Canamera Signs Letter of Intent to Potentially Acquire Option for Third Ionic Clay REE Project in Brazil

Executive Summary

• Canamera Energy Metals Corp. signed a non‑binding LOI to obtain an option to acquire 100 % of eight exploration permits (Patos ionic clay REE project) in Minas Gerais, Brazil.
• Initial due‑diligence auger program funded up to C$20,000; if exercised, the option requires cash (C$228,000) and share consideration (deemed value C$307,800) with escrow periods of 4 months/6 months.
• Milestone payments of up to C$570,000 are tied to achieving a 250‑Mt inferred resource ≥2,000 ppm TREO within five years or drill intercepts of 25 m @ ≥2,500 ppm TREO within three years.

Key Details

• Property: Patos Project – ~15,979 ha across eight prospecting licences (ANM Licence IDs: 830763/2024‑830771/2024) in Presidente Olegário, Minas Gerais, Brazil; road accessible, ~330 km from Belo Horizonte.
• LOI Structure – Stage 1: Company funds up to C$20,000 for a low‑cost auger drill program (≤10 holes) to verify ionic‑clay REE mineralization.
• Option Exercise Consideration:
• Cash: Total C$228,000 (C$20,000 due‑diligence payment + C$208,000 additional cash).
• Shares: Common shares with aggregate deemed value of C$307,800, issued at the 10‑day VWAP prior to closing; 50 % escrowed for 4 months, remaining 50 % for 6 months.
• Net Smelter Return (NSR): 2 % NSR payable to Offeror; Company may repurchase 50 % of the NSR (reducing it to 1 %) for C$228,000 under specified terms.
• Milestone Payments:
• Milestone 1: C$342,000 (50 % cash / 50 % shares at 20‑day VWAP) payable upon reporting a NI 43‑101 compliant inferred resource ≥250 Mt @ ≥2,000 ppm TREO within five years of acquisition.
• Milestone 2: C$228,000 (50 % cash / 50 % shares at 20‑day VWAP) payable upon reporting drill intercepts of ≥25 m @ ≥2,500 ppm TREO within three years of acquisition.
• Exploration Program: Up to ten auger holes designed to confirm presence and distribution of ionic‑clay REE mineralization; low‑cost, low‑impact drilling approach.
• Regulatory Conditions: Transaction subject to Canadian securities law compliance and CSE approval.

Notable Quotes

“This Patos acquisition expands our exposure to another potential ionic clay rare earth system in Brazil… We will apply a systematic exploration program to determine whether similar mineralization may be present on the Patos property in a mining‑friendly, relatively low‑cost jurisdiction.” – Brad Brodeur, CEO, Canamera Energy Metals Corp.