Vanguard Mining Reclaims 100% Interest in Pocitos 1 Lithium Salar Project in Argentina, Enhancing Portfolio as Lithium Prices Rebound and Sector M&A Activity Exceeds US$8 Billion

Executive Summary

• Vanguard Mining Corp. has formally terminated its agreement with American Salars Lithium Inc. for the sale of the Pocitos 1 Lithium Salar Project for cause, due to American Salars' failure to make required local government payments and satisfy creditor obligations.
• Vanguard retains 100% full ownership of the Pocitos 1 project, preserving its exploration upside and long-term value.
• The company reaffirms its strategic focus on advancing core uranium and gold assets (Yuty Prometeo and Brussels Creek) while maintaining selective exposure to lithium through Pocitos 1.

Key Details

• Termination Details: The agreement, originally announced on June 17, 2024, was terminated for cause following American Salars’ failure to make required local government payments under Law No. 8419 to mining courts and the Mining and Energy Secretariat’s General Revenue Office of Salta, and neglect of other creditor obligations.
• Asset Retention: Vanguard retains 100% ownership of the Pocitos 1 Lithium Brine Project, an 800-hectare property located near Pocitos in Salta Province, Argentina.
• Project Geology & Resources:
  • A 2023 NI 43-101 compliant Mineral Resource Estimate (MRE) by WSP Australia reported an inferred resource of 140 m³ of lithium brine with a grade of 101 mg/L.
  • This yields 143,000 tonnes of lithium metal, equivalent to 760,000 tonnes of Lithium Carbonate Equivalent (LCE).
  • The highest lithium value tested was 169ppm at a depth of 363m.
  • MT geophysics identified a large area to the west with a resistivity of 0.4Ω.m and a depth of more than 1km, suggesting potential for substantial resource expansion.
• Exploration & Infrastructure:
  • Over US$2.5 million has been invested in exploration, including surface sampling, trenching, TEM/MT geophysics, and drilling of three wells.
  • Wells PO1 and PO2 recorded continuous brine flows for over five hours; well PO3 (drilled Nov 2022) recorded brine and gas.
  • The project is located 10km from Pocitos, with access to natural gas, electricity, and accommodation.
• Future Plans:
  • Vanguard plans to start a new drill/production well program once permits are issued by the Salta Mines Department.
  • A baseline environmental study has been completed in preparation for a contemplated 20,000 tonne per year (tpy) Direct Lithium Extraction (DLE) production plant.
  • Ekosolve™ DLE technology pilot plant test work at the University of Melbourne achieved 94.9% extraction efficiency with brines averaging 86 ppm lithium (80.76 ppm recovered).
• Strategic Context:
  • CEO David Greenway stated the termination protects shareholder interests and reinforces a disciplined portfolio management approach.
  • The company is focusing on the Yuty Prometeo Uranium Project (Paraguay) and Brussels Creek Gold Project (British Columbia).
  • The release highlights a broader consolidation trend in Argentina’s lithium sector, citing ~US$8 billion in recent M&A value (Rio Tinto/Arcadium, Eramet/Tsingshan, Lithium Americas/Arena Minerals, etc.) and significant development capital commitments.

Notable Quotes

• "By regaining full control of Pocitos 1, we have not only protected shareholder interests but also preserved exposure to a lithium project with recognized potential in one of Argentina’s most active brine districts. This outcome reinforces Vanguard’s disciplined approach to portfolio management and ensures that value generated from Pocitos 1 remains with our stakeholders." — David Greenway, President and CEO