Toronto, Ontario--(Newsfile Corp. - May 30, 2023) - Eric Sprott announces that on May 29, 2023, he acquired through 2176423 Ontario Ltd., (a corporation he beneficially owns) ownership of an unsecured convertible debenture issued by Stroud Resources Ltd. in the principal amount of $600,000 (Debenture), pursuant to a private placement. This acquisition represents an increase in holdings of approximately 7.5% of the outstanding common shares (Shares) of Stroud Resources on a partially diluted basis since the date of the last early warning report.

The Debenture matures 90 days from the date of issue and bears interest, payable at a rate of 14% per annum. The Debenture is convertible into units (Units) at the option of 2176234 Ontario, in whole or in part, at any time up to the maturity date, at a conversion price of $0.10 per Unit. Each Unit is comprised of one Share and one Share purchase warrant (Warrant); each Warrant exercisable into one Share at a price of $0.10 for a term of three years. Any interest on the Debenture then owing that 2176234 Ontario wishes to convert into Units will be effected pursuant to the rules of the TSXV Exchange (TSXV). Also, on the maturity date of the Debenture, Stroud Resources may elect (i) to repay the principal amount of the Debenture in Units at the greater of $0.10 per unit or the "discounted market price" subject to prior approval of the TSXV, and (ii) to convert any accrued interest thereon into Units at the discounted market price in accordance with the applicable rules and policy of the TSXV.

Prior to the Acquisition, Mr. Sprott beneficially owned 25,277,777 Shares representing approximately 49.0% of the outstanding Shares. As a result of this acquisition, Mr. Sprott beneficially owns and controls 25,277,777 Shares and the Debenture, representing approximately 49.0 % of the outstanding Shares on an undiluted basis and, assuming full conversion of the principal amount of the Debenture at $0.10 per Share, 31,277,777 Shares and 6,000,000 Warrants, representing approximately 54.3% of the outstanding Shares on an undiluted basis and 58.6% assuming exercise of such Warrants.

The securities noted above are held for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Stroud Resources is located at 1090 Don Mills Road, Suite 404, Toronto, ON M5C 5R6. A copy of the early warning report with respect to the foregoing will appear on Stroud Resource's profile on the System for Electronic Document Analysis and Retrieval at and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (2176423 Ontario Ltd., 200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

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