Muzhu Announces Private Placement

Muzhu Mining Ltd. (CSE:MUZU) announced a non-brokered private placement to raise up to $500,000 through the issuance of 6,250,000 units at $0.08 each. Each unit includes one common share and one non-transferable warrant exercisable at $0.12 for two years, with an acceleration provision if shares trade above $0.15 for 15 consecutive days. The capital infusion is intended for general working capital and advancing exploration projects, pending CSE approval.

Analysis

Archive Muzhu Announces Private Placement Vancouver, BC – October 8, 2025 – TheNewswire - Muzhu Mining Ltd. (CSE:MUZU) (FSE:Y33) (OTCQB:MUZUF) (“Muzhu” or the “Company”) is pleased to announce that the Company has arranged a non-brokered private placement of up to 6,250,000 units at $0.08 per unit for an aggregate amount of up to $500,000. Each Unit is comprised of one (1) common share (each, a “Share”) of the Company and one (1) non-transferable share purchase warrant (each, a “Warrant”). Each Warrant is exercisable for a period of two (2) years for the purchase of one (1) additional common share of the Company at a price of $0.12 per Share, subject to the following acceleration provision: should the common shares of the Company trade on an exchange for fifteen (15) or more consecutive days at a price of $0.15 or greater, the Company may, at its option, provide written notice to the holder requiring that the Warrants be exercised within thirty (30) days of the date of the notice, failing which the warrants shall immediately thereafter expire. Proceeds will be used for general working capital and to further the Company’s exploration projects. A finder’s fee of a combination of cash, shares and/or warrants will be paid to eligible finders in relation to this financing, all in accordance with the CSE policies. All securities issued pursuant to the offering will be subject to a hold period of four months and one day from the date of closing. The offering and payment of finders' fees are both subject to approval by the CSE. ON BEHALF OF THE BOARD OF DIRECTORS Dwayne Yaretz, CEO Muzhu Mining Ltd. Phone: [phone] Email: [e-mail] Website: www.muzhumining.ca Muzhu Mining Ltd. is a Canadian publicly traded exploration company with a portfolio of highly prospective projects at various stages of development. Muzhu currently holds 100% interest in the Sleeping Giant South Project, located in the Abitibi Greenstone Belt, approximately 75km South of Matagami, Quebec. As well, Muzhu has executed two option agreements to acquire up to 80% of the Silver, Zinc, Lead XWG and LMM Properties and is currently pursuing an exploration agreement at the WLG mine, all located in the Henan Province, China. Neither the Canadian Securities Exchange (the “CSE”) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Muzhu Mining Ltd. (CSE:MUZU) has announced a non-brokered private placement aiming to raise up to $500,000 through the issuance of 6,250,000 units at $0.08 each. Each unit comprises one common share and one non-transferable warrant, exercisable at $0.12 for two years. A warrant acceleration clause is included, allowing the company to prompt exercise if shares trade at or above $0.15 for fifteen consecutive days. The proceeds from this financing are earmarked for general working capital and the advancement of the company's exploration projects, which include the Sleeping Giant South Project in Quebec and properties in China. This capital infusion is crucial for funding ongoing operations and potentially accelerating development given the company's status as an exploration entity. The 'moderately positive' sentiment and 'optimistic' tone suggest a favorable market reception to this fundraising effort. The offering includes a four-month and one-day hold period for all securities, aligning with standard regulatory practices, and is subject to Canadian Securities Exchange (CSE) approval. The warrant structure, particularly the acceleration provision, incentivizes early exercise should the stock price perform favorably, potentially leading to further dilution but also additional capital for the company. The relatively low market impact score (0.35) indicates this small-scale raise might not significantly move the broader market or even the stock in the short term, despite its importance for Muzhu's operational runway.

Key Decisions for Investors

• Investors should assess the potential dilution from the private placement shares and future warrant exercises, especially given the accelerator clause at $0.15, which could increase the share count.
• Monitor the deployment of the $500,000 raised, specifically how it impacts progress on the company's exploration projects in Quebec and China, as this will be key to future value creation.
• Given the small raise amount and the nature of an exploration company, investors should consider this a high-risk, high-reward opportunity dependent on exploration success and regulatory approvals.