Mr. Martin Kostuik reports

BATTERY MINERAL RESOURCES CORP. ANNOUNCES OPERATIONS, PERMITTING AND COMMUNITY RELATIONS UPDATE

Battery Mineral Resources Corp. has provided an operational, permit and community relations update.

The Punitaqui copper mining complex includes the copper concentrator or plant, tailings storage facility, electrical, instrumentation and mechanical maintenance facilities, administration offices, assay laboratories, cafeterias, copper concentrate storage, and loadout facilities, and the Cinabrio, San Andres and Dalmacia mines and includes the soon-to-be established Cinabrio Norte mine.

Operational readiness

The company is pleased to report that personnel hiring for the resumption of full operations at Punitaqui is on schedule. Furthermore, final mine maintenance at the San Andres mine including rehabilitation of ground support, reactivation of compressed air, ventilation, power and water in preparation for resumption of full mining operations, commenced in late November. A contract for the final stages of Punitaqui plant maintenance and rehabilitation has been executed and activities commenced Dec. 4 with the aim of full operational commissioning of the plant in March and plant start-up in April of 2024.

Environmental and operational permitting

Permits have been granted allowing for thickened tailings deposition into the tailing's storage facility of up to 1.5 million tonnes -- representing approximately 20 months of mine and plant operations during the first phase of operations at Punitaqui.

The company expects to receive a permit for dry stack or filtered tailings deposition in late 2024. Filtered tailings deposition has many benefits over thickened tailings deposition including much lower water consumption in plant operations and far greater capacity for tailings storage over the same physical footprint. Construction and commissioning of the tailings filter plant will take nine months and thereafter, filtered tailings are to be deposited. Deposition of filtered tailings will allow for an additional eight-plus years of tailings storage at our permitted mining rate. This will be accomplished over nearly the same footprint the current tailings storage facility occupies.

A permit for the San Andres mine has been granted which allows for BMR to commence drifting, ramp construction and mine development on two different elevation levels and allows for establishment of new underground exploration drilling platforms. This mine development will establish access to new zones of copper mineralization for the forthcoming mine production. Other activities at the San Andres mine include final achievement of equipment, supplies and personnel arrangements.

VAT recovery extension approval

As in many developed countries, Chile has a value-added tax (VAT) on goods and services. Following Battery Mineral's acquisition of the Punitaqui mining complex, it filed an application with, and received approval from, the Chilean Ministry of Economy, Development and Tourism (the Ministry of Economy) to participate in a VAT-recovery program set in place by the Chilean government to incentivize Chilean exports (the VAT program). The VAT program allows Battery Mineral to recover the VAT paid on goods and services purchase, once it submits verified documentation, in advance of achieving agreed-upon amounts of to-be-exported mineral concentrates. This VAT-recovery program provides Battery Mineral with a source of cash that it reinvests in its assets in Chile. On Nov. 29, 2023, the Ministry of Economy issued a resolution to extend the VAT-recovery program for Battery Mineral until December, 2025, which is a welcomed positive result. The new cap for total VAT recovery for the company is $7.0-million (U.S.). As of today, Minera BMR has recovered a total of $3.1-million (U.S.) in VAT recovery since it began to operate in Chile, with the remaining $3.9-million (U.S.) expected to be recovered prior to December, 2025. The remaining $3.9-million (U.S.) allowed to be recovered by Battery Mineral will more than suffice until such time that the Punitaqui mining complex begins to generate revenue and cash flow from operations.

Community activities

As previously disclosed, an agreement that will grant Battery Mineral surface rights for exploration of blue sky areas on Battery Mineral mineral claims has been signed with the local community of Potrerillos. Battery Mineral geologists have since defined the drill target locations within the blue sky areas. The company's next step, expected in the next few weeks, is to formalize easement agreements with the Potrerillos community. Conversations with members of the community of Punitaqui to establish easement agreements for the Dalmacia mine road are well advanced.

Battery Mineral's social and community relations consultant, Integratio Mediacao Social e Sustentabilidade, has completed the community relationship policies and consultation manuals that will support and guide the company's social engagement strategy for the future. The company is currently pro-actively engaging with both of its local communities of Potrerillos and Punitaqui as well as the local and regional authorities on the status of the project in terms of social impact and employment opportunities.

Additionally, the Ministry of Public Workings (MOP) is currently enhancing part of the existing road that connects the Punitaqui plant to the Dalmacia mine, and Battery has reached an agreement to contribute to the widening of the road and an increase of the asphaltic pavement to support trucking of ore from Dalmacia to the Punitaqui Plant. MOP field work for this began early November and is expected to be completed in Q1 2024.

The company is also proud to update its activities with the regional association of mining companies, Corminco. In the past three months Battery Mineral has participated in several meetings organized by Corminco, with regional authorities which have included one of the senators of the region as well as the presidential delegate of the Limari province. These meetings have been extremely useful as an introduction to local mining suppliers and contractors and has aided in accelerating the company's overall permitting process. Battery Mineral has also been participating in meetings with the Chilean national miner's association, Sonami, and has enjoyed its support and begun participating in its specialized committees.

The company looks forward to providing additional updates to the market in the coming weeks as the company moves Punitaqui back into sustainable, profitable production for all stakeholders.

About Battery Mineral Resources Corp.

Battery Mineral Resources is a battery minerals company providing shareholders exposure to the global megatrend of electrification while being focused on growth through cash flow, exploration and acquisitions in favourable mining jurisdictions. Battery Mineral's mission is the discovery, acquisition and development of battery metals (namely cobalt, lithium, graphite and copper), in North America, South America and South Korea, to become a premier and responsible supplier of battery minerals to the electrification marketplace. Battery Mineral Resources is currently pursuing a near-term resumption of operations of the Punitaqui mining complex, a past copper-gold producer, in the Coquimbo region of Chile. Battery Mineral Resources is the largest mineral claim holder in the historic Gowganda cobalt-silver camp in Ontario, Canada, and continues to pursue a focused program to build on the recently announced, one-million-pound-plus high-grade cobalt resource at McAra. In addition, Battery Mineral owns 100 per cent of ESI Energy Services Inc. (including ESI's wholly owned U.S. operating subsidiary, Ozzie's Inc.), a profitable mainline pipeline and renewable energy equipment rental and sales company with operations in Alberta, Canada, and Arizona, U.S. Battery Mineral Resources is based in Canada and its shares are listed on the Toronto Venture Exchange under the symbol BMR and on the OTCQB under the symbol BTRMF.

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