Mr. David Greenway reports

RECHARGE RESOURCES LTD. SECURES STRATEGIC ADVISORY MANDATE WITH EDEN CAPITAL MARKETS FOR POCITOS PROJECT FINANCING

Recharge Resources Ltd. has entered into a corporate advisory mandate with Eden Capital Markets Pty. Ltd. (ECM), marking a significant step toward the exploration and development of the Pocitos lithium brine project, located near Pocitos township in Salta province, Argentina.

This mandate highlights Recharge's dedication to progressing its project financing goals, specifically through the structured minimum raise of $11-million to $15-million in multiple tranches. This considered approach is designed to enhance the exploration efforts and overall development of Pocitos.

ECM has expressed its enthusiasm about working with Recharge on this pivotal capital raising and working capital facility, in addition to providing continuing corporate advisory services. These services aim to support the company's long-term goals, offering expertise in areas including debt project financing, facilitating introductions to major auto manufacturers, potential Australian Securities Exchange (ASX) listing, and/or merger and acquisition activities. It is anticipated that these advisory services will enhance Recharge's strategic positioning and operational efficiency.

"We are thrilled to announce our partnership with Eden Capital Markets, a move that represents a significant milestone in Recharge's journey towards developing the Pocitos project. This strategic agreement is not just about securing capital; it's about leveraging ECM's industry expertise and advisory services to ensure our long-term success. As we embark on this exciting phase of exploration and development, we are confident that ECM's guidance will be invaluable in helping us navigate the complexities of capital markets and strategic growth opportunities. Together, we are committed to unlocking the full potential of the Pocitos project for our shareholders and for the future of sustainable energy resources," stated David Greenway, president and chief executive officer of Recharge Resources.

Terms of service

The agreement with ECM outlines a comprehensive fee arrangement for the duration of the mandate:

• Retainer: ECM will receive a monthly corporate advisory retainer fee, payable monthly in arrears. This retainer will start accruing from the date of the mandate and is required to initiate the process described, followed by regular monthly payments.
• Advisory fee: Upon the successful completion of any capital raising activity, an advisory fee of $20,000 will be due to ECM by the company.
• Equity success fee: A cash success fee amounting to 6 per cent of the total equity capital raised will be payable to ECM. This fee is intended to cover third party expenses, with the remaining success fee to be paid by the company from the capital raising proceeds, prioritizing this payment above all others.
• Debt success fee: A cash success fee of 3 per cent of the total amount of debt financing (or similar instruments) raised will be payable to ECM. Similar to the equity fee, third party costs will be deducted from this fee, with the balance due to ECM upon successful debt financing completion, also prioritized over other payments.

This strategic mandate between Recharge and ECM signifies a pivotal advancement in the development and financing of the Pocitos project. Through this collaboration, Recharge aims to secure the necessary capital to drive the project forward, leveraging ECM's expertise to navigate the complexities of capital raising and strategic growth initiatives.

About Eden Capital Markets Pty. Ltd.

Eden Partners, based in Perth, Western Australia, is a dedicated funds management and corporate advisory firm with a strong commitment to fostering positive change in the global natural resources sector. Symbolized by the Eden tree, the firm's values and commitment in addressing sustainability, ESG (environmental, social, governance) issues, climate change and reducing carbon emissions. This is reflected through both its managed investments and operations. Eden operates its funds management business through Eden Asset Management Pty. Ltd., holding an Australian Financial Services licence (the AFSL), and its corporate advisory services through Eden Capital Markets.

"Partnering with Recharge Resources on their journey to develop the Pocitos project is a pivotal moment for both our companies. At Eden Capital Markets, we're not just focused on the financials; we're committed to supporting projects that have a lasting positive impact on the environment and society. This advisory mandate with Recharge allows us to blend our financial expertise with our dedication to environmental, social and governance (ESG) principles. We are excited to assist Recharge in navigating the financial landscape to secure the necessary funding, all while ensuring the Pocitos project aligns with sustainable and responsible development practices. It's about creating value that benefits shareholders and the planet alike," remarked Nicholas Boyd-Mathews, executive director, ESG, and chief investment officer.

Drilling permits

As previously reported on Feb. 6, 2024, Recharge announced securing drill permits for two wells in Pocitos 1 and three in Pocitos 2. Negotiations with a driller for a five-well campaign are concluding. Applications to the Ministerio de Produccion y Desarrollo Sustentable del Gobierno de Salta (Minister of Production and Sustainable Development) (the MPSD) propose drilling six wells in Pocitos 1 (two for production at 20-to-25-centimetre diameter) and four in Pocitos 2 (two for production). All 10 wells will be drilled in HQ, with selected ones expanded for pumps, and the rest monitoring aquifer levels.

The objective of this drill program will be to upgrade the recently announced National Instrument 43-101 inferred mineral resource estimate (MRE) by providing drill hole, porosity and permeability. Given the drill hole spacing, the company's geologists will be targeting a proven and probable category as well as collecting pre-engineering pumping data in preparation for building an Ekosolve direct lithium extraction (DLE) pilot plant and follow-on full-scale 20,000-tonne-per-year plant (TPY) at the project.

"Embarking on this journey with Eden Capital Markets, under the guidance of Nicholas Boyd-Mathews and his team, signifies a monumental step forward for our operations in Argentina. The financing and upcoming five-well campaign are not just pivotal for our growth but also embody our commitment to ESG principles in every aspect of our work. Eden Capital Markets' commitment for ESG and strategic financial planning will undoubtedly enhance our efforts to implement sustainable practices while driving our projects to new heights. This partnership is a testament to our dedication to responsible development and our ambition to set new standards in the industry," said Phillip Thomas, chief operating officer and director of Recharge Resources.

About Pocitos lithium brine project

The Pocitos project is located approximately 10 kilometres from the township of Pocitos where there is gas, electricity and accommodation. The Pocitos project is approximately 1,332 hectares and is accessible by road. Collective exploration totals over $2-million (U.S.) developing the project, including surface sampling, trenching, TEM (transient electromagnetic) and MT (magnetotelluric) geophysics, and drilling three wells that had outstanding brine flow results. Locations for immediate follow-up drilling have already been designed and identified for coming exploration. Lithium values of 169 parts per million from drill hole 3 packer test assayed from laboratory analysis conducted by Alex Stewart were recorded during the project's December, 2022, drill campaigns. A double packer sampling system in HQ diamond drill holes were drilled to a depth of up to 409 metres. The flow of brine was observed to continue for more than five hours. All holes had exceptional brine flow rates.

Ekosolve Ltd. produced lithium carbonate at a purity of 99.89 per cent, where extraction of the lithium from the brines was above 94 per cent, that is, 159 ppm of lithium would have been recovered from 169 ppm.

The company has published an NI 43-101 compliant inferred MRE for the Pocitos lithium brine project which has been estimated at 143,000 tonnes of in situ lithium metal, and 13,000 tonnes lithium metal yield (using porosity estimates) which equates to a lithium carbonate equivalent (LCE) of 760,000 tonnes and 69,000 tonnes, respectively. The LCE is calculated from the ratio of lithium carbonate (Li2CO3) to Li metal (5.32:1). The calculations assume no process losses. See press release dated Dec. 20, 2023.

The full NI 43-101 report dated Dec. 18, 2023, and entitled "Technical Report For The Pocitos 1 and II, Salta Province, Argentina," can be found on SEDAR+ under the company's issuer profile.

About Recharge Resources Ltd.

Recharge Resources is a Canadian mineral exploration company focused on exploring and developing the production of high-value battery metals to create green, renewable energy to meet the demands of the advancing electric vehicle and fuel cell vehicle market.

We seek Safe Harbor.