Adelayde Exploration Enters into Joint Venture Agreement to Explore the Deep Basin Lithium Brine Potential in Clayton Valley, Nevada

Executive Summary

• Adelayde Exploration Inc. entered into a binding joint‑venture agreement with Sienna Resources Inc. and Cruz Battery Metals Corp. to explore deep‑basin lithium brine potential in Clayton Valley, Nevada.
• The JV covers 115 mineral claims (2,300 acres) that sit within the existing SLB/Pure Energy Minerals lithium deposit area, creating a single large block for coordinated drilling.
• Each party will hold a one‑third beneficial interest, share costs, expenses, liabilities and any future benefits on a 33%/33%/34% basis, with an exit right upon 30 days’ written notice.

Key Details

• JV Land Package: 115 mineral claims totaling ~2,300 acres in Clayton Valley, Nevada – the only long‑established producing lithium brine basin in the U.S.
• Parties & Ownership: Adelayde, Sienna Resources, and Cruz Battery Metals each retain legal title to their respective claims but will hold them for the benefit of the JV with a one‑third beneficial interest.
• Cost & Benefit Sharing: All exploration and development programs approved unanimously will be funded equally (≈33% each) and any resulting benefits will be split equally among the three parties.
• Liability Allocation: Each party is responsible for one‑third of any liabilities arising from the project.
• Exit Provision: A party may terminate its participation with 30 days’ written notice, after which it forfeits all future costs, expenses, benefits and liabilities; its claims are removed from the JV.
• Future Structuring: Parties may later create a definitive agreement and a special‑purpose vehicle (JV Entity) to transfer ownership of the claims and formalize governance (e.g., shareholders or partnership agreement).
• Strategic Rationale: Lithium prices have risen >150 % since June 2025, prompting management to pursue deep‑basin drilling in a high‑potential area surrounded by existing SLB and Pure Energy Minerals deposits.
• Company’s Existing Resources: Adelayde previously disclosed a mineral resource estimate for the 1,136‑acre McGee lithium clay deposit (320 Mt @ 803 ppm Li = 1.369 M t LCE indicated; 157 Mt @ 865 ppm Li = 0.723 M t LCE inferred).
• Qualified Person: Technical content reviewed and approved by Frank Bain, P.Geo., director of Adelayde (NI 43‑101 qualified person).

Notable Quotes

“Lithium prices are currently at 2‑year highs… management feels this is an opportune time to explore the deep basin lithium brine potential within Clayton Valley.” – James Nelson, President & CEO, Adelayde Exploration Inc.