Mr. Jason Macintosh reports

SEARCH MINERALS ANNOUNCES UNSECURED CONVERTIBLE NOTE ISSUANCE WITH INDIGENOUS PARTNER TO SETTLE EXISTING INDEBTEDNESS

Search Minerals Inc. has issued an unsecured convertible note in the aggregate principal amount of $367,562 to its indigenous partner, the NunatuKavut Community Council.

Highlights:

• Unsecured convertible note in the principal amount of $367,562;
• Issued in full settlement of existing indebtedness under the prior unsecured convertible note issued to the lender in October, 2024 (inclusive of interest);
• No new net capital raised and no cash proceeds received by the company;
• Extends repayment obligations to the lender.

Jason Macintosh, interim chief executive officer, stated:

"We are very pleased to have the continued support from our indigenous partner, the NunatuKavut Community Council (NCC). We have had a close relationship with the NCC since 2012, when we entered into the mining exploration activities agreement with them. The refinancing and consolidation of our existing obligations to NCC is indicative of the importance of our project to NCC and to the Province of Newfoundland and Labrador."

Convertible note terms

The company has issued the lender the new unsecured convertible note in the principal amount of $367,562, representing the outstanding principal and accrued interest owing under the prior unsecured convertible note issued to the lender in October, 2024, and which matured in October, 2025. Of this amount, $67,562 represents the accrued and unpaid interest under the prior unsecured convertible note, which has been capitalized and included in the principal amount of the new unsecured convertible note.

The unsecured convertible note bears interest at a rate of 15 per cent per annum and will mature on the date that is one year from the date of acceptance by the TSX Venture Exchange.

The principal amount of $367,562, together with any accrued interest thereon, is convertible at the option of the lender, into common shares of the company at a conversion price of 50 cents per share in respect of the principal amount and such price as will be permitted by the policies of the TSX Venture Exchange in respect of the interest.

All shares issuable upon conversion will be subject to a statutory hold period of four months and one day from the date of issuance of the unsecured convertible note, in accordance with applicable securities laws.

Debt settlement/non-cash transaction

The unsecured convertible note has been issued in full satisfaction of outstanding indebtedness totalling $367,562 (inclusive of accrued interest), including the prior unsecured convertible note held by the lender.

No new funds have been advanced to the company in connection with this transaction and no net new capital has been raised. The transaction represents a refinancing and consolidation of the company's obligations under the prior note.

The transaction was approved by the company's board of directors on Jan. 27, 2026. The lender is a non-arm's-length party to the company. The company confirms that the new unsecured convertible note does not provide any material benefit to the related party beyond the continuation of the existing indebtedness.

The issuance of the unsecured convertible note is subject to acceptance by the TSX-V.

About Search Minerals Inc.

Led by a proven management team and board of directors, Search is focused on finding and developing critical rare earth elements (CREE), zirconium (Zr) and hafnium (Hf) resources within the emerging Port Hope Simpson-St. Lewis CREE district of southeastern Labrador. The company controls a belt 64 kilometres long and two kilometres wide, and is road accessible, on tidewater and located near three local communities. Search has completed a preliminary economic assessment report with resource estimates for Foxtrot and Deep Fox. Search is also working on four exploration prospects along the belt, which include Fox Meadow, Silver Fox, Fox Run and Awesome Fox.

Search has continued to optimize our patented direct extraction process technology with the generous support from the Department of Energy and Mines, government of Newfoundland and Labrador, and from the Atlantic Canada Opportunity Agency. The company has completed two pilot plant operations and produced highly purified mixed rare earth carbonate concentrate and mixed REO concentrate for separation and refining.

All material information on the company may be found on its website and on SEDAR+.

We seek Safe Harbor.