Stuhini Exploration Ltd. (TSX-V: STU) (OTCPK: STXPF) is pleased to announce that it has closed the second and final tranche of its non-brokered private placement previously announced on August 2, 2022 and upsized on August 17, 2022 for gross aggregate proceeds to the Company of $948,310.75. The total aggregate gross proceeds raised under the Private Placement is $1,974,435.75.

Under the second tranche of the Private Placement, the Company has issued a total of 1,185,135 flow-through units of the Company at a price of $0.45 per FT Unit for total gross proceeds to the Company of $533,310.75. Each FT Unit consists of one common share of the Company and one half of one common share purchase warrant. The FT Units will qualify as “flow-through shares” for the purposes of the Income Tax Act (Canada). Each FT Warrant will entitle the holder thereof to acquire one Common Share at a price of $0.60 per Common Share for a period of two years from the date of issuance.

The aggregate gross proceeds from the FT Unit Offering will be used to incur “Canadian exploration expenses” which qualify as “flow-through mining expenditures” (within the meaning of the Tax Act) in order to fund exploration programs on Stuhini’s Ruby Creek Project and Big Ledge Project which are located in British Columbia. The Company will renounce these expenses to the purchasers with an effective date of not later than December 31, 2022.

The Company also issued a total of 1,037,500 non-flow through units of the Company at a price of $0.40 per NFT Unit for total gross proceeds to the Company of $415,000. Each NFT Unit consists of one Common Share and one-half of one common share purchase warrant. Each NFT Warrant will entitle the holder thereof to acquire one Common Share at a price of $0.60 per Common Share for a period of two years from the date of issuance.

The aggregate gross proceeds from the NFT Unit Offering will be used to fund exploration programs on the Company’s other mineral properties, including the Que Project in the Yukon Territory, the South Thompson Nickel project in Manitoba, and any additional exploration projects acquired or staked in the United States through the Company’s wholly owned subsidiary, Arizada Metals Corp, as well as general and administrative expenses.

In connection with the closing of the second tranche of the Private Placement, the Company paid finders’ fees in cash to Leede Jones Gable Inc., Echelon Wealth Partners, Haywood Securities Inc., PI Financial Corp., and Canaccord Genuity Corp. totaling $18,604.55 representing 6% of the proceeds raised from the sale of FT and NFT Units placed by the Finders and issued to the Finders a total of 43,243 non‑transferable finder warrants, representing 6% of the FT Units and NFT Units placed by such Finders.  Each Finder Warrant entitles the holder to acquire one Common Share at an exercise price of $0.50 until August 19, 2024.

Two insiders of the Company purchased a total of 100,000 NFT Units and 11,100 FT Units under the second tranche of the Private Placement. The issuance of securities to such persons is considered to be a “related party transaction” within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions adopted in the Policy. The Company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61‑101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61‑101 in respect of related party participation in the Private Placement as neither the fair market value (as determined under MI 61‑101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, is expected to exceed 25% of the Company’s market capitalization (as determined under MI 61‑101).

All securities issued pursuant to the second tranche of the Private Placement are subject to a hold period of four months and one day expiring on December 20, 2022.

Dave O’Brien, President and CEO, commented, “Given the present challenging market conditions in the mineral exploration space, we are pleased we were able to oversubscribe this offering. I would like to welcome our new investors as well as thank existing shareholders for their continued support.”

About Stuhini Exploration Ltd.

Stuhini is a mineral exploration company focused on the exploration and development of its base and precious metal properties. The Company’s portfolio of exploration properties includes: its flagship, the Ruby Creek Property, located approximately 20 km east of Atlin, BC; the Que Project located approximately 70 km north of Johnson’s Crossing in the Yukon; the South Thompson Project located approximately 35 km northwest of Grand Rapids, Manitoba; and the Big Ledge Property located approximately 57 km south of Revelstoke, BC.