McFarlane Lake Mining closes C$15 million bought-deal placement

Canada NewsWire

/Not for Distribution to United States Newswire Services or for Dissemination in the United States/

TORONTO , Aug. 19, 2026 /CNW/ -- McFarlane Lake Mining Limited (CSE: MLM) (FRA: W2Z) (OTCQB: MLMLF) (" McFarlane Lake " or the " Company ") is pleased to announce that it has entered into an agreement with ATB Cormark Capital Markets, as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters (collectively, the " Underwriters ") in connection with a "bought deal" private placement of: (i) 20,953,000 common shares of the Company that will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) (the " FT Shares "), at a price of $0.525 per FT Share, for gross proceeds of $11,000,325 and (ii) 10,527,000 common shares of the Company (the " HD Shares "), at a price of $0.38 per HD Share (the " HD Offering Price" ), for gross proceeds of $4,000,260, for aggregate gross proceeds to the Company of $15,000,585 (the " Offering ").

In addition, the Company has granted the Underwriters an option (the " Option ") to purchase up to an additional 5,921,284 HD Shares at the HD Offering Price for additional gross proceeds of up to $2,250,088, on the same terms and conditions, by giving written notice of the exercise of the Option, or a part thereof, to the Company at any time up to 48 hours prior to the Closing Date (as defined below).

The Company will use an amount equal to the gross proceeds received by the Company from the sale of the FT Shares, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada), and in respect of eligible Ontario purchasers, "eligible Ontario exploration expenditures" as defined in subsection 103(4) of the Taxation Act , 2007 (Ontario) (the " Qualifying Expenditures ") related to the Company's Juby Project in Ontario. The Company intends to use the net proceeds of the offered HD Shares for working capital and general corporate purposes. Qualifying Expenditures in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares will be incurred (or deemed to be incurred) by the Company on or before December 31, 2027 and will be renounced by the Company to the initial purchasers of the FT Shares with an effective date no later than December 31, 2026.

The Offering is expected to close on or about September 9, 2026 (the " Closing Date "), or such other date as the Company and the Underwriters may agree and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 – Prospectus Exemptions (" NI 45-106 "), the FT Shares and HD Shares will be offered for sale to purchasers resident in all provinces of Canada, other than Quebec, and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended by Coordinated Blanket Order 45-935 – Exemptions from Certain Conditions of the Listed Issuer Financing Exemption (the " Listed Issuer Financing Exemption "). The FT Shares and HD Shares issued to Canadian resident subscribers under the Listed Issuer Financing Exemption will not be subject to a hold period pursuant to applicable Canadian securities laws.