HONEY BADGER SILVER ANNOUNCES FULL EXERCISE OF OVER-ALLOTMENT OPTION, WARRANT PRICING FOR $11.5 MILLION FINANCING

Honey Badger Silver Inc. has successfully completed an $11.5 million brokered private placement financing with the full exercise of the agents' over-allotment option, demonstrating strong investor demand for the company's transformational acquisition strategy. The financing, led by SCP Resource Finance LP, involved the issuance of 71.875 million subscription receipts at $0.16 each, with each receipt converting to one unit consisting of a common share and a warrant exercisable at $0.24 for three years. Notably, the company's management team, board of directors, and advisors committed to purchasing over 10% of the offering, signaling strong internal confidence in the strategic direction.

The proceeds will fund the $10 million cash portion of Honey Badger's acquisition of Canadian Zinc Corporation, which owns 100% of the Prairie Creek Project in the Northwest Territories. This acquisition represents a pivotal transformation for Honey Badger, as Prairie Creek is a fully permitted underground silver-zinc-lead project with substantial existing infrastructure and development approvals in place. The project hosts an impressive historical resource base of 8 million tonnes of Measured & Indicated resources grading 139 g/t silver, 9.7% zinc, and 8.8% lead, totaling 240 million ounces of silver equivalent, plus an additional 167 million ounces of silver equivalent in Inferred resources.

The strategic value of this acquisition extends beyond the resource base itself. Prairie Creek benefits from key regulatory approvals already secured, multiple agreements with local Indigenous governments providing social license to operate, and previous economic studies supporting project viability. The 7,485-hectare land position offers significant regional exploration upside in an under-explored area with excellent geological potential. This acquisition positions Honey Badger as a significant player in the silver development space, particularly relevant given current silver market dynamics.

The transaction structure includes escrow provisions tied to completion of the acquisition, with the deal expected to close in Q2 2026 subject to TSXV approval and other customary conditions. The financing terms include a 6% agent commission (reduced to 3% for president's list participants) and compensation warrants, with securities subject to a four-month statutory hold period. This transaction represents one of the most compelling silver development opportunities globally, transforming Honey Badger from an exploration company into a near-term silver producer with significant scale and infrastructure advantages.