Nokomis Capital, L.L.C. Disposes of Common Shares of Honey Badger Silver Inc.

DALLAS, Aug. 19, 2026 /CNW/ -- Nokomis Capital, L.L.C. ("Nokomis") announced today that, on August 18, 2026, Nokomis Capital Master Fund L.P. (the "Fund") disposed of an aggregate of 877,400 common shares (the "Common Shares") of Honey Badger Silver Inc. (the "Issuer") through the facilities of the TSX Venture Exchange (the "Dispositions") for consideration of approximately C$0.66 per Common Share and approximately C$574,842 in the aggregate.

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 Fund, 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 Fund.

Immediately prior to the Dispositions, Nokomis beneficially owned, or exercised control or direction over, 11,558,000 Common Shares, representing approximately 5.09% of the Common Shares issued and outstanding on a non-diluted basis, and 13,125,000 Common Share purchase warrants (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 ending on April 24, 2029, subject to adjustments. Immediately prior to the Dispositions and assuming exercise of all of its Warrants, Nokomis would have had beneficial ownership of, or control or direction over, 24,683,000 Common Shares, representing approximately 10.27% of the Common Shares on a partially diluted basis.

Immediately after giving effect to the Dispositions, Nokomis beneficially owns, or exercises control or direction over, 10,680,600 Common Shares, representing approximately 4.70% of the Common Shares issued and outstanding on a non-diluted basis, and 13,125,000 Warrants. Immediately after giving effect to the Dispositions and assuming exercise of all of its Warrants, Nokomis would have beneficial ownership of, or control or direction over, 23,805,600 Common Shares, representing approximately 9.91% of the Common Shares on a partially diluted basis.

The preceding non-diluted figures are based on a total of 227,211,961 Common Shares issued and outstanding as of August 18, 2026, as confirmed by the Issuer. The preceding partially diluted figures assume the exercise of all Warrants held by Nokomis and a corresponding increase in the total number of Common Shares issued and outstanding.

Immediately following the Dispositions, Nokomis beneficially owns, or exercises control or direction over, less than 10% of the Common Shares issued and outstanding on a partially diluted basis. Accordingly, Nokomis is no longer subject to the early warning reporting requirements in respect of its holdings of the Issuer.

The Dispositions were made for investment and portfolio management purposes, including a partial reduction of Nokomis's position in the Issuer. Nokomis 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, V6E 3V6, 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.