Surge Battery Metals Acquires an 80% Option on the San Emidio Lithium Project in Nevada from Elko Nevada’s Lithium Corporation
Surge Battery Metals Inc.
1220 – 789 West Pender Street
Vancouver, BC, Canada V6C 1H2
604- 428-5690
www.surgebatterymetals.com
Surge Battery Metals Acquires an 80% Option on the San Emidio Lithium
Project in Nevada from Elko Nevada’s Lithium Corporation
Sept 20, 2021: Vancouver, BC; Surge Battery Metals Inc. (the “Company”, “Optionee” or “Surge”)
(TSXV: NILI, OTCQB: NILIF, FRA: DJ5C) is pleased to announce that it has entered into an option
agreement with Lithium Corporation (the “Optionor”) (OTCQB: LTUM) dated September 16, 2021
(the “Agreement”), whereby the Company may earn an undivided 80% interest, in the existing San
Emidio Desert Lithium Project that consists of 35 mineral claims (of which 31 are staked and in the
process of being formally recorded) comprising a total of 2800 acres located approximately 60 miles
North East of Reno, Nevada, referred to as the “San Emidio Lithium Property”. The Agreement with
Lithium Corporation is an arms’ length transaction and is subject to TSX Venture Exchange
("Exchange") approval.
“This Agreement significantly adds to our lithium exploration portfolio in Nevada and we are looking
forward to working with Lithium Corporation to further explore and develop this exciting Property.”
states Greg Reimer, Surge President and CEO.
The geologic setting combined with the presence of lithium in both active geothermal fluids and
surface salts within the San Emidio Property match characteristics of lithium brine and clay deposits
at Clayton Valley, Nevada and in South America. Geothermal fluids adjoining the claims are known
to contain anomalous lithium values and a recently completed surface silt sampling program have
confirmed Li values in the area. Although geological work has been undertaken for geothermal
energy production in the area, the lithium in brine and clay potential of the playa has not been
specifically studied. Initially, the lithium target in this basin was highly conceptual, however, recent
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exploration results are highly encouraging and warrant a detailed exploration drilling for a Clayton
Valley type brine and clay deposit.
Pursuant to the terms of the Agreement, the Company may exercise the Property option as follows:
Cash Payments and Share Issuances
Make the cash payments and share issuances to the Optionor in the following manner:
(i) US$50,000 on signing the Agreement and issue 200,000 common shares on the Closing Date;
and
(ii) US$70,000 and US$30,000 in common shares on or before the first anniversary of the
Effective Date; and
(iii) US$70,000 and US$30,000 in common shares on or before the second anniversary of the
Effective Date; and
(iv) US$70,000 and US$50,000 in common shares on or before third anniversary of the Effective
Date; and
(v) US$70,000 and US$70,000 in common shares on or before the fourth anniversary of the
Effective Date; and
(vi) US$70,000 and US$90,000 in common shares on or before the fifth anniversary of the
Effective Date.
The shares issued under this Agreement shall be subject to resale restrictions which are required to
be imposed on the shares of the Optionee issued to the Optionor hereunder, pursuant to applicable
securities laws, including National Instrument 45-102 and the rules and policies of the Exchange.
Expenditure and Work Commitment
Incur a minimum in Expenditures for exploration and development work on the Property of
US$1,000,000 as follows:
(i) US$100,000 of Expenditures to be incurred, or caused to be incurred, by the Optionee on the
Property on or before the first anniversary of the Effective Date; and
(ii) a cumulative total of US$250,000 of Expenditures to be incurred, or caused to be incurred, by
the Optionee on the Property on or before the second anniversary of the Effective Date; and
(iii) a cumulative total of US$450,000 of Expenditures to be incurred, or caused to be incurred, by
the Optionee on the Property on or before the third anniversary of the Effective Date; and
(iv) a cumulative total of US$700,000 of Expenditures to be incurred, or caused to be incurred, by
the Optionee on the Property on or before the fourth anniversary of the Effective Date; and
(v) a cumulative total of US$1,000,000 of Expenditures to be incurred, or caused to be incurred,
by the Optionee on the Property on or before the fifth anniversary of the Effective Date.
Finder’s fees will be paid on behalf of the transaction in accordance with Exchange policies. Subject
to Exchange Approval, Black Prince Advisors Ltd. will be paid a Finder’s Fee of CDN$24,500, which
fee is to be paid by the issuance of 71,200 common shares of the Company.
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About the San Emidio Lithium Property and its Exploration History:
The San Emidio Lithium Property is located approximately 60 miles to the northeast of Reno, Nevada,
the site of Tesla’s lithium ion battery “Gigafactory” and is approximately 2800 acres in size.
Lithium Corporation first identified this prospect in 2009, and reconnaissance sediment sampling in
2010, indicated that this geothermally active valley and the associated playa here could possibly be
prospective for economic lithium-in-brine mineralization. This was followed up by more sampling in
early 2011, which again displayed anomalous results, and the decision was made mid-year to then
go ahead & stake a block of 1600 acre block of claims. Around this time Lithium Corporation
conducted a preliminary sub-surface brine sampling program on the playa - and ended up with
several anomalous samples (up to 80 mg/L Li). In the fall of 2011, Lithium Corporation completed a
gravity survey on the Property - outlining the geometry of the basement. With this information, the
site was permitted, in anticipation of a direct push drill program.
The initial probing program was commenced in early February 2012, keying in on an interpreted
linear feature (fault) that might be roughly coincident with the gravel road that travels NW-SE from
Empire Farms to the US Geothermal plant, and appears to be coincident with the western margin
(bounding fault) of the paleo basin seen at depth in the gravity data. This hypothesized structure is
supported by observations/results from the earlier near-surface brine sampling as there is a bit of a
linear expression in the brines & there appeared to be some sort of break b/t the east & west sides of
the road - as there was no brine down to 25' subsurface on the west, while brines are available
typically within two meters subsurface on the east side of the road. The direct push program
appeared to indicate that a structure coincident with the current day topo low (which runs NE/SW)
and may be a currently active extensional feature is responsible for the Li enriched fluids here.
Samples here were moderately anomalous with lithium concentrations in the low 20’smg/L at depths
of up to 80 feet. The information from this program led to a realignment of the claim block in mid-
2012 – claims were dropped to the south, with more being added to the north. Another direct push
probing campaign was undertaken later in calendar 2012, which confirmed the previous data
interpretation, with the best value being in the order of 23 mg/L Li. The mineralization was
determined to be spatially related to the NE/SW feature & contouring of the probe data gives the
impression that it occurs in the vicinity of a junction of the earlier hypothesized NW/SE trending
structure and this north easterly fault or possibly set of faults.
Keeping the above in mind, and knowing that lithium concentrations in geothermal fluids or brines
may increase at depth (as in nearby Clayton Valley, Nevada) Lithium Corporation previously
submitted a permit to drill three reverse circulation drill holes - designed to test the direct push brine
anomaly. The permit was received in 2014, however the program was not undertaken before Lithium
Corporation joint ventured the Property to American Lithium in early 2016. American Lithium did
not perform any work at San Emidio and eventually the Property was returned to the Company.
Mr. Greg Reimer comments “The lithium-in-brine anomaly is roughly 1 1/2 mile long & 1/2 mile
wide, and is presently still open-ended. We look forward to continuing the exploration work here to
determine what we believe to be a significant lithium deposit and Property.”
Qualified Person: The technical contents of this news release has been reviewed and approved by
Alan Morris CPG, Elko, Nevada
About Surge Battery Metals Inc. surgebatterymetals.com
The Company is a Canadian-based mineral exploration company active in the exploration for nickel-
iron alloy and Copper in British Columbia and lithium in Nevada whose primary listing is on the TSX
Venture Exchange. The Company's maintains a focus on exploration for high value battery metals
required for the electric vehicle (EV) market.
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Nevada Lithium Claims
The Company owns a 100% interest in 38 mineral claims located in Nevada. The Northern Nevada
Lithium Project is located in the Granite Range about 34 line- km southeast of Jackpot, Nevada, about
73 line-km north-northeast of Wells, Nevada. The target is a Thacker Pass or Clayton Valley type
lithium clay deposit in volcanic tuff and tuffaceous sediments of the Jarbidge Rhyolite package. The
project area was first identified in public domain stream sediment geochemical data with follow up
sediment sampling and geologic reconnaissance.
Caledonia Project, Vancouver Island, BC
The Company has entered into a Property Option Agreement to acquire a 100% interest in 7 mineral
claims known as the Caledonia, Cascade and Bluebell, subject to a NSR between 1-2%. Located in the
Nanaimo Mining District of northern Vancouver Island. The claims are 7 km north-west of BHP's past
producing Island Copper mine. During its prime operating period the Island Copper mine was
Canada's third-largest copper producer. The Caledonia, Cascade and Bluebell claims area lies within
a 50-kilometer-long copper belt northwest of the Island Copper mine.
British Columbia Nickel Project
Hard Nickel 4 and Nickel 100 Claims
The Company has entered into an Option Agreement with Nickel Rock Resources to acquire an 80%
interest in 6 mineral claims in the Mount Sidney Williams area (Hard Nickel 4) covering 1863
hectares immediately south of and adjacent to the Decar Project and the Mitchell Range area (Nickel
100) covering 8659 hectares, located in Northern British Columbia. Three of the claims are subject
to 2% NSR, including the Hard Nickel 4 claim and the two southernmost claims of the Nickel 100
claims. The acquisition is subject to final Exchange approval.
On Behalf of the Board of Directors
“Greg Reimer”
Greg Reimer, President & CEO
604-428-5690
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release
may contain forward‐looking statements which include, but are not limited to, comments that involve future
events and conditions, which are subject to various risks and uncertainties. Except for statements of historical
facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and
security of mineral property titles, availability of funds, and others are forward‐looking. Forward‐looking
statements are not guaranteeing future performance and actual results may vary materially from those
statements. General business conditions are factors that could cause actual results to vary materially from
forward‐looking statements.