FTEL:CC - First Tellurium Closes First Tranche of Private Placement

(TheNewswire)

Flow-Through Shares Will Help Fund Planned 2023/2024Ongoing Exploration at Deer Horn
Vancouver, BC - TheNewswire - October 30, 2023 - First Tellurium Corp. (CSE:FTEL ) ( OTC:FSTTF) (the “ Company ” or“ First Tellurium ”)announces it has closed the first tranche (the "FirstTranche") of a non-brokered private placement (the“Offering”) previouslyannounced on September 11, 2023. TheCompany has issued 1,690,000 flow-through shares (the"Flow-through Shares") at a price of $0.12 per share forgross proceeds of $202,800 and 1,890,000 units (the "Units")at a price of $0.10 per unit for gross proceeds of $189,000. Each Unitconsists of one common share and one common share purchase warrantexercisable at $0.15 for a period of two years following the close ofthe Offering.

Proceeds arising from the sale of the flow-throughshares will help fund drilling and other exploration at FirstTellurium’s Deer Horn Project in 2024.  Proceeds arising from thesale of the units will be utilized for exploration and maintenance onthe Colorado Klondike property and for unallocated workingcapital.

Tyrone Docherty, President, CEO and a director of theCompany (the “Insider”), participated in the Offering through thepurchase by his private company, Docherty Capital Corp., of 1,000,000Flow-Through Shares for gross proceeds of $120,000. Participation bythe Insider in the Offering is considered a “related partytransaction” pursuant to Multilateral Instrument 61-101 –Protection of Minority Security Holders in Special Transactions("MI 61-101"). The Company is exempt from the requirementsto obtain a formal valuation and minority shareholder approval inconnection with the Insider's participation in the Offering inreliance of sections 5.5(a) and 5.7(a) of MI 61-101, respectively, onthe basis that participation in the Offering by the Insider did notexceed 25% of the fair market value of the Company’s marketcapitalization The Company did not file a material change report atleast 21 days prior to the closing of the Offering as participation ofthe Insider had not been confirmed at that time.

The Company paid a finder’s fee of $5,000 inconnection with the First Tranche closing to an arm’s lengthparty.

Mr. Docherty’s share purchase equals 30% of the firsttranche funding. “First Tellurium is in the best situation of itsentire history,” said Docherty. “With this season’s success anddiscoveries at Deer Horn, along with developments in ourthermoelectric venture, I continue to invest in, and support, ourbusiness model. I am also purchasing shares, which I consider highlyundervalued, in the open market as shown in the Company’s insiderreports.”

About First Tellurium Corp.

First Tellurium’s unique business model is togenerate revenue and value through mineral discovery, projectdevelopment, project generation and cooperative access to untappedmineral regions in Indigenous territory with sustainableexploration.

Our polymetallic (tellurium, gold, silver copper,tungsten) Deer Horn Project in British Columbia and Klondiketellurium-gold property in Colorado anchor a diversified search formetals, working in alliance with Indigenous peoples, NGOs, governmentsand leading metals buyers. This is the future of mineral exploration:generating revenue by exploring responsibly and leveraging diversepartnerships.

First Tellurium proudly adheres to and supports theprinciples and rights set out in the United Nations Declaration on theRights of Indigenous Peoples and in particular the fundamentalproposition of free, prior and informed consent.

Neither theCanadian Securities Exchange nor its regulations services acceptresponsibility for the adequacy or accuracy of this release.

Forward-lookinginformation

All statements included in thispress release that address activities, events or developments that theCompany expects, believes or anticipates will or may occur in thefuture are forward-looking statements.  These forward-lookingstatements involve numerous assumptions made by the Company based onits experience, perception of historical trends, current conditions,expected future developments and other factors it believes areappropriate in the circumstances. In addition, these statementsinvolve substantial known and unknown risks and uncertainties thatcontribute to the possibility that the predictions, forecasts,projections and other forward-looking statements will proveinaccurate, certain of which are beyond the Company’s control. Readers should not place undue reliance on forward-lookingstatements.  Except as required by law, the Company does not intendto revise or update these forward-looking statements after the datehereof or revise them to reflect the occurrence of futureunanticipated event.

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