Binding Letter Of Intent Signed For James Bay Lithium Projects

Lightning Minerals (“L1M” or “the Company”) is pleased to announce it has entered into a binding Letter of Intent (LOI) to purchase agreement with Lithium Rabbit Quebec Pty Ltd (the Vendors) to acquire 100% interest in two projects in the prolific lithium region of James Bay, Quebec, Canada. The Vendor is not a related party of the Company or its Directors. The deal further develops the Company’s strategy of developing a portfolio of high-quality lithium and critical minerals assets in tier-one jurisdictions. This builds on the Company’s Dundas Project where recent positive exploration results demonstrate significant potential.

HIGHLIGHTS

• Binding LOI entered into to acquire the Dalmas Project (47km2) and Hiver Project (32km2) in the prolific lithium region of James Bay, Quebec, Canada
• Both projects have historical reports of outcropping pegmatites as mapped by Québec's Ministry of Natural Resources and Forests (MERN). Ground reconnaissance is to begin immediately post deal completion
• This adds to the Company’s exciting flagship Dundas Project in Western Australia where exploration has thus far yielded positive lithium in soil results1 plus discovery of multiple pegmatites under alluvial cover2 with exploration drilling ongoing

Note 1: Further exploration work including the verification of historically mapped pegmatitic outcrops is necessary. The nature of the geological outcrop mapping is currently unknown and the presence of pegmatitic lithologies does not necessarily indicate the presence of lithium, tantalum or caesium mineralisation. Only laboratory chemical assays can determine the presence and grade of any mineralisation.

Note 2: The Company is optimistic about concluding the transaction and acquisition of the Dalmas and Hiver Projects outlined herein, however at the date of this announcement no assurance that the conditions precedent with respect to the transaction will be met. Accordingly, investors are cautioned against making investment decisions based on this announcement.

ABOUT THE PROJECTS AND QUEBEC AS A SIGNIFICANT LITHIUM REGION

Two project areas, Dalmas and Hiver, will be acquired in the James Bay region of Quebec, Canada as outlined in Table 1 and Figure 1. Quebec is quickly becoming one of the world’s leading lithium regions, particularly the James Bay district which hosts multiple large scale lithium projects including Allkem’s (ASX: AKE) James Bay lithium project with 40.3Mt @ 1.4% Li20 Indicated resource3, Nemaska Lithium’s (TSX: NMX) Whabouchi lithium project with 55.7Mt @ 1.4% Li204 consisting of 38.5Mt @ 1.45% Li20 Measured and Indicated and 17.2Mt @ 1.29% Li20 Inferred, Critical Elements’ (TSX.V: CRE) Rose lithium project with 34.2Mt @ 0.9% Li205 consisting of 31.5Mt @ 0.91% Li20 Indicated and 2.7Mt @ 0.77% Li20 Inferred and Sayona Mining’s (ASX: SYA) Moblan lithium project with 51.4Mt @ 1.3% Li206 Measured, Indicated and Inferred. The region is also home to Patriot Battery Metals’ (ASX: PMT) Corvette lithium Project consisting of 109.2Mt @ 1.42% Li207 Inferred, currently the largest hard rock lithium deposit in the Americas and Winsome Resources’ (ASX: WR1)8 who are exploring multiple lithium exploration projects in the region.

Figure 1: Regional overview of project locations

Table 1: Project acquisition summary

Note: A summary of mineral claims is provided in Appendix 1

DALMAS PROJECT

The Dalmas Project is located in the James Bay region of Quebec approximately 150km to the east of Patriot Battery Metals’ (ASX: PMT) Corvette lithium Project and 45km to the east of Winsome Resources’ (ASX: WR1) Adina lithium Project. The project area consists of felsic intrusive lithologies which are juxtaposed against greenstone and metasedimentary units. This geological setting is considered favourable to host pegmatite emplacement and potential for lithium-caesium-tantalum (LCT) mineralisation. The project covers an area of 47km2.

Very limited exploration has occurred within the tenement boundaries with 13 sites with geological observations being recorded. Of these, 9 have been described as ‘pegmatitic’. All reported pegmatite outcrops will be investigated during early exploration activities with an emphasis on ground truthing the reported pegmatitic lithologies. The remaining four outcrop locations with historical mapping will also be investigated, as three of these have site interpretations that include a coarse grained description.

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