Mr. Robin Dunbar reports

GRID METALS CORP. SIGNS AGREEMENT WITH A MAJOR MINING COMPANY TO FUND THE MAKWA NICKEL PROJECT

Grid Metals Corp. has executed a definitive option and joint venture agreement with Teck Resources Ltd., a leading Canadian resource company, to explore and develop the Mawka nickel project in southeastern Manitoba, Canada. The Makwa nickel project sits on the southern arm of the Bird River greenstone belt approximately 145 kilometres from Winnipeg, the provincial capital. The focus of the agreement will be the discovery of a Tier 1 magmatic nickel/copper/platinum group metal/cobalt deposit at Makwa. Grid will maintain its 100-per-cent interest and exploration program at Mayville copper/nickel property, located 30 kilometres to the north of Makwa.

The agreement grants Teck a two-stage option to acquire up to a 70-per-cent interest in Makwa by financing cumulative expenditures of $15.7-million and making staged cash payments of $1.6-million to Grid (of which $1-million can be completed through a subscription of shares at Teck's election). Teck's minimum commitment under the agreement is the initial $400,000 cash payment. Following completion of additional geophysical surveying, Teck would be committed to financing $450,000 of minimum expenditures. The agreement is subject to TSX Venture Exchange approval.

Robin Dunbar, PGeo, Grid's chief executive officer and president, stated: "We are pleased to announce a definitive agreement with Teck, a leading Canadian resource company focused on responsibly providing the metals essential to economic development and the energy transition. Teck's significant technical and operational know-how will be of immediate benefit to the Makwa nickel project. Having Teck involved in the project will provide financial support and added technical expertise to give our shareholders the maximum opportunity to participate in a Tier 1 nickel discovery."

Stuart McCracken, vice-president, exploration, of Teck, stated: "We are excited to announce this agreement with Grid, providing a framework to explore for magmatic nickel/copper/PGE systems in a prospective and readily accessible area. Bringing together resources and expertise from both Grid and Teck will support an agile, efficient and focused discovery program."

Key project milestones at the Makwa project include:

• The recent consolidation of the known nickel copper sulphide occurrences and deposits at Makwa;
• The delineation of a pit-constrained nickel sulphide resource at the former Makwa mine site announced in 2024 (see the Makwa nickel project below);
• A recent exploration agreement and continuing collaboration with the Sagkeeng First Nation, on whose ancestral lands the Makwa project is situated;
• Grid assembling of a base metal technical team led by Dr. Dave Peck, PGeo, who was instrumental in positioning the project to attract a partner such as Teck.

Transaction terms

Pursuant to the agreement, Teck has the options to acquire up to an 70-per-cent interest in the Makwa nickel property.

Teck may exercise the first option by making an aggregate of $600,000 in cash payments, including a firm commitment of $400,000, and incurring an aggregate of $5.7-million in exploration expenditures over four years, according to the following schedules (which may be accelerated at Teck's option).

Upon completion of the first option requirements above and delivery of notice thereof to Grid, Teck would have exercised the first option, and the property would be owned by Teck as to 51 per cent and Grid as to 49 per cent.

If Teck exercises the first option, Teck will have a further sole and exclusive option to acquire an additional 19-per-cent interest in the property. Teck may exercise the second option by incurring a further $10-million in exploration expenditures over a period of three years commencing on the date of the first option exercise notice and making a payment of $1-million in cash or, at Teck's election and subject to TSX-V approval, through a subscription for Grid shares priced at a 25-per-cent premium per share to the preceding 20-day volume-weighted average price per share.

Provided that Teck exercises the first option, a contractual joint venture will be formed between Grid and Teck. Thereafter, each party would finance its pro rata share of future expenditures on the property or incur dilution. For a period of six months following the formation of the joint venture, Grid may elect to defer the contributions required to finance its pro rata share of expenditures, for which Teck would agree to temporarily contribute in lieu. Should Grid elect to defer contributions during the initial period, Grid would have until 12 months after the formation of the joint venture to reimburse Teck for the Grid deferrals, otherwise Grid would incur proportionate dilution. The party with the majority interest shall be the operator of the joint venture, and each party would control its pro rata share of offtake from the property.

If a party's interest in the property is diluted below 10 per cent, its interest would be converted to a 1.5-per-cent net smelter return oyalty on the property, of which 0.75 per cent could be bought back by the royalty payer at any time for a cash payment of $2-million. Of the remaining 0.75-per-cent NSR royalty on those claims held by Gossan, 0.5 per cent could be bought back by the royalty payer at any time for a cash payment of $2-million.

The Makwa nickel project

The Makwa project is one of two copper/nickel/PGM properties owned by Grid and located in the Archean-age Bird River greenstone belt of southeastern Manitoba. The project has excellent infrastructure (for example: all-season roads, local hydroelectric power, and proximity to major transcontinental rail and trucking arteries). The Bird River belt is a direct analogue of the Ring of Fire district in Northwestern Ontario in terms of the variety of mineral deposit types and geology, scale, and structure. The primary target rocks at Makwa are ultramafic cumulates of the greater-than-30-kilometre-long Bird River sill, which represents a dynamic intrusive complex featuring a wide range of intrusion shapes, sizes and structural associations. Despite its excellent pedigree as a past nickel producer, it was not until 2023 -- when Grid completed its consolidation of the nickel/copper sulphide properties in the belt -- that a comprehensive district-scale magmatic sulphide exploration program could be enacted. In particular, a historical property boundary severely hampered exploration for high-grade massive sulphide deposits within an interpreted greater-than-five-kilometre-long feeder system (the ore fault corridor). Prior exploration efforts were also impaired by the limited depth of penetration of historical geophysical surveys.

The Makwa project features two past-producing nickel sulphide mines, three pit-constrained nickel sulphide resources and numerous high-grade nickel-rich and/or copper-rich magmatic sulphide surface showings. The company recently published an updated pit-constrained mineral resource estimate for the Makwa deposit comprising 14.2 million metric tonnes of 0.75 per cent nickel equivalent grade, including a higher-grade core of 4.8 million metric tonnes with 1.26 per cent nickel equivalent grade (see Micon International technical report, September, 2024, available on SEDAR+). A key aspect of the Makwa mineralization is its high nickel and palladium tenors -- making it very amenable to the production of a high-value nickel sulphide concentrate.

Several depositional models will help guide future exploration at the Makwa project, including conventional basal-accumulation disseminated and local massive sulphide deposits; feeder-structure-related high-grade massive sulphide deposits; and hydrothermal massive sulphide vein systems produced from interaction of magmatic copper/nickel and volcanogenic copper/zinc/silver/gold sulphide mineralization. The critical new discoveries needed to support a robust future mining operation will be based on a new bank of drill targets. These targets will be defined by integrating historical and new geophysical and geochemical surveys with the use of leading-edge 3-D analytics methods. Teck and Grid jointly anticipate the launch of an initial drilling campaign that will focus on the discovery of structurally controlled high-grade massive sulphide deposits.

Qualified person statement

Dr. Dave Peck, PGeo, is the qualified person for purposes of National Instrument 43-101 and has reviewed and approved the technical content of this release.

About Grid Metals Corp.

Grid Metals is focused on exploration and development in southeastern Manitoba with three key projects in the Bird River area:

1. The Makwa property (nickel/copper/PGM/cobalt) is subject to an option and joint venture agreement with Teck Resources. Teck can earn up to a 70-per-cent interest in Makwa by incurring a total of $17.3-million, comprising project expenditures ($15.7-million) and cash payments or equity participation ($1.6-million) with Grid. Makwa is located on the southern arm of the Bird River greenstone belt.
2. The Mayville property (copper/nickel) is located on the northern arm of the Bird River greenstone belt. Grid owns 100 per cent of the Mayville property, subject to a minority interest. The company is currently drilling at Mayville.
3. The Donner lithium project is adjacent to the Mayville property, and Grid owns 75 per cent of the project.

All of the company's southeastern Manitoba projects are located on the ancestral lands of the Sagkeeng First Nation, with which the company maintains an exploration agreement.

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