Labrador Uranium Inc.  (CSE: LUR) (F: EI1) is pleased to announce the closing of its previously announced “bought deal” private placement for gross proceeds of C$10,001,600, which includes the full exercise of the over-allotment option. Under the Offering, the Company sold 7,144,000 flow-through units of LUR to charitable purchasers at a price of C$1.40 per Charity FT Unit. The Charity FT Units were sold through a syndicate of underwriters led by Red Cloud Securities Inc. and included Haywood Securities Inc. and PI Financial Corporation.

Stephen Keith, CEO, commented, “We would like to thank our existing and new shareholders for the overwhelming support in completing an over-subscribed and strongly institutionally backed private placement. This financing shows great confidence in the work we have ahead, and we look forward to our planned 2022 and 2023 exploration seasons.”

Each Charity FT Unit consists of one common share of LUR issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) and one-half of one common share purchase warrant. Each Warrant entitles the holder to purchase one non-flow-through common share of LUR at a price of C$1.40 at any time on or before April 28, 2024.

The net proceeds from the sale of the FT Shares are expected to be used for the exploration of LUR’s projects in Labrador, Canada and for “Canadian Exploration Expenses” (within the meaning of the Income Tax Act (Canada)), which will be renounced with an effective date no later than December 31, 2022 to the purchasers of the Charity FT Units in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares.

In connection with the Offering, the Underwriters received a cash commission equal to $605,104 and were issued 464,360 non-transferable broker warrants. Each Broker Warrant is exercisable to acquire one common share of the Company at a price of C$1.00 at any time on or before April 28, 2024. All securities issued pursuant to the Offering is subject to a statutory hold period under Canadian securities legislation ending on August 29, 2022.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and such securities were not offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State of the United States in which such offer, solicitation or sale would be unlawful.

About Labrador Uranium Inc.

Labrador Uranium is engaged in the exploration and development of uranium projects in Labrador, Canada. LUR has acquired the Moran Lake and CMB Projects covering over 139,000 ha in the prolific Central Mineral Belt (CMB) in central Labrador and the Notakwanon Project in northern Labrador. Both the Moran Lake Project, which hosts historical uranium mineral resources, and the CMB Project, located adjacent to Paladin Energy’s Michelin uranium deposit, have had substantial past exploration work completed with numerous targets with uranium, copper and IOCG style mineralization. The Notakwanon Project is underexplored but drill ready. All three projects are expected to be the focus of an aggressive exploration program in 2022.