Homerun Resources closes convertible security financing tranche

Vancouver, British Columbia--(Newsfile Corp. - August 17, 2026) - Homerun Resources Inc. (TSXV: HMR) (OTCQB: HMRFF) ("Homerun" or the "Company") is pleased to announce that, further to its July 8, 2026 and August 14, 2026 news releases, it has closed the initial C$2,000,000 tranche financing (the "Initial Tranche") pursuant to a convertible security funding agreement ("CSFA") with Lind Global Fund III, LP, managed by The Lind Partners (collectively, "Lind"). The Initial Tranche represents the initial funding of an aggregate of up to an additional C$13,000,000 in follow-on investments, subject to mutual agreement and receipt of applicable approvals.

The Initial Tranche funding will provide near-term working capital as Homerun advances its broader vertical financing strategy, including larger-scale capital solutions in support of its growth objectives. Under the CSFA, the convertible security issued in respect of the Initial Tranche has a 24-month term and a face value of C$2,200,000, comprised of C$2,000,000 principal and C$200,000 of pre-paid interest with an Initial Tranche closing fee of $80,000 payable to Lind. As part of closing of the Initial Tranche, Lind was issued warrants to purchase 1,850,000 common shares of the Company at a price of C$0.66 per share.

Following the expiry of the applicable four-month and one-day statutory hold period, the Company will have a one-time buy-back right to repurchase the outstanding principal and pre-paid interest of the convertible security issued pursuant to the Initial Tranche at a 3% premium, subject to Lind's right to: a) convert up to one-quarter of the outstanding principal in connection with the exercise of that buy-back right, as per the applicable conversion formulas; and b) settle part or all of the pre-paid interest by receiving common shares of the Company pursuant to a shares for debt application, such common shares to be issued at a price within the context of the market at that time, subject to TSXV approval.

The Initial Tranche convertible security is senior secured by a general security agreement over the assets of Homerun and a pledge of shares in respect of Homerun's active subsidiaries. The CSFA also provides for a six-month repayment holiday, followed by monthly cash repayments of C$111,111 from months 7 through 24 of the term.

The CSFA provides Lind with a right to convert any portion of the outstanding principal amount of the Initial Tranche into common shares of the Company at a fixed conversion price of C$0.66 (the "Principal Conversion Price"), equal to 110% of the market closing price of the Company's shares on the day prior to announcement of the CSFA.

The 110% premium conversion price supports the Company's existing share price and limits the dilutive impact of any conversions, as any conversion by Lind would occur at a price above the prevailing market at announcement. Any conversions by Lind will be credited against the latest scheduled monthly repayment instalment.

The Initial Tranche of C$2,000,000 accrues interest at C$16,667 per month over the 12-month period following closing. Following the expiry of the applicable statutory hold period, and every 90 days thereafter, Lind will have the option to be issued common shares of the Company in payment for the accrued pre-paid Interest by way of shares for debt at an issuance price within the context of the market at that time subject to TSXV approval. Commencing on the first anniversary of closing, additional interest will accrue on any outstanding Principal Amount at a rate of 10% per annum, with Lind having the option to be issued common shares of the Company in payment for such accrued interest by way of shares for debt at an issuance price within the context of the market at that time subject to TSXV approval.

This convertible security has been provided under an engagement with The Benchmark Company, LLC ("Benchmark"), a subsidiary of StoneX Group, pursuant to which Benchmark acted as the exclusive placement agent. In consideration for its services, the Company has agreed to pay Benchmark a cash fee of $140,000 and issue Benchmark 233,333 common shares of the Company, which is equal to 7.0%, of the gross proceeds drawn down under the CSFA with the share entitlement price to be $0.60 being the market closing price for the Company's shares on the day prior to the announcement of the CSFA for the Initial Tranche and the prevailing market price for any subsequent tranche.

The Benchmark engagement also includes a customary 12-month tail with respect to future financings completed with investors introduced by Benchmark during the engagement term, provided the applicable conditions in the engagement letter are satisfied. In addition, for a period of 12 months following execution of the engagement, the Company has granted Benchmark a right of first refusal / right of participation to act as lead or joint-lead investment banker, book-runner and/or placement agent in connection with a potential initial public offering or similar listing transaction, subject to the terms of the Benchmark engagement.

In connection with this financing and the Company's broader capital markets strategy, Homerun has signed a non-exclusive financial advisory relationship with StoneX. StoneX is assisting the Company in evaluating and pursuing strategic financing alternatives supporting Homerun's long-term objective of pursuing an eventual uplisting to a senior U.S. exchange. There can be no assurance that such uplisting will occur.

The Company sees the Lind financing, together with the relationships with Benchmark and StoneX, as a complimentary to its strategic financing plan while seeking to limit near-term dilution for shareholders through a fixed-premium conversion structure, a reduced initial funding size, a six-month repayment holiday and the 50% warrant coverage.

Brian Leeners, Chief Executive Officer of Homerun, stated: " This financing and the investment banking partnerships with both Benchmark and StoneX provide Homerun with near-term working capital while preserving flexibility as we advance discussions around larger-scale strategic and institutional funding initiatives. We view this as a bridge to broader financing opportunities that supports our long-term growth objectives and uplisting plans, while seeking to manage dilution for our existing shareholder base ."

All securities issued in connection with the financing will be subject to applicable securities laws and the policies of the TSXV, including the applicable four month and one day hold period.

The securities described in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from such registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction.

About The Lind Partners The Lind Partners manages institutional funds that invest in small-cap and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind's multi-strategy funds make direct investments up to US$50 million, invest in syndicated equity placements and selectively buy on market. Having completed more than 200 direct investments totaling over US$2 billion in transaction value, Lind has been a flexible and supportive capital partner to investee companies since 2011.

About Benchmark The Benchmark Company, LLC is a full-service, institutionally focused investment banking and brokerage firm. Headquartered in New York City (with additional operations across the US) and founded in 1988, the firm provides global market access, corporate finance, equity research, and institutional sales and trading services. In August 2025, Benchmark was acquired by the global financial services firm StoneX Group Inc.

About StoneX StoneX Group Inc. (NASDAQ: SNEX) is a publicly traded, institutional-grade financial services company. It provides commercial, institutional, and retail clients worldwide with market access, clearing and execution services, and risk management tools across a wide variety of financial markets.

About Homerun ( www.homerunresources.com / www.homerunenergy.com ) Homerun is building the silica-powered backbone of the energy and technology transitions across multiple focused verticals: High Purity Silica and Advanced Silica Materials, Solar, Energy Storage, and Energy Solutions. Anchored by a unique high-purity low-iron silica resource in the Silica Valley of Bahia, Brazil, Homerun is transforming raw silica sand into essential materials, products and technologies that accelerate clean energy and technology solutions and deliver durable shareholder value.

⁠Silica: Secure supply and processing of high-purity low-iron silica for mission-critical applications, enabling premium solar glass and advanced energy and technology materials.

Solar: Development of the first dedicated 1,000 tonne per day high-efficiency solar glass plant in the Americas and the commercialization of extra-clear, antimony-free solar glass designed for next-generation photovoltaic performance.

Energy Storage: Advancement of long-duration, silica-based thermal storage systems and related technologies to decarbonize industrial heat and unlock grid flexibility.

⁠Energy Solutions: AI-enabled energy management, control systems, and turnkey electrification solutions that reduce costs and optimize renewable generation for commercial and industrial customers.

With disciplined execution, strategic partnerships, and an unwavering commitment to best-in-class ESG practices, Homerun is focused on converting milestones into markets-creating a scalable, vertically integrated platform for clean energy and technology solutions in the Americas.

On behalf of the Board of Directors of Homerun Resources Inc.

"Brian Leeners"

Brian Leeners, CEO & Director brianleeners@gmail.com / +1 604-862-4184 (WhatsApp) Tyler Muir, Investor Relations info@homerunresources.com / +1 306-690-8886 (WhatsApp)

FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements".

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310077

TMX Newsfile

August 17, 2026 - 2:02 PM PDT

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