Hertz Energy Enters Option to Acquire Agastya Lithium Property in Quebec

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HERTZ ENERGY INC.

1500-1055 West Georgia Street

Vancouver, BC V6E 4N7

HERTZ ENERGY ENTERS OPTION TO ACQUIRE AGASTYA LITHIUM

PROPERTY IN QUÉBEC

VANCOUVER, December 13, 2024 – TheNewswire - Hertz Energy Inc. (“Hertz” or the

“Company”) (CSE: HZ; OTCQB: HZLIF; FSE: QE2) is pleased to announce the acquisition of

the Agastya Lithium Property (“Agastya Property”) comprised of 209 mineral claims covering

approximately 10,650 hectares located in the Province of Québec through an arms-length option

agreement (the “Agreement”) dated December 9, 2024 between prospector Prospectus Capital

Inc. (the “ Vendor”) and Canuck Lithium Corp . (the “Buyer”), a wholly -owned subsidiary of

Hertz.

AGASTYA LITHIUM PROPERTY, JAMES BAY, QUEBEC

The Agastya Property consists of three non-contiguous claim blocks along the greenstone belt that

hosts the Adina, Trieste , and Galinée properties. These adjacent properties are known for their

significant LCT (Lithium-Cesium-Tantalum) pegmatite potential hosted within greenstone/

metasediment packages:

▪ Winsome Resources – Adina Lithium Project: One of the Top 3 largest lithium resources

in North America with an Indicated Mineral Resource of 60.5 Mt at 1.14% Li2O and

Inferred Resource of 15.9 Mt at 1.17% Li2O using a 0.5% Li2O cut-off (source: NI 43-101

Technical Report on PEA and MRE for Adina Lithium Project authored by Synectiq Inc.

with a report date of September 30, 2024 and filed under Winsome’s SEDAR+ profile) .

Winsome also has an exclusive option to acquire the nearby Renard Operation , a fully

permitted, former diamond mine located 60 km south of Adina with a convertible

processing facility for future lithium production.

▪ Loyal Lithium – Trieste Lithium Project : Discovery of six spodumene -bearing

pegmatites including a significant drilling result of 31.8 m at 2.2% Li2O.

▪ 50% Azimut Exploration / 50% SOQUEM JV – Galinée Lithium Property: Drilling

results include 1.62% Li2O over 158.0 m including 3.33% Li2O over 29.6 m, and Galinée

features a 20 km long lithium-cesium anomaly.

▪ Rio Tinto/Midland – Galinée Project: Spodumene-bearing pegmatite dykes discovered

over several hundred metres along a 7 km favourable contact zone . Significant d rilling

results include 1.38% Li2O over 37.86 m including 1.88% Li2O over 21.35 m.

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The Agastya Property covers the western extent of the greenstone belt that trends through Trieste,

Adina, and Galinée (Figure 1). Greenstone belts are known to host LCT pegmatite mineralization

and are commonly targeted by exploration companies as they are favourable hosts for lithium and

other valuable metals including gold.

Lake bottom geochemistry data highlights the greenstone belt/LCT trend throughout the region,

showing strong anomalies along the greenstone and known LCT pegmatite deposits. The Agastya

Property claims fall within this strongly anomalous lake bottom sediment trend, indicating a

potential for LCT pegmatite mineralization within the Property (Figure 2 and Figure 3).

Due to the significant exploration activity, there is strong support for infrastructure development

in the region. This includes the extension of the road from the Winsome -optioned Renard

Operation, which is expected to run through the Agastya Property once constructed.

Figure 1: Agastya Property Geology & Regional Activity

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Figure 2: Lake Bottom Sediment Lithium Geochemistry

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Figure 3: Lake Bottom Sediment Cesium Geochemistry

No mineral resources or reserves have been defined on the Agastya Property. References herein to

potential grades herein are historic al and conceptual in nature. There has been insufficient

exploration to define a mineral resource or deposit and there can be no assurance that further

geological work will result in mineral resources, or a deposit being defined on the Agastya

Property.

Hertz Energy currently holds approx. $750,000 in critical minerals Flow-Thru capital and intends

to aggressively explore the Agastya Lithium Property.

OPTION AGREEMENT TERMS

As consideration for the acquisition of a 60% of the Vendor’s legal, beneficial and registered

interest in the Agastya Property, the sole shareholder of the Buyer, Hertz Energy Inc., shall, within

ten business days of the Effective Date of the Agreement, issue 8,000,000 common shares in the

capital of Hertz (the “Consideration Shares”) as directed by the Vendor and the Buyer shall grant

the Vendor a 2% Gross Metal Royalty (GMR). The 2% GMR shall be payable to the Vendor on

all metals including but not limit ed to precious and base metals, produced from the Agastya

Property.

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PROJECTS UPDATE

The Company also announces it has elected not to proceed further with its Snake Lithium Project

in the James Bay Region in Québec based on the lack of significant results from its prospecting

and sampling programs in June 2024. No lithium and/or gold associated minerals were

documented throughout the field traverses and no anomalies were observed.

The Company remains fully focused on exploring and developing its Agastya Lithium, AC/DC

Lithium, and Harriman Antimony properties in Québec, Lake George Antimony Property in New

Brunswick, and Namibia Uranium Project and will provide further updates as exploration

programs are completed.

Cautionary Statement: This news release contains scientific and technical information with

respect to adjacent properties to the Company’s Agastya Property, which the Company has no

interest in or rights to explore. Readers are cautioned that information regarding the geology,

mineralization, and mineral resources on adjacent properties is not necessarily indicative of the

mineralization potential on the Company’s Agastya Property.

LOAN AGREEMENT

The Company also announces it has entered into a loan agreement (the “Loan Agreement”) with

Kulwant Malhi (the “Lender”). Pursuant to the terms and conditions of the Loan Agreement, the

Lender has provided the Company with a non -revolving term loan in the principal amount of

CAD$60,000, bearing interest at a rate of eight percent (8%) per annum (the “ Loan”). The Loan

has a term of one year maturing on December 5, 2025.

The Loan constitutes a related party transaction within the meaning of Multilateral Instrument 61-

101 - Protection of Minority Security Holders in Special Transactions (“MI 61 -101”) as the

Lender is the Chief Executive Officer and a director of the Company. The Company is relying on

the 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, as the fair market value of the

Loan does not exceed 25% of the market capitalization of the Company in accordance with MI 61-

101.

QUALIFIED PERSON STATEMENT

All scientific and technical information contained in this news release was prepared and approved

by Simon Dahrouge, P.Geo., Technical Advisor of Hertz Energy, who is a "Qualified Person" as

defined in National Instrument 43-101 (“NI 43-101”).

About the Company

Hertz Energy ( CSE:HZ; OTCQB:HZLIF; FSE:QE2 ) is a British Columbia -based junior

exploration company primarily engaged in the acquisition and exploration of energy and critical

minerals properties. The Company’s lithium exploration projects include the AC/DC Lithium

Project, and Snake Lithium Project in Jame Bay Québec and newly acquired Agastya Lithium

Property. Hertz Energy also holds the Harriman Antimony Project in Québec and the Lake George

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Antimony Project in New Brunswick, Canada. Hertz Energy also has permit application pending

in Namibia for uranium exploration projects.

For further information, please contact Mr. Kal Malhi or view the Company’s filings at

www.sedarplus.ca.

On Behalf of the Board of Directors

Kal Malhi

Chief Executive Officer and

Director

Phone: 604-805-4602

Email: [email protected]

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts

responsibility for the adequacy or accuracy of this news release.

Cautionary Statement Regarding “Forward-Looking” Information

This news release includes certain statements that may be deemed “forward-looking statements”.

All statements in this new release, other than statements of historical facts, that address events or

developments that the Company expects to occur, are forward -looking statements. Forward -

looking statements are statements that are not historical facts and are generally, but not always,

identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”,

“projects”, “potential” and simil ar expressions, or that events or conditions “will”, “would”,

“may”, “could” or “should” occur. Although the Company believes the expectations expressed

in such forward-looking statements are based on reasonable assumptions, such statements are not

guarantees of future performance and actual results may differ materially from those in the

forward-looking statements. Factors that could cause the actual results to differ materially from

those in forward-looking statements include market prices, continued avai lability of capital and

financing, and general economic, market or business conditions. Investors are cautioned that any

such statements are not guarantees of future performance and actual results or developments may

differ materially from those projected in the forward -looking statements. Forward -looking

statements are based on the beliefs, estimates and opinions of the Company’s management on the

date the statements are made. Except as required by applicable securities laws, the Company

undertakes no obli gation to update these forward -looking statements in the event that

management's beliefs, estimates or opinions, or other factors, should change.