LithiumBank to acquire 2nd suspended well at Boardwalk

Executive Summary

• LithiumBank Resources Corp. has initiated a comprehensive work program to unlock $3.9 million in funding from the Alberta government’s Emissions Reduction Act (ERA) at its Boardwalk lithium brine project.
• The company is acquiring a second suspended, past-producing well to support near-term production via modular direct lithium extraction (DLE) plants, aiming to derisk the project by utilizing existing oil and gas infrastructure.
• The acquisition and subsequent work are designed to meet specific milestones required for ERA reimbursement, including exploration drilling, DLE testing, and a feasibility study, with the goal of completing the NI 43-101 feasibility study by the end of 2026.

Key Details

• Well Acquisition: LithiumBank is acquiring a second suspended, past-producing well located in close proximity to the company's 10-6 well at the 100%-owned Boardwalk project in west-central Alberta.
• Strategic Rationale: The new well is expected to support near-term lithium-brine production due to abundant historic production data and existing surface/subsurface infrastructure (wells, well pads, pipelines, roads, water, power).
• Regulatory Status: The acquisition requires approval by the Alberta Energy Regulator (AER) to transfer the well licence to 100% ownership; an update will be announced upon availability of additional information.
• ERA Funding Milestones: To qualify for 50% reimbursement of eligible expenditures (up to $3.9 million total), the company must complete:
  1. Exploration Drill Hole: Complete an additional exploration drill hole through the Leduc formation reservoir to support advanced reservoir and geological models and collect additional brine. This test well is situated to be converted into a production well in the future.
  2. DLE Testing: Conduct long-cycle DLE testing and optimization, focusing on concentration and impurity removal testing, and conversion to lithium carbonate.
  3. Feasibility Study: Complete a feasibility study assessing a low capital expenditure, modular approach to lithium production.
• Timeline and Expectations: The well acquisition initiates the first milestone. Results from milestones 1 and 2 are expected to support the NI 43-101 feasibility study, which is targeted for completion by the end of 2026.
• Resource Position: LithiumBank holds the largest-known holder of lithium brine resources in North America, with NI 43-101 resource estimates at Boardwalk and Park Place reported as the highest-grade in Alberta. The projects are unrestricted by overlapping pore space or carbon sequestration permits.
• Equity Grant: The company granted stock options to two officers to purchase an aggregate of 300,000 common shares.
  • Exercise Price: 58 cents per share.
  • Expiry Date: November 17, 2030.

Notable Quotes

• No direct quotes from the CEO/President were included in the provided text.