Fredonia Completes Private Placement and Announces Warrant Amendment

TORONTO, Sept. 23, 2026 /CourierPR/ -- Fredonia Mining Inc., a company based in Santa Cruz province, Argentina, has announced the successful completion of a private placement that raised $11.5 million through the issuance of 17,692,400 common shares at a price of C$0.65 per share. The private placement, known as a "bought deal," was led by ATB Cormark Capital Markets and included Canaccord Genuity Corp. as underwriters. The aggregate gross proceeds from the offering were $11,500,060, with the full exercise of the underwriters' option included in the total.

The proceeds from the offering will be used to fund the exploration and advancement of the company's El Dorado Monserrat Project, as well as for general corporate and working capital purposes. The cash commission paid to the underwriters was 6.0% of the gross proceeds, with a reduced rate of 3.0% for sales to purchasers on the President's List.

Directors and executive officers of Fredonia subscribed for a total of 500,000 shares in the offering, generating aggregate gross proceeds of C$325,000. This participation by insiders constitutes a "related party transaction," and the company has filed a material change report to be accessible on SEDAR+ at www.sedarplus.ca, which will detail the terms of the transaction and the reasons for the shorter filing period.

The Offering was completed under the listed issuer financing exemption (the "Listed Issuer Financing Exemption") of National Instrument 45-106, which exempts the shares from a four-month statutory hold period in Canada. The shares were also offered in the United States by way of private placement, in compliance with exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and in certain other jurisdictions outside of Canada and the United States on a private placement or equivalent basis.

The Offering remains subject to final approval from the Exchange. The securities described in the news release have not been, and will not be, registered under the U.S. Securities Act, or any U.S. state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the "United States" or to "U.S. persons" (as such terms are defined in Regulation S under the U.S. Securities Act), absent registration under the U.S. Securities Act and all applicable U.S. state securities laws or in compliance with an exemption therefrom.

In addition to the private placement, Fredonia has announced its intention to amend the exercise price of 4,818,932 outstanding warrants to purchase common shares at a price of $1.40 per common share to $0.45 per common share. The reduction in the exercise price remains subject to warrantholder and Exchange approvals. However, as the company has since completed financing activity at a higher price per share, it has decided to withdraw its application and intention to proceed with the price reduction. The warrants will remain outstanding and be exercisable in accordance with their terms until April 27, 2027.

Fredonia holds gold and silver license areas totaling approximately 64,000 hectares in the Deseado Massif geological region of Santa Cruz province, Argentina. The company's flagship project, the EDM Project, is located close to AngloGold Ashanti's Cerro Vanguardia gold-silver mine, which produced approximately 180,000 ounces of gold during the twelve months ended June 30, 2026. The company's other projects include the El Águila and Hornia projects.