New Risk • Jun 04
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 43% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (36% average weekly change). Earnings have declined by 2.3% per year over the past 5 years. Shareholders have been substantially diluted in the past year (43% increase in shares outstanding). Revenue is less than US$1m. Market cap is less than US$10m (CA$3.78m market cap, or US$2.72m). Announcement • Jun 02
Meryllion Resources Corp. announced that it has received CAD 1.0175 million in funding On June 1, 2026, Meryllion Resources Corp. closed the transaction. The company issued 20,350,000 units at a price of CAD 0.05 per Unit for gross proceeds of CAD 1,017,500. Each Unit consists of one common share of the Company and one Common Share purchase warrant. Commencing on the 62nd day after issuance, each Warrant will be exercisable into one Common Share at a price of CAD 0.07 for a period of 36 months from the date of issuance. In connection with the Offering, the Company entered into an Advisory Agreement with Research Capital Corporation (the “Advisor”), pursuant to which the Advisor provided financial advisory, consulting, and support services (the “Advisory Services”). In consideration for the Advisory Services, the Company paid the Advisor a cash work fee of CAD 25,000 and issued 500,000 Common Shares (the “Advisor Shares”) at a deemed price of CAD 0.05 per Advisor Share. In connection with the Offering, the Company paid finder’s fees to eligible finders in the aggregate amount of CAD 81,400 and issued a total of 1,628,000 finder’s warrants (the “Finder’s Warrants”). Each Finder’s Warrant entitles the holder thereof to acquire one Common Share at a price of CAD 0.07 for a period of 36 months from issuance. All of the Advisor Shares and Finder’s Warrants are subject to a hold period of four months and one day from the date of issuance in accordance with Canadian securities laws. Croesus Mining Pty Ltd., under the control of David Steinepreis, a director of the Company,
participated in the Offering in the amount of CAD 75,000. New Risk • May 28
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -CA$1.0m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$1.0m free cash flow). Share price has been highly volatile over the past 3 months (36% average weekly change). Earnings have declined by 2.3% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (CA$3.48m market cap, or US$2.51m). Minor Risk Shareholders have been diluted in the past year (15% increase in shares outstanding). 
