Honey Badger Silver Announces Closing of Non-Brokered Flow-Through Private Placement Financing

Rhea-AI Summary

Honey Badger Silver (OTCQB: HBEIF / TSXV: TUF) closed a non‑brokered flow‑through private placement on October 8, 2025 to raise $1,500,000 by issuing 4,838,710 flow‑through common shares at $0.31 per share. The proceeds will fund Canadian exploration expenses and flow‑through critical mineral mining expenditures to be incurred on or before December 31, 2026, with renunciation to subscribers effective no later than December 31, 2025. The company paid $90,000 in finder’s fees and issued 290,322 non‑transferable finder warrants exercisable at $0.35 for 18 months. FT shares are subject to a four‑month plus one day hold and the closing remains subject to final TSX Venture Exchange approval.

Positive

• Gross proceeds of $1,500,000 raised via flow‑through shares
• 4,838,710 flow‑through shares issued at $0.31 per share
• Proceeds earmarked for qualifying Canadian exploration expenses through Dec 31, 2026

Negative

• Paid $90,000 in finder’s fees, increasing transaction cost
• Issued 290,322 finder warrants exercisable at $0.35, creating potential dilution
• Offering subject to final TSXV approval and FT shares carry a four‑month plus one day hold

Toronto, Ontario--(Newsfile Corp. - October 8, 2025) - Honey Badger Silver Inc. (TSXV: TUF) (OTCQB: HBEIF) ("Honey Badger" or the "Company") is pleased to announce that it has closed a non-brokered private placement of flow-through common shares (the "Offering") for aggregate gross proceeds of $1,500,000 through the issuance of 4,838,710 common shares of the Company that are intended to qualify as "flow-through shares" as defined in subsection 66(15) of the Income Tax Act (Canada) ("FT Shares") at a price of $0.31 per FT Share.

The Company will use the gross proceeds from the Offering to incur exploration expenses that qualify as "Canadian exploration expenses" as that term is defined in subsection 66.1(6) of the Income Tax Act (Canada) and as "flow-through critical mineral mining expenditures" as that term is defined in subsection 127(9) of the Income Tax Act (Canada). Such expenses will be incurred on or before December 31, 2026, and renounced to the subscribers of FT Shares with an effective date no later than December 31, 2025.

In connection with the Offering, the Company paid an aggregate of $90,000 in finder's fees and issued 290,322 non-transferable finder warrants to eligible finders. Each finder warrant entitles the holder to acquire one common share of the Company at a price of $0.35 per share, subject to customary anti-dilution adjustments, for a period of 18 months following the closing date.

The FT Shares are subject to a four-month and one day hold period under Canadian securities laws. The Offering is subject to receipt of the final approval of the TSX Venture Exchange.

About Honey Badger Silver Inc.

Honey Badger Silver is a silver company. The company is led by a highly experienced leadership team with a track record of value creation backed by a skilled technical team. Our projects are located in areas with a long history of mining, including the Sunrise Lake project with a historic resource of 12.8 Moz of silver (and 201.3 million pounds of zinc) Indicated and 13.9 Moz of silver (and 247.8 million pounds of zinc) Inferred ⁽¹⁾⁽³⁾ located in the Northwest Territories and the Plata high grade silver project located 165 km east of Yukon's prolific Keno Hill and adjacent to Snowline Gold's Rogue discovery. The Company's Clear Lake Project in the Yukon Territory has a historic resource of 5.5 Moz of silver and 1.3 billion pounds of zinc ⁽²⁾⁽³⁾. The Company also has a significant land holding at the Nanisivik Mine Area located in Nunavut, Canada that produced over 20 Moz of silver between 1976 and 2002 ⁽²⁾⁽³⁾. A qualified person has not done sufficient work to classify the foregoing historical resources as current mineral resources and the Company is not treating the estimates as current mineral resources. The historical resource estimates are provided solely for the purpose as an indication of the volume of mineralization that could be present. Additional work, including verification drilling / sampling, will be required to verify any of the historical estimates as a current mineral resources.

⁽¹⁾ Sunrise Lake 2003 RPA historic resource: Indicated 1.522 million tonnes grading 262 grams/tonne silver, 6.0% zinc, 2.4% lead, 0.08% copper, and 0.67 grams/tonne gold and Inferred 2.555 million tonnes grading 169 grams/tonne silver, 4.4% zinc, 1.9% lead, 0.07% copper, and 0.51 grams/tonne gold.

⁽²⁾ Clear Lake 2010 SRK historic Resource: Inferred 7.76 million tonnes grading 22 grams/tonne silver, 7.6% zinc, and 1.08% lead.

⁽³⁾ Geological Survey of Canada, 2002-C22, "Structural and Stratigraphic Controls on Zn-Pb-Ag Mineralization at the Nanisivik Mississippi Valley type Deposit, Northern Baffin Island, Nunavut; by Patterson and Powis."

ON BEHALF OF THE BOARD

Chad Williams, Executive Chairman

Sonya Pekar
Investor Relations
spekar@honeybadgersilver.com | +1 (647) 498-8244

For more information please visit our website www.honeybadgersilver.com

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

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. Any statement that involves discussions with respect to 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", "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 to occur or be achieved) including in respect of the use of proceeds of the Offering, the tax treatment of the FT Shares and the receipt of the final approval from the TSX Venture Exchange, are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time such assumptions and estimates were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Honey Badger to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, but are not limited to, risks relating to capital and operating costs varying significantly from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; other risks involved in the mineral exploration and development industry; and those risks set out in the Company's public documents filed on SEDAR+ (www.sedarplus.ca) under Honey Badger's 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 timeframes 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/269728

FAQ

How much did Honey Badger Silver (HBEIF) raise in the October 8, 2025 flow‑through financing?

Honey Badger raised $1,500,000 through the issuance of 4,838,710 flow‑through shares at $0.31 per share.

What will HBEIF use the flow‑through proceeds for and by when must expenses be incurred?

Proceeds will fund qualifying Canadian exploration and flow‑through critical mineral mining expenses to be incurred on or before December 31, 2026.

Were there any finder fees or warrants issued in Honey Badger's financing?

Yes; the company paid $90,000 in finder’s fees and issued 290,322 non‑transferable finder warrants exercisable at $0.35 for 18 months.

When must Honey Badger renounce the flow‑through expenditures for HBEIF subscribers?

The expenditures will be renounced to subscribers with an effective date no later than December 31, 2025.

Are the FT shares issued by Honey Badger immediately tradable?

No; the flow‑through shares are subject to a statutory hold period of four months plus one day under Canadian securities laws.