Eureka Lithium Corp Announces Debt Settlements

Rhea-AI Summary

Eureka Lithium Corp (OTCQB: UREKF) has announced multiple debt settlement agreements totaling $145,200. The company will settle these debts through the issuance of common shares at $0.1425 per share. The settlements include:

- First Debt Settlement: $99,450 to be settled through 697,894 shares
- Second Debt Settlement: $30,000 to be settled through 210,526 shares
- Third Debt Settlement: $15,750 with CEO David Bowen through 110,526 shares

The third settlement qualifies as a related party transaction but is exempt from formal valuation and minority shareholder approval requirements under MI 61-101.

Positive

• Elimination of $145,200 in debt obligations without cash expenditure
• Support for working capital through debt conversion to equity
• Management participation in debt settlement shows alignment with shareholders

Negative

• Share dilution through issuance of 1,018,946 new common shares
• Related party transaction with CEO indicates potential cash flow constraints

Vancouver, British Columbia--(Newsfile Corp. - July 14, 2025) - Eureka Lithium Corp. (CSE: ERKA) (OTCQB: UREKF) (FSE: S58) ("Eureka Lithium" or "Eureka" or the "Company") pleased to announce that it has entered into debt settlement agreements with certain service providers (the "Creditors"), pursuant to which the Company has agreed to settle an aggregate amount of $99,450.00 in outstanding bona fide debt (the "First Debt Settlement"). The Company and the Creditors have agreed to settle the Debt through the issuance to the Creditor of 697,894 common shares in the capital of the Company at a price of $0.1425 per common share (the "Shares"). Subject to the written consent of the Canadian Securities Exchange the First Debt Settlement Shares in connection with the First Debt Settlement will not be subject to any hold period.

The Company announces that it has entered into a debt settlement agreement with two creditors to settle an outstanding loan in the amount of $30,000.00 (the "Second Debt Settlement"). The loan was advanced to the Company as a non-interest bearing advance to support working capital and was not subject to a formal loan agreement. The Company and the creditors have agreed to settle the loan through the issuance to the creditors of 210,526 common shares in the capital of the Company at a price of $0.1425 per common share (the "Shares"). The Second Debt Settlement Shares will be subject to a four month and a day hold from the date of issuance.

The Company also announces the settlement of C$15,750 owed to David Bowen the Company's Chief Executive Officer, through the issuance of 110,526 Shares at a price of C$0.1425 per Share (the "Third Debt Settlement"). The issuance of the Third Debt Settlement Shares is a "related party transaction" pursuant to Multilateral Instrument 61-101- Protection of Minority Holders in Special Transactions ("MI 61-101") and is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in Sections 5.5(b) and 5.7(1)(b) of MI 61-101. Subject to the written consent of the Canadian Securities Exchange the Third Debt Settlement Shares will not be subject to any hold period.

The debt settlements were approved by the board of directors of the Company, the majority of whom are considered to be independent with reference to MI 61-101. Pursuant to the policies of the Canadian Securities Exchange, the debt settlements cannot close prior to five business days from the announcement of the Company's intention to complete the debt settlements.

About Eureka Lithium Corp.

Eureka Lithium is the largest lithium-focused landowner in the northern third of Quebec, known as the Nunavik region, with 100% ownership of three projects comprising 2,108 sq. km in the emerging Raglan West, Raglan South and New Leaf Lithium Camps. These claims were acquired from legendary prospector Shawn Ryan and are located in a region that hosts two operating nickel mines with deep-sea port access.

For more information, please contact:

David Bowen
Chief Executive Officer
Email: info@eurekalithiumcorp.com

Cautionary Statement

Certain statements contained in this news release, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, such as statements regarding the closing of the debt settlement and the hold period of the Shares, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements reflect management's expectations and are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements. These factors should be considered carefully, and readers should not place undue reliance on the Company's forward- looking statements. The Company believes that the expectations reflected in the forward-looking statements contained in this news release are reasonable, but no assurance can be given that these expectations will prove to be correct. The Company undertakes no obligation to release publicly any future revisions to forward-looking statements to reflect events or circumstances after the date of this news or to reflect the occurrence of unanticipated events, except as expressly required by law.

The Canadian Securities Exchange (CSE) has not reviewed, approved, or disapproved the contents of this press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/258700

FAQ

What is the total value of Eureka Lithium's (UREKF) debt settlement announced on July 14, 2025?

Eureka Lithium announced debt settlements totaling $145,200, to be settled through the issuance of shares at $0.1425 per share.

How many new shares will UREKF issue for the debt settlements?

Eureka Lithium will issue a total of 1,018,946 new common shares to settle the debts, consisting of 697,894 shares for the first settlement, 210,526 shares for the second, and 110,526 shares for the third settlement.

What is the price per share for Eureka Lithium's debt settlement?

All debt settlements will be conducted at a price of $0.1425 per common share.

How much debt is being settled with Eureka Lithium's CEO David Bowen?

CEO David Bowen is settling $15,750 in debt through the issuance of 110,526 shares as part of the third debt settlement.

Are there any hold periods for the UREKF debt settlement shares?

The second debt settlement shares will have a four-month and one-day hold period. The first and third settlements' shares will not have hold periods, subject to Canadian Securities Exchange consent.