Adelayde signs JV deal with Sienna, Cruz Battery

Executive Summary

• Adelayde Exploration Inc. entered into a binding letter agreement to form a joint venture with Sienna Resources Inc. and Cruz Battery Metals Corp. to explore deep basin lithium brine potential on a 2,300-acre, 115-claim land package in Clayton Valley, Nevada.
• The JV will consolidate the claims into a central block to execute a shared-cost drill program targeting the deepest parts of the basin, with all costs, liabilities, and benefits split equally (one-third each) among the three parties.
• The partnership leverages Clayton Valley's status as the only long-established producing lithium brine basin in the U.S., capitalizing on a >150% surge in lithium prices since June 2025 and complementing Adelayde's existing regional lithium portfolio.

Key Details

• Transaction Structure: Binding letter agreement for a contractual joint venture; parties may later formalize via a definitive agreement and special-purpose vehicle (SPV) to transfer claim ownership.
• Land Package: 115 mineral claims totaling 2,300 acres in Clayton Valley, Nevada, completely surrounded by SLB (formerly Schlumberger) and Pure Energy Minerals' lithium deposits.
• Ownership & Cost Sharing: Each party retains legal title to its claims but holds them for the benefit of the JV, with a one-third beneficial interest per claim. Jointly agreed exploration/development costs, liabilities, and benefits are shared equally (1/3 each).
• Exit Mechanism: Any party may terminate participation with 30 days' written notice; upon exit, their claims are removed from the JV and they assume no further costs, benefits, or liabilities.
• Market Context: Clayton Valley is the sole U.S. producing lithium brine operation since the 1960s (home to Albemarle's Silver Peak mine). Lithium prices are at two-year highs, up >150% since June 2025.
• Related Portfolio Assets: Adelayde also holds the 1,136-acre McGee lithium clay deposit (320M tonnes @ 803 ppm Li for 1.369M indicated LCE; 157M tonnes @ 865 ppm Li for 723k inferred LCE), the 280-acre Elon lithium brine project, and the 124-acre Green Clay project in the same valley.
• Technical Oversight: Technical contents reviewed by Frank Bain, PGeo (Director & Qualified Person per NI 43-101). McGee resource prepared by Stantec Consulting Services Ltd. (Derek Loveday, PGeo & Mariea Kartick, PGeo).

Notable Quotes

• James Nelson, President: "Lithium prices are currently at two-year highs and are now up well over 150 per cent since June, 2025... management feels this is an opportune time to explore the deep basin lithium brine potential within Clayton Valley, Nevada. The main reason the JV was formed was to create one large block in the centre of the Clayton Valley lithium brine basin to formulate a drill program to test the deepest part with a shared cost and benefit to the JV participants."