Mr. Jeffrey Wilson reports

EUREKA LITHIUM (FORMERLY SCOUT MINERALS) ANNOUNCES COMPLETION OF ACQUISITION AND CLOSING OF CONCURRENT EQUITY FINANCING

Further to its news releases of April 13, 2023, April 18, 2023, April 19, 2023, and May 8, 2023, Eureka Lithium Corp. has completed the acquisition of a large-scale land package prospective for spodumene-bearing lithium pegmatites in Northern Quebec's underexplored Nunavik region which hosts two operating nickel mines and has closed the first tranche of its private placement, completing the sale of 9,553,425 subscription receipts for gross proceeds to the company of $5,185,200.

Concurrent financing

In connection with the acquisition, the company completed the first tranche of its concurrent financing, issuing: (i) 337,692 Quebec superflow-through subscription receipts of the company at a price of 65 cents per super-FT subscription receipt, for gross proceeds of approximately $219,500; (ii) 3,578,333 flow-through subscription receipts of the company at a price of 60 cents per FT subscription receipt, for gross proceeds of $2,147,000; and (iii) 5,637,400 non-flow-through subscription receipts of the company at a price of 50 cents per non-FT subscription receipt, for gross proceeds of $2,818,700. In aggregate, the company raised gross proceeds of $5,185,200.

The company paid finders' fees totalling $130,977.99 and issued 352,466 broker warrants to certain finders in connection with the sale of the subscription receipts. Each broker warrant entitles the holder to acquire one common share at a price of 75 cents for a period of 24 months. The broker warrants are subject to a statutory hold period of four months and a day.

The net proceeds of the concurrent financing will be used for qualified expenditures in respect of the mineral claims acquired pursuant to the acquisition, and, in the case of the non-FT subscription receipts, also for general working capital.

As a result of the completion of the acquisition: (i) each super-FT subscription receipt has automatically converted into one unit of the company comprising one common share that qualifies as a flow-through share as defined in the Income Tax Act (Canada) and one-half of one flow-through common share purchase warrant that qualifies as a flow-through share as defined in the Income Tax Act (Canada), with each super-FT warrant entitling the holder to purchase one common share at a price of 85 cents per super-FT warrant share for a period of two years; (ii) each FT subscription receipt has automatically converted into one unit of the company comprising one common share that qualifies as a flow-through share as defined in the Income Tax Act (Canada) and one-half of one flow-through common share purchase warrant that qualifies as a flow-through share as defined in the Income Tax Act (Canada), with each FT warrant entitling the holder to purchase one common share at a price of 85 cents per FT warrant share for a period of two years after the date of issuance; and (iii) each non-FT subscription receipt has automatically converted into one unit of the company comprising one common share and one-half of one common share purchase warrant, with each non-FT warrant entitling the holder to purchase one common share at a price of 75 cents per non-FT warrant share for a period of two years.

The acquisition

Eureka has acquired from vendors, including Shawn Ryan, 100 per cent of a 1,408-square-kilometre land package covering Raglan West, Raglan South and New Leaf district in Northern Quebec, in exchange for $1.2-million in cash, eight million common shares of the company and the grant of a 1-per-cent net smelter return (NSR) royalty. The consideration shares are subject to an escrow arrangement whereby one-third of the consideration shares will be released from escrow every six months after the closing of the agreement, with the first such release date to occur on the date that is six months from closing.

Eureka's Nunavik lithium projects

• Raglan West district -- 443 square km claim block beginning 33 km southwest of the community of Salluit which has year-round airport access and a seasonal port for barge landing;
• Raglan South district -- 229 square km claim block which contains 12.3 per cent of the 99.96-percentile lithium samples in lake sediments in the Quebec government database (seven widely spaced samples out of the top 57 samples in the province's entire database) that contain 60 parts per million Li, approximately 80 km southwest of the Raglan nickel mine;
• New Leaf district -- 736 square km covering multiple claim blocks in areas of overlapping geochemical and geophysical anomalies in favourable geology, 120 km southwest of the community of Tasiujaq and approximately 350 km south of Raglan South.

Each of the above project areas has district-scale discovery potential and features some of the highest lithium and cesium values in lake sediments (99th percentile and above) in the Quebec government database. In addition, a review of historic data for the region reveals the presence of mapped pegmatites in multiple rock units, compelling overall geology and geophysical anomalies that point to deep-seated structures that may have created an ideal environment for the discovery of lithium mineralization across broad areas.

Eureka's plan is to carry out an extensive near-term exploration program that includes drill testing of high-priority targets over the coming months given abundant outcrop including many mapped pegmatites over 1,408 square km of Eureka's leading Nunavik land position. The agreement includes the acquisition of large strategic claim blocks in three areas of Nunavik never previously recognized for the potential of hosting high-grade lithium mineralization. Nunavik comprises more than one-third of Quebec, underscoring the scale potential of this geologically rich part of the province.

Completion of the acquisition and of the first tranche of the concurrent financing was approved by a majority of the company's shareholders. The company thanks its shareholders for their support and loyalty.

Jeffrey Wilson, Eureka chief executive officer, commented: "We are pleased to complete this important property asset acquisition and concurrent financing. This signifies an important step in Eureka's transition into the lithium exploration space and provides the company and its shareholders with immediate exposure to an exciting property portfolio and the financial capacity to commence an aggressive first phase of ground exploration. Crews are currently preparing to initiate an extensive field program of prospecting, sampling and mapping over the entire project portfolio, with a specific focus on prospective zones hosting known lithium values as reported in Quebec government lake sediment sampling surveys. The company looks forward to commencing this important work and expects to provide ongoing updates as work progresses."

About Eureka Lithium Corp.

Eureka Lithium is a junior mining company engaged in the acquisition, exploration and development of mineral properties.

Qualified person

The scientific and technical content of this news release has been reviewed and approved by Afzaal Pirzada, PGeo, who is a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

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