News

VANCOUVER, B.C., September 29, 2023 – Tectonic Metals Inc. (TECT: TSX-V; TETOF: OTCQB; T15B: FSE) (“Tectonic” or the “Company”), a junior explorer that applies a disciplined and up-front approach to addressing the economics, community benefits, and sustainability of its projects, today announced that Crescat Capital LLC (including its associates and affiliates - together “Crescat”) and the Company received approval from disinterested shareholders at the Company’s Annual General and Special Meeting on September 21, 2023, as well as TSXV approval, for Crescat to become a Control Person as defined by the Securities Act and in the TSXV’s policies. Concurrent with this approval, the Company closed a final tranche (the “Final Tranche”) of the previously announced a brokered private placement (the “Offering”) for gross proceeds of $560,000 from Crescat. Closing of the Final Tranche was subject to Crescat becoming a Control Person and attaining TSXV approval. Unless otherwise noted, all amounts are expressed in Canadian dollars.

The $560,000 raised in the Final Tranche consisted of the issuance of 5,090,909 units of the Company (a “Unit”) at a price of $0.11 per Unit. The Final Tranche was different from the first and second tranches (see prior press releases for details on those tranches), noting the Final Tranche was unbrokered and did not include any shares issued pursuant to the listed issuer financing exemption (“LIFE”) under Part 5A of NI 45-106. Aggregate gross proceeds of the Offering was $8,229,881 (including the first, second, and Final Tranche).

Each Unit of the Final Tranche is comprised of one common share in the capital of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share (a “Warrant Share”) for a period of 24 months following the closing date of the Offering at an exercise price of $0.15. The Units are subject to a statutory hold period of four months in accordance with applicable Canadian securities laws. Securities issued to US investors under the Offering are subject to a six-month hold period.

Crescat, Tectonic’s largest shareholder, who together prior to the Final Tranche held approximately 19.9% of the issued and outstanding Common Shares of Tectonic, subscribed for the 5,090,909 Units issued in the Final Tranche for aggregate gross proceeds of $560,000.  Pursuant to the closing of the Final Tranche Crescat will hold approximately 20.59% of the issued and outstanding Common Shares of the Company.

The Company did not incur any finder’s fees or commissions, nor any finder’s warrants on the Final Tranche. For a clarification on the closing of the second tranche of the Offering as previously announced on August 10, 2023, no finders’ warrants were issued, or cash commission paid to SCP Resource Finance LP on closing of the second tranche.

The net proceeds of the Offering will be used to advance the Company’s Flat gold project in Alaska (the “Flat Gold Project”) and for general working capital purposes.

The Offering is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the final approval of the TSXV.

The Offering and issuance of the Units referenced in this press release involve related parties (as such term is defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”)) and therefore constitutes a related party transaction under MI 61-101. This transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(b) and 5.7(1)(a) of MI 61-101, as the Company is not listed or quoted on any of the stock exchanges or markets listed in subsection 5.5(b) of MI 61-101, and the fair market value of the securities to be distributed and the consideration to be received for the securities issued to related parties under the Offering does not exceed 25% of the Company's market capitalization. The related parties participating in the Final Tranche of the Offering subscribed for 5,090,909 Units for aggregate gross proceeds of $560,000.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the 1933 Act or under any U.S. state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act, as amended, and applicable state securities laws.

To learn more about Tectonic, please click here.

On behalf of Tectonic Metals Inc.,

Tony Reda

President and Chief Executive Officer

For further information about Tectonic Metals Inc. or this news release, please visit our website at www.tectonicmetals.com or contact Tom McMillan, Investor Relations, at toll-free 1.888.685.8558 or by email at tom@tectonicmetals.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information in this news release constitutes forward-looking information and statements under

applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend” and similar expressions and include, but are not limited to, any future exploration activities and the size, the receipt of any regulatory approvals, including the final approval of the TSXV.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental and other approvals and financing on time, obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Tectonic, and there is no assurance they will prove to be correct.

Although Tectonic considers these beliefs and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements necessarily involve known and unknown risks, including, without limitation: the Company’s ability to implement its business strategies; risks associated with mineral exploration and production; risks associated with general economic conditions; adverse industry events; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks.

Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Although Tectonic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Tectonic does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.