Mr. Robert Rosner reports

CAT STRATEGIC METALS ENTERS INTO BINDING MEMORANDUM OF UNDERSTANDING TO ACQUIRE A DISTRICT-SCALE RARE EARTH ELEMENTS PROJECT IN QUEBEC

CAT Strategic Metals Corp. entered into a binding memorandum of understanding on Jan. 12, 2025, with a number of private arm's-length parties pursuant to which CAT has been granted an exclusive right to earn a majority interest in a district-scale rare earth element exploration project located in Quebec, Canada.

The binding MOU represents a significant consolidation of a large and contiguous mineral claim package and provides CAT with control over an emerging REE discovery within a highly prospective geological district.

Transaction overview

Pursuant to the binding MOU, CAT has been granted the exclusive right to earn an undivided 80-per-cent legal and beneficial interest in the project over a five-year option term, subject to customary regulatory approvals.

Key commercial terms of the binding MOU include:

• Issuance of 33 million common shares of CAT to the vendors;
• Anniversary payments totalling $175,000 per year for three years, payable in cash, common shares of CAT or a combination thereof at the company's election;
• A commitment to incur minimum aggregate exploration expenditures of $500,000 over the option term with no minimum per year;
• Upon satisfaction of the earn-in conditions, CAT will earn an 80-per-cent interest, with the remaining 20-per-cent interest carried through to a production decision;
• A one-time cash bonus of $500,000 payable upon completion of a bankable feasibility study; and
• A total 3.0-per-cent net smelter return royalty, subject to partial buyback rights in favour of CAT.

The binding MOU will automatically convert into a definitive option agreement upon receipt of all required regulatory approvals. No finder's fee or commission is payable in connection with the transaction.

Strategic significance

The project, located approximately 80 kilometres east of Kuujjuaq, represents a district-scale land position composed of four incontiguous claim blocks totalling 95 claims and a rounded 4,330 hectares with confirmed rare earth element mineralization. The consolidation of the claims under a single option agreement provides CAT with full operational control and the ability to advance systematic exploration across the broader district rather than on a fragmented, claim-by-claim basis.

The project comprises the mineral showing Surivvik, which is a grab-selected sample collected by the Ministry of Natural Resources and Wildlife of Quebec in 2011 while conducting regional geological mapping work. The sample returned exciting anomalous values of 2,349.49 parts per million rare earth elements, 2.97 per cent P2O5, 392 parts per million zinc, 53 ppm thorium and 1,442 ppm strontium (GM 58329). The showing typology is interpreted as an ultramafic to mafic intrusion associated with a hyperalkaline complex, and the REE host rock is described by the ministry as an ultramafic unit whose composition ranges from clinopyroxenite to gabbro, enriched in magnetite and apatite, allanite, xenotime, and rare earth rich minerals and crosscut by whitish granite injections. Since and before the showing discovery, no exploration work as been conducted on the property and remains at the very early grassroot stage. The property additionally encompasses three major alkaline intrusions interpreted by the ministry as a syenite to monzodorite intrusion locally comprising clinopyroxene blobs hosting sphene, apatite, allanite and magnetite (BG 2020-07 and RG 2013-04).

The company believes the project has the potential to host a scalable REE system, and its size and geological setting make it amenable to staged exploration, resource delineation and longer-term development planning, subject to successful exploration results.

Next steps

Following receipt of regulatory approvals, CAT intends to finalize the definitive option agreement and commence a phased exploration program designed to expand and better define REE mineralization across the project area.

CAT intends to commence a grassroot exploration program as early as the summer season 2026. The program will consist of geological mapping and sampling work to cover and sort out the possible targets for a high-definition geophysical program to further define the geology and highlight the potential of the property and plan a mid to long-term logical exploration program.

Qualified person

Patrick Laforest, PGeo (Quebec), is the qualified person as defined by National Instrument 43-101, who has reviewed and approved the technical contents of this press release. The qualified person has not completed sufficient work to verify the historic information on the property, particularly in regard to the neighbouring projects and historical drilling data.

About CAT Strategic Metals Corp.

CAT Strategic is a Canadian-based mineral exploration company focused on the acquisition and derisking of overlooked projects situated in well-established geological districts in North America. The company is specially focused on minerals which are considered highly strategic from a monetary, as well as global infrastructure and energy point of view. CAT's shares trade on the Canadian Securities Exchange under the trading symbol CAT, on the OTC Markets under the trading symbol CATTF and on the Frankfurt Stock Exchange under the symbol 8CHA.

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