Mr. Greg Reimer reports

SURGE CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT FOR ADDITIONAL $1,800,000 PROCEEDS AND TOTAL PRIVATE PLACEMENT PROCEEDS OF $7,160,000

Surge Battery Metals Inc. has closed the second tranche of its private placement, announced by way of news release on June 1, 2023. The closing of the first tranche of the private placement was announced on June 12, 2023.

The first tranche of the private placement closed was for 13.4 million units and for proceeds of $5.36-million and represented a strategic investment in the company by American Lithium Corp.

The closing of the second tranche of the private placement today was for a total of 4.5 million units and proceeds of $1.8-million.

All units in the private placement were issued at a price of 40 cents per unit with each unit comprising one common share and one share purchase warrant. Each warrant is exercisable for a period of three years from the date of issuance at a price of 55 cents per share.

Securities comprising the units in the second tranche, and any shares underlying the warrants in the second tranche, may not be sold until Oct. 20, 2023 (being four months and a day from their issuance).

The total issuance of units in the private placement for both the first and second tranches in the aggregate was 17.9 million units.

No finder's fees or commissions were paid in connection with the private placement.

An insider of the company participated in the private placement for an aggregate total of $40,000 (being 100,000 units). The participation by an insider is considered a related-party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the related party participation in the placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25 per cent of the company's market capitalization (as determined under MI 61-101).

The proceeds of the private placement will be used for advancement and development of the company's existing Nevada North lithium project and for general working capital purposes.

Greg Reimer, chief executive officer and director, commented, "We are pleased to close this second tranche to complete the private placement which will assist greatly in funding exploration and development of our Nevada North lithium project."

We seek Safe Harbor.