Exgen Reports Phoenix Empire Funding Update

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VANCOUVER, British Columbia, June 25, 2025 (GLOBE NEWSWIRE) -- ExGen Resources Inc. (TSX.V: EXG; OTC: BXXRF) ("ExGen", the "Company"): ExGen is pleased to provide an update in respect of Phoenix Copper Limited’s (“Phoenix”) development and construction activities at the Empire Mine Project in Custer County, Idaho, USA, further to Phoenix’s news release of June 12, 2025. ExGen owns 20% and Phoenix owns 80% of Konnex Resources, Inc. (“Konnex”), which holds the leases and claims to the Empire Mine Project, which includes all of the Navarre Creek claim block. ExGen further owns 1,330,000 common shares of Phoenix.

Jason Riley, Chairman and CEO of ExGen, commented: "We are very encouraged by this recent funding possibility for Empire and look forward to providing updates as they become available."

Phoenix Copper Limited (AIM: PXC; OTCQX ADR: PXCLY), the AIM quoted, USA focused base and precious metals emerging producer and exploration company, reported that further to its announcement on 14 November 2024, it has signed a Letter of Intent ("LOI") with an accredited US based investor (the "Investor") to subscribe for $75 million of the Company's listed, secured floating rate minimum 8.5% corporate copper bonds due 2029-2033 (the "Bonds").

Pursuant to the LOI, which is non-binding and subject to any further due diligence that may be required, placement of the Bonds is subject to the preparation and execution of definitive legal documentation, including the Bonds subscription letter. Phoenix expects the Bonds to be drawn down in three tranches: $30 million on execution of the legal documentation (the "First Tranche"), followed by two further tranches of amounts and on dates to be mutually agreed between Phoenix and the Investor (the "Bonds Drawdown") in due course.

The LOI also provides for the issue to the Investor of a preference share of no par value convertible at £0.05 per share into 25 million new ordinary shares of no par value, currently representing approximately 10.5% of the enlarged outstanding share capital of the Company, at any time between 1 September 2025 and 30 June 2028. The conversion rights will vest pro-rata to the Bonds Drawdown.

The Investor will also be allocated one board seat on the Company's Board, following payment of the First Tranche. The appointment of any director will be subject to the usual suitability assessment and other criteria.

Although the Directors are confident that any remaining due diligence will be completed in a timely manner and that the definitive legal documentation will be executed, there can be no certainty that the Bonds will be placed with the Investor. The Company looks forward to providing shareholders with further updates as appropriate.

Richard Wilkins, Chief Financial Officer of Phoenix, commented: "We have been in discussions with the Investor for a number of months, and we look forward to completing the appropriate legal documentation and welcoming the Investor on board as both a Bondholder and, through the proposed conversion of the preference share, a shareholder.

"This proposed placement of Bonds will provide the Company with the cash resources to complete construction of the Empire open-pit copper, gold and silver mine in Idaho, USA, and proceed into production, as well as commencing an underground drilling programme on the Empire sulphide vein system, by way of driving an initial adit to the known high-grade [copper] zone."

Partial conversion of short-term loan

The Company also reports that its short-term loan provider[1] has converted $176,585 of outstanding principal into 4,853,208 new ordinary shares in the Company (the "New Ordinary Shares") at a price of 2.82 pence per ordinary share (the "Partial Loan Conversion").

Application has been made for the New Ordinary Shares, which rank pari passu with the existing ordinary shares of no par value ("Ordinary Shares") in issue, to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings will occur at 8:00am UK time on or around 18 June 2025.

Following the Partial Loan Conversion, the Company has 212,037,300 Ordinary Shares outstanding. Shareholders may use this number as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the issued share capital of the Company.

ABOUT EXGEN RESOURCES INC.

ExGen is a project accelerator that seeks to fund exploration and development of our projects through joint ventures and partnership agreements. This approach significantly reduces the technical and financial risks for ExGen, while maintaining the upside exposure to new discoveries and potential cash flow. ExGen intends to build a diverse portfolio of projects across exploration stages and various commodity groups. ExGen currently has 6 projects in Canada and the US.

For more information on ExGen please contact:

ExGen Resources Inc.
Jason Tong
Chief Financial Officer
Email: jason@catapultgroup.ca
Cell: 604-889-7827

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

Forward-Looking Information: This news release contains certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. In particular, this news release contains forward-looking information in relation to: any anticipated bond funding being secured by Phoenix, the due diligence, and the definitive legal documentation for the potential bonds will be successfully finalized and signed by Phoenix and the Investor, and the receipt by Phoenix of the first and subsequent tranches of the potential bond funds. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. In the forward-looking information contained in this news release, ExGen has made numerous assumptions, based upon practices and methodologies which are consistent with the mineral industry. While ExGen considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause ExGen's observations, actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: uncertainty as to the actual results of exploration and development or operational activities, including the known high grade copper zone; uncertainty as to the availability and terms of future financing; uncertainty as to timely availability of permits and other governmental approvals; ExGen may not be able to comply with its ongoing obligations regarding its properties; the early stage development of ExGen and its projects; general business, economic, competitive, political and social uncertainties; capital market conditions and market prices for securities, junior market securities and mining exploration company securities; commodity prices, in particular copper, gold, silver, lithium and zinc prices; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting ExGen; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in ExGen's disclosure documents on the SEDAR+ website at www.sedarplus.ca. Although ExGen 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. Accordingly, readers should not place undue reliance on forward-looking information. ExGen does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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