EDM Resources Inc. (TSX-V: EDM) is pleased to announce the closing of its previously announced non-brokered private placement financing for aggregate gross proceeds of C$1.4 million.

The President and CEO, Mr. Mark Haywood, stated: “EDM is pleased to announce the closing of this strategic financing. We regret that we were not able to accommodate all potential investors who expressed an interest in participating in the Offering. We thank everyone who expressed an interest, and hope to invite them to participate in our next offering.

“Net proceeds of the Offering will be used to advance ongoing environmental work at our Scotia Mine and for general working capital purposes.”

The Offering consisted of 12,727,272 units of the Company, at a price of C$0.11 per Unit for gross proceeds of C$1,399,999.92, each Unit consisting of one common share of the Company and one share purchase warrant entitling the holder to purchase one common share of the Company at a price of C$0.14 for each Warrant Share, until January 30, 2027. The Company will use the net proceeds from the Offering for environmental work at its wholly owned Scotia Mine, located 60 km north of Halifax, and for general working capital purposes.

Certain directors, officers, and other insiders of the Company have acquired a total of 2,642,546 Units in the Offering. The participation of Insiders constitutes a “related party transaction”, as such term is defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions and Companion. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under 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 Offering 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 involved the related parties, exceeded 25% of the Company’s market capitalization (as determined under MI 61-101).

In connection with the Offering, the Company has paid C$20,944.00 in cash compensation and issued 190,400 broker warrants to eligible brokers for their assistance with the Offering. Each Broker Warrant is exercisable into a Common Share until January 30, 2027.

Early Warning Disclosure:

Fancamp Exploration Ltd. acquired 1,450,909 Units at C$0.11 per Unit under the Offering for total consideration paid of C$159,599.99. Immediately prior to completion of the Offering, Fancamp beneficially owned 2,738,485 Common Shares (representing 11.4% of the issued and outstanding Common Shares of the Company) and 390,000 common share purchase warrants for total deemed beneficial ownership of 3,128,485 Common Shares, representing approximately 12.8% of the deemed issued and outstanding Common Shares. Immediately after the completion of the Offering, Fancamp beneficially owned 4,189,394 Common Shares (representing 11.4% of the issued and outstanding Common Shares of the Company) and 1,840,909 Warrants for total deemed beneficial ownership of 6,030,303 Common Shares, representing approximately 15.6% of the deemed issued and outstanding Common Shares. This represents an increase in holdings of approximately 2.5% from Fancamp’s previously reported deemed beneficial shareholding percentage in Common Shares of 13.1%. Fancamp’s current percentage holding of 11.4% of the outstanding Common Shares of the Company will remain unchanged on an undiluted basis.

Fancamp has advised the Company that the Common Shares and the Warrants are being held for investment purposes. Fancamp may acquire further securities of the Company or sell securities of the Company from time to time, subject to regulatory approval, if required.

A copy of the applicable early warning report will be available on the Company’s profile on SEDAR+ and may also be obtained by contacting the Company’s representative as set out below.

About EDM Resources Inc.

EDM is a Canadian exploration and mining company that has full ownership of the Scotia Mine and related facilities near Halifax, Nova Scotia. Through its wholly owned subsidiary, EDM also holds several prospective exploration licenses near its Scotia Mine and in the surrounding regions of Nova Scotia.