Update on Large Scale Western USA Liberty Lithium Brine Project

QX Resources Limited (ASX:QXR) has advanced discussions and due diligence over the large, recently- consolidated lithium brine project, Liberty Lithium, in California, USA.

• Discussions and due diligence have advanced on the Liberty Lithium Brine Project in the western USA
• Resampling of lithium brines have returned almost 200 mg/L Lithium supporting previous anomalous areas extending over 10km, reinforcing the strong potential of the project. Similar nearby brine projects are advancing to potential economic development on lower grades downhole.
• Liberty Lithium has confirmed an expanded, large lease holding position over 10,230 Ha (25,280 acres), (a 67% increase) making it one of the largest single lithium brine projects in the western USA.
• QXR entered a Letter of Intent (LOI) in May 2023 over the Liberty Lithium Brine Project.
• Discussions with regulators and local administrators have reaffirmed the local interest in developing projects similar to Liberty Lithium towards production because of the support for battery minerals production in California.

These results reinforce the strong potential of the project. Similar nearby brine projects, such as Pure Energy Minerals just across the Californian/Nevada border, are advancing to potential economic development on lower grades downhole of 110-160mg/L Li1.

Recent consolidation of lease holding has been confirmed with an expanded, large lease holding position over 10,230 Ha (25,280 acres), a 67% increase over the previous area, making it one of the largest single lithium brine projects in the western USA (for scale, equivalent to 2x area of Sydney Harbour or half the size of San Francisco city). Geophysical analysis shows a large basin over 1,000 metres deep, with geothermal fluids along a faulted margin with elevated lithium brine results.

Detailed due diligence, together with legal advice, have reaffirmed the local county and regulatory interest in developing projects such as Liberty Lithium towards production because of the support for battery minerals production in this part of California. Evaporative salt operations nearby have been operating for decades.

QXR entered a non-binding letter of intent (LOI) for exclusivity to negotiate terms to acquire a controlling interest of 75% in the Liberty Lithium Brine Project in May 2023 (ASX Announcement 17 May 2023) with a 75- day exclusivity period to conduct due diligence and negotiate terms and structuring of an option to purchase agreement. Final terms are anticipated during mid-August. To facilitate the finalisation of the agreement, the parties have agreed to extend the exclusivity period until 15 August, 2023. Separately, QXR has agreed to purchase a small package of leases to consolidate the area, requiring a payment of cash and shares to the third party lease holder.

QXR Managing Director, Stephen Promnitz, said: “Ongoing studies, detailed due diligence and a site visit show QXR that the Liberty Lithium Project is truly large scale with repeatable results and a pathway to development.

It’s a sought-after project with many characteristics similar to Albemarle’s producing Silver Peak lithium brine deposit in Clayton Valley USA and other Argentina brine projects. It is encouraging to note growing interest from end-users investing directly into projects making Liberty Lithium an attractive opportunity. Liberty Lithium is well located near a long life salt operation nearby. We are in final discussions now.”

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