Lodestar Metals Closes Final Tranche of Private Placement for Total Proceeds of CAD$1.57M

Rhea-AI Summary

Lodestar Metals (OTC: SVTNF) closed the final tranche of a non‑brokered private placement, issuing a total of 7,850,000 Units at $0.20 for gross proceeds of CAD$1.57M. Each Unit includes one common share and one warrant exercisable at $0.30 for 18 months. Proceeds will fund exploration and drilling at Goldrun and general working capital. The Company also granted 785,000 stock options at $0.20 exercisable for five years. Finder fees totaled $44,810 plus 222,700 finder warrants.

Positive

• Gross proceeds of CAD$1.57M raised
• Financing was oversubscribed and increased in size
• Proceeds earmarked for Goldrun exploration and drilling
• Granted 785,000 stock options to align management

Negative

• Issuance of Units plus warrants causes near‑term dilution
• Finder fees of $44,810 and 222,700 finder warrants paid
• Issued warrants exercisable at $0.30 for 18 months
• Securities subject to a four months plus one day hold period

Vancouver, British Columbia--(Newsfile Corp. - February 20, 2026) - Lodestar Metals Corp. (TSXV: LSTR) (OTC Pink: SVTNF) ("Lodestar" or the "Company"), a junior exploration company focused on unlocking world class gold potential in Nevada, is pleased to announce it has closed the final tranche of its previously announced non-brokered private placement financing (the "Offering") by issuing 2,700,000 units of the Company ("Units") at a price of $0.20 per Unit for gross proceeds of $540,000. Due to increased investor interest, the Company has increased the size of the Offering, and has issued a total of 7,850,000 Units at a price of $0.20 per Unit for gross proceeds of $1,570,000 under the entire Offering.

"We are excited to announce the closing of our oversubscribed financing and are deeply grateful to both new and existing shareholders who share our conviction in the scale and potential of Goldrun, our flagship asset," said Lowell Kamin, President and CEO of Lodestar Metals. "This strong show of support is more than a capital raise - it is a vote of confidence in our strategy, our team, and our vision to unlock meaningful value in Nevada's premier mining jurisdiction.

With a strengthened balance sheet, we are well-positioned to execute a disciplined and systematic exploration program at Goldrun as we advance toward our inaugural drill campaign - a pivotal milestone in our journey toward defining a resource. At the same time, this financing provides us with the flexibility to pursue additional high-value opportunities across Nevada, building a pipeline of quality assets designed to deliver long-term growth. We believe we are at the beginning of an exciting chapter for Lodestar, and we look forward to driving sustained value creation for our shareholders as we move decisively forward."

Each Unit under the Offering consists of one common share and one common share purchase warrant ("Warrant"), with each Warrant entitling the holder to purchase one additional share at a price of $0.30 per share for a period of 18 months from the date of issue.

All securities issued under the Offering, including securities issuable on the exercise thereof, are subject to a hold period expiring four months and one day from the date of issuance. Under the entire Offering, the Company paid finders an aggregate of $44,810 and issued a total of 222,700 finder share purchase warrants. Each finder share purchase warrant is exercisable at $0.20 per share for a period of 18 months from the date of issue.

The proceeds of the Offering will be used for exploration and drilling activities on the Goldrun Property as well as working capital purposes.

The Company also announces that it has granted 785,000 stock options to its directors, officers and consultants. Each stock option is exercisable at $0.20 per share for a period of five years from the date of grant.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States.

ABOUT LODESTAR METALS

Lodestar Metals Corp. is a Canadian gold exploration company focused on advancing the drill-ready Goldrun Project in Nevada, strategically located on a major Carlin-style gold trend and adjacent to some of the largest gold deposits in North America. With decades of combined geological and capital markets expertise, Lodestar follows a disciplined, step-by-step approach to discovery. The Company's strategy is clear: focus capital on high-value targets, move quickly on known mineralization, and build a compliant gold resource that delivers lasting shareholder value. For more information, please visit www.lodestarmetals.ca.

CONTACT

Lodestar Metals Corp.
Lowell Kamin
President, CEO
(416) 272-1241
investors@lodestarmetals.ca

Forward-Looking Statements

The information set forth in this news release contains forward-looking statements based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions, and expectations. They are not guarantees of future performance. Lodestar cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by several material factors, many of which are beyond Lodestar's control. Such factors include, among other things, risks and uncertainties relating to Lodestar's limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates.

NEITHER 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/284624

FAQ

How much did Lodestar (SVTNF) raise in the February 20, 2026 private placement?

Lodestar raised CAD$1.57 million in total from the Offering. According to the company, it issued 7,850,000 Units at $0.20 per Unit across the entire financing, including the final tranche closed on February 20, 2026.

What does each Unit include in Lodestar's (SVTNF) financing completed February 20, 2026?

Each Unit consists of one common share and one warrant exercisable at $0.30. According to the company, each warrant is valid for 18 months from issue, creating potential future share issuance if exercised.

How will Lodestar (SVTNF) use the proceeds from the CAD$1.57M financing?

Proceeds are designated for exploration, drilling at Goldrun, and working capital. According to the company, funds will help advance toward an inaugural drill campaign and support additional Nevada opportunities while strengthening the balance sheet.

What dilution should shareholders expect from Lodestar's (SVTNF) Offering and related grants?

Shareholders should expect dilution from issued Units, warrants, finder warrants, and stock options. According to the company, 7,850,000 Units, 222,700 finder warrants, and 785,000 options were issued, which could increase the share count if exercised.

What are the exercise terms for the warrants and stock options granted by Lodestar (SVTNF)?

Warrants from the Offering are exercisable at $0.30 for 18 months; finder warrants at $0.20 for 18 months. According to the company, granted stock options are exercisable at $0.20 for five years from the grant date.

Are the new securities from Lodestar's (SVTNF) financing immediately tradeable by investors?

No; the securities are subject to a hold period expiring four months and one day from issuance. According to the company, securities issued under the Offering and those issuable on exercise remain restricted until that hold period ends.