Mr. J. Paul Stevenson reports

SEGO RESOURCES CLOSES $100,000 FIRST TRANCHE OF FINANCING

Sego Resources Inc. has received conditional approval from the TSX Venture Exchange for closing of the first tranche of the financing announced on March 14, 2024. On closing, Sego will issue five million units at two cents per unit for gross proceeds of $100,000.

In addition to closing the first tranche of the financing, Sego has recently received a British Columbia mineral exploration tax credit refund of $43,299.

Each unit of the financing will consist of one common share and one share purchase warrant. Each share purchase warrant will entitle the holder to purchase an additional common share at five cents for two years from the closing date. The securities issued on closing are subject to the applicable statutory four-month-and-one-day hold period ending July 16, 2024.

The proceeds will be used for general working capital. The company fully expects to spend the funds as stated; however, there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.

Finders' fees will be payable on a portion of the private placement and will consist of 7 per cent cash and 7 per cent broker warrants. Each broker warrant will entitle the holder to purchase one common share at five cents for two years from the closing date.

PI Financial Corp. will receive $490 and 24,500 broker warrants and Leede Jones Gable Inc. will receive $420 and 21,000 broker warrants. Any warrants exercised prior to July 16, 2024, will be subject to the hold period.

Insiders of the company subscribed for 1.72 million of the five million units, with chief executive officer J. Paul Stevenson subscribing for 750,000 units; Strashin Developments Ltd., an insider of Sego by virtue of shareholdings, subscribing for 520,000 units; and MBP Management Ltd., a company owned by chief financial officer Brent Petterson subscribing for 450,000 units.

As a result, the private placement is a related party transaction (as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions). The company relied upon Section 5.5 (a) (Fair Market Value Not More Than $2.5-million), Section 5.5 (c) (Distribution of Securities for Cash), and exemptions from the formal valuation and minority shareholder approval requirements, respectively, under MI 61-101.

We seek Safe Harbor.