Nokomis Capital, L.L.C. Acquires Units of Honey Badger Silver Inc.

DALLAS, Texas, May 13, 2026 /CNW/ - Nokomis Capital, L.L.C. ("Nokomis") announced today that as part of a brokered private placement (the "Private Placement") of subscription receipts ("Subscription Receipts") of Honey Badger Silver Inc. (the "Issuer"), on April 15, 2026, it acquired through Nokomis Capital Master Fund L.P. (the "Buyer") 13,125,000 Subscription Receipts for consideration of C$0.16 per Subscription Receipt and C$2,100,000 in the aggregate. Upon closing of the Issuer's acquisition of Canadian Zinc Corporation and the resulting satisfaction of the escrow release conditions pursuant to the Private Placement (the "Escrow Release Conditions") on April 24, 2026 (the "Acquisition Date"), each Subscription Receipt converted into one unit (each, a "Unit") consisting of one Common Share and one Common Share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder to purchase one Common Share (each, a "Warrant Share") at a price of C$0.24 per Warrant Share for a period of three years ending on April 24, 2029, subject to adjustments.

The Private Placement did not take place on the TSX Venture Exchange or any other stock exchange or market.

Nokomis is a limited liability company organized under the laws of the State of Texas. Nokomis is an investment advisor that provides investment advisory services to investment funds including the Buyer, a Cayman Islands exempted limited partnership. Nokomis possesses voting and/or investment power over the securities of the Issuer described in this news release. All of the securities of the Issuer described in this news release are registered in the name of the Buyer.

Immediately prior to the Private Placement, Nokomis did not beneficially own, or exercise control or direction over, any securities of the Issuer. As a result of the Private Placement and the satisfaction of the Escrow Release Conditions, Nokomis has beneficial ownership of, or control or direction over, 13,125,000 Common Shares, representing approximately 6.03% of the Common Shares issued and outstanding as of the satisfaction of the Escrow Release Conditions on the Acquisition Date. Assuming exercise of all of its Warrants, Nokomis would have beneficial ownership of, or control or direction over, 26,250,000 Common Shares, representing approximately 11.37% of the Common Shares on a partially diluted basis as of the satisfaction of the Escrow Release Conditions on the Acquisition Date. The preceding figures are based on 217,727,862 Common Shares issued and outstanding as of the satisfaction of the Escrow Release Conditions on the Acquisition Date.

Nokomis acquired the Units for investment purposes. It does not have any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) - (k) of Item 5 of Form 62-103F1 except as set forth herein, or such as would occur upon or in connection with completion of, or following, any of the actions discussed herein.

Nokomis intends to review its investment in the Issuer on a continuing basis. Subject to applicable law and depending on various factors including, without limitation, the Issuer's financial position and investment strategy, the Issuer's financial and/or operational performance, financial position and strategic direction and the price levels of the Common Shares, Nokomis may from time to time and at any time in the future take such actions with respect to its investment in the Issuer as it deems appropriate including, without limitation, engaging in additional communications with management and the board of directors of the Issuer (the "Board"), engaging in discussions with, or solicitations to, shareholders of the Issuer or other third parties about the Issuer and Nokomis's investment, including potential business combinations or dispositions involving the Issuer or certain of its businesses, making recommendations or proposals to the Issuer concerning changes to the capitalization, ownership structure, Board structure (including Board composition), potential business combinations or dispositions involving the Issuer or certain of its businesses, or suggestions for improving the Issuer's financial and/or operational performance, purchasing additional Common Shares or other securities in the open market or otherwise, selling some or all of its Common Shares or other securities in the open market or otherwise, exercising some or all of the Warrants, engaging in short selling of or any hedging or similar transaction with respect to the Common Shares or other securities, including swaps and other derivative instruments, or changing its intention with respect to any and all matters referred to in Item 5 of Form 62-103F1. 

A report on Form 62-103F1 has been filed contemporaneously herewith in accordance with applicable securities laws and will be available under the Issuer's profile at www.sedarplus.ca. The head office of the Issuer is 620-1111 Melville Street Vancouver, BC, M5C 1P1, Canada. The address of Nokomis is 1717 McKinney Avenue, Suite 850 Dallas, TX 75202, United States. For more information or to obtain a copy of the report, contact Brett Hendrickson, Nokomis Capital, L.L.C., Tel: [phone].

SOURCE Nokomis Capital, L.L.C.