New Risk • May 27
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 40% 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 Earnings have declined by 26% per year over the past 5 years. Shareholders have been substantially diluted in the past year (40% increase in shares outstanding). Revenue is less than US$1m. Minor Risk Market cap is less than US$100m (CA$32.0m market cap, or US$23.2m). Announcement • May 23
DLP Resources Inc. announced that it has received CAD 5 million in funding On May 21, 2026, DLP Resources Inc. closed the transaction. The company issued a total of 24,000,000 units at a price of CAD 0.25 per Unit for gross proceeds of CAD 6,000,000 that includes 20,000,000 units for gross proceeds of CAD 5,000,000 as part of the offering and 4,000,000 units for gross proceeds of CAD 1,000,000 as part of exercised overallotment option. Each Unit consists of one common share of the Company and one common share purchase warrant. Each Warrant entitles the holder thereof to purchase one Common Share at a price of CAD 0.35 at any time from July 21, 2026 to May 21, 2029. As consideration for their services, Red Cloud received a cash fee of CAD 345,000 and were issued 1,380,000 non-transferable common share purchase warrants (the “Broker Warrants”). Each Broker Warrant is exercisable into one Common Share at the Offering Price at any time on or before May 21, 2029. Additionally, the Company paid aggregate cash fees of CAD 20,635 and issued an aggregate of 82,540 broker warrants on the same terms as the Broker Warrants (the “Finder Warrants”) to certain qualified finders in connection with the Offering. The Broker Warrants and the Finder Warrants, and any Common Shares issuable upon any future exercise thereof, will be subject to a hold period in Canada in accordance with applicable Canadian securities law, expiring on September 22, 2026. The closing of the Offering remains subject to the final approval of the TSX Venture Exchange. Announcement • May 08
DLP Resources Inc. announced that it expects to receive CAD 5 million in funding DLP Resources Inc. announced that it has entered into an agreement in connection with best effort to issue 20,000,000 units at an issue price of CAD 0.25 for gross proceeds of CAD 5,000,000 on May 7, 2026. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at a price of CAD 0.35 exercisable within 36 months following the closing date. The company also grants option, exercisable in full or in part up to 48 hours prior to the closing of the marketed offering, to sell up to an additional 4,000,000 units at the offering price for up to an additional CAD 1,000,000 in gross proceeds. Units will be offered for sale to purchasers resident in the provinces of British Columbia, Alberta, Manitoba, Saskatchewan and Ontario. The units may also be sold in the United States. The offering is anticipated to close on May 21, 2026, or such other date as the company and Red Cloud may agree. Completion of the offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. 
