Search Minerals Inc. (TSX-V: SMY) (OTCQB: SHCMF) is pleased to announce that, further to its news release dated December 23, 2021, it has closed the second and final tranche of its non-brokered private placement. The Private Placement raised a total aggregate gross proceeds of $6,322,239.

Under the Second Tranche, the Company issued 120,000 flow-through common shares of the Company at a price of $0.25 per FT Share, and 5,495,777 units of the Company at a price of $0.18 per Unit  for aggregate gross proceeds of $1,019,239.86. Each Unit consists of one common share and one common share purchase warrant in the capital of the Company. Each Warrant entitles the holder to purchase one additional common share of the Company for a period of 24 months from the date of issue at an exercise price of $0.25 per Warrant Share, subject to adjustment pursuant to the terms of the Warrant.

The Company intends to use the proceeds from the FT Offering to incur eligible Canadian Exploration Expenses and flow-through mining expenditures, as defined under the Income Tax Act (Canada), that will be renounced in favour of the purchasers with an effective date of no later than December 31, 2022. The Company intents to use the proceeds from the Unit Offering for general working capital purposes.

All securities issued pursuant to the Second Tranche are subject to a statutory four-month hold period expiring on May 28, 2022. The Private Placement is subject to receipt of final approval of the TSX Venture Exchange.

About Search Minerals Inc.

Led by a proven management team and board of directors, Search is focused on finding and developing Critical Rare Earths Elements (CREE), Zirconium (Zr) and Hafnium (Hf) resources within the emerging Port Hope Simpson – St. Lewis CREE District of South East Labrador. The Company controls a belt 63 km long and 2 km wide and is road accessible, on tidewater, and located within 3 local communities. Search has completed a preliminary economic assessment report for FOXTROT, and a resource estimate for DEEP FOX. Search is also working on three exploration prospects along the belt which include: FOX MEADOW, SILVER FOX and AWESOME FOX.

Search has continued to optimize our patented Direct Extraction Process technology with the generous support from the Department of Tourism, Culture, Industry and Innovation, Government of Newfoundland and Labrador, and from the Atlantic Canada Opportunity Agency. We have completed two pilot plant operations and produced highly purified mixed rare earth carbonate concentrate and mixed REO concentrate for separation and refining.