Powermax Minerals Announces Closing of $3M Private Placement Offerings

The Company is also pleased to announce that it has completed a non-brokered private placement offering of 1,945,000 flow-through units of the Company at a price of $0.90 per FT Unit, for aggregate gross proceeds of $1,750,500. Each FT Unit consists of one Share  and one (non-flow-through) Share purchase warrant, with each FT Warrant entitling the holder to purchase a (non-flow-through) Share at an exercise price of $1.10 for a period of 24 months from the date of issuance.

The FT Shares are intended to qualify as “flow through shares” within the meaning of the Income Tax Act (Canada). The proceeds from the sale of the FT Shares will be used to incur “Canadian exploration expenses” that are intended to qualify as “flow-through mining expenditures” as those terms are defined in the Tax Act.

In conjunction with the Offering, the Company paid an aggregate of $164,994 in finder’s fees and issued 195,600 finder’s warrants to finders. Each finder’s warrant is exercisable into one Share at a price of $0.95 for a period of 36 months from the date of issuance.

Proceeds from the sale of the Non-FT Units are intended to be used for general working capital purposes and to fund exploration work on the Company’s mineral projects in BC and Ontario. Proceeds from the sale of the FT Units are intended to be used to incur “Canadian exploration expenses” that qualify as “flow-through critical mineral mining expenditures” as such terms are defined in the Tax Act.

All securities issued under the Private Placement Offerings are subject to a statutory hold period of four months and one day.

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or under any U.S. state securities laws, and may not be offered or sold in the United States absent registration or available exemptions from such registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States, or in any jurisdiction in which such offer, solicitation or sale would be unlawful.

On Behalf of the Board of Directors

About Powermax Minerals Inc.

Powermax Minerals Inc. is a Canadian mineral exploration company focused on advancing rare earth element projects. The Company holds an option to acquire the Cameron REE Property, comprising three mineral claims totaling approximately 2,984 hectares in British Columbia. Powermax also optioned to acquire the Atikokan REE Property, consisting of 455 unpatented mining claims in NW Ontario. Powermax also owns a 100% interest in the Ogden Bear Lodge Project, in Crook County, Wyoming.