ANNOUNCES ASSIGNMENT OF OPTION ON CUATRO HERMANOS PROJECT Vancouver, B.C.: Brasnova Energy Materials Inc. (“BEM'' or the “Company”) (TSXV: BEM) is pleased to announce that the Company has executed a binding agreement (the “Assignment Agreement”) assigning
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JANUARY 15, 2026 NEWS RELEASE TSXV: BEM
BRASNOVA ENERGY MATERIALS INC.
ANNOUNCES ASSIGNMENT OF OPTION ON CUATRO HERMANOS PROJECT
Vancouver, B.C.: Brasnova Energy Materials Inc. (“BEM'' or the “Company”) (TSXV: BEM) is pleased to
announce that the Company has executed a binding agreement (the “Assignment Agreement”) assigning
the original underlying option agreement over the Cuatro Hermanos Project (the “4H Project”), dated
January 16th, 2023 (the “Original Option Agreement”). Under the terms, 4H Copper Holding SAS (“4HCH”)
agrees to provide all future development financing for the 4H Project and to fund the underlying
obligations including an immediate payment of the outstanding obligations under the Original Option
Agreement. Brasnova is currently in default under the terms of the Original Option Agreement with the
vendors of the 4H Project. The Assignment Agreement sets forth the terms and conditions of the
assignment of the Original Option Agreement, as follows:
(a) 4HCH will make immediate direct payment on the current outstanding obligations due under the
Original Option Agreement (US$200,000) within 10 days of the execution date of the Assignment
Agreement.
(b) 4HCH will advance US$2.0 million in cash payments to BEM within 24 months of the execution
date of the Assignment Agreement, as per the following schedule:
(i) a minimum of US$200,000 in cash payments, will be due within 90 days of the execution
date of the Assignment Agreement;
(ii) a cumulative minimum of US$1,000,000 in cash payments, will be due within 12 months
of the execution date of the Assignment Agreement; and
(iii) a cumulative minimum of US$2,000,000 in cash payments, will be due within 24 months
of the execution date of the Assignment Agreement.
(c) 4HCH will provide all future development financing for the 4H Project and fund the underlying
obligations of the Original Option Agreement, including all accrued amounts and all payments due before
January 31, 2026.
(d) 4HCH will terminate and revert back to BEM, its 100% equity interest in the 4H Project, if it fails
to advance the payment for the current outstanding obligations due under the Original Option Agreement
or the US$2.0 million in cash payments to BEM within 24 months or fails to fund the underlying obligations
of the Original Option Agreement after the execution date of the Assignment Agreement.
(e) BEM will initiate the assignment of a 100% equity interest in the 4H Project to 4HCH immediately
upon payment of the current outstanding obligations due under the Original Option Agreement.
(f) BEM will retain a one percent Net Smelter Royalty on all future production from the 4H Project
and any other concessions which may be added to the 4H Project within 10 kilometres of the centre point
of the current concessions.
The approximately CA$2,750,000 in cash payments over twenty-four months from this 4H Project
assignment transaction will be primarily used by the Company to pay down current loan obligations which
as of September 30, 2025 totalled CA$1,606,369.
Further, Brasnova is pleased to welcome back Edward Low as Chief Financial Officer. The Company would
like to thank Nancy Zhao for filling this role over the past year. Brasnova will issue Mr. Low 250,000
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common share options at a price of 15 cents with a term of five years, subject to approval of the stock
option plan at the next AGM. The management changes and options issuance are subject to TSXV Venture
Exchange approval.
ABOUT BRASNOVA ENERGY MATERIALS INC.
Brasnova Energy Materials is focused on securing, developing and monetizing Brazilian critical materials
assets and related materials technologies, to build shareholder value.
On behalf of the Board of Directors of
BRASNOVA ENERGY MATERIALS INC.
"Maria Conejo"
Maria Conejo, Director
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
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