Valkea Resources Corp. (TSX-V: OZ) is pleased to announce the closing of its previously-announced “best efforts” private placement of 20,075,000 common shares in the capital of the Company at a price of $0.40 per Common Share for aggregate gross proceeds to the Company of $8,030,000, including the partial exercise of the agents’ option. The Offering was led by Beacon Securities Limited, as lead agent and sole bookrunner, on behalf of a syndicate of agents comprising of ATB Cormark Capital Markets and Canaccord Genuity Corp.

The Company intends to use the net proceeds from the Offering for exploration and development at the Company’s properties in the Central Lapland Greenstone Belt of Northern Finland, and for working capital and general corporate purposes.

The Common Shares were sold in reliance on the “listed issuer financing exemption” from the prospectus requirement available under Part 5A of National Instrument 45-106 – Prospectus Exemptions, as amended by Coordinated Blanket Order 45-935 – Exemptions from Certain Conditions of the Listed Issuer Financing Exemptions. The Common Shares are not subject to a hold period under Canadian securities laws, other than 1,625,000 Common Shares sold to insiders of the Company as further described below, which are subject to a hold period expiring on October 17, 2026 in accordance with the policies of the TSXV Venture Exchange.

In connection with the Offering, the Company paid the Agents a cash commission of $450,300 and issued to the Agents 1,125,750 non-transferable compensation options. Each Compensation Option entitles the holder to acquire one common share in the capital of the Company at an exercise price of $0.60 per share until June 16, 2027. The Compensation Options are subject to a statutory hold period under Canadian securities laws, expiring on October 17, 2026.

Thomas Credland, an existing insider of the Company, participated in the Offering and acquired 1,000,000 Common Shares for aggregate gross proceeds of $400,000. Louis Archambeault, also an existing insider of the Company, participated in the Offering and acquired 625,000 Common Shares for aggregate gross proceeds of $250,000. The participation of such insiders in the Offering constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company has determined that the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in Section 5.5(a) and Section 5.7(1)(a) of MI 61-101, as neither the fair market value of securities issued to such person nor the consideration paid by such person exceeded 25% of the Company’s market capitalization. The Company did not file a material change report in respect of the transaction 21 days in advance of closing of the Offering because the details of the Offering and insider participation had not been confirmed and the shorter period was necessary in order to permit the Company to close the Offering in a timeframe consistent with usual market practice for transactions of this nature.

The Offering remains subject to the final approval of the TSXV.

The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any U.S. state securities laws, and may not be offered or sold in the “United States” (as such term is defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable U.S. state securities laws or an exemption from such registration is available. This news release shall 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 jurisdiction in which such offer, solicitation or sale would be unlawful.

About Valkea Resources

Valkea Resources is a mineral exploration company focused on a portfolio of properties in the Central Lapland Greenstone Belt of Northern Finland. It is developing a proprietary regional geological model and will employ a proven exploration methodology to systematically generate and progress gold and base metals targets with potential to become high quality mines of the future.