Investors

Vancouver, British Columbia, February 10, 2022, Regal Resources Inc. (the “Company” or “Regal”) announces that the British Columbia Securities Commission has granted a partial revocation order (the “Partial Revocation Order”) of the cease trade order in respect of the securities of the Company issued in 2015 (the “CTO”). The Company received the Partial Revocation Order in connection with a private placement financing (the “Financing”) to raise gross proceeds of up to $2,885,000 through the issuance of secured convertible debentures (the “Debentures”), as further described in the Company’s press release dated January 24, 2022.

Subsequent to obtaining the partial revocation, Company completed the Financing by issuing Debentures in the aggregate principal amount of $2,885,000.  The Debentures are secured against the common shares of the Company’s wholly-owned subsidiary, Regal Resources USA, Inc., which holds an interest in the Sunnyside project, located in Arizona.  The Company used the proceeds of the Financing to repay the principal amount and accrued interest owing to the secured creditors in the aggregate amount of $2,745,260.

The Company intends to fulfill its outstanding continuous disclosure obligations and apply for a full revocation of the CTO. Subject to the grant by the British Columbia Securities Commission of a full or additional partial revocation of the CTO, the Company intends to complete a further tranche of the Financing, or potentially obtain additional other funding, in order to repay the unsecured creditors of the Company and withdraw from the creditor protection process under the Bankruptcy and Insolvency Act.       

ON BEHALF OF THE BOARD

Greg Thomas
Chief Executive Officer

For further information contact:

Regal Resources Inc.
Telephone: (604) 512-6041
Email: info@regalres.com

This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur.  Forward looking statements in this press release include the Company’s plans with respect to obtaining further financing, use of proceeds, repaying the unsecured creditors of the Company, withdrawing from creditor protection and obtaining the full revocation of the CTO.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements.  Such factors include, among others, receipt of regulatory approvals, ability to obtain financing, the actions of third parties that have entered into contracts with the Company, and the state of financial markets.  There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.