Mr. Martin Kostuik reports

BATTERY MINERAL RESOURCES CORP. PROVIDES PUNITAQUI UPDATE AND EXTENDS CLOSING DATE ON ITS ANNOUNCED OFFERING OF UP TO US$6M IN UNSECURED CONVERTIBLE DEBENTURES

Battery Mineral Resources Corp. has provided project updates and extended the final closing date of its private placement of up to $6-million (U.S.) in senior unsecured convertible debentures, which was previously announced on Oct. 17, 2023.

Operational readiness

The company is pleased to announce that effective Jan. 26, 2024, it has received an exploitation permit from Chile's National Geology and Mining Service (SERNAGEOMIN) with regard to the Cinabrio mine, which forms part of the Punitaqui mining complex. The Cinabrio mine is the original mine which supported copper concentrate production during the approximately 10 years of historic copper production, primarily operated by Glencore PLC.

The exploitation permit allows Battery Mineral to extract copper ore and barren rock from the Cinabrio mine as the mine is being prepared for resumption of full production. The company anticipates commencing preproduction maintenance activities at Cinabrio in the very near term, including rehabilitation of existing workings, drifting, and establishment of access for drilling and exploitation -- all of which allows for the resumption of ore extraction.

As previously announced, an exploitation permit for the San Andres mine has been granted. The permit allows for Battery Mineral 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. Mining equipment and supplies to support these activities have been delivered and personnel recruitment is progressing well.

Repairs, replacements and upgrades of the crushing, grinding and flotation plant are progressing well, and operational commissioning of the facility is expected to begin in the latter part of Q1 2024, followed by copper concentrate production in Q2 2024.

Private placement

The TSX Venture Exchange has approved an extension to the private placement to Feb. 14, 2024. The proceeds from the debentures will be applied toward working capital and the restart of copper concentrate production at the company's Punitaqui mining complex in Chile.

The company continues to progress toward securing the balance of the capital required for the restart and, to date, has successfully raised $3,285,000 (U.S.) ($4,407,484) in debentures. The company estimates the total capital required for the restart to be approximately $13-million (U.S.) (approximately $17.4-million) (prior to corporate costs and other asset holding costs and inclusive of amounts to be raised in the private placement). The company looks forward to providing additional updates to the market in the coming weeks as Punitaqui is propelled back into sustainable, profitable production for all stakeholders.

Offering terms (as previously disclosed)

The debentures will mature on Sept. 30, 2026, and will bear interest at 10 per cent per annum, compounding annually on Sept. 30 of each year, not in advance. Interest accrued from the date of issuance up to and including March 30, 2025, will be paid by way of issuance of common shares of the company. Interest accrued following March 30, 2025, will be, at the option of the holder, paid either in cash or by way of issuance of common shares of the company. The issuance of common shares as payment of interest will be at the then current market price of the company's common shares at the date the interest becomes payable and will be subject to the prior acceptance of the TSX-V and applicable securities laws.

The holder of a debenture may, at their option, at any time from March 31, 2024, and prior to the close of business on the business day immediately preceding the maturity date, convert all, but not less than all, of the principal amount of such debenture into common shares of the company at the conversion price of 22 U.S. cents per share (approximately 30 cents per share).

All debentures issued in the private placement are subject to a four-month hold period under applicable Canadian securities laws and under the policies of the TSX-V. The private placement is subject to final approval by the TSX-V.

Exchange rates

All U.S.-dollar amounts for which Canadian-dollar equivalent amounts are given in this news release were calculated at Canadian-dollar/U.S.-dollar exchange rate of 1.3417, the exchange rate published by the Bank of Canada on Jan. 30, 2024.

MI 61-101 matters

Weston Energy LLC and Weston Energy II LLC are related parties to Battery Mineral pursuant to pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. Prior to giving effect to the transactions disclosed in this news release and in the refinancing transactions disclosed in the company's press release dated Oct. 17, 2023, Weston Energy and Weston Energy II and its affiliates owned or controlled (directly or indirectly) 107,578,740 Battery Mineral common shares on an undiluted basis and 122,491,305 Battery Mineral common shares assuming the conversion of all the company's previously outstanding secured convertible debentures (representing approximately 60.60 per cent and 63.31 per cent, respectively, of the outstanding Battery Mineral common shares).

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, and to become a premier and responsible supplier of battery minerals to the electrification marketplace. Battery Mineral is currently pursuing a near-term resumption of operations of the Punitaqui mining complex, a past copper-gold-silver producer, in the Coquimbo region of Chile. Battery Mineral 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-plus-pound 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, United States. 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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