Sorrento Resources Ltd. Announces Purchase Agreement for Lord Baron Project with Naughty Ventures Corp.

Executive Summary

• Naughty Ventures Corp. has entered into an arm's length mineral property purchase agreement to acquire a 100% undivided interest in Sorrento Resources Ltd.'s Lord Baron Property.
• The transaction consideration consists of 1,000,000 common shares in Naughty Ventures, valued at a deemed price of $0.18 per share.
• Sorrento is divesting the asset to focus its resources on the Bottom Brook Rare Earth Element Project and the Rodgers Cove Gold Project.

Key Details

• Transaction Structure: Naughty Ventures acquires 100% undivided interest in the Lord Baron Property from Sorrento Resources.
• Consideration: 1,000,000 common shares of Naughty Ventures Corp.
• Deemed Price: $0.18 per share.
• Royalty: The property is subject to an existing underlying 2% net smelter returns (NSR) royalty.
• Share Restrictions: The issued shares are subject to a statutory four-month and one-day hold period from the date of issuance.
• Finder’s Fee: Sorrento agreed to pay a finder’s fee of 100,000 Sorrento shares to Kluane Capital FZCO upon closing.
• Closing Conditions: Closing is subject to receiving all necessary consents and approvals, including approval from the Canadian Securities Exchange (CSE), and satisfaction of customary closing conditions.
• Timeline: The companies expect to complete the acquisition in the coming weeks.
• Strategic Rationale: Sorrento CEO Alex Bugden stated the decision allows the company to focus on the Bottom Brook Rare Earth Element Project and Rodgers Cove Gold Project without spreading resources too thin.

Notable Quotes

• Alex Bugden, CEO, President, and Qualified Person of Sorrento Resources: "With the recent transformative acquisition of the Bottom Brook Rare Earth Element Project, Sorrento has decided to focus on both this project as well as the Rodgers Cove Gold Project. In order to not spread ourselves too thin, and do these properties justice, we felt it best to monetize the Lord Baron Project."
• Blair Naughty, CEO of Naughty Ventures: "We know the Lord Baron Property well; it's a compelling opportunity and we are excited to advance it this year."