Northern Shield Receives $1M Proceeds from LabGold Subscription Receipt Financing

About this update from Northern Shield Resources Inc.

/Not for distribution to United States Newswire Services or for dissemination in the United States/ OTTAWA, ON, March 5, 2026 /CNW/ - Northern Shield Resources Inc. ("Northern Shield" or the "Company") (TSXV: NRN) is pleased to announce that the $1,000,000 aggregate gross proceeds (the "Escrow Funds") from the previously announced (see press releases dated December 8 and December 30, 2025) strategic non-brokered private placement of 16,666,667 subscription receipts ("Subscription Receipts") with Labrador Gold Corp. (TSXV: LAB) ("LabGold") has been released to the Company following satisfaction of the Escrow Release Conditions. The Offering The Escrow Funds were held in escrow pursuant to the terms of a subscription receipt escrow agreement between the Company and LabGold, and the release was conditional upon, among other things, receipt of LabGold shareholder and regulatory approval with respect to LabGold's change of business (the "Escrow Release Conditions"). Each Subscription Receipt has been exchanged, without any further action or any additional consideration on the part of LabGold, for one (1) unit of the Company (a "Unit") with each Unit consisting of one (1) common share of Northern Shield (a "Common Share") and one (1) common share purchase warrant (each a "Warrant"). Each Warrant entitles LabGold to purchase one additional Common Share (a "Warrant Share") at a price of $0.10 per Warrant Share until March 5, 2029. As additional consideration for LabGold in respect of the Offering, for as long as LabGold retains a 10% equity interest in the Company, LabGold shall have the following rights: (i) a pre-emptive right to participate in future financings of Northern Shield to maintain its equity interest in the Company following the issuance of the Units to LabGold; and (ii) the right to appoint a technical advisor to help guide exploration activities carried out on the Company's properties. Northern Shield intends to use the Escrow Funds for further exploration programs, including geophysics and diamond drilling, at the Company's Root & Cellar Property, exploration on the Company's newly acquired claims in the region and for general working capital purposes. The Common Shares and issued upon exchange of the Subscription Rece...

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