Bunker Hill Announces Decision to Issue Shares to Meet Interest Payment Obligations on Debentures

VANCOUVER, British Columbia, Sept. 20, 2024 (GLOBE NEWSWIRE) — Bunker Hill Mining Corp. (“Bunker Hill“ or the “Pursue”) (OTCQB: BHILL) announces that it has resolved to issue a total of 5,175,000 common shares of the Company (the “Interest components”) to certain holders of 7.5% convertible bonds (the “Convertible Bonds Series 1”) and 10.5% convertible bonds (the “Convertible Bonds Series 2“ and together with the Series 1 Convertible Bonds, the “Convertible bonds”) to fully settle the interest payable thereon as of September 30, 2024 in the total amount of USD 517,500 (the “Interest payment”). The Series 1 Convertible Debentures will mature on March 31, 2028 and the Series 2 Convertible Debentures will mature on March 31, 2029.

Pursuant to the terms of the Convertible Debentures, the Company will issue the Interest Shares at a price of $0.10 per Interest Share based on 90% of the 10-day volume weighted average trading price of the Company’s common shares on the TSX Venture Exchange (the “TSX-V”) on the trading days beginning on 9 September 2024 and ending on 20 September 2024 (the “Pricing period”).

In connection with the Interest Payment, the Company will issue a total of 4,983,334 Interest Shares to certain managed accounts of Sprott Private Resource Streaming and Royalty Corp. (“Sprat”) and accordingly the issuance of such Interest Shares to Sprott constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 –
Protecting the consent of minority shareholders (“MI61-101”). The Company will rely on exemptions from the formal valuation and minority shareholder consent requirements under MI 61-101 as neither the fair market value of the Interest Shares to be issued to Sprott nor the consideration received for such Interest Shares will exceed 25% of the Company’s market capitalization. The Company did not file a material change report more than 21 days prior to the decision to issue the Interest Shares as the pricing period did not end until September 20, 2024.

The issuance of the Interest Shares is subject to the terms and conditions of the Convertible Debentures and the receipt of all regulatory approvals, including but not limited to the approval of the TSX-V. Following issuance, the Interest Shares will be subject to a four-month and one-day hold period under applicable Canadian securities laws.