Surge Battery continues drill program at Nevada North

Executive Summary

• Surge Battery Metals provides an update on its 2025 drilling program at the Nevada North lithium project (NNLP), reporting that 80% of the nine-hole core program is complete with encouraging initial results showing excellent lateral continuity and thicker-than-modeled lithium-bearing claystone horizons.
• The company highlights the results of a recently completed Preliminary Economic Assessment (PEA), which indicates strong economic potential with an after-tax NPV of $9.17 billion and an IRR of 22.8% at a $24,000/t LCE price, targeting 3.6 million tonnes of battery-grade LCE over a 42-year life of mine.
• Surge has engaged Cassidy & Associates for government relations to navigate U.S. federal policy and funding landscapes, while also entering a marketing agreement with New Era Publishing Inc. for investor awareness services.

Key Details

• Drilling Program Status:
  • Nine-hole core drill program at NNLP is 80% complete as of the release date.
  • Drilling commenced in late September 2025 and is expected to be completed by the end of October 2025.
  • Objective: Update resource estimate and upgrade resources to indicated and measured categories; collect geotechnical and hydrogeological data for the 2026 prefeasibility study (PFS).
  • Initial Observations: Lithium-bearing claystone horizons show excellent lateral continuity and are appearing thicker than previously modeled, validating the geological model.
• PEA Highlights (Released July 24, 2025):
  • Valuation: After-tax NPV (8% discount rate) of $9.17 billion (U.S.); IRR of 22.8% at $24,000 (U.S.)/tonne lithium carbonate equivalent (LCE).
  • Production: 3.6 million tonnes of battery-grade LCE over a 42-year life of mine (LOM).
    • Average annual production: 86,300 tonnes LCE.
    • Peak production: 109,100 tonnes LCE in year 6.
  • Costs:
    • Operating cost (Opex): $5,243 (U.S.)/t LCE.
    • Phase 1 Capital Cost (Capex): $2.97 billion (U.S.).
    • Phase 2 Capital Cost (Capex): $2.35 billion (U.S.).
    • Total Capex: $5.32 billion (U.S.).
    • Sustaining Capital: $1.51 billion (U.S.).
  • Financials: After-tax payback of 4.6 years; Average LOM annual after-tax cash flow of $1.06 billion (U.S.).
• Strategic Engagement:
  • Engaged Cassidy & Associates (Washington, D.C.) for government relations to advocate for federal funding, support outreach to agencies (DOE, BLM, EPA), and ensure regulatory alignment.
• Marketing Agreement:
  • Entered into a marketing and investor awareness agreement with New Era Publishing Inc. dated October 17, 2025.
  • Term: Two months.
  • Fee: $225,000 (U.S.) (approx. $315,000 CAD).
  • Services: Digital marketing, email, market awareness, and engagement with carboncredits.com for North American and European audiences.
• Next Steps:
  • Complete 2025 drill program.
  • Incorporate new data into updated resource model.
  • Retain engineering firm to begin PFS in 2026.
  • Continue metallurgical, environmental, and stakeholder engagement workstreams.
  • Pursue applicable U.S. federal funding and grant programs.

Notable Quotes

• Greg Reimer, CEO: "With the exploration and development of the NNLP well under way, we are strategically positioning the project within the U.S. critical minerals framework. The recently finalized DOE loan and current equity discussions with Lithium Americas demonstrates the U.S. government's commitment to developing domestic lithium projects. We believe Surge is well positioned to take advantage of this support and our engagement of Cassidy & Associates strengthens our capabilities in Washington."