Mr. James Sykes reports

METAL ENERGY ANNOUNCES CLOSING OF ADDITIONAL LAND AT SOURCEROCK

Metal Energy Corp. has closed its previously announced claims acquisition directly adjacent to the SourceRock project prospective for lithium (Li) brines in the Thunder Bay-Nipigon area of Northwestern Ontario.

These mining claims were drilled in 2006 and intersected significant saline water flow from 184.7 to 202.39 metres as well as halite cubes, sedimentary cements and beds, including halite precipitating from waters as the core dries from 528.52 to 582.5 metres. Halite precipitating as described in the core logs suggests the saline fluids are supersaturated with high concentrations of total dissolved solids (TDS). High TDS concentrations typically correlate with high lithium concentrations.

SourceRock purchase agreement

On July 8, 2023, Metal Energy entered into a purchase agreement with an arm's-length vendor to acquire an undivided 100-per-cent interest in nine mining claims (189 hectares) adjacent to SourceRock.

Under the remaining terms of the agreement, the company has issued to the vendor:

• 1.8 million common shares of Metal Energy;
• $10,000 in cash.

All of the issued common shares will be subject to such hold periods that are prescribed by applicable securities laws.

Metal Energy will be the operator of the nine mining claims and as such will have the rights and responsibility to execute all work programs on the project.

Further to the consideration listed above, the vendor retains a 2-per-cent gross value royalty (GVR) on the claims. The company has the right to purchase 1 per cent of the GVR from the vendor for $1-million at any time.

About the SourceRock Li brine project

SourceRock encompasses 91,288 hectares within the Proterozoic Sibley sedimentary basin, Thunder Bay-Nipigon area, Ontario. The project has excellent access to infrastructure and capacity that has supported previous exploration programs and mine development, including year-round highway, railway and seaport access, with power and natural gas lines crossing the project.

About Metal Energy Corp.

Metal Energy is a nickel and battery metal exploration company focused on two projects in politically stable Canadian jurisdictions: Manibridge (nickel-copper-cobalt-platinum-group-elements) in Manitoba, and SourceRock (lithium-sodium-potassium) in Ontario. The Manibridge project is 85 per cent owned by Metal Energy and 15 per cent owned by Mistango River Resources Inc. SourceRock is subject to earn-in agreements where the company can acquire 100-per-cent exploration rights to the project.

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