CAT Strategic Metals Enters into Binding Memorandum Of Understanding to Acquire a District-Scale Rare Earth Elements Project in Quebec

CAT Strategic Metals Corporation (CSE: CAT,OTC:CATTF) (OTC Pink: CATTF) (FSE: 8CHA) ("CAT" or the "Company") is pleased to announce that it has entered into a Binding Memorandum Of Understanding (the "Binding MOU") on January 12, 2025, with a number of private arm's-length parties pursuant to which CAT has been granted an exclusive right to earn a majority interest in a district-scale rare earth elements ("REE") exploration project located in Québec, Canada (the "Project").

The Binding MOU represents a significant consolidation of a large and contiguous mineral claim package and provides CAT with control over an emerging REE discovery within a highly prospective geological district.

Transaction Overview

Pursuant to the Binding MOU, CAT has been granted the exclusive right to earn an undivided 80% legal and beneficial interest in the Project over a five-year option term, subject to customary regulatory approvals.

Key commercial terms of the Binding MOU include:

• Issuance of 33,000,000 common shares of CAT to the vendors;
• Anniversary payments totaling CAD $175,000 per year for three years, payable in cash, common shares of CAT, or a combination thereof at the Company's election;
• A commitment to incur minimum aggregate exploration expenditures of CAD $500,000 over the option term with no minimum per year;
• Upon satisfaction of the earn-in conditions, CAT will earn an 80% interest, with the remaining 20% interest carried through to a production decision;
• A one-time cash bonus of CAD $500,000 payable upon completion of a bankable feasibility study; and
• A total 3.0% net smelter returns royalty, subject to partial buyback rights in favor of CAT.

The Binding MOU will automatically convert into a definitive option agreement upon receipt of all required regulatory approvals. No finder's fee or commission are payable in connection with the transaction.

Strategic Significance

The Project, located approximately 80 km east of Kuujjuaq, represents a district-scale land position composed of 4 incontiguous claim blocs totaling 95 claims and a rounded 4,330 hectares with confirmed rare earth element mineralization. The consolidation of the claims under a single option agreement provides CAT with full operational control and the ability to advance systematic exploration across the broader district rather than on a fragmented, claim-by-claim basis.

Figure 1: Project location map;
Data source https://sigeom.mines.gouv.qc.ca/signet/classes/I1102_aLaCarte?l=A

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/11961/280203_projectlocationmap.jpg

The Project comprises the mineral showing "Surivvik", which is a grab selected sample collected by the Ministry of Natural Resources and Wildlife of Quebec in 2011 while conducting regional geological mapping work. The Sample returned exciting anomalous values of 2,349.49 ppm REE, 2.97% P2O5, 392 ppm Zn, 53 ppm Th and 1,442 ppm Sr (GM 58329). The showing typology is interpreted as an ultramafic to mafic intrusion associated with a hyperalkaline complex and the REE host rock is described by the Ministry as an ultramafic unit whose composition ranges from clinopyroxenite to gabbro, enriched in magnetite and apatite, allanite, xenotime, and rare earth rich minerals and crosscut by whitish granite injections. Since and before the showing discovery no exploration work as been conducted on the property and remains at the very early grassroot stage. The Property additionally encompasses 3 majors alkaline intrusion interpreted by the Ministry as a Syenite to Monzodorite intrusion locally comprising clinopyroxene blobs hosting sphene, apatite, allanite, and magnetite (BG 2020-07; RG 2013-04).

Figure 2: Regional Geology map with Project claims;
Data source https://sigeom.mines.gouv.qc.ca/signet/classes/I1102_aLaCarte?l=A

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/11961/280203_307cd2def4f86b53_002full.jpg

The Company believes the Project has the potential to host a scalable REE system, and its size and geological setting make it amenable to staged exploration, resource delineation, and longer-term development planning, subject to successful exploration results.

Next Steps

Following receipt of regulatory approvals, CAT intends to finalize the definitive option agreement and commence a phased exploration program designed to expand and better define REE mineralization across the Project area.

CAT intends to commence a grassroot exploration program as early as the summer season 2026. The program will consist of geological mapping and sampling work to cover and sort-out the possible targets for a high-definition geophysical program to further define the geology and highlight the potential of the property and plan a mid to long term logical exploration program.

Figure 3: Quebec High Resolution Mag map with Project claims;
Data source https://sigeom.mines.gouv.qc.ca/signet/classes/I1102_aLaCarte?l=A

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/11961/280203_307cd2def4f86b53_003full.jpg

Qualified Person

Mr. Patrick Laforest, P.Geo (Québec), is the qualified person as defined by National Instrument 43-101 who has reviewed and approved the technical contents of this press release. The Qualified Person has not completed sufficient work to verify the historic information on the Property, particularly in regard to the neighbouring projects and historical drilling data.

About CAT Strategic Metals Corporation:

CAT Strategic Metals Corporation is a Canadian based mineral exploration company focused on the acquisition and derisking of overlooked projects situated in well-established geological districts in North America. The Company is specially focused on minerals which are considered highly strategic from a monetary as well as global infrastructure and energy point of view. CAT's shares trade on the Canadian Securities Exchange (CSE) under the trading symbol "CAT", on the OTCMarkets.com under the trading symbol "CATTF", and on the Frankfurt Stock Exchange under the symbol "8CHA".

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Particular risks applicable to this press release include risks associated with planned production, including the ability of the company to achieve its targeted exploration outline due to regulatory, technical or economic factors; and the completion of the transactions contemplated herein. In addition, there are risks associated with estimates of resources, and there is no guarantee that a resource will be found or have demonstrated economic viability as necessary to be classified as a reserve. There is no guarantee that additional exploration work will result in significant increases to resource estimates.

Neither Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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