Questcorp Mining Provides Clarification on Sharing Arrangement

Rhea-AI Summary

Questcorp Mining (OTCQB: QQCMF) clarifies a prior disclosure about a sharing agreement tied to a non-brokered private placement completed October 24, 2025. The Company issued 14,000,334 units at $0.15 for gross proceeds of $2,100,050 and entered a sharing agreement with a notional amount of $2,000,000.

The Sharing Agreement included an $85,000 initial release and 24 monthly settlement tranches tied to a benchmark price. The final amount the Company may receive can be materially higher or lower than $2,000,000 and is not secured or escrowed, exposing the Company to counterparty risk if Sorbie Bornholm LP faces financial distress.

Positive

• Completed non-brokered private placement: 14,000,334 units at $0.15
• Gross proceeds from offering: $2,100,050
• Initial cash release under Sharing Agreement: $85,000

Negative

• Sharing Agreement not secured or held in escrow, increasing counterparty risk
• Final payout may be materially less than the $2,000,000 notional amount
• Payout depends on future share price, exposing receipts to market volatility

Vancouver, British Columbia--(Newsfile Corp. - January 30, 2026) - Questcorp Mining Inc. (CSE: QQQ) (OTCQB: QQCMF) (FSE: D910) (the "Company" or "Questcorp") advises that as a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify its disclosure.

On October 24, 2025, the Company completed a non-brokered private placement (the "Offering") in which it issued 14,000,334 units (each, a "Unit") at a price of $0.15 per Unit for gross proceeds of $2,100,050. Concurrent with the Offering, the Company entered into a sharing agreement with a notional amount of $2,000,000 with an institutional investor, Sorbie Bornholm LP ("Sorbie") and the Company (the "Sharing Agreement").

The Sharing Agreement provides that the Company will receive an initial release of $85,000, after which the Company's total payoff will be determined through twenty-four monthly settlement tranches, measured against the benchmark price as defined in the news release issued by the Company on November 10, 2025. As a result, the Company may ultimately receive more or materially less than the original proceeds of $2,000,000. The final amount received will depend on the Company's future share price, which is subject to market fluctuations and may vary over time. Accordingly, there is no assurance as to the total amount the Company will receive under the Sharing Agreement.

The Company also wishes to clarify that no funds under the Sharing Agreement are held in escrow or otherwise secured. Accordingly, if Sorbie were to experience adverse financial circumstances, the Company may be exposed to significant risk, as shares have been issued and there can be no assurance that the anticipated payments under the Sharing Agreement will be fully received.

About Questcorp Mining Inc.
Questcorp Mining Inc. is engaged in the business of the acquisition and exploration of mineral properties in North America, with the objective of locating and developing economic precious and base metals properties of merit. The Company holds an option to acquire an undivided 100% interest in and to mineral claims totaling 1,168.09 hectares comprising the North Island Copper Property, on Vancouver Island, British Columbia, subject to a royalty obligation. The Company also holds an option to acquire an undivided 100% interest in and to mineral claims totaling 2,520.2 hectares comprising the La Union Project located in Sonora, Mexico, subject to a royalty obligation.

Contact Information

Questcorp Mining Corp.
Saf Dhillon, President & CEO
Email: saf@questcorpmining.ca
Telephone: (604) 484-3031

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties, uncertain capital markets; and delay or failure to receive board or regulatory approvals. There can be no assurance that the geophysical surveys will be completed as contemplated or at all and that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/282248

FAQ

What did Questcorp (QQCMF) disclose about the October 24, 2025 private placement?

Questcorp completed a non-brokered private placement issuing 14,000,334 units at $0.15, raising $2,100,050. According to the company, this placement was concurrent with a $2,000,000 notional Sharing Agreement with Sorbie Bornholm LP.

How does the Sharing Agreement with Sorbie affect the amount Questcorp (QQCMF) will receive?

The Company may ultimately receive more or materially less than the $2,000,000 notional amount. According to the company, final payout is determined across 24 monthly settlement tranches tied to a benchmark price and future share performance.

Is any portion of the funds under the Sharing Agreement for QQCMF held in escrow or secured?

No. According to the company, funds under the Sharing Agreement are not held in escrow or otherwise secured. This means Questcorp has no collateral protection if the counterparty faces adverse financial conditions.

What immediate cash did Questcorp (QQCMF) receive from the Sharing Agreement?

Questcorp received an initial release of $85,000 under the Sharing Agreement. According to the company, the remainder of payments will be settled monthly and depend on market-driven benchmark pricing.

What risks should investors in Questcorp (QQCMF) be aware of regarding the Sharing Agreement?

Investors should note exposure to counterparty risk and market volatility that may reduce receipts below $2,000,000. According to the company, there is no assurance the anticipated payments will be fully received if Sorbie encounters financial distress.