Surge Copper Outlines Pre-Feasibility Technical Work Programs at Berg and Announces Additional Private Placement for up to $1.0 million - Seite 2

Leif Nilsson, Chief Executive Officer, commented: “We are excited to be commencing these critical technical work programs which are aimed at advancing the Berg Project and positioning us well to complete a pre-feasibility study in 2025. The funding package provided by the previously announced strategic investment and the additional side-car placement announced today will fully fund this work program and provide the Company with additional flexibility to advance our highest-priority exploration targets including the Berg SW target. As the fundamentals in the copper market continue to improve, we are thrilled to be advancing the Berg Project which we believe is well positioned to capture the significant growth in demand for critical metals like copper and molybdenum in the coming decades.”

Side-Car Private Placement

In connection with the previously announced private placement (the “Strategic Placement”) pursuant to which African Rainbow Minerals Limited (“ARM”), through its wholly-owned subsidiary, has agreed to subscribe for 39,608,708 common shares of Surge (the “Strategic Placement Common Shares”) at a price of $0.095 per Strategic Placement Common Share for gross proceeds of approximately C$3,762,827 (see April 2, 2024 press release), the Company announces an additional non-brokered private placement to investors, other than ARM, of up to 10,000,000 common shares of Surge (the “Side-Car Common Shares”) at a price of $0.10 per Side-Car Common Share for aggregate gross proceeds of up to $1.0 million (the “Side-Car Private Placement”). Pursuant to the terms of the Strategic Placement, the Strategic Placement Common Shares purchased by ARM will be increased based on the number of Side-Car Common Shares issued under the Side-Car Private Placement such that ARM will acquire a 15.0% interest in Surge on a non-diluted basis upon closing of the Strategic Placement. In the event the maximum number of Side-Car Common Shares are issued under the Side-Car Private Placement, a total of 1,764,705 additional Strategic Placement Common Shares will be purchased by ARM under the Strategic Placement, resulting in total gross proceeds to Surge between the Strategic Placement and the Side-Car Private Placement of approximately $5 million.