Mr. Michael Murphy reports

REDZONE RESOURCES ENTERS INTO AN OPTION/JOINT-VENTURE AGREEMENT TO ACQUIRE UP TO 90% OF THE NORTH-WEST LEINSTER LITHIUM PROPERTY IN IRELAND

Redzone Resources Ltd. has entered into an option agreement with LRH Resources Ltd., a private exploration company, to acquire up to 90 per cent of the North West Leinster lithium property in the Republic of Ireland.

LRH has applied for and received an exploration licence, which will allow the company to begin work almost immediately. Redzone can, after financing an agreed amount of due diligence exploration work, exercise three options to enter a joint venture agreement and acquire up to 90 per cent of the of the North West Leinster (NWL) lithium project on the terms summarized as follows.

The NWL property comprises 13 exploration licences totalling 529 square kilometres (52,900 hectares) and is located approximately 35 kilometres southwest of Dublin. The project is centred on similar geology to that which hosts International Lithium Corp.'s Avalonia project, approximately 60 kilometres to the south. The Avalonia project is focusing on anomalous lithium-bearing pegmatites and aplites that occur along the eastern and southern margins of the Devonian Caledonide granites, where they are in structural contact with Lower Palaeozoic metasediments. Ganfeng Lithium Co., one of the world's leading lithium producers established in China in 2000 and listed on the Shenzhen Stock Exchange since 2010, has agreed to spend $10-million to earn 79 per cent of International Lithium's Avalonia project. International Lithium is currently drilling on the property and has returned intersections of up to 2.23 per cent Li2O (lithium oxide) over 23 metres (source: International Lithium corporate presentation; October, 2018).

At the NWL property, regional stream sediment surveys (Geological Survey of Ireland) show anomalous lithium in the target area with samples ranging from nine parts per million to 501 parts per million, supporting observations from regional soil sampling (TEAGASC; the Agriculture and Food Development Authority) which revealed values ranging from 42 parts per million to 166 parts per million lithium in the same area. Subsequent reconnaissance prospecting by LRH has confirmed the presence of pegmatites and aplites as boulder float. The samples returned anomalous lithium values in the northern and northwestern parts of the massif, with grab samples returning results ranging from 50 parts per million to 7,680 parts per million lithium (1.66 per cent Li2O equivalent) and 3,030 parts per million lithium (0.65 per cent Li2O). Note that these grab samples are not necessarily representative of the mineralization hosted on the property.

The initial due diligence program is designed to conduct limited reconnaissance prospecting and geochemical sampling in drainages where the higher lithium values were identified. This work is being conducted to verify lithium anomalies and establish the geological setting of lithium mineralization. These surveys will then be followed up with detailed prospecting, geological mapping and geochemical sampling (soil, deep overburden and stream sediment) that will guide further work if warranted.

Redzone can, after a 10,000-euro payment and financing a minimum of 40,000 euros of due diligence expense over an 18-month period, exercise three options to acquire up to 90 per cent of the of the NWL property as follows:

1. Redzone can earn a 51-per-cent interest in NWL by spending one million euros within two years of the signing of a definitive option agreement giving effect to the options; Redzone shall also make a payment to LRH of either in either (i) cash or (ii) subject to receipt of the approval of the TSX Venture Exchange or such other applicable stock exchange, a combination of a minimum of 10 per cent in cash and the balance in common shares of Redzone at the applicable market price; within 14 business days of the commencement date.
2. Redzone can earn a further 24-per-cent interest (for a cumulative 75-per-cent interest in total) in NWL by spending a further two million euros within five years of the commencement date and paying LRH 200,000 euros (at the option of Redzone, in either (i) cash or (ii) subject to receipt of the approval of the TSX-V or such other applicable stock exchange, a combination of a minimum of 10 per cent in cash and the balance in common shares of Redzone at the applicable market price.
3. Redzone can earn a further 15-per-cent interest in NWL by completing a preliminary economic assessment and by paying LRH 500,000 euros in either (i) cash or (ii) subject to receipt of the approval of the TSX-V or such other applicable stock exchange, a combination of a minimum of 10 per cent in cash and the balance in common shares of Redzone at the applicable market price.

Upon Redzone earning its 51-per-cent interest in the NWL, a joint venture shall be formed between Redzone and LRH. Should LRH's interest be diluted below 10 per cent, its interest shall convert to a 2-per-cent gross proceeds royalty. Redzone shall have a buyback right for a specified period on 1 per cent of LRH's 2-per-cent GPR (gross proceeds royalty) by paying LRH one million euros in either (i) cash or (ii) subject to receipt of the approval of the TSX-V or such other applicable exchange, a combination of a minimum of 10 per cent in cash and the balance in common shares of Redzone at the applicable market price.

The option agreement remains subject to the approval of the TSX-V. Redzone may extend the required time frame to complete any earn-in period for up to an additional 24 months by making a cash payment to LRH of 250,000 euros per 12 months and maintaining a minimum expenditure of 250,000 euros per 12 months.

Michael Murphy, president and chief executive officer, said, "This project fits well with our strategy of acquiring early exploration properties for metals that make up the battery supply chain and we have structured the transaction on terms that mean the cash component is modest until we are more certain of the property's economic viability."

All scientific and technical information in this press release has been prepared under the supervision of Cameron Bell, PGeo, a consultant and director of Redzone, and a qualified person within the meaning of National Instrument 43-101.

About Redzone Resources Ltd.

Redzone Resources is a mineral exploration company with a focus on metals that make up and support the rapid evolution to battery power. Redzone currently has three projects: (1) the Fortner-Boyd lithium project in Arizona; (2) the North West Leinster lithium property in Ireland; and (3) a 55-per-cent stake in the Peru-based Lara copper property, which has over 10,000 metres of drilling.

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