Golden Spike Concludes Debt Settlement Transaction

Rhea-AI Summary

Golden Spike Resources (OTCQB: GSPRF, CSE: GLDS) has completed a debt settlement with three directors and its corporate secretary by issuing 1,720,000 common shares at $0.05 per share, extinguishing CAD$86,000 of indebtedness. According to the company, paying with shares is intended to preserve cash for operations. The new shares are subject to a four‑month and one‑day hold period expiring on December 8, 2026. Golden Spike is a Canadian mineral exploration company focused on the Gregory River Property in Newfoundland and other low‑risk jurisdictions.

Positive

• CAD$86,000 in debt eliminated via share settlement
• Cash conserved for operations by issuing 1,720,000 shares instead of paying cash

Negative

• Equity dilution from issuing 1,720,000 new common shares
• Debt settlement shares issued to three directors and the corporate secretary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Vancouver, British Columbia--(Newsfile Corp. - August 7, 2026) - Golden Spike Resources Corp. (CSE: GLDS) (OTCQB: GSPRF) (FSE: L5Y) ("Golden Spike" or the "Company") Further to its announcement on July 30, 2026, the Company has issued 1,720,000 common shares (each, a "Share") at $0.05 per Share as settlement of indebtedness with three directors and the corporate secretary of the Company totaling CAD$86,000 (the "Transaction").

The Company determined to satisfy this outstanding indebtedness with Shares to preserve its cash for operations. All Shares issued pursuant to the Transaction will be subject to a four-month and one-day hold period expiring on December 8, 2026.

About Golden Spike

Golden Spike Resources Corp. (CSE: GLDS) (OTCQB: GSPRF) (FSE: L5Y) is a Canadian mineral exploration company focused on identifying, acquiring and unlocking value in mineral opportunities in Canada and other low-risk jurisdictions. The Company currently holds 100% interest in the 5,175-hectare Gregory River Property in Newfoundland, strategically centered over an approximate 11-kilometre-long stretch of the Gregory River VMS-belt, a north-northeast trending corridor of very prospective ground with potential to host Cyprus-type polymetallic VMS deposits. In addition, the Property hosts a cluster of historically explored, high-grade, copper ±gold-zinc vein structures and breccia hosted stockworks. Golden Spike Resources remains dedicated to sustainable exploration practices and continues to collaborate with local communities, consultants, and stakeholders as it progresses its exploration initiatives.

For further information, please contact: Ryan Connacher, CEO, Golden Spike Resources Corp. Tel: +1 (647) 983-7458, Email: ryan@freeportrecovery.ca or info@goldenspikeresources.com

ON BEHALF OF THE BOARD OF DIRECTORS

Ryan Connacher, CEO
Golden Spike Resources Corp.
830 - 1100 Melville St., Vancouver, BC, V6E 4A6

Website: https://www.goldenspikeresources.com

"Neither the Canadian Securities Exchange (the "CSE") nor its Regulation Services Provider (as that term is defined in policies of the CSE) accepts responsibility for the adequacy or accuracy of this release."

Cautionary Note Regarding Forward-Looking Statements

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" occur.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/308762

FAQ

What debt settlement did Golden Spike Resources (GSPRF) complete on August 7, 2026?

Golden Spike Resources settled CAD$86,000 of indebtedness by issuing 1,720,000 common shares at $0.05 per share. According to the company, the transaction involved three directors and the corporate secretary and was structured as a share-based settlement.

How many shares did Golden Spike Resources (GSPRF) issue for its 2026 debt settlement?

Golden Spike Resources issued 1,720,000 common shares at $0.05 per share to settle CAD$86,000 of debt. According to the company, this approach was chosen to preserve cash for ongoing operations and corporate activities.

What is the hold period on the new Golden Spike Resources (GSPRF) shares from the debt settlement?

The newly issued Golden Spike Resources shares are subject to a four-month and one-day hold period, expiring on December 8, 2026. According to the company, these restrictions apply to all shares issued in the debt settlement transaction.

Who received shares in Golden Spike Resources (GSPRF) August 2026 debt settlement?

Three directors and the corporate secretary of Golden Spike Resources received the 1,720,000 common shares. According to the company, these shares were issued as full settlement of CAD$86,000 in outstanding indebtedness owed to those insiders.

Why did Golden Spike Resources (GSPRF) choose shares instead of cash to settle debt?

Golden Spike Resources chose to issue shares to settle CAD$86,000 of debt in order to preserve cash for operations. According to the company, this structure supports funding exploration and corporate activities without immediate cash outflow.

What does Golden Spike Resources (GSPRF) focus on after its 2026 debt settlement?

Golden Spike Resources continues to focus on mineral exploration, primarily its 5,175-hectare Gregory River Property in Newfoundland. According to the company, it targets polymetallic VMS deposits and high-grade copper ± gold-zinc structures in low-risk jurisdictions.