Mr. Matthew Hill reports

STARREX INTERNATIONAL ANNOUNCES DEMAND FOR REPAYMENT OF CREDIT FACILITY

Despite indications from the lender to the contrary, Starrex International Ltd. was notified that its $5-million (U.S.) line of credit, as described in the company's press release dated Oct. 11, 2022, will not be extended by the lender past its due date of Oct. 17, 2023.

Starrex Insurance Holdings Inc., a wholly owned Texas subsidiary of the company (the borrower), entered into a loan arrangement with a Missouri-based institutional lender pursuant to which such lender agreed to provide a loan facility to the borrower whereby the borrower may borrow up to $5-million (U.S.) bearing interest at prime less 0.5 per cent per annum, with the proceeds to be used for working capital, acquisitions and general corporate purposes. All obligations of the borrower under the facility were guaranteed by the company. The term of the loan facility was for one year and was designed to automatically renew for additional one-year terms to a maximum of five years. The automatic renewal was subject to either the borrower or the lender providing written notice to the other party that it was electing not to continue the facility for another year. Starrex entered into the facility in connection with the proposed acquisition of a title agency business (the target). The proceeds of the loan were in turn used by Starrex to finance the operations and development of the proposed acquisition.

The original lender was purchased by another U.S.-based company and the facility was assigned by the borrower. Despite numerous representations that the facility would be extended by the successor lender, the company was advised the facility would not be extended and so the principal amount drawn was due and payable Oct. 17, 2023. The principal amount drawn on the facility is currently in the amount of $4.85-million (U.S.), and is accordingly payable by the borrower Oct. 17, 2023.

Starrex holds security over the assets of the target and is currently undertaking discussions with the lender to try and negotiate an extension to the demand, and to work out repayment terms.

Matt Hill, chief executive officer of Starrex, said, "We are extremely disappointed with the way this notice transpired, but we will continue to work with the lender to come up with a resolution that is appropriate for Starrex."

About Starrex International Ltd.

Starrex is a national provider of real estate title and credit reporting services to mortgage lenders and real estate brokers in the United States whose leading-edge technology platform and specialized business model provide a streamlined approach for its clients, resulting in faster turnaround times. It is committed to investing in its employees, delivering value to its customers, ethically managing its suppliers and professional networks, and supporting the outside communities within which it works.

Its business is driven by subsidiaries that operate across various segments of the mortgage value chain, including title and credit services, and are committed to delivering value and growth to Starrex shareholders. MFI Credit Solutions LLC provides consumer credit reports to mortgage lenders, mortgage brokers and credit unions for homebuyers or refinancers in all states, along with risk mitigation, flood and verification services.

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