EXLA Resources Leverages Asset Base with Sale of Its Silver Strike Interest

Las Vegas, Nevada--(Newsfile Corp. - February 25, 2022) - EXLA RESOURCES, INC. (OTC Pink: EXLA) (the "Company") announces that has agreed to sell its interest in the Silver Strike Project, located in the historic Tombstone mining district of Arizona, to Tarku Resources Ltd (TSXV: TKU) (FSE: 7TK) (OTCQB: TRKUF).

Summary:

  • EXLA Resources Inc. sells 25%-interest in the Silver Strike Project, located in Tombstone, Arizona to partner Tarku Resources Ltd.
  • EXLA to receive 7,000,000 Tarku' Shares, which will give EXLA a 9.65% interest in Tarku with a ROFR to maintain its interest
  • Consolidates ownership on Silver Strike with a partner focused on the projects development
  • EXLA retains exposure to upside of Silver Strike being advanced, but without any financial obligations
  • EXLA also gains exposure to Tarku's exciting Three A's Project, located in Matagami Greenstone Belt

Chris Lotito stated: "The opportunity to partner with an exploration team of Tarku's experience and pedigree is an exciting development for EXLA Resources. Consolidation of the ownership of the Silver Strike Project, ensures it can be advanced in the most streamlined method, and as a major shareholder of Tarku we will benefit from the value uplift of the project as it is advanced. We are also delighted to gain exposure to Tarku's exciting Three A's Project, located in Matagami Greenstone Belt."

Julien Davy, President, and CEO of Tarku, stated: "This new agreement is a win-win solution, as EXLA now benefits from significant exposure to a consolidated 100% of the Silver Strike Project, as well as a focused exploration partner committed to its development. Tarku has lowered its commitments to acquire the project and will have better control on its exploration expenses. The consolidated ownership will also greatly facilitate capital raising initiatives going forward."

The Purchase Agreement

Dated February 24, 2022, EXLA and Tarku entered into an agreement to terminate the previous earn-in option agreement to acquire 75% of the project over 3 years, signed October 12, 2020, with the former vendor and simultaneously entered into a new purchase agreement, allowing Tarku to acquire 100% of the 140 mining titles in Tombstone that is now held by EXLA in return for consideration of:

Tarku Resources Ltd. - www.tarkuresources.com Page 2

  • 7,000,000 Tarku' Shares (the "First Tranche Shares") issue to EXLA, which will give EXLA a 9.65% interest in Tarku and
  • Delivering to EXLA debentures being comprised of an aggregate five hundred thousand Canadian dollars (CAD$500,000) principal amount of a six percent (6%) convertible unsecured subordinated debenture due in 60 months (5 years). Each debenture is convertible at a price of CAD$0.10 (collectively the "Second Tranche Shares");
  • Granting EXLA a first right of refusal (ROFR) allowing EXLA the right to maintain its ownership position by participating in subsequent Tarku financings;
  • Award EXLA a two percent (2%) NSR on the Property, one percent (1%) of which could be repurchased by Tarku for one million US dollars (USD$1,000,000)

Forward-Looking Statements:

This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Such statements include any that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate", "project", "intend", "forecast", "anticipate", "plan", "planning", "expect", "believe", "likely", "should", "could", "would", "may" or similar words or expressions. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those in such statements, which involve risks and uncertainties, including those relating to the Company's ability to grow. Actual results may differ materially from those predicted and any reported should not be considered an indication of future performance. Potential risks and uncertainties include the Company's operating history and resources, together with all usual and common economic, competitive, and equity market conditions / risks.

For more information you may reach our investor relations group at:

Peter Nicosia
Bull in Advantage, LLC
Phone: 585-703-6565
Email: Info@BlueHorseshoeStocks.com

DISCLAIMER: Bull in Advantage, LLC, does not provide securities brokerage or investment advising services. Bull in Advantage, LLC, is not registered as a securities broker/dealer with either the U.S. Securities and Exchange Commission (SEC) or with any state or provincial securities regulatory authority.

Bull in Advantage, LLC, is not a licensed broker, broker/dealer, market maker, investment banker, investment adviser, analyst, or underwriter. Bull in Advantage, LLC, may not directly sell, offer to sell, or offer to buy any security. Sales of securities are through the issuer or a registered broker-dealer. The content of this email is provided for informational purposes only and should not be construed as investment advice. The information contained herein should not be considered as an offer to buy or sell securities. Such offers are provided directly by the issuer or a registered broker/dealer.

Or with our Company Communications Manager:

Ryan D. Long, Communications Manager
EXLA Resources, Inc.
info@EXLAresources.com
www.EXLAresources.com
Twitter: www.twitter.com/exla_resources

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/114855

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