Michael Stein Announces Settlement of Debt with Majesta Minerals Inc.

Toronto, Ontario--(Newsfile Corp. - July 31, 2019) - Michael Stein, a director and Chief Executive Officer of Majesta Minerals Inc. ("Majesta" or the "Company") announces that effective July 31, 2019 (the "Closing Date") that he and a company that he controls and directs has agreed to settle an aggregate of $85,000 of indebtedness owing from the Company (the "Settlement") in exchange for a convertible debenture in the principal amount of $85,000 (the "Debenture").

The Debenture bears interest at a rate of ten percent (10%) per annum and the principal amount thereof becomes due and payable on January 31, 2021 (the "Maturity Date"). Interest on the principal amount of the Debenture shall be due in quarterly instalments on March 31, June 30, September 30 and December 31.

All or any portion of the outstanding principal amount of indebtedness or any outstanding interest payments under the Debenture will be convertible at the option of the holder into units (the "Units") at a conversion price of $0.05 per Unit at any time prior to the Maturity Date. Each Unit will consist of one (1) common share (the "Shares") and one (1) detachable share purchase warrant (the "Warrants"). Each Warrant shall entitle the holder thereof to acquire one (1) Share at a price of $0.06 per Share until two (2) years from the date of issuance (the "Warrant Shares").

The Debenture and any securities issued pursuant hereto will be subject to a regulatory hold of four months and a day from the date of issuance.

Mr. Stein is an insider of the Company by virtue of his position as a director and senior officer of the Company and through his ownership of approximately 42% of the Company's common shares on a undiluted and partially diluted basis. At closing of the Settlement, Mr. Stein continues to hold the same number of common shares, but if he and the company he controls and directs converted all of the convertible securities held by them under the Debenture, then they would hold approximately 54% of the Company's then issued and outstanding common shares on a partially diluted basis. The Debenture was acquired for investment purposes. In the future, Mr. Stein may, depending on market and other conditions, increase or decrease his beneficial ownership of the securities of the Company.

For further information please contact:

Michael Stein
Chief Executive Officer
Tel: 416-410-7722

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/46674