Battery X completes lidar, orthophoto survey at Y

Mr. Massimo Bellini Bressi reports BATTERY X METALS ADVANCES 2025 CRITICAL METALS EXPLORATION STRATEGY, INITIATES NI 43-101 REPORT FOR Y LITHIUM PROJECT, AND STRENGTHENS FINANCIAL POSITION Battery X Metals Inc.'s wholly owned subsidiary, YY Resources Inc., has completed a high-resolution lidar (light detection and ranging) and orthophoto survey program at its Y lithium project located in Northern Saskatchewan, near Bailey Lake. An assessment report has been submitted to the Saskatchewan Ministry of Energy and Resources, and the company has engaged an arm's-length geological consulting firm to prepare a National Instrument 43-101 technical report on the Y lithium project. Battery X Metals' comprehensive 360-degree strategy across the battery metal value chain As previously disclosed in the company's news release dated Feb. 24, 2025, Battery X Metals is advancing a comprehensive 360-degree strategy across the battery metal sector. This strategy encompasses the exploration of prospective battery metal properties; the development of proprietary recovery technologies pursued through a prior research collaboration with a globally ranked top-20 university to recover battery-grade materials from end-of-life batteries; and the development and future commercialization of patent-pending software and hardware technology for the extension of remaining useful lifespan of electric vehicle batteries. The company's strategic exploration initiatives during the 2025 season are intended to focus its efforts and reinforce its commitment to innovation across the battery metal value chain. The Y lithium project is located in a remote and underexplored region near Bailey Lake, approximately 160 kilometres northeast of Stony Rapids and 10 kilometres south of the Saskatchewan/Northwest Territories border. The project comprises four mineral claims across two distinct blocks, covering a total area of approximately 5,856 hectares. It forms a core part of Battery X Metals' 2025 exploration strategy targeting high-potential lithium-bearing projects in North America. Notably, the Bailey Lake lithium occurrence is situated approximately 10 kilometres east of the Y lithium project's central claim area. To support the evaluation and advancement of the Y lithium project's critical battery metal potential, YY Resources has engaged the geological consulting firm to commission an NI 43-101 technical report. The NI 43-101 technical report is expected to provide a formal geological assessment of the property and serve as the foundation for future exploration planning, technical disclosure and potential development. The estimated cost of the report is approximately $7,000, plus applicable taxes, and may be subject to additional fees related to travel, further revisions or supplementary technical analysis, as required. The completion of the lidar survey represents a key milestone in the company's 2025 exploration program. The total cost of the survey was $56,400 plus applicable taxes, which has been fully paid. Notably, the lidar survey qualifies for a 1.5 times exploration expenditure credit under Saskatchewan's mineral exploration incentive program. As a result, YY Resources is able to apply a total of $116,348 in assessment credits on the Y lithium project, effectively reducing its annual exploration expenditures and improving capital efficiency. This allows for a strategic reallocation of resources toward potential future exploration efforts and additional technical initiatives, such as the NI 43-101 technical report. Interpretation and recommendations of the lidar survey The Y lithium project is a district-scale property with the potential to host hardrock lithium mineralization. It is situated within the Ennadai greenstone belt, which begins in the project area and extends northeast into the Northwest Territories. The recent discovery of spodumene-bearing boulders at Bailey Lake underscores the lithium prospectivity of this underexplored region. The lidar survey is expected to play a critical role in identifying glacial features, potential outcrop and boulder trains across the property. When integrated with available government data, the survey is expected to support the delineation of lithological contacts and structural corridors to be targeted in future exploration programs. Additionally, orthophotos generated from the lidar survey are expected to highlight boulder trains and other high-potential features to potentially support a focused phase 1 mapping and sampling program. YY Resources may proceed with a multiphase exploration approach in the future. If advanced, future exploration work is anticipated to include data compilation and desktop analysis, such as the review of historical till and sediment sampling, geophysical surveys, regional mapping, and glacial ice flow directions. These inputs would be intended to support YY Resources' continuing efforts to refine exploration targeting and unlock value at the Y lithium project. Belanger project The company also announces that, further to its news releases dated Nov. 29, 2024, in which it disclosed the execution of an addendum agreement with the optionor of the Belanger project, Bounty Gold Corp., an arm's-length third party, to acquire a 100-per-cent interest in the Belanger project, it made the final payment of $5,500 to Bounty Gold on July 2, 2025. This brings the total cash consideration paid under the Belanger addendum agreement to $18,000. With the completion of the final payment, the company has satisfied all payment obligations under the Belanger addendum agreement and has earned a 100-per-cent interest in the Belanger project, subject to a 3-per-cent net smelter return royalty. The company retains the right to purchase the first 1 per cent of the NSR for $750,000 and the remaining 2 per cent for $2-million at any time prior to the commencement of commercial production. The Belanger project, located in Ontario's Birch-Uchi greenstone belt near Red Lake, spans 109 unpatented mining claims across Belanger, Bowerman, Knott and Mitchell townships. Situated within the Uchi subprovince of the Superior province of the Canadian Shield, the property lies in a geologically favourable region. Debt settlement The company also announces that, further to its news release dated July 18, 2025, it has settled outstanding indebtedness in the aggregate amount of $544,425.18 owing to certain creditors of the company, satisfied through the following issuances: $446,603.75 in consideration for the issuance of an aggregate of 1,860,844 units of the company at a deemed price of 24 cents per debt settlement unit; each debt settlement unit consists of one common share of the company and one transferable common share purchase warrant; each debt settlement warrant is exercisable to acquire one additional common share of the company at an exercise price of 31.5 cents per debt settlement warrant share for a period of two years from Aug. 1, 2025; $97,821.43 in consideration for the issuance of an aggregate of 407,587 debt shares at a deemed price of 24 cents per debt share. The securities issued under the debt settlement will be subject to a statutory hold period expiring Dec. 2, 2025. The debt settlements with Massimo Bellini Bressi, Martino Ciambrelli, John Campbell and Howard Blank are related-party transactions within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The insider settlements are exempt from the valuation requirement of MI 61-101 by virtue of the exemptions contained in Section 5.5(b) of MI 61-101 as the company's common shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(1)(a) of MI 61-101 in that the fair market value of the insider settlements will not exceed 25 per cent of the company's market capitalization. As the material change report disclosing the insider settlements is being filed fewer than 21 days before the transaction, there is a requirement under MI 61-101 to explain why the shorter period was reasonable or necessary in the circumstances. In the view of the company, it is necessary to immediately close the insider settlements and, therefore, such shorter period is reasonable and necessary in the circumstances to improve the company's financial position. Qualified persons In accordance with National Instrument 43-101 (Standards of Disclosure for Mineral Projects), Jason Arnold, PGeo, president of DCX Geological Consulting, an independent qualified person, is the qualified person for the company, and has prepared, validated and approved the technical and scientific content of this news release. The company strictly adheres to Canadian Institute of Mining, Metallurgy and Petroleum Best Practices Guidelines in conducting, documenting and reporting activities on its projects. About Battery X Metals Inc. Battery X Metals is an energy transition resource exploration and technology company committed to advancing domestic and critical battery metal resource exploration and developing next-generation proprietary technologies. Taking a diversified, 360-degree approach to the battery metal industry, the company focuses on exploration, lifespan extension and recycling of lithium-ion batteries and battery materials. We seek Safe Harbor.