The Company issued 13,500,000 units (the “Units”) at a price of $0.08 per Unit as well as 30,737,571 flow-through units (the “FT Units”) at a price of $0.095 per FT Unit for aggregate gross proceeds of $4,000,069. Each Unit was comprised of one common share of the Company (a “Common Share”) and one-half of a common share purchase warrant (each whole warrant, a “Warrant”) and each FT Unit was comprised of one flow-through common share of the Company (a “FT Common Share”) and one-half of a Warrant. Each whole Warrant shall be exercisable to acquire one additional Common Share at a price of $0.12 for a period of 12 months expiring October 21, 2022. Proceeds from the Private Placement will be used by the Company for exploration, working capital and for other general and administrative costs.

Following closing of the Private Placement, Mr. Gentile owns 6.85% (10,500,000 common shares) of the Company’s issued and outstanding common shares, and on a partially-diluted basis (including 5,250,000 warrants), Mr. Gentile will own 9.94% of the Company’s issued and outstanding common shares.

Mr. Gentile who has an extensive institutional money management background is an active and strategic investor in the junior mining sector owning significant stakes in over 20 small cap exploration companies. Michael is currently a strategic advisor to Arizona Metals (AMC-V) and a director of Northern Superior Resources (SUP-V), Roscan Gold (ROS-V), Radisson Mining Resources (RDS-V) and Solstice Gold (SGC-V).

The Company is also pleased that SIDEX, that became shareholder in March 2021, has increased its holding in the Company by subscribing to another 2,500,000 Units of the Private Placement. SIDEX is an initiative of the Québec government and the Fonds de Solidarité FTQ whose mission is to invest in companies engaged in mineral exploration in Québec in order to diversify the province’s mineral base, promote innovation and new entrepreneurs.

Mr. Troy Boisjoli, recently appointed President and CEO of Murchison, acquired 1,705,100 FT Units of the Private Placement and Donald K Johnson, director and major shareholder of Murchison acquired indirectly 10,000,000 Units and 3,158,000 FT Units for aggregate investment of $1,100,010 to maintain his current ownership in the Company at approximately 30%.

The Private Placement is subject to final acceptance of the TSX Venture Exchange. Finder’s fees and finder’s warrants totaling $198,005 and 2,178,997 respectively were paid in relation to the Private Placement. All securities issued under the Private Placement are subject to a four-month hold period until February 22, 2022 in accordance with applicable securities laws.

The Private Placement constituted a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Security holders in Special Transactions (“MI 61-101”), as insiders of the Company acquired an aggregate of 10,000,000 Units and 4,863,100 FT Units. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Private Placement by insiders does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Private Placement, which the Company deems reasonable in the circumstances in order to complete the Private placement in an expeditious manner. The Private Placement was approved by all independent directors of the Company.

Murchison is a Canadian‐based exploration company focused on nickel-copper-cobalt exploration at the 100%-owned HPM project in Quebec and the exploration and development of the 100%-owned Brabant Lake zinc‐copper‐silver project in north‐central Saskatchewan. The Company also holds an option to earn 100% interest in the Barraute VMS exploration project also located in Quebec, north of Val d’Or. Murchison currently has 153.2 million shares issued and outstanding.