Mr. Jason Macintosh reports

SEARCH MINERALS CLOSES INITIAL TRANCHE OF NON-BROKERED PRIVATE PLACEMENT FINANCING AND ANNOUNCES UPSIZED UNIT FINANCING

Search Minerals Inc. has closed the initial tranche of its previously announced non-brokered private placement financing (news release dated July 13, 2026) for aggregate gross proceeds of $615,000, with the unit financing portion fully subscribed. Red Cloud Securities Inc. acted as finder in connection with the initial tranche.

"We are very pleased with the strong investor demand for this financing, which resulted in the unit financing being fully subscribed," said Jason Macintosh, interim chief executive officer of Search Minerals. "Given this level of support, we are pleased to upsize the unit financing by an additional $100,000, providing Search Minerals with additional capital to advance our Foxtrot and Deep Fox projects as we continue to build out our critical rare-earth elements business in Labrador."

The initial tranche consists of: (i) 851,064 units of the company at a price of 23.5 cents per unit, for gross proceeds of $200,000, representing the full amount previously announced under the unit financing; and (ii) 1,537,037 critical mineral flow-through units of the company at a price of 27 cents per FT unit, for gross proceeds of $415,000, for aggregate gross proceeds under the initial tranche of $615,000.

Each unit will consist of one common share of the company and one common share purchase warrant. Each FT unit will consist of one common share of the company to be issued as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and one-half of one warrant. Each whole warrant will entitle the holder to purchase one common share of the company at an exercise price of 35 cents per warrant share for a period of 36 months following the date of issuance.

The gross proceeds from the FT financing will be used by the company to incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures as both terms are defined in the Income Tax Act (Canada), related to the company's Foxtrot and Deep Fox projects in Labrador. The company also intends that such expenses will be eligible for the critical mineral exploration tax credit. The net proceeds from the unit financing will be used by the company for working capital and general corporate purposes.

In connection with the initial tranche, the company paid a cash finder's fee and issued compensation warrants to each of Red Cloud and Canaccord Genuity Corp.

Petra Holdings Company Inc., a company controlled by Michael Pearson, a director of the company, participated in the initial tranche. This participation is considered a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 in respect of Petra Holdings' participation, on the basis that neither the fair market value of the securities issued to, nor the consideration paid by, Petra Holdings exceeds 25 per cent of the company's market capitalization, in accordance with sections 5.5(a) and 5.7(1)(a) of MI 61-101.

Upsized unit financing

The initial tranche was completed in accordance with all necessary regulatory approvals, including the conditional acceptance of the TSX Venture Exchange. The company expects to close the balance of the financing in one or more subsequent tranches, which is expected to include the remaining $385,000 available under the FT financing together with an upsized unit financing of up to an additional $100,000 (increasing the maximum size of the unit financing to $300,000), for aggregate remaining proceeds of up to $485,000. There can be no assurance that the balance of the financing will be completed, whether in whole or in part, and any subsequent tranche remains subject to the receipt of all necessary regulatory and other approvals, including the acceptance of the TSX Venture Exchange.

The unit shares, FT shares and warrant shares issued under the initial tranche are subject to a hold period expiring Dec. 7, 2026, being four months and one day from the closing date of the initial tranche, in accordance with applicable securities laws. The unit shares, FT shares and warrant shares issuable under any subsequent tranche will be subject to a hold period of four months and one day from the applicable closing date, in accordance with applicable securities laws.

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 southeast Labrador. The company controls a belt 64 kilometres long and two km 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 its 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. Search has completed two pilot plant operations and produced highly purified mixed rare-earth carbonate concentrate and mixed REO concentrate for separation and refining.

We seek Safe Harbor.