Mr. Hendrik van Alphen reports

WEALTH MINERALS ENTERS INTO OPTION AGREEMENT WITH GELUM RESOURCES

Wealth Minerals Ltd. has entered into an option agreement with Gelum Resources Ltd., dated Aug. 31, 2023, whereby Wealth Minerals may earn an up-to-20-per-cent interest in Gelum's contractual interest in the Eldorado option under an option agreement which will be combined with the Robson claims under the Shannon option agreement when earned.

Gelum, as optionee, is party to an option agreement dated March 24, 2021, as amended April 19, 2021, Oct. 18, 2021, and Sept. 27, 2022, and the optionor has granted to Gelum the option to earn an up-to-50-per-cent interest in the Eldorado option, referred to as the option under the original agreement in and to the mineral claims in British Columbia called the Eldorado property.

Gelum, as optionee, is also party to an option agreement dated May 17, 2022, with Kim J. Shannon as optionor with the right to earn a 100-per-cent interest in a property described as the Robson property.

To earn the interest in and to the GMR interest, Wealth Minerals must make a $50,000 cash payment on signing (paid) and incur a minimum $600,000 of exploration expenditures on the property by Dec. 31, 2023, to earn an 8-per-cent interest in the GMR interest.

Wealth Minerals has the option to earn a further 12-per-cent interest in the GMR interest for a total 20-per-cent interest, on notice to Gelum, with escalating options which are not mandatory but proscribe further interest thresholds through earn-in expenditure in the GMR interest. These escalating option thresholds are:

• By Dec. 31, 2023, incur a further $300,000 of expenditures on the property (aggregate $900,000) to earn a further 4-per-cent interest (aggregate 12-per-cent interest);
• By Dec. 31, 2023, incur a further $300,000 of expenditures on the property (aggregate $1.2-million) to earn a further 4-per-cent interest (aggregate 16-per-cent interest);
• By Dec. 31, 2023, incur a further $300,000 of expenditures on the property (aggregate $1.5-million) to earn a further 4-per-cent interest (aggregate 20-per-cent interest), the portion of which, at the request of Gelum, shall be filed as assessment work with the applicable government registry to maintain the property in good standing.

Option agreement review

Wealth Minerals formed a special committee of two independent directors to review the option agreement to ensure terms were similar to these types of transactions in the mineral exploration industry. After review, the special committee determined the Wealth Minerals and Gelum option agreement was indeed drafted on commercial and arm's-length terms despite some overlap in officers between the two companies.

Background to the option agreement

Management and the special committee noted that since second quarter 2023, Wealth Minerals has vigorously communicated with B.C. provincial authorities regarding drill permitting for the company's Kootenay project. Wealth Minerals raised $1.84-million in flow-through financing in October, 2022, specifically for drilling on the Kootenay project (see press release dated Oct. 19, 2022). Given the special tax status of flow-through financings, Wealth Minerals must utilize its flow-through cash by the end of this exploration season in 2023. Given time constraints, as mineral exploration in British Columbia becomes highly inefficient after October due to weather, Wealth Minerals decided to deploy its flow-through cash in a project which was highly prospective and well known to management. This is the genesis of the option agreement described herein.

About Wealth Minerals Ltd.

Wealth Minerals is a mineral resource company with interests in Canada and Chile. The company's focus is the acquisition and development of lithium projects in South America.

The company opportunistically advances battery metal projects where it has a peer advantage in project selection and initial evaluation. Lithium market dynamics and a rapidly increasing metal price are the result of profound structural issues with the industry meeting anticipated future demand. Wealth Minerals is positioning itself to be a major beneficiary of this future mismatch of supply and demand. In parallel with lithium market dynamics, Wealth Minerals believes other battery metals will benefit from similar industry trends.

We seek Safe Harbor.