Mr. Nicholas Konkin reports

CHAMPION ELECTRIC ANNOUNCES SALE OF CHAMPION LITHIUM PROJECT

Champion Electric Metals Inc. has entered into a mining claim acquisition agreement dated Dec. 19, 2025, with a non-arm's-length party, pursuant to which the buyer will acquire the company's wholly owned Champion lithium project located in the Eeyou Istchee James Bay territory of Quebec.

As consideration for the project, the company shall receive cash payments in the aggregate of $1-million (U.S.). The completion of the transaction contemplated by the agreement remains subject to the approval of all regulatory and other approvals, including the approval of the Canadian Securities Exchange. The company intends to use the consideration to reduction of liabilities, working capital and advancing strategic corporate initiatives.

Interim president and chief executive officer Nicholas Konkin commented: "The proposed sale of the Champion lithium project allows us to streamline the company and sharpen our focus on the next stage of its development. Champion retains a portfolio of promising early-stage precious and base metal assets, and this transaction positions us to begin evaluating more advanced-stage opportunities to drive the company forward."

The transactions contemplated by the agreement are constituted related-party transactions as defined in Multilateral Instrument 61-101 (Protection of Minority Securityholders in Special Transactions), the buyer is a director of the company. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(b) of MI 61-101, as the company is not listed on a specified market and the fair market value of the transaction is not more than $2.5-million, calculated in accordance with MI 61-101.

The agreement and the transactions contemplated thereby were approved by the members of the board of directors of the company who are independent for the purposes of the transaction, being all directors other than Gabirel Pindar. No special committee was established in connection with the transaction, and no materially contrary view or abstention was expressed or made by any director of the company in relation thereto.

About Champion Electric Metals Inc.

Champion Electric is a discovery-focused exploration company with copper, gold and cobalt properties in Idaho, United States. The assets include the 100-per-cent-owned Champagne polymetallic project in Butte county near Arco, Idaho, and the Baner gold project in Idaho county (optioned to Legacy Gold Mines Ltd). The company also retains significant claims in the Idaho cobalt belt. The company's shares trade on the Canadian Securities Exchange under the trading symbol LTHM, on the OTC Markets under the trading symbol CHELF and on the Frankfurt Stock Exchange under the symbol 1QB0.

Champion Electric strives to be a responsible environmental steward, stakeholder and contributing citizen to the local communities where it operates, taking its social licence seriously, employing local community members and service providers at its operations whenever possible.

We seek Safe Harbor.