U.S. Critical Metals extends McDermitt option

Executive Summary

• U.S. Critical Metals Corp. has secured a six-month extension on its option agreement for the McDermitt East Lithium Project in Nevada, allowing additional time to satisfy second-year anniversary obligations.
• The extension consideration involves the issuance of 167,000 common shares to Live Energy Minerals Corp. at a deemed value of 30 cents per share, subject to a four-month hold period and CSE acceptance.
• The move aligns with broader federal interest in U.S. lithium production, specifically regarding the nearby Thacker Pass project, while the company highlights previous sampling results of up to 2,129 ppm lithium at McDermitt East.

Key Details

• Extension Terms: The option agreement for the McDermitt Lithium East project has been extended by six months to satisfy obligations due on the second-year anniversary.
• Consideration: U.S. Critical Metals will issue 167,000 common shares to Live Energy Minerals Corp.
• Share Valuation: The shares are issued at a deemed value of 30 cents.
• Restrictions: All common shares are subject to a statutory four-month hold period.
• Regulatory Condition: Closing of the extension is subject to acceptance by the Canadian Securities Exchange (CSE).
• Option Structure: The agreement provides an option to acquire up to a 50% interest, with a further option to acquire an additional 25% interest, for an aggregate total of 75%.
• Project Location: Eastern margin of the McDermitt caldera in Nevada.
• Geological Context: The project is located within an extinct 40km x 30km supervolcano formed ~16.3 million years ago; lithium-rich clays accumulated in a lake basin that was later uplifted and drained.
• Technical Report: A NI 43-101 Technical Report prepared by John Michael William Collins, PGeo, effective Dec. 16, 2022, indicates high potential for large amounts of lithium-bearing sediments.
• Previous Sampling: Prior results included sampling up to 2,129 parts per million (ppm) lithium.
• Market Context: The extension coincides with the Trump administration signaling strong federal backing for U.S. lithium production, including potential equity stakes in Lithium Americas' Thacker Pass project.

Notable Quotes

• "The extension for McDermitt East ensures we maintain a strong foothold in one of the most prospective lithium regions in the U.S. In addition, the U.S. federal interest in Thacker Pass validates the significance of this district, and we believe our asset positions will deliver meaningful long-term value for shareholders." — Darren Collins, CEO