Mr. Christian Timmins reports

PEGASUS RESOURCES CLOSES FINANCINGS

Pegasus Resources Inc. has successfully closed its non-brokered private placement financings, as previously disclosed on Nov. 10, 2023. The company has raised gross proceeds totalling $659,140, issuing a total of 3,870,875 units of common shares.

The offering comprises 2,875,875 non-flow-through units (NFT) generating $460,140 at a price of 16 cents per common share and 995,000 flow-through units (FT) generating $199,000 at a price of 20 cents per FT share. Notably, Pegasus's director, Noah Komavli, subscribed for $3,000 in the NFT offering.

Each NFT unit consists of one common share and one transferrable common share purchase warrant, enabling the holder to purchase one common share at an exercise price of 20 cents, expiring on Dec. 29, 2025. The proceeds from the NFT offering will be allocated toward the exploration of the company's mineral properties and general operational expenses.

Each FT unit (FT) consists of one flow-through common share of the company and one non-flow-through common share purchase warrant with each FT warrant exercisable to purchase one non-flow-through common share of the company at 28 cents for two years from the date of issue.

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 property Pine Channel.

Finders' fees of $28,665 in cash plus $7,350 administration fees and 163,931 broker warrants were paid to arm's-length parties. Shares issued pursuant to the financing will be subject to a statutory hold period of four months plus a day from the date of issuance, according to the applicable security laws of Canada.

The financing constitutes a related party transaction within the meaning of TSX-V Policy 5.9 and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions because insider of the company, Noah Komavli, participated in the financing and have acquired NFT units as is equal to $3,000 in connection with the financing. The company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the financing as the fair market value (as determined under MI 61-101) of the insider participation in the financing is below 25 per cent of the company's market capitalization (as determined in accordance with MI 61-101).

About Pegasus Resources Inc.

Pegasus Resources 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.