MEGA.CN · 2022-02-01 12:00:00

MegaWatt Exploration for REEs & Uranium within Central Northern Territory Properties Set to Commence and Marketing Agreement

Marketing Announcement

MegaWatt Exploration for REEs & Uranium within Central Northern Territory Properties

Set to Commence and Marketing Agreement

VANCOUVER, BC, February 1, 2022 - Megawatt Lithium and Battery Metals Corp. (CSE: MEGA) (FSE:

WR20) (OTC PINK: WALRF) (the "Company" or "Megawatt") is planning an expansive exploration

campaign, targeting rare earth elements (REE) & uranium zones, at its two properties – Artic Fox and

Isbjorn – in Central Northern Territory. The work coincides with an increasing level of interest across

the region on the back of improving fundamentals for REE and uranium.

Improving fundamentals on two fronts

With China controlling potentially between 80-90% of the global rare earth elements (REE) market,

there has been a growing awareness among key stakeholders for the need for supply chain diversity.

European auto-makers focused on developing the next generation of electric vehicles will require

key REEs. They require neodymium and praseodymium (NdPr) which are key REEs for electric motor

magnets1.

According to ASX-listed Arafura Resources (ASX: ARU), it has engaged with European electric vehicle

manufacturers that are interested in sourcing key REEs from it directly once production commences

at its Nolans Bore Project later in the year. A key factor to secure contracts with European EV

manufacturers is to ensure toxic waste is handled in line with strict environmental regulations, which

requires ARU committing to processing recovered ore on site1.

The Nolans Bore Project, which has a JORC compliant REE resource (56Mt @ 2.6% total rare-earth

oxides), can potentially supply 10% of the global REEs required for use in electric motors1.

In the uranium sector, the Sprott Physical Uranium Trust’s move to acquire a substantial position,

propelling the spot price to multi-year highs2, has resulted in further interest in emerging potential

suppliers in the Central Northern Territory.

While the ultimate demand driver for uranium will be a resurgence in nuclear power generation, as

the world transitions to lower carbon emissions, the recent energy shortfall in the United Kingdom

highlights the over-reliance on fossil fuels that can potentially deliver a negative multiplier effects

across an economy.

Focus on uranium

While the case for REEs, with ARU’s improving profile, is well established – it is worth re-emphasising

the key uranium arguments. These highlight the potential within Megawatt’s properties and across

the region, especially amid a significant uranium upcycle.

As part of ongoing due diligence ahead of upcoming site visits to the Artic Fox & Isbjorn properties,

Megawatt’s technical team has reviewed historical reports, including UK-based Power Metal Group’s

(AIM: POW) Selta Project (Figure 1).

Aside finding a 1973 study3 which outlined the potential for uranium mineralization within the

tenure, there were numerous reports of surface occurrences including a standout 2,450ppm U from

a 1994 report4. These findings highlight the exploration potential across the region for uranium

mineralisation and requirement for further field exploration in order to identify potential drill

targets.

FIGURE 1: ARTIC FOX / ISBJORN PROPERTIES RELATIVE TO REGIONAL PEERS

Source: Megawatt geology team

These findings within Power Metal Group’s ground, make a compelling case for uranium and build

on the arguments presented earlier (refer to Uranium Potential to be Developed at Arctic Fox and

Isbjorn Properties in Australia; September 15, 2021)5, which are repeated below:

➢ ARU has modelled up a JORC compliant resource for uranium oxide (U308) at the Nolons

Bore Project (56Mt @ 162ppm U3O8)6, which is contiguous to the Artic Fox property.

➢ Assayed samples of scree material from gneiss source rock, within the middle of Artic Fox,

returned the following high-grade results: Sample ID N1-4A: 1,000ppm U equating to

1,179ppm U3O8; and Sample ID N1-4B: 690ppm U equating to 814ppm U3O87.

➢ Within the Isbjorn property, there are assayed alluvial and stream sediment samples at five

locations which are all significant and require further on-site follow up8. These clearly

highlight the exploration potential for U3O8 mineralization, including:

o Sample #1 ID 152798: 593ppm U equating to 699ppm U3O8; Sample #2 ID 132967:

302ppm U equating to 356ppm U3O8; Sample #3 ID 132966: 292ppm U equating to

344ppm U3O8; Sample #4 ID 152799: 514ppm U equating to 606ppm U3O8; and Sample

#5 ID 152800: 586ppm U equating to 691ppm U3O8.

(The data disclosed in this news release related to sampling results is historical in nature.

Megawatt has not undertaken any independent investigation of the sampling nor has it

independently analysed the results of the historical exploration work in order to verify the

results. Megawatt considers these historical sample results relevant as the Company will use

this data as a guide to plan future exploration programs. The Company's future exploration

work will include verification of the data through further analysis.)

David Thornley-Hall Chief Executive Officer commented: “The fundamentals for rare earth

elements and uranium have continued to strengthen into 2022, which makes the exploration

potential for the Artic Fox and Isbjorn properties in Central Northern Territory even more

compelling. The Board is now intent on building a more expansive forward exploration program so

that we can rapidly garner a greater understanding of our properties’ potential to host REE and

uranium mineralisation at this exciting point in the cycle.”

Qualified Person

Mr. Geoffrey Reed (MAusMM (CP)) (MAIG), Consultant for the Company, is a qualified person as

defined by National Instrument 43-101 – Standards of Disclosure or Mineral Projects and has

reviewed the scientific and technical information in this press release.

References

1) Automakers Look to Hedge Against China Rare Earth Dominance; Elisabeth Behrmann; 23

September 2021. Available at: https://www.bloomberg.com/news/articles/2021-09-

22/automakers-look-to-hedge-against-china-s-rare-earth-dominance and Arafura Resources

Limited 2021 Annual Report. Available at:

https://www.arultd.com/images/Reports/Arafura_Resources_Annual_Report_2021.pdf

2) Uranium Rally Is a High-Stakes Bet on Future of Nuclear Power; Yvonne Yue Li, Will Wade

and Stephen Stapczynski; September 22, 2021. Available at:

https://www.bloomberg.com/news/articles/2021-09-22/red-hot-uranium-rally-renews-

debate-over-nuclear-s-future-in-zero-carbon-world

3) The Australian Mineral Development Laboratories (CR 74/19) Sixth Progress Report MP

4976/73 Geochemical Survey, Arunta Area Amdel (December 1973)

4) PNC Exploration (Australia) Pty Ltd (CR 95/266) Napperby Annual Report 1994 Field Season.

Available at: https://geoscience.nt.gov.au/gemis/ntgsjspui/simple-

search?query=%22CR1995-0266%22&location=1/3

5) Megawatt CSE Release - Uranium Potential to be Developed at Arctic Fox and Isbjorn

Properties in Australia (September 15, 2021). Available at:

https://webfiles.thecse.com/megawatt_0915.pdf?pzmeoPmSl8bWAsXeBTvUJ62u5.w6jAVU

6) Arafura Resources Limited 2015 Annual Report. Available at:

https://www.arultd.com/investor/asx-announcements-2021/asx-archive.html

7) Megawatt CSE Release - Megawatt Provides Further Investigative Data for Uranium and REE

Prospectivity Australian Projects” (May 31, 2021) Available at:

https://webfiles.thecse.com/megawatt_0531.pdf?MVGF3amnVjpZKzUgBlHctkQrryQKmk9_

8) Crossland Nickel Pty Ltd – Report Number CR2016-0105. Available at:

https://geoscience.nt.gov.au/gemis/ntgsjspui/simple-

search?location=1%2F3&query=%22CR2016-0105%22&rpp=10&sort_by=score&order=desc

Technical Information

All scientific and technical information in this news release has been prepared by, or approved by

Geoffrey Reed, (MAusMM (CP)) (MAIG), Consultant for the Company. Mr. Reed is a qualified person

for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Mr. Reed has not verified any of the information regarding any of the properties or projects referred

to herein other than the Arctic Fox and Isbjorn Properties. Mineralization on any other properties

referred to herein is not necessarily indicative of mineralization on the Arctic Fox and Isbjorn

Properties.

The data disclosed in this news release related to sampling results is historical in nature. Megawatt

has not undertaken any independent investigation of the sampling nor has it independently analyzed

the results of the historical exploration work in order to verify the results. Megawatt considers these

historical sample results relevant as the Company will use this data as a guide to plan future

exploration programs. The Company's future exploration work will include verification of the data

through further sampling.

Marketing Agreement

The Company has retained Sideways Frequency (“Sideways”) for US$100,000 for a term of 60 days.

Sideways has been engaged for native advertising and digital marketing services to increase brand

awareness for the Company. Cert ain services to be provided by Sideways are anticipated to include

investor relations activities under the policies of the CSE and applicable securities laws. The Company

will continue to look at strategic consultants to expand awareness of the Company and its activities.

About MegaWatt Lithium and Battery Metals Corp.

MegaWatt is a British Columbia based company involved in the acquisition and exploration of

mineral properties in Canada. The Company holds a 100% undivided interest, subject to a 1.5% NSR

on all base, rare earth elements and precious metals, in the Cobalt Hill Property, consisting of eight

mineral claims covering an area of approximately 1,727.43 hectares located in the Trail Creek Mining

Division in the Province of British Columbia, Canada. Additionally, the Company has acquired a 60%

interest in a company that indirectly holds a 100% interest (subject to a 2% NSR) in two prospective

silver-zinc projects in Australia, being the Tyr Silver Project and the Century South Silver-Zinc Project

(see press release dated August 13, 2020), an indirect 100% interest (subject to a 1% NSR) in and to

certain mining tenements in Northern Territory and New South Wales, Australia prospective for

nickel-cobalt-scandium and rare earth elements. The Company holds a 100% interest (subject to a

2% NSR) in and to the Route 381 Lithium Property, comprised of 40 mineral claims located in James

Bay Territory, north of Matagami in the Province of Quebec, covering 2,126 hectares (see press

release dated February 3, 2021) and a 100% interest in 229 additional mineral exploration claims

prospective for lithium, also in the James Bay area of Quebec covering an area of 12,116 hectares or

121 square kms.

Investors can learn more about the Company and team at https://megawattmetals.com.

The CSE does not accept responsibility for the adequacy or accuracy of this release. This press

release includes "forward-looking information" that is subject to a number of assumptions, risks and

uncertainties, many of which are beyond the control of the Company. Forward-looking statements

may include but are not limited to, statements relating to the trading of the Company's common

shares on the Exchange and the Company's use of proceeds and are subject to all of the risks and

uncertainties normally incident to such events. Investors are cautioned that any such statements are

not guarantees of future events and that actual events or developments may differ materially from

those projected in the forward- looking statements. Such forward-looking statements represent

management's best judgment based on information currently available. No securities regulatory

authority has either approved or disapproved of the contents of this news release.

SOURCE MegaWatt Lithium and Battery Metals Corp.

For further information: David Thornley-Hall, Chief Executive Officer, [email protected]