Azimut and SOQUEM to Participate in LiFT Power's Consolidation of the Galinee-Adina Lithium District in the James Bay Region of Quebec

On December 15, 2025, Azimut Exploration Inc. ("Azimut") announced it has signed a non-binding Letter of Intent (LOI) with SOQUEM Inc. and LiFT Power Ltd. ("LiFT") to restructure the Galinée Property joint venture. Under the terms, LiFT will acquire a 75% aggregate interest in the property, with Azimut selling its entire 50% stake and SOQUEM selling 25% of its 50% stake.

As consideration for its 50% interest, Azimut will receive: - 2,000,000 common shares of LiFT Power Ltd. - A 1.4% Net Smelter Return (NSR) royalty on the property. - A deferred payment of $1,500,000, payable in cash or LiFT shares, at the earlier of a preliminary economic assessment (PEA) being completed or 18 months post-closing.

This transaction is part of a larger regional consolidation by LiFT, which, as announced on December 14, 2025, also includes a proposed acquisition of Winsome Resources Limited. The closing of Azimut's sale is subject to the negotiation of definitive agreements and customary closing conditions, including TSX Venture Exchange (TSXV) approval.

This is a material and strategically positive transaction for Azimut. It aligns perfectly with the company's project generator business model: discover, de-risk, and monetize non-core assets to fund exploration on core projects without shareholder dilution.

Strengths of the deal: 1. Value Crystallization: The deal immediately assigns a tangible value to the Galinée property. Based on LiFT's concurrent financing price of CAD $4.30 per non-flow-through share, the 2,000,000 shares are valued at approximately $8.6 million. Combined with the $1.5 million deferred payment, the upfront and near-term consideration is over $10 million, which is significant relative to Azimut's ~$83 million market capitalization. 2. Retained Upside: The 1.4% NSR royalty provides Azimut with long-term, cost-free upside on a highly prospective lithium property that will now be advanced by a well-funded, consolidated regional player. Given the proximity to Winsome's Adina project and the excellent drill results on Galinée, this royalty could become very valuable. 3. Non-Dilutive Funding: The transaction strengthens Azimut's treasury by providing liquid shares in another public company and a future cash payment, all without issuing new Azimut shares. This allows management to focus capital on its 100%-owned flagship projects. 4. Strategic Validation: The interest from LiFT as part of a major regional consolidation validates the quality of Azimut's exploration work and the prospectivity of the Galinée asset.

Key Risks and Considerations: 1. Non-Binding LOI: The most significant risk is that this is a non-binding LOI. The transaction is not complete until definitive agreements are signed and all conditions are met. 2. Contingent on a Larger Deal: The Galinée sale is contingent upon the successful completion of LiFT's acquisition of Winsome Resources and its associated financing. This larger transaction has numerous conditions, including shareholder and court approvals, which adds a layer of complexity and risk beyond Azimut's control. 3. Share Value Fluctuation: The value of the 2,000,000 LiFT shares is not fixed. It will depend on the market's perception of the consolidated LiFT-Winsome entity and the volatile lithium sector.

In the context of historical news, this deal is consistent with Azimut's strategy of partnering with major companies (Rio Tinto on Wabamisk East, KGHM on Kukamas) to advance projects. The company has methodically advanced its portfolio and is now successfully monetizing certain assets while focusing its own treasury on the Elmer (gold) and Wabamisk (antimony-gold) projects. This transaction is a clear positive, de-risking the company's portfolio and balance sheet, provided the deal closes as planned.

Azimut Exploration Inc. is a mineral exploration company employing a project generation model, primarily focused on large-scale targets in the James Bay region of Quebec. The company's methodology relies on proprietary data processing of geoscientific information to identify targets.

Azimut maintains a large and diverse portfolio, but its key 100%-owned projects are: 1. Elmer Project (Gold): Considered the flagship, it hosts the Patwon gold deposit, which has an NI 43-101 compliant resource of 311,200 ounces Indicated and 513,900 ounces Inferred. An internal scoping study is underway to evaluate its economic potential. The property has numerous other untested gold and copper-gold targets. 2. Wabamisk Project (Antimony-Gold): This project has two significant zones. The Fortin Zone is an extensive antimony-gold system. The newly discovered Rosa Zone is a high-grade, shear-hosted gold system that is the focus of a maiden drill program.

The company also has several projects under option or JV agreements with major partners, including KGHM (Kukamas Ni-PGE) and Rio Tinto (Wabamisk East Li). The recent news concerns the sale of its interest in the Galinée (Lithium) JV with SOQUEM.