Champion Electric Announces Sale of Champion Lithium Project

Executive Summary

• Champion Electric Metals entered into a Mining Claims Acquisition Agreement to sell its wholly owned Champion Lithium Project for aggregate cash consideration of USD 1,000,000.
• The buyer is a director of the company, making the transaction a related‑party deal that relies on MI 61‑101 exemptions; regulatory approvals (including CSE) remain pending.
• Proceeds are earmarked for liability reduction, working capital and advancing strategic corporate initiatives.

Key Details

• Agreement Date: December 19, 2025.
• Seller: Champion Electric Metals Inc. (CSE: LTHM).
• Buyer: Non‑arm’s‑length party; also a director of the company.
• Asset Sold: Entire Champion Lithium Project located in the Eeyou Istchee James Bay territory, Quebec.
• Consideration: Cash payments totaling USD 1,000,000.
• Regulatory Conditions: Transaction subject to approval by Canadian Securities Exchange and other required regulatory consents.
• Use of Proceeds:
• Reduction of existing liabilities.
• Working capital needs.
• Funding of strategic corporate initiatives.
• Related‑Party Status: Classified as a “related party transaction” under MI 61‑101; the company is relying on exemptions from valuation and minority‑shareholder approval because:
• The company is not listed on a specified market.
• Fair market value of the transaction ≤ USD 2,500,000.
• Board Approval: Approved by independent directors (all except Mr. Gabriel Pindar); no special committee formed; no dissent recorded.
• Management Comment: Interim President & CEO Nicholas Konkin stated the sale will “streamline the Company and sharpen our focus on the next stage of its development,” allowing evaluation of more advanced‑stage opportunities.

Notable Quotes

“The proposed sale of the Champion Lithium Project allows us to streamline the Company and sharpen our focus on the next stage of its development. Champion retains a portfolio of promising early‑stage precious and base metal assets, and this transaction positions us to begin evaluating more advanced‑stage opportunities to drive the Company forward.” – Nicholas Konkin, Interim President & CEO

Materiality Assessment: Material – Positive (significant cash inflow and strategic repositioning).