Mr. Matthew Hill reports

STARREX INTERNATIONAL FACES SUMMARY JUDGEMENT APPLICATION ON DEMAND FOR REPAYMENT OF CREDIT FACILITY

Further to Starrex International Ltd.'s press release dated Oct. 18, 2023, despite continuing discussions with the lender, the lender (as defined herein) filed a statement of claim seeking a summary judgement to enforce its debt in the state of New York. The lender is demanding repayment of approximately $4.85-million (U.S.) owing pursuant to a $5-million (U.S.) line of credit. The details of the line of credit were described in the company's press release dated Oct. 11, 2022. The matter is set to be heard in New York on Dec. 16, 2023.

By way of background, Starrex Insurance Holdings Inc., a wholly owned Texas subsidiary of the company, 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 year, with the proceeds to be used for working capital, acquisitions and general corporate purposes. The original lender was purchased by another United States-based company and the facility was assigned by the borrower to the new party.

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. The lender advised the company that the facility would not be extended past the Oct. 17, 2023, date.

Starrex entered into the facility in connection with the proposed acquisition of a title agency business. The proceeds of the loan were used by Starrex to finance the operations and development of the proposed acquisition. While Starrex holds security over the assets of the target, the assets of the target may not be adequate to discharge the liability owing to the lender.

Despite the filing of the court action, Starrex is in continuing discussions with the lender to try and negotiate repayment terms or a settlement. However, should negotiations not be successful and the lender is successful in its summary judgement application, this event would have a material adverse effect on Starrex Insurance Holdings and its ability to carry on business. In response to the lender's actions, Starrex may have to file for bankruptcy or take other steps to liquidate its business.

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. The company's leading-edge technology platform and specialized business model provide a streamlined approach for its clients, resulting in faster turnaround times. Starrex 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.

Starrex's 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.

We seek Safe Harbor.