Honey Badger Silver Inc. (TSX-V: TUF) is pleased to announce that it has closed the non-brokered private placement offering announced on February 18, 2021.   The over-subscribed private placement resulted in the issuance of 42.86 million units for aggregate gross proceeds of $3,000,000.

Each Unit was priced at $0.07 and consists of one common share in the capital of the Company and one-half of one Common Share purchase warrant. Each Warrant entitles the holder to acquire one additional Common Share at a price of $0.10 for a period of three years from the date of closing of the Financing.

Mr. Eric Sprott through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 14,285,714 Units pursuant to the Private Placement for total consideration of $1,000,000.

Prior to the Offering, Mr. Sprott beneficially owned or controlled 2,500,000 common shares and 2,500,000 Warrants of the Company. Following the closing of the Private Placement, Mr. Sprott beneficially owns or controls 16,785,714 common shares of the Company and 9,642,857 Warrants, representing approximately 12.2% of the issued and outstanding shares of the Company on a non-diluted basis and approximately 17.9% of the issued and outstanding shares of the Company on a partially diluted basis assuming exercise of the Warrants.

The Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company including on the open market or through private acquisitions or sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time.

A copy of the applicable early warning report will appear on the Company’s profile on SEDAR and may also be obtained by calling Mr. Sprott’s office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

Chad Williams, Chairman of Honey Badger Silver acquired 10% or 4,285,714 Units pursuant to the Private Placement for total consideration of $300,000. Mr. Williams voluntarily reduced his subscription to accommodate the high demand from other investors. He now owns or controls 13,610,714 Common Shares or approximately 9.9% of the outstanding Honey Badger shares on an undiluted basis and approximately 16.5% on a partially diluted basis assuming the exercise of Warrants.

The securities issued and issuable pursuant to the Financing will be subject to a four month and one day hold period. The Company intends to use the net proceeds from the financing to advance exploration work on its Thunder Bay Silver portfolio and for general working capital purposes.   The Private Placement remains subject to TSX Venture Exchange final acceptance.

Closing was concurrent with the execution of the definitive agreement relating to the acquisition of the Hy, Groundhog and Plata properties located in southeast and south-central Yukon from Strategic Metals Inc. (see news releases dated March 15 and February 11, 2021 for more details).

Live Flow-through Private Placement

Investors interested in participating in the previously announced live flow-through private placement equity financing anticipated to close on or before March 25, 2021 are requested to contact the Company at HoneyBadger@grovecorp.ca.

For more information, please visit our new website at http://www.honeybadgersilver.com.

Or contact: Ms. Christina Slater at cslater@honeybadgersilver.com.

About Honey Badger Silver Inc.

Honey Badger Silver is a silver-focused company headquartered in Toronto, Ontario, Canada with properties in Quebec and Ontario including an expansive interest in the Thunder Bay Cobalt-Silver District. In addition, the Company has a definitive agreement over three silver properties in southeast and south-central Yukon (see news release dated February 11, 2021 for more details). The Company’s common shares trade on the TSX Venture Exchange.