Mr. Michael Smith reports

HERCULES ANNOUNCES CLOSING OF DEBT SETTLEMENT

Hercules Resources Corp., pursuant to its news release of May 13, 2026, has settled outstanding indebtedness in the aggregate amount of $188,381 owing to certain creditors of the company. The debt settlement was satisfied through the issuance of an aggregate of 3,139,679 common shares of the company at a deemed price of six cents per share. The issuance of the shares represents 47.61 per cent of the issued and outstanding upon completion of the debt settlement, being 6,594,825 shares.

The debt settlement has allowed the company to preserve its cash and to improve the financial position on its balance sheet.

The shares issued in connection with the debt settlement are subject to a statutory hold period expiring four months and one day after closing of the debt settlement.