Mr. Harry Barr reports

NEW AGE METALS SIGNS BINDING TERM SHEET TO EXPLORE AND DEVELOP MCLAUGHLIN LAKE LITHIUM PROJECT, NORTHERN MANITOBA

New Age Metals Inc. has entered a binding term sheet with Australian junior mining company, Native Mineral Resources (NMR). Under the terms, NMR can earn up to a 75-per-cent interest in New Age's McLaughlin Lake project:

• NMR has the right to acquire an initial 51-per-cent interest by completing $500,000 of exploration and development activities within 18 months from the effective date, and pay a $75,000 cash payment and issue $200,000 (Australian) in NMR shares.
• NMR can earn an additional 9-per-cent interest (60 per cent) by completing an additional $500,000 (for a total of a $1-million) of exploration and development activities within three years from effective date, and making an additional $100,000 cash payment and issuing $200,000 (Australian) in NMR shares.
• NMR can earn an additional 5-per-cent interest (65 per cent) by making a $100,000 cash payment and issuing $350,000 (Australian) in NMR shares, which will be escrowed for six months.
• NMR will pay an additional $100,000 cash payment at the end of year 4.
• NMR can earn an additional 10-per-cent interest (75 per cent) by making a $100,000 cash payment and issuing $650,000 (Australian) in NMR shares, escrowed for six months. NMR must also complete a JORC (Joint Ore Reserve Committee)-compliant mineral resource of (indicated) 10 million tonnes (Mt) at a minimum 1.25 per cent Li2O (lithium oxide) in spodumene less than 150 m deep, NMR reserves the right to continue if samples are below 1.25 per cent Li2O in spodumene.
• In years 4 and 5, NMR must spend a minimum additional $2-million in this agreement, for a total of $3-million in exploration expenditures.
• New Age will be the field manager and a joint venture (JV) committee will be formed to approve work programs. New Age will receive 10 per cent on contracts under $100,000 and 5 per cent on contracts over $100,000.
• New Age will receive a 2-per-cent net smelter royalty (NSR) on the project, with an option to buy down 1 per cent for $2-million, leaving New Age a 1-per-cent NSR in the project in perpetuity.
• The parties will have 24 months to negotiate and enter into a formal farm-in and joint venture agreement, based on the terms presented in the binding term sheet agreement.
• New Age will pay a finder's fee of $20,000 (Australian) in regard to this transaction.

Harry Barr, chairman and chief executive officer, commented: "The stated objective for our newly acquired and highly prospective McLaughlin lithium project was to secure a strategic partner who is willing to develop the project with us. Native Mineral Resources is an experienced junior mining company based in Australia who have a diverse portfolio of exploration projects in Queensland and Western Australia. This binding agreement comes at an opportune time in the lithium market. A second joint venture will add to the excellent progress New Age is making in its Manitoba lithium division. Manitoba is becoming recognized for its critical metals potential. We are glad to have the support of NMR and this mining-friendly province."

McLaughlin Lake lithium project

The McLaughlin Lake pegmatite project is made up of mineral exploration licence (MEL) 1028A, which covers 19,245 hectares (ha) and is currently awaiting granting by the Manitoba government.

MEL 1028A is held by Lithium Canada Development Inc., a wholly owned subsidiary of New Age Metals.

MEL 1028A is a 30-kilometre east-west-striking tenement located approximately 560 km north of Winnipeg and 10 km southeast of the locality of Oxford House, which is accessible by air and winter road in the Canadian province of Manitoba.

The McLaughlin Lake lithium project is located in the Archean-aged Superior province of the Canadian Shield, which is host to some of the most significant lithium resources in the world, mainly in Quebec and Ontario, though the Bernic Lake mine (Tanco mine) is located within Manitoba, and has been mined for tantalum and cesium since the 1920s, and has a reserve of 7.3 million tonnes (Mt) at 2.76 per cent Li (lithium).

MEL 1028A is located within the Oxford Lake-Knee Lake greenstone belt, along the contact between the Bayly Lake plutonic complex and the Hayes River group, which is composed of basalt and gabbros, with subordinate intermediate and felsic volcanic-sedimentary rocks, in which a number of pegmatite dikes have been mapped during historical government mapping campaigns.

New Age has inferred that the contact is along a regional fault structure with the potential for additional lithium-bearing pegmatites along the 30 km strike extent.

Minimal historic lithium exploration has occurred in the MEL 1028A area, and previous work has been limited to mapping and sampling, which has identified numerous pegmatite outcrops with up to 15-centimetre-long spodumene crystals being mapped in the pegmatites. Several drill holes have been drilled in the surrounding area, though none were targeting lithium mineralization.

Historic mapping has identified one pegmatite dike that outcrops for 400 m and is up to 2.2 m wide. A channel sample across the dike assayed 1.32 per cent Li2O (lithium oxide) over 1.52 m. Additional grab samples of a second dike returned assays of 0.98 per cent and 2.87 per cent Li2O (Economic Geology Report, 1985, B. Bannatyne).

MEL 1028A also has the potential for other important deposit types, including volcanogenic Cu-Zn-Pb-Au-Ag (copper-zinc-lead-gold-silver), magmatic Ni-Cu-PGE (nickel-copper-platinum group elements), intrusion-related rare metals and orogenic Au (Manitoba Geological Survey, Report of Activities, 2015).

About New Age Metals Inc.

New Age Metals is a junior mineral exploration and development company focused on the discovery, exploration and development of green metal projects in North America. The company has two divisions: a platinum group element division and a lithium/rare element division.

The PGE division includes the 100-per-cent-owned, multimillion-ounce, district-scale River Valley project, one of North America's largest undeveloped platinum group element projects, situated 100 km by road east of Sudbury, Ont. In addition to River Valley, New Age Metals owns 100 per cent of the Genesis PGE-copper-nickel project in Alaska, and plans to complete a surface mapping and sampling program in 2022.

The company's lithium division is one of the largest mineral claim holders in the Winnipeg River pegmatite field, where the company is exploring for hard-rock lithium and various rare elements, such as tantalum, rubidium and cesium. The company has announced its preliminary $2-million 2023/2024 exploration budget that will cover the first four months of the program. A larger budget has been submitted to its partner Mineral Resources Ltd. and New Age Metals expects it to be approved this summer. Further exploration plans for 2023 include geophysical surveying, summer fieldwork (which will include mapping, lithogeochemistry, MMI soil geochemistry, biogeochemistry, channel sampling) and permits/archeological surveys. The company has a partnership with Mineral Resources, a top global lithium producer, to explore and develop the company's lithium project portfolio in Southern Manitoba. The company's philosophy is to be a project generator with the objective of optioning its projects with major and junior mining companies through to production.

The company is actively seeking an option/joint venture partner for its newly acquired Northman and South Bay lithium projects in Northern Manitoba, and its road-accessible Genesis PGE-Cu-Ni project in Alaska.

Qualified person

The technical information in this news release has been reviewed and approved by Lynde Guillaume, PGeo, senior geologist for Axiom, who is a qualified person for the company as defined under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Ms. Guillaume is a professional geoscientist (PGeo) who is a registered member of the Engineer and Geosciences of Manitoba (No. 47952).

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