Mr. Koby Kushner reports

LIBRA SECURES 100% OWNERSHIP OF SBC LITHIUM PROJECT IN ONTARIO FOLLOWING KOBOLD PAYMENT

Libra Energy Materials Inc. partner KoBold Metals Company has made the final option payment to Bounty Gold Corp. (the vendor), the original vendor of the SBC lithium project in Ontario, thereby providing Libra with a 100-per-cent interest in the SBC project.

The SBC project, together with Libra's Flanders North and Flanders South projects in Ontario (collectively, the Kobra projects), are being explored under a KoBold-financed, $33-million earn-in agreement (EIA), aimed at unlocking the potential of these critical mineral projects by leveraging KoBold's artificial intelligence and machine learning technologies alongside Libra's proven exploration expertise.

"With this payment, every project in our portfolio is now 100 per cent owned by Libra, with no third party option payments remaining. We thank KoBold for their continued support and interest in the SBC project. SBC, in my view, represents one of the most underrated early-stage lithium projects in Canada, with spodumene-rich outcrops extending over a greater-than-13-kilometre trend, high-grade grab samples up to 6.64 per cent Li2O [lithium oxide] and proximity to key infrastructure," said Koby Kushner, chief executive officer of Libra Energy Materials. "We believe the SBC area represents a new spodumene belt, and we remind shareholders that our nearby Toivo project, which is not subject to the EIA, straddles the same geological subprovince boundary as SBC, yet remains unexplored to date. Libra is preparing a 2026 work program to get initial boots on the ground at Toivo, subject to ongoing consultations."

About the SBC project

Spanning 15,670 hectares, SBC represents a new lithium district abundant with spodumene-bearing pegmatite outcrops. Located south of Pickle Lake, a historic mining town equipped with board accommodation and an airport, SBC boasts easy access by paved highway and proximity to rail. The initial 2024 spodumene discovery at SBC earned Libra the Bernie Schnieders Discovery of the Year Award (see the company's press release dated April 16, 2025). In 2025, a comprehensive program that included geophysical surveys, prospecting and mapping was carried out by KoBold and further upgraded the project through the discovery of additional spodumene-bearing outcrops (see the company's press release dated Jan. 22, 2026).

SBC option agreement

In June, 2023, Libra entered into an option agreement with the vendor to acquire a 100-per-cent interest in the SBC project. Under the terms of the agreement, Libra was required to make staged cash payments totalling $380,000 over three years. The agreement was amended in January, 2024, to include additional claims staked by the vendor, with Libra reimbursing the associated staking costs. On June 2, 2026, the vendor formally acknowledged receipt of the final amount of $114,000 payment, which was financed by KoBold, thereby completing all option payment obligations and confirming that Libra had earned a 100-per-cent interest in the SBC project, subject to a 2-per-cent smelter royalty and resource-based milestone payments to the vendor.

KoBold earn-in agreement

The EIA with KoBold, a global leader in pioneering AI-powered mineral exploration backed by investors such as Bill Gates and Jeff Bezos, positions Libra at the forefront of Canadian lithium exploration. KoBold's right to invest up to $33-million over six years to earn a 75-per-cent interest in the Kobra projects, comprising the Flanders North, Flanders South and SBC projects in Ontario, Canada, has the opportunity to provide Libra with substantial financial support while retaining a significant ownership stake in the projects (see the company's press release dated Dec. 2, 2024). As previously disclosed, field activities at the SBC project were temporarily paused to facilitate engagement with nearby land users (see the company's press release dated Oct. 16, 2025). This engagement process remains continuing, and Libra has extended the minimum expenditure dates under the EIA to accommodate consultation timelines.

Shares for debt

The company has agreed to settle outstanding debt in the amount of $21,000 owing to an arm's-length creditor for unpaid consulting services through the issuance of 123,529 common shares in the capital of the company at a deemed price of 17 cents per common share.

The board of directors has determined it is in the best interests of the company to settle the outstanding debt through the issuance of the shares to preserve the company's cash for continuing operations.

Closing of the debt transaction is subject to customary closing conditions, including approval of the Canadian Securities Exchange, and the company intends to close this transaction as soon as practicable. The shares to be issued pursuant to the debt transaction will be subject to a hold period of four months and one day from the date of issuance in accordance with applicable securities legislation.

About Libra Energy Materials Inc.

Libra is a Canadian mineral exploration company focused on the discovery and development of the critical minerals necessary for the green energy transition. Libra's Flanders North, Flanders South and SBC lithium projects in Ontario are being explored under a $33-million earn-in deal with KoBold Metals. In addition, Libra has 100-per-cent ownership of another four critical mineral projects in Ontario and Quebec, Canada, as well as another 30 projects in Brazil -- an emerging critical minerals hub. The Libra team comprises a mix of seasoned executives, engineers and geoscientists, with extensive experience in mining and mineral exploration, capital markets, asset management, energy, and first nations engagement.

Qualified person

The scientific and technical information in this news release has been reviewed and approved by Benjamin Kuzmich, PGeo, vice-president, exploration, of Libra. Mr. Kuzmich is a qualified person as defined in National Instrument 43-101.

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