Azimut closes sale of 50% of Galinee property

Executive Summary

• Azimut Exploration Inc. has closed the sale of its 50% interest in the Galinee lithium property in Quebec to Li-FT Power Ltd.
• The transaction consideration consists of 2 million Li-FT common shares, a retained 1.4% NSR royalty, and a $1.5M deferred payment, with total consideration valued at approximately $13.4 million.
• The transaction aligns with Azimut's strategic pivot to focus on its flagship Elmer and Wabamisk properties, which are slated for a combined 17,000-metre drilling program in early 2026.

Key Details

• Transaction Structure: Sale of Azimut's 50% interest in the Galinee property (Eeyou Istchee James Bay region, Quebec) to Li-FT Power Ltd.
• Equity Consideration: 2,000,000 common shares of Li-FT Power Ltd. issued to Azimut.
• Royalty Retention: Azimut retains a 1.4% NSR (net smelter return) royalty on the Galinee property for long-term exposure to future developments.
• Deferred Payment: $1.5 million payable in cash or, at Azimut's option, in Li-FT common shares (subject to agreement terms), due at the earlier of 18 months or public disclosure of a technical report containing an economic analysis of development scenarios.
• Valuation: Total consideration valued at ~$13.4 million based on Li-FT's TSXV closing price of $6.70/share on Feb. 17, 2026.
• Portfolio & Strategic Impact: Transaction supports Azimut's strategy to concentrate on flagship properties Elmer and Wabamisk. Azimut now holds equity interests valued at ~$15 million across various companies and maintains royalty interests on three adjacent lithium properties (2% NSR on JBN-57/Pikwa for PMET Resources' Shaakichiuwaanaan project; 1% NSR on Pikwa; 1.4% NSR on Galinee for Winsome Resources' Adina project).
• Upcoming Operations: Announced drill programs totaling at least 17,000 metres for early 2026, including:
• Completion of drilling on the Fortin zone (Wabamisk)
• Commencement of follow-up drilling on the Rosa zone (Wabamisk)
• Early March drilling program at the Elmer property