Grounded Lithium spuds first oil/gas well in Sask.

Executive Summary

• Grounded Lithium Corp. has commenced drilling the first of a two-well oil and gas program near Marsden, Saskatchewan, marking a strategic diversification into hydrocarbon resources.
• The company aims to accelerate cash flow by quickly completing and bringing these shallow wells into production, with an anticipated payout period of 6 to 12 months based on current commodity prices.
• Net operating income generated from these wells post-payout is intended to finance the company's ongoing commitments at its primary Kindersley lithium project.

Key Details

• Drilling Program: Two wells are being drilled from a single pad/surface location to save time and capital on lease construction.
• Location: Near Marsden, Saskatchewan.
• Strategic Context: Part of a diversification strategy involving the acquisition of oil and gas mineral rights, announced in a press release dated Jan. 14, 2026.
• Operational Plan: Due to the shallow nature of the wells, completion activities will follow drilling immediately to bring successful wells onto production as quickly as possible.
• Financial Timeline: Based on well type curves in the surrounding area, payout under existing agreements is anticipated in 6 to 12 months.
• Use of Proceeds: Post-payout net operating income will enhance working capital reserves to finance continuing commitments associated with the Kindersley lithium project.
• Company Resource Base (Context): Controls ~1.0 million metric tonnes of measured/indicated and ~3.2 million metric tonnes of inferred lithium carbonate equivalent resource in southwestern Saskatchewan.
• PEA Metrics: Updated NI 43-101 Technical Report (Nov 7, 2023) reports an after-tax Phase 1 NPV of $1 billion (U.S.) and an after-tax IRR of 48.5% (discounted at 8%).

Notable Quotes

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