be used for exploration of the company's mineral properties, as well as for general operation expenses.

The common shares, share purchase warrants and shares underlying the share purchase warrants from the FT offering and the NFT offering will be subject to a four-month-and-one-day statutory hold period from the date of issuance. Closing of the FT offering and NFT offering remains subject to the receipt of all regulatory approvals, including the approval of the TSX Venture Exchange. The company may pay finders' fees as permitted by TSX-V and applicable securities laws.

About Pegasus Resources Inc.

Pegasus is a diversified junior Canadian mineral exploration company with a focus on uranium, gold and base metal properties in North America. The company is also actively pursuing the right opportunity in other resources to enhance shareholder value.

We seek Safe Harbor.