Azimut, SOQUEM to sell 75% of Galinee to Li-FT

Executive Summary

• Azimut Exploration Inc. and SOQUEM Inc. have signed a non-binding letter of intent (LOI) to restructure their 50/50 joint venture on the Galinee property by selling a combined 75% interest to Li-FT Power Ltd.
• The transaction consolidates the Galinee and Adina lithium districts, aligning with Azimut’s strategy to focus on flagship assets while retaining equity exposure and royalties in emerging lithium projects.
• Li-FT is simultaneously acquiring Winsome Resources Ltd. (owner of the adjacent Adina property) to complete the district consolidation.

Key Details

• Transaction Structure: Li-FT Power Ltd. will acquire a 50% interest in the Galinee property from Azimut and a 25% interest from SOQUEM.
• Consideration: Li-FT will issue 2 million shares to Azimut and 1 million shares to SOQUEM as consideration for the acquired interests.
• Retained Interests:
  • Azimut retains a 1.4% NSR (Net Smelter Return) royalty on the Galinee property.
  • SOQUEM retains a 25% undivided interest in the property via a new joint venture with Li-FT.
• Deferred Payment: Azimut is entitled to a $1.5 million deferred payment, payable in cash or shares (subject to definitive agreement conditions), at the earlier of:
  • Completion of a preliminary economic study on the property; or
  • 18 months from the date of the LOI.
• Strategic Context: The deal consolidates the Galinee-Adina lithium district in the James Bay region of Quebec, removing boundary constraints for Li-FT. This is disclosed in conjunction with Li-FT’s Dec. 15, 2025 announcement of its proposed acquisition of Winsome Resources Ltd.
• Property Details (Galinee):
  • Located in the Eeyou Istchee James Bay region of Quebec.
  • 649 claims covering 335 square kilometres.
  • Located ~50 km north-northwest of the Renard diamond mine and ~60 km south of the Trans-Taiga Road.
  • Operated by Azimut.
• Drilling Results (Galinee): Wide core drilling intervals of high-grade mineralization intercepted in the northern part of the property, including:
  • 1.62% Li2O over 158.0 metres.
  • 2.48% Li2O over 72.7 metres.
  • 2.68% Li2O over 54.6 metres.
• Regulatory/Conditions: The LOI is non-binding. Closing is subject to customary conditions, including approval from the TSX-V and execution of definitive agreements.

Notable Quotes

• Dr. Jean-Marc Lulin (President and CEO, Azimut): "The consolidation of this district would allow Li-FT to advance a strengthened property package unconstrained by the Galinee-Adina boundary. The proposed transaction aligns with Azimut's objective to focus on its flagship assets while maintaining exposure to emerging lithium districts through equity ownerships and retained royalties."