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Consolidated Lithium Metals Inc. Signs Letter of Intent with SOQUEM to Earn up to 80% Interest in the Kwyjibo Rare Earth Project, Québec

TORONTO, Aug. 27, 2025 (GLOBE NEWSWIRE) -- Consolidated Lithium Metals Inc. (TSXV:CLM, FRA: Z36)) ("CLM" or the "Company") is pleased to announce that it has entered into a non-binding letter of intent ("LOI") effective July 31, 2025, with SOQUEM Inc. ("SOQUEM"), a wholly owned subsidiary of Investissement Québec, pursuant to which (subject to completion of several conditions precedent) the Company may acquire an option to earn up to an 80% interest in the Kwyjibo Rare Earth Project (the "Project"), located 125 km northeast of the city of Sept-Îles, in the Côte-Nord region of Québec (the "Proposed Transaction").

Proposed Transaction Summary

Phase I, CLM to acquire a 60% undivided interest in Project

Pursuant to the terms of the LOI, CLM may earn a 60% interest in the Project and be appointed as its operator in exchange for payments and issuances of common shares of the Company totalling an aggregate of C$23.15m within five years following the closing date of the Proposed Transaction (the "Phase I Term"), allocated as follows (in each case subject to and in accordance with the rules and policies of the TSX Venture Exchange ("TSXV")):

C$5.65m in cash to SOQUEM;

C$5.50m payable to SOQUEM in common shares of the Company, at a deemed price per share to be mutually agreed by the parties; and

C$12.00m invested in the Project to advance the following key stages of the Project's development:

Negotiation and ratification of an impacts and benefits agreement with the Innu of Takuaikan Uashat mak Mani-utenam;

Metallurgical study to confirm environmental viability of extraction and processing of rare earth in the region of the Project;

Environmental permitting from the Bureau d'accélération de projets;

Initiation of at least a 5,000m drilling campaign for potential expansion of Project's resources; and

Initiation of a bankable feasibility study to evaluate the technical and economic viability of the Project (the "Feasibility Study").

Phase II, CLM to acquire an additional 20% undivided interest in the Project, for a total of 80%

Following completion of Phase I, CLM may earn an additional 20% interest in the Project (for a total of 80%) in exchange for payments or issuances of common shares of the Company totalling an aggregate of an additional C$22.00m within three years following completion of the Phase I Term, allocated as follows (in each case subject to and in accordance with the rules and policies of the TSXV):

C$4.50m in cash to SOQUEM;

C$4.50m payable to SOQUEM in common shares of the Company, at a deemed price per share to be mutually agreed by the parties; and

C$13.00m invested in the Project to advance the following Project milestones:

Completion of ...