Melkior Resources Announces Proposed Non-Brokered Private Placement

Melkior Resources Inc. has announced its intention to complete a non-brokered private placement raising up to $650,000 in gross proceeds through the issuance of up to 5,416,666 flow-through units at $0.12 per unit. Each unit consists of one flow-through common share and one-half warrant, with full warrants exercisable at $0.20 for two years from issuance. The flow-through structure provides Canadian tax benefits to investors while directing proceeds toward qualifying exploration expenditures.

The financing will fund exploration activities at the company's mineral properties, specifically including an up to 4,000-metre drill program at the Beschefer East Project located in the Timmins district of Ontario. This represents a significant exploration commitment for the company and demonstrates management's confidence in advancing their projects through systematic drilling programs.

The transaction is structured as a flow-through offering, meaning all proceeds must be used for Canadian exploration expenses that qualify as flow-through mining expenditures under federal and Quebec tax legislation. This structure is particularly attractive to Canadian investors seeking tax deductions while supporting domestic mineral exploration. The company may pay finder's fees to eligible parties, and certain directors and officers may participate, constituting a related-party transaction under applicable securities regulations.

All securities issued will be subject to a four-month hold period and TSXV approval. The financing provides Melkior with the capital necessary to advance exploration at Beschefer East while maintaining compliance with Canadian tax and securities regulations, positioning the company to execute its planned drilling program and potentially advance the project toward resource definition.