ERRINGTON METALS ANNOUNCES CLOSING OF C$34.5 MILLION PRIVATE PLACEMENT

ERRINGTON METALS ANNOUNCES CLOSING OF C$34.5 MILLION PRIVATE PLACEMENT

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

THUNDER BAY, ON, Aug. 11, 2026 /CNW/ -- Errington Metals Corp. (TSXV: EM) (the "Company") is pleased to announce that it has closed its previously-announced "best efforts" brokered private placement offering (the "Offering") for aggregate gross proceeds of C$34,515,679.50, including the partial exercise of the option granted to the Agents (as defined herein). In connection with the Offering, the Company issued an aggregate of (i) 1,927,000 common shares of the Company that qualify as "flow-through shares" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "Flow-Through Shares") at an issue price of C$5.19 per Flow-Through Share, for gross proceeds of C$10,001,130.00 and (ii) 7,004,157 common shares of the Company (the "Offered Common Shares") at a price of C$3.50 per Offered Common Share, for gross proceeds of C$24,514,549.50.

The Company intends to use the net proceeds from the sale of the Offered Common Shares for continued exploration of the Company's Sudbury Basin Project, and for general working capital purposes. The gross proceeds from the Flow-Through Shares will be used by the Company to incur eligible resource exploration expenses which will qualify as (i) "Canadian exploration expenses" (as defined in the Tax Act), (ii) "flow-through critical mineral mining expenditures" (as defined in subsection 127(9) of the Tax Act), and (iii) "eligible Ontario critical mineral exploration expenditures" within the meaning of subsection 103(4.1) of the Taxation Act, 2007 (Ontario) (collectively, the "Qualifying Expenditures"). Qualifying Expenditures in an aggregate amount not less than the gross proceeds raised from the issue of the Flow-Through Shares will be incurred by the Company on or before December 31, 2027, and will be renounced by the Company in favour of the initial purchasers of the Flow-Through Shares with an effective date no later than December 31, 2026.

The Offering was led by Stifel Nicolaus Canada Inc., as co-lead agent and sole bookrunner, and CIBC World Markets Inc. and BMO Nesbitt Burns Inc., as co-lead agents, for and on behalf of a syndicate of agents that included Red Cloud Securities Inc., ATB Capital Markets Corp. and Beacon Securities Limited (collectively, the "Agents"). In consideration for their services, the Agents were paid a cash commission equal to 6% of the gross proceeds of the Offering, other than the gross proceeds raised from the sales of Offered Common Shares to purchasers included on a president's list of up to C$5,000,000 of gross proceeds, in which case a reduced commission of 3% of the gross proceeds was payable.

All securities issued under the Offering are subject to a hold period expiring four months and one day from the date hereof. The Offering remains subject to final acceptance of the TSX Venture Exchange.

Certain directors and senior officers of the Company named below (collectively, the "Insiders") purchased an aggregate of 18,585 Offered Common Shares pursuant to the Offering (the "Insider Participation"). Participation by the Insiders in the Offering was considered a "related party transaction" pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insiders' participation in the Offering pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as neither the fair market value of any securities issued to, nor the consideration paid by, the Insiders exceeded 25% of the Company's market capitalization. The Company did not file a material change report relating to the Insider Participation more than 21 days before the expected closing date of the Offering as the details of the Insider Participation were not settled at such time and the Company wished to close the Offering on an expedited basis for sound business reasons.

The securities described herein 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 state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Errington Metals Corp.

Errington Metals Corp. is a Canadian exploration and development company focused on advancing critical and precious metals opportunities. The Company is progressing its wholly owned Sudbury Basin Project, which hosts high-grade volcanogenic massive sulphide ("VMS")-style mineralization in one of Canada's most established mining districts. Errington is advancing the project through systematic drilling, geological modelling and technical evaluation.

In 2026, the Company is completing a 45,000–metre drill program designed to support an initial mineral resource estimate and test regional targets.

Cautionary Statement on Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as "expects", or "does not expect", "is expected", "interpreted", "management's view", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "potential", "feasibility", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This news release contains forward-looking information pertaining to, among other things: the ability for the Company to obtain the final approval of the TSX Venture Exchange; the anticipated use of proceeds of the Offering; the tax treatment of the Flow-Through Shares; the timing of incurring the Qualifying Expenditures and the renunciation of the Qualifying Expenditures; the ability to advance the Company's Sudbury Basin Project;  and the plans, operations and prospects of the Company.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management, in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information are set out in the Company's public disclosure record on SEDAR+ (www.sedarplus.ca) under Errington Metals' issuer profile. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.

SOURCE Errington Metals Corp.