Black Mountain: Strategy & Drilling Plans

Chariot Corp Limited (ASX:CC9) (“Chariot” or the “Company”) today announces that it has revised its strategy for the Black Mountain hard rock lithium project in Wyoming U.S.A. (“Black Mountain”) and will shift from exploring for a large-scale resource to testing the viability of establishing a smaller-scale “pilot mine” at Black Mountain (“Pilot Mine”), with the goal of supplying spodumene concentrate to several lithium hydroxide refineries under construction in the southwestern United States.

HIGHLIGHTS:

• NEW STRATEGY: Chariot has revised its strategy for Black Mountain and now envisions a ”Pilot Mine” at Black Mountain in Wyoming, U.S.A., that could rapidly produce spodumene concentrate to capitalize on the growing lithium supply deficit in the U.S. market
• RESOURCE DEFINITION TARGET: Phase 2 drilling aims to define a high-priority, small-scale lithium resource (minimum JORC (2012) Indicated category) to underpin the Pilot Mine and establish the foundation for future larger-scale resource definition
• PHASE 2 DRILL PROGRAM: Chariot will conduct a reverse circulation drilling program at Black Mountain, drilling a total of up to 43 holes and up to 4,300 metres of total drilling (which may be completed in stages through the balance of 2024 and early 2025)
• METALLURGICAL TESTING: Chariot has approximately 200 kg of mineralized HQ diamond drill core in storage in Wyoming which will be transported to Perth for metallurgical testing by an experienced Perth-based metallurgical laboratory facility
• URGENT SUPPLY NEEDS: U.S. lithium demand is projected to surge by 2030, creating an urgency for new domestic supply sources
• WYOMING’S STRATEGIC ADVANTAGE: Wyoming’s small-mine permit system offers a pathway for the establishment of a pilot mine
• COST-EFFICIENT MODULAR PLANT DESIGN: The contemplated modular plant design is expected to reduce upfront costs and offer flexibility to scale up rapidly
• LONG-TERM VISION: The Pilot Mine strategy could provide short-term cash flow and potentially could optimize the development of larger-scale mining operations in the future

The following factors relating to the Black Mountain Project render it particularly suitable for the establishment of a Pilot Mine:

1) Indications of near-surface lithium mineralization at Black Mountain makes it suitable for a shallow, open-pit Pilot Mine.

2) Wyoming’s advantageous small-mine permit system offers a pathway for small mine permits that does not impose limits on the mineral volume which can be extracted but rather places annual limits on the mining activities to 10 acres (4.05 hectares) of disturbance and 35,000 cubic yards (26,760 cubic metres) of overburden removal (refer Part 3 of this announcement).

3) Black Mountain’s proximity to U.S. lithium hydroxide refineries currently under construction in the southwestern United States is expected to provide a geographic advantage in marketing product extracted from the Pilot Mine.

1. Target Small-scale Lithium Resource Definition

The Black Mountain Phase 2 drilling program (“Phase 2 Drilling Program”) will be completed during the coming months within the 5 acre disturbance limit applicable under the existing “Notice of Intent” level drill permit. The Phase 2 Drilling Program will seek to:

1) Quickly and cost-effectively define a small-scale lithium resource (at a minimum JORC (2012) “Indicated” category level of confidence) to support the construction of a Pilot Mine (“Small-scale Lithium Resource”).

2) Advance the understanding of mineralization and geology to identify drilling targets for further exploration of the project and delineation of a resource to support future large-scale mining.

The Phase 2 Drilling Program will be focused on the two southern pegmatite outcrops (Figure 1) which exhibit high fractionation (see Chariot’s ASX announcements dated 2 February 2024 and 20 August 2024) and contain spodumene at surface.

A previous drilling program conducted by the Company has already shown at and near-surface lithium mineralisation in these areas (see Chariot’s ASX announcement dated 2 February 2024).

ERM (see Part 4 of this announcement below) has assisted in the development of the Phase 2 Drilling Program. It will consist of up to 43 holes, totaling up to 4,300m of total drilling depth. The drilling method utilized will be small-format reverse circulation (”RC”) drilling, which is a proven method for quick and cost-effective drilling with a minimal disturbance footprint.

As part of its revised strategy for Black Mountain, the Company is replacing the previously announced drilling plans (see Chariot’s ASX announcements dated 19 June 2024) with the Phase 2 Drilling Program.

The Company is in discussions with a drilling company and will commence drilling as soon as an RC drill rig and crew can be redeployed from their current projects.

Figure 1: 2024 RC Drill Plan

Figure 2: Black Mountain pegmatite intersection in BMDDH23_01 from 10.5m (34.5ft.) to 13.7m (45ft.) showing some of the spodumene mineralization (See Chariot’s ASX Announcement dated 2 February 2024)

Figure 3: Black Mountain Drill Core sample from BMDDH23_01 – from 10.6m (See Chariot’s ASX Announcement dated 2 February 2024)

The Company notes that completion of the full Phase 2 Drilling Program will require additional funding. Discussions regarding potential fundraising are currently underway and the Company will provide further updates as details are finalised.

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