Vanguard ends deal with American Salars for Pocitos 1

Executive Summary

• Vanguard Mining Corp. has terminated its agreement with American Salars Lithium Inc. for cause, regaining 100% ownership of the Pocitos 1 lithium salar project in Argentina due to American Salars' failure to make required local government payments and satisfy creditor obligations.
• The termination preserves Vanguard's exploration upside and long-term value for shareholders, allowing the company to maintain selective exposure to lithium while focusing on its core uranium and gold assets.
• The release highlights the project's significant resource potential, including an inferred resource of 760,000 tonnes of lithium carbonate equivalent (LCE), and recent positive technical results from drilling and direct lithium extraction (DLE) pilot tests.

Key Details

• Transaction Termination: The agreement with American Salars Lithium Inc., originally announced on June 17, 2024, for the sale of Vanguard's 100% interest in Pocitos 1, was terminated for cause.
• Reason for Termination: American Salars failed 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 neglected other obligations to project creditors.
• Asset Ownership: Vanguard Mining Corp. now retains 100% full ownership of the Pocitos 1 lithium salar project.
• Project Location & Size: Pocitos 1 is an 800-hectare lithium brine property located near the town of Pocitos in Salta province, Argentina.
• Mineral Resource Estimate (WSP Australia, 2023):
  • Combined data from Pocitos 1 and adjacent Pocitos 2 block.
  • Inferred Resource: 140 cubic metres of lithium brine at a grade of 101 milligrams per litre.
  • Total Lithium Metal: 143,000 tonnes.
  • Total Lithium Carbonate Equivalent (LCE): 760,000 tonnes.
• Technical Highlights:
  • Highest lithium value tested: 169 ppm lithium at a depth of 363 metres.
  • MT Geophysics: Identified a large area to the west with a resistivity of 0.4 Omega m and a depth of more than one kilometre, suggesting potential for substantial resource expansion.
  • DLE Pilot Testwork: Ekosolve DLE technology at the University of Melbourne achieved 94.9% extraction efficiency with brines averaging 86 ppm lithium (80.76 ppm recovered).
  • Drilling: Three wells drilled to date; significant brine flow recorded in 2018 wells PO1 and PO2, and brine/gas in PO3 (November 2022). Continuous flows recorded for over five hours.
• Infrastructure & Investment:
  • Located 10 km from Pocitos, with access to natural gas, electricity, and accommodation.
  • Over $2.5 million (U.S.) invested in exploration to date (surface sampling, trenching, TEM/MT geophysics, drilling).
  • Base line environmental study completed in preparation for a contemplated 20,000 tonne per year (tpy) DLE production plant.
• Strategic Context:
  • CEO David Greenway stated the move protects shareholder interests and reinforces a disciplined portfolio management approach.
  • Vanguard remains focused on advancing core uranium (Yuty Prometeo, Paraguay) and gold (Brussels Creek, British Columbia) assets.
  • Lithium prices in China rebounded >25% in the past month to ~$10,957/tonne, though still below 2022 highs.
  • Argentina has seen >$14 billion in committed/deployed capital over the past three years from major players like Rio Tinto, Eramet, and Lithium Americas.

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