New Risk • May 22
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 25% This is considered a minor 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 13% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (CA$6.34m market cap, or US$4.60m). Minor Risks Share price has been volatile over the past 3 months (15% average weekly change). Shareholders have been diluted in the past year (25% increase in shares outstanding). Announcement • May 15
GSP Resource Corp. announced that it has received CAD 1.22 million in funding GSP Resource Corp. announces that it has closed an over-subscribed non-brokered private placement to issue 3,633,333 flow-through common shares of the Company at a price of CAD 0.15 per FT Share for proceeds of CAD 544,999.95 and 5,625,000 units of the Company at a price of CAD 0.12 per Unit for proceeds of CAD 675,000 for aggregate gross proceeds of CAD 1,219,999.95 on May 14, 2026. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each Warrant entitles the holder thereof to purchase one common share of the Company at a price of CAD 0.18 for a period of 3 years from the closing of the Private Placement. In connection with the Private Placement, the Company paid aggregate cash finder’s fees of CAD 31,451.12 and issued 213,274 non-transferable broker warrants to certain brokers and finders, 195,247 of which are exercisable at a price of CAD 0.15 per share and 18,000 of which are exercisable at a price of CAD 0.12 per share, for a period of 3 years from the closing of the Private Placement. All securities issued under the Private Placement and any common shares of the Company that are issuable upon the exercise of Warrants and Broker Warrants are subject to statutory hold period of four months and one day following the closing date of the Private Placement in accordance with applicable Canadian securities laws and the policies of the TSX Venture Exchange. New Risk • May 01
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$622k 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$622k free cash flow). Earnings have declined by 13% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (CA$6.29m market cap, or US$4.63m). Minor Risk Share price has been volatile over the past 3 months (17% average weekly change). 
