Mr. Kal Malhi reports

COLOURED TIES PROVIDES LITHIUM PORTFOLIO UPDATE AND QUEBEC PEGMATITE GO PUBLIC ANNOUNCEMENT

Coloured Ties Capital Inc. has provided the following update on the company's lithium portfolio.

Hertz Lithium Corp.

The company owns 4.73 million common shares of Hertz Lithium.

Hertz Lithium recently listed for trading on the Canadian Securities Exchange under symbol C.HZ, on the Frankfurt Stock Exchange under QE2 and has applied for listing on the OTCQB in the United States.

Hertz Lithium is a British Columbia-based mineral exploration company primarily engaged in the acquisition and exploration of mineral properties. Hertz Lithium currently has one material mineral property, the Lucky Mica project, located in the Arizona pegmatite belt in the Maricopa county of Arizona, United States, which is in the exploration stage. Hertz Lithium is also working with Penn State University in the development of a novel lithium extraction technology.

Recent Hertz Lithium announcements

On April 6, 2023, Hertz Lithium announced the closing of its initial public offering pursuant to its prospectus dated Feb. 16, 2023, filed with the securities commissions in each of the provinces of Canada, other than Quebec. The offering consisted of the sale of 12,852,000 units at a price of 12.5 cents per unit, for aggregate gross proceeds of $1,606,500. Each unit consisted of one share and one share purchase warrant. Canaccord Genuity Corp. acted as the agent for the offering.

On May 10, 2023, Hertz Lithium announced that it has exercised its option to obtain a worldwide, remuneration-bearing licence to utilize the patent rights related to the Penn State Research Foundation's (PSRF) novel process for extraction of lithium from alpha-spodumene. Hertz Lithium acquired the option pursuant to an option agreement with the PSRF dated Aug. 30, 2022, as amended on Nov. 15, 2022.

Hertz Lithium common shares closed for trading at 30 cents per share on May 10, 2023, on the Canadian Securities Exchange.

Quebec Pegmatite Corp.

The company owns 10 million common shares of Quebec Pegmatite (QPC).

QPC, a subsidiary of the company, is a North American junior mining exploration company that specializes in lithium exploration and owns 100 per cent of the Vieux Comptoir and Mazerac lithium projects, located in the Corvette and Mazerac lithium districts, James Bay, Quebec. The Vieux Comptoir lithium project is located between the Corvette property of Patriot Battery Metal Inc. and the Adina project of Winsome Resources Ltd. The Mazerac property is located about 50 kilometres southwest of the historic mining town Val d'Or and is easily accessible. The property is located near Vision Lithium's Cadillac property and Winsome Resources Ltd.'s Decelles property. QPC has aggressive and extensive exploration programs for 2023 to explore the lithium potential for the property. The Vieux Comptoir lithium project is under option to Superior Mining Corp., whereby QPC owns seven million shares of Superior Mining and additional milestones pending.

Recent QPC announcements

On May 9, 2023, the company announced that First Responder has entered into a share exchange agreement dated May 8, 2023, with QPC, a subsidiary of Coloured Ties, in respect of a proposed business transaction. It is intended that common shares of First Responder will be issued to holders of common shares of QPC on the basis of one First Responder share for every one QPC share, at a deemed price of 42 cents per First Responder share, resulting in the issuance of an aggregate 11 million First Responder shares to the shareholders of QPC.

Patriot Battery Metals

The company owns 1,827,200 common shares of Patriot Battery Metals.

Patriot Battery's Corvette property is reported to be a large lithium discovery in the James Bay region of Quebec., where the CV lithium trend is an emerging spodumene pegmatite district discovered by Patriot Battery in 2017, and spans more than 25 km across the Corvette property. The core area includes an approximate 3.7 km long spodumene pegmatite (the CV5 pegmatite) and multiple proximal secondary spodumene pegmatite lenses.

To date, six distinct clusters of lithium pegmatite have been discovered across the Corvette property: CV5 pegmatite and associated lenses, CV4, CV8-12, CV9 and CV10, and the recently discovered CV13. Given the proximity of some pegmatite outcrops to each other, as well as the shallow till cover in the area, it is probable that some of the outcrops may reflect a discontinuous surface exposure of a single, larger pegmatite outcrop subsurface. Further, the high number of well-mineralized pegmatites along the trend indicate a strong potential for a series of relatively closely spaced/stacked, subparallel and sizable spodumene-bearing pegmatite bodies, with significant lateral and depth extent, to be present.

Recent Patriot Battery announcements

On May 1, 2023, Patriot Battery extended strike length of the CV5 pegmatite to 3.7 km. The CV5 spodumene pegmatite has now been traced continuously by drilling (at approximately 50 m to 150 m spacing) over a lateral distance of at least 3.7 km, and remains open along strike at both ends and to depth along most of its length. These are the first drill holes completed to test a westward extension of the CV5 pegmatite since summer of 2022, when spodumene pegmatite was confirmed to extend from the CV5 outcrop to the CV6 outcrop.

Azimut Exploration Inc.

The company owns 2,578,600 common shares of Azimut Exploration.

Azimut is a leading mineral exploration company with a solid reputation for target generation and partnership development. The company holds the largest mineral exploration portfolio in Quebec. Its wholly owned flagship Elmer gold project is actively advanced to the initial resource stage in the James Bay region. Azimut also controls a strategic land position for copper-gold, nickel and lithium. At least 10 work programs are planned for 2023, including an aggressive lithium-focused field assessment phase as early as possible after the winter season.

Coloured Ties has acquired an equity stake in Azimut based on the large landholdings Azimut has acquired in Quebec, but is frustrated with Azimut's inability to explore those properties in any meaningful ways with sound exploration programs or partnerships with other junior exploration companies. This practice of "stake and squat" on highly prospective lands, many which are some of the best lithium targets in James Bay, Quebec, has resulted in zero advancement of these projects, while numerous other lithium discoveries are being made by other junior exploration companies in Quebec.

Coloured Ties continues to be an activist shareholder and attempts to engage with Azimut to encourage exploration or partnership on exploration of their vast landholdings in Quebec, rather than squat on those landholdings at a time when critical minerals exploration is being encouraged by government incentives programs and flow of private capital. Coloured Ties continues to believe Azimut is currently undervalued and hampered by its business practices and management business practices. Coloured Ties may choose to acquire or dispose of Azimut holdings in context of the capital markets and Azimut's business policies, and Coloured Ties partnership with other Azimut shareholders that wish to see a change in Azimut's exploration practices and management practices to effect a corporate business strategy change at Azimut and unlock the value of these.

Other lithium portfolio

Coloured Ties holds the following additional investments in the company's lithium portfolio:

• Power Metals Corp. -- the company currently owns 3,208,500 common shares of Power Metals. Power Metals owns a 100-per-cent interest in the Case Lake property. The Case Lake property is located 80 kilometres east of Cochrane, Northeastern Ontario, close to the Ontario-Quebec border. The Case Lake property consists of 585 cell claims in Steele, Case, Scapa, Pliny, Abbotsford and Challies townships, Larder Lake mining division. The property is 10 km by 9.5 km in size, with 14 identified tonalite domes. The Case Lake pegmatite swarm consists of six spodumene dikes: North, Main, South, East and Northeast dikes on the Henry dome, and the West Joe dike on a new tonalite dome.
  • Recently, Winsome Resources acquired 7.5 million common shares of Power Metals and 7.5 million common share purchase warrants of Power Metals from Sinomine Rare Metals Resources Co Ltd., for total cash consideration of $2-million. Each warrant entitles the holder thereof to acquire one share of Power Metals at 40 cents per share, expiring on March 17, 2025. Winsome Resources has also agreed to assume all of Sinomine's rights and obligations under the offtake agreement that was entered into between Sinomine and Power Metals dated March 16, 2022.
• Winsome Resources Inc. -- the company owns 83,000 common shares of Winsome Resources. Winsome Resources recently reported drill intercepts at its Adina project in the James Bay region of Quebec as summarized above.
• Superior Mining International Inc. -- the company's subsidiary QPC owns seven million common shares of Superior pursuant to an option agreement on the Vieux Comptoir lithium property. In addition, QPC anticipates receiving 3.5 million Superior shares payable on the one-year anniversary of the option agreement and 3.5 million Superior shares payable on the 18-month anniversary of the option agreement, all subject to the approval of the TSX Venture Exchange.
• Manning Ventures Inc. -- the company holds 7,767,000 common shares of Manning. Manning is conducting exploration at Bounty lithium project. The Bounty lithium project is located within the Eastmain greenstone belt in the James Bay pegmatite district of west-central Quebec. It is prospective for hosting hard-rock, pegmatite-hosted lithium mineralization. The project now contains 62 pegmatite target areas, many with previously defined indicator-mineralogy and indicator-chemistry for hosting lithium-cesium-tantalum-style spodumene-bearing pegmatites. Manning also has a 100-per-cent interest in the Dipole lithium project. The Dipole lithium project is located approximately 50 kilometres along strike from the recent Kraken lithium zone discovery by of Sokoman Minerals Corp. and Benton Resources Inc. The Kraken discovery spurred an early 2022 regional metallogenic study of southern Newfoundland by Dahrouge Geological Consulting, which resulted in findings suggestive of hosting lithium-cesium-tantalum-type pegmatite and/or tungsten mineralization, and acquisition of the Dipole lithium project.
• Rockland Resources Ltd. -- the company currently owns 3.1 million common shares of Rockland. Rockland carried out sampling at their Lithium Butte property in May, 2022, comprising 10 grab samples with a peak values of 4,080 parts per million lithium (ppm Li), with five grab samples of the tuff-breccia that had strongly developed clay alteration averaging 2,142 ppm Li. Additional sampling in July returned a continuous interval of 25.2 metres at 1,388 ppm Li, including eight metres at 2,155 ppm Li and 0.7 metre at 3,540 ppm Li. Activities since July have included extensive geological mapping. On April 20, 2023, Rockland announced that it has completed its due diligence and has made the initial option payments toward acquiring a 100-per-cent interest in the Wapistan lithium project located within the James Bay region of Quebec.
  • The Wapistan lithium project is a large land package comprising 219 claims (10,722 hectares) over two claim blocks in James Bay, Quebec. The property is accessible by all-season roads, hydro, and has two nearby communities offering exploration and mining services.

Coloured Ties also has varying degrees of investments or pending investments in additional lithium projects, including:

• Canuck Lithium Inc. holds 100-per-cent interest in the AC/DC and Lafleur lithium projects in James Bay, Quebec.
• Agastya Minerals Inc.'s lithium projects are located in James Bay, Quebec, and adjacent to Winsome Resources' Adina lithium discovery.
• Madina 1-2-3 and Mountie lithium projects, and in close proximity to Adina lithium discovery in James Bay, Quebec.
• Flowing Lithium Inc., a privately held Canadian corporation, owns 211,000 acres of saskatchewan lithium brine project lands in Saskatchewan, Canada.
  • Estimated lithium resource in place over prospective lands:
    • Four million tons of calculated inferred resource by Petrel Robertson Ltd.;
    • 211,000 acres of land in southeast Saskatchewan;
    • Using rock properties and inferred resource concentrations, this area is comparable with highest-quality brine plays in North America (and has potential to be the best) for minimal initial entry fees;
    • Green lithium: full-cycle project potential to meet zero-emissions targets generational resource play.

Attending Canaccord Genuity Global Metals and Mining conference, Palm Springs, U.S., May 10 to May 12, 2023

Coloured Ties Capital and Quebec Pegmatite are both attending this Canaccord Genuity global mining conference in Palm Springs on May 10 to May 12, 2023, and have had encouraging meetings with lithium-focused investment bankers, analysts, industry partners and private capital groups. Coloured Ties was able to establish contacts with Canaccord Genuity Australia capital markets executives and will explore potential to engage in Australian Securities Exchange-related corporate actions, including potential to cross-list Coloured Ties investee holding companies if suitable. The conference has been extremely well attended, with amazing levels of interest in lithium mineral exploration investments.

About Coloured Ties Capital Inc.

Coloured Ties is a publicly traded Canadian-based venture capital firm focused on early-stage investments in companies in the junior resources, and break-through and disruptive technologies. Coloured Ties investment strategy is to invest early in multiple private and public companies across a variety of sectors that merit investments to advance promising ventures globally. Coloured Ties invests, early-stage, in promising projects where it can be the founding or early-stage investor, and can additionally provide investees with advisory services and access to the company's ecosystem.

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