Eric Sprott Announces Voting Support Agreement for Karus Gold Corp.'s Proposed Transaction with Kenadyr Metals Corp

Toronto, Ontario--(Newsfile Corp. - December 30, 2022) - Further to the press releases of each of Karus Gold Corp. and Kenadyr Metals Corp., dated December 30, 2022, Eric Sprott announces that 2176423 Ontario Ltd., a company which he beneficially owns, has entered into a voting support agreement with Karus Gold and Kenadyr Metals Corp. in connection with an arrangement agreement between Karus Gold and Kenadyr, pursuant to which Kenadyr will acquire 100% of the issued and outstanding common shares of Karus Gold (Karus Gold Shares) resulting in a reverse takeover by Kenadyr (Proposed Transaction).

Mr. Sprott understands that, prior to closing of the Proposed Transaction, Kenadyr will complete a consolidation of Kenadyr's common shares (Kenadyr Shares) on the basis of one post-consolidation Kenadyr Share for every ten pre-consolidation Kenadyr Shares. Further, under the Proposed Transaction, shareholders of Karus Gold will receive Kenadyr Shares equal to an aggregate of approximately 39,091,346 Kenadyr Common Shares post-consolidation. Further details may be found in the press releases of each of Karus Gold and Kenadyr.

Mr. Sprott beneficially owns and controls 22,454,317 Karus Gold Common Shares representing approximately 24.7% of the outstanding Karus Gold Common Shares on a non-diluted basis.

Mr. Sprott intends to hold the Karus Gold Shares through 2176423 Ontario Ltd. for investment purposes and to support the Proposed Transaction, and, depending on market or other conditions, may acquire additional securities of Karus Gold. If the Arrangement does not close or the voting support agreement is terminated in accordance with its terms, Mr. Sprott may acquire additional securities of Karus Gold including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Karus Gold Corp., is located at Suite 960 - 1055 West Hastings Street, Vancouver, BC V6E 2E9. A copy of the early warning report with respect to the foregoing will appear on the company's profile on the System for Electronic Document Analysis and Retrieval at www.sedar.com and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (2176423 Ontario Ltd., 200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/149946