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.