Mr. James Nelson reports

CRUZ BATTERY METALS ENTERS INTO JOINT VENTURE AGREEMENT FOR DEEP BASIN LITHIUM BRINE EXPLORATION IN CLAYTON VALLEY, NEVADA

Cruz Battery Metals Corp. has entered into a joint venture agreement (JV) with Sienna Resources Inc. and Adelayde Exploration Inc. to explore the deep basin lithium brine potential in Clayton Valley, Nevada. The 115 mineral claims comprising the 2,300-acre JV land package are all located within and completely surrounded by SLB (formerly Schlumberger) and Pure Energy Minerals' lithium deposit. Clayton Valley, Nevada, is home to the only long-established producing lithium brine basin in the United States -- Albemarle Corp.'s Silver Peak lithium brine mine, which extracts lithium from subsurface brines. It has been the sole U.S. producing lithium brine operation since the 1960s.

James Nelson, president of Cruz Battery Metals, stated: "With the recent resurgence of investor attention back into the lithium sector, management feels this is an opportune time to not only proceed with producing a maiden resource estimate on the Solar lithium project in Big Smoky Valley, Nevada, but we are also very excited to enter this joint venture exploration agreement to test the deepest parts of Clayton Valley, which hosts the only lithium brine basin with production in the USA. To be able to merge our projects into one large block prospective for lithium brine discovery in Clayton Valley, Nevada, and share in the costs and benefits of such exploration makes a lot of sense for our shareholders. Lithium prices are currently at two-year highs and are now up well over 150 per cent since June, 2025, according to [the Trading Economics website]. The company is very optimistic about the growth prospects for the remainder of 2026 and beyond as we become more active than we've been in years."

In recent news announced on Jan. 9, 2026, Cruz engaged Stantec Consulting Ltd. to complete a maiden resource estimate (MRE) and technical report for the Solar lithium project in Big Smoky Valley, Nevada. The technical report will be prepared in accordance with the requirements of National Instrument 43-101. The Stantec qualified person (Derek Loveday, PGeo) has direct experience in the Tonopah area, which includes visiting Albemarle's Silver Peak mine, visiting ioneer Ltd.'s Rhyolite Ridge lithium-boron project, and completing a resource estimate and technical report for American Lithium Corp. on the TLC lithium project.

Throughout the first four phases of drilling (announced on Jan. 17, 2022, May 18, 2022, March 31, 2023, and July 13, 2023), Cruz has discovered lithium in all 14 drill holes on the 100-per-cent owned, 4,938-acre Solar lithium project in Nevada, directly bordering American Lithium's TLC lithium project.

According to American Lithium's website: "In February, 2025, the American Lithium Corp. announced an updated mineral resource estimate that significantly increased the contained lithium resources for the TLC project. This MRE was completed as part of the process of compiling the maiden preliminary economic assessment and was incorporated into the mine plan within the maiden PEA [preliminary economic assessment], which was released on Feb. 1, 2023. TLC currently hosts 6.17 million tonnes lithium carbonate equivalent (LCE) measured resources, 2.39 million tonnes LCE indicated resources and 1.44 million tonnes LCE inferred resources." Cruz management cannot verify American Lithium's results other than the publicly available information.

Key terms of the joint venture agreement

This binding letter agreement sets out the principal terms of a contractual joint venture among Adelayde Exploration, Sienna Resources and Cruz Battery Metals, whereby each party has agreed to share in the costs, expenses, liabilities and benefits of the joint exploration and development of the mineral claims that are prospective for lithium:

• Initial contributions and profit sharing: Each party, through its respective affiliates, will continue to hold legal title to its respective mineral claims that comprise the project as set out in Schedule A but agrees to hold such legal title for the benefit of the joint venture, with each party holding a one-third beneficial interest in each mineral claim until termination of or exit from the joint venture in accordance with the terms hereof.
• Each party agrees to work and collaborate together to advance the exploration and development of the project. If the parties unanimously agree on any exploration and development programs, each party will contribute one-third of such costs and will be entitled to one-third of any benefits. Similarly, each party will be responsible for one-third of any liabilities of the project.
• Each party will have the right to exit or terminate its participation in the joint venture with 30 days of written notice to the other parties, following which such exiting party will no longer be entitled to any benefit, cost, expense or liability of the joint venture from that date going forward. Following the end of the notice period, the mineral claims of such exiting party as set out in Schedule A will be deemed to be removed from the joint venture.
• Definitive agreement: Following the creation of the joint venture by signing this agreement, the parties may elect to further develop and memorialize the terms of the joint venture by entering into a definitive agreement and structuring the joint venture through a special-purpose vehicle and transferring ownership of the mineral claims to the JV entity (whether in the form of a unanimous shareholders agreement, limited partnership agreement, joint venture agreement, co-ownership agreement or some other form of agreement). The definitive agreements shall include the terms summarized in this agreement and such other representations, warranties, conditions, covenants, indemnities and other terms as are customary for transactions of this nature and not inconsistent with this agreement.

Qualified person

The technical contents of this release were reviewed and approved by Frank Bain, PGeo, a director of the company and qualified person as defined by NI 43-101. Mr. Bain has not independently verified American Lithium's technical report.

About Cruz Battery Metals Corp.

Cruz currently has several battery-metals-focused projects located in the United States. Cruz's Nevada lithium projects consist of the 4,938-acre Solar lithium project, the 240-acre Clayton Valley lithium brine project and the 580-acre Central Clayton Valley lithium brine project. In Idaho, Cruz has the 124-acre Idaho Cobalt Belt project. Cruz also has the Sterling South gold/copper project in Ontario, Canada. Management cautions that past results or discoveries on properties in proximity to Cruz may not necessarily be indicative of the presence of mineralization on the company's properties.