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

Executive Summary

• CAT Strategic Metals entered a Binding Memorandum of Understanding granting it an exclusive right to earn an 80% interest in a district‑scale rare earth elements (REE) project in Québec.
• The deal includes issuance of 33 million common shares, annual cash/stock payments of CAD $175,000 for three years, a CAD $500,000 cash bonus upon completion of a bankable feasibility study, and a 3.0% net smelter royalty with partial buy‑back rights.
• CAT plans to commence a grassroots exploration program in summer 2026, targeting geological mapping, sampling, and later high‑resolution geophysical work.

Key Details

• Transaction Structure:
• Exclusive right to earn an undivided 80% legal and beneficial interest over a five‑year option term (subject to regulatory approvals).
• 33,000,000 CAT common shares to be issued to the vendors upon signing.
• Anniversary payments: CAD $175,000 per year for three years (cash, shares, or combination at CAT’s election).
• Minimum aggregate exploration expenditures of CAD $500,000 over the option term (no annual minimum).
• One‑time cash bonus: CAD $500,000 payable upon completion of a bankable feasibility study.

• Royalty: 3.0% net smelter returns royalty with partial buyback rights for CAT.

• Project Description:

• Located ~80 km east of Kuujjuaq, Québec; comprises 4 claim blocs, 95 claims, covering roughly 4,330 ha.
• Historic grab sample (“Surivvik”) returned anomalous values: 2,349.49 ppm REE, 2.97 % P₂O₅, 392 ppm Zn, 53 ppm Th, 1,442 ppm Sr.

• Geology interpreted as ultramafic to mafic intrusion within a hyper‑alkaline complex; additional alkaline intrusions (syenite/monzodiorite) present.

• Exploration Plan:

• Pending regulatory approvals, CAT will finalize the definitive option agreement and launch a phased exploration program.

• Grassroots work slated for summer 2026, including geological mapping and systematic sampling to identify targets for a high‑definition geophysical survey.

• Qualified Person: Patrick Laforest, P.Geo (Québec), reviewed technical content; historic data not fully verified.

Notable Quotes

• “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.” – Robert Rosner, Chairman, President & CEO

This release contains forward‑looking statements regarding the proposed exploration program and the anticipated transaction; actual results may differ.