Caravan Energy to Acquire Rare Earth Properties in British Columbia

Caravan Energy to Acquire

Rare Earth Properties in British Columbia

Vancouver, British Columbia, September 11, 2023 – Caravan Energy Corporation (CSE:

CNRG) (“Caravan” or the “Company”) is pleased to announce that it has entered into agreements

dated September 11, 2023 to acquire (“Acquisition”) rare earth TREO properties located near

Prince George, British Columbia, comprised of a total of 27 mineral claims and totaling 4,610

hectares (“TREO Property”).

Pursuant to an agreement with the vendors thereof, the Company has agreed to acquire 24

mineral claims in consideration for $100,000 in cash, 4,363,636 common shares (each, a

“Consideration Share”) of the Company, and the grant of a 2% net smelter returns (“NSR”)

royalty (subject to the Company’s right to buy-back 50% of the NSR royalty for $1,000,000). The

Consideration Shares will be subject to a four month and one day hold period pursuant to

applicable securities laws and will also be subject to a voluntary leak out schedule whereby they

will be released over a 36-month period from the date of closing (“Closing”).

Pursuant a separate agreement with the separate vendors thereof, the Company has agreed to

acquire three mineral claims in consideration for $100,000 in cash, 1,045,454 Consideration

Shares, and the grant of a 2% NSR royalty (subject to the Company’s right to buy-back 50% of

the NSR royalty for $500,000). $50,000 of the cash consideration is to be paid upon Closing and

the remaining $50,000 is to be paid on or before January 31, 2024. The Consideration Shares

will be subject to a four month and one day hold period pursuant to applicable securities laws and

will also be subject to a voluntary leak out schedule whereby they will be released over a 30-

month period from the date of Closing.

The Consideration Shares will be issued at a deemed value of $0.52 per share, being the closing

price of the Company’s common shares on September 11, 2023.

All the vendors are arm’s length the Company, and the Closing of the Acquisition is subject to

customary closing conditions.

The TREO Property is situated adjacent to the north, east, and south of the Wicheeda rare-earths

property of D efense Metals Corp. (TSX-V: DEFN) (“Defense Metals”), in respect of which

Defense Metals has commenced Pre-Feasibility Study work.1

The Company has agreed to pay, upon completion of the Acquisition, a finder's fee of 579,371

common shares (the “Finder’s Fee Shares”), being equal to 10% of the total consideration value

paid pursuant to the Acquisition, to an arm's length party. The Finder’s Fee Shares will be subject

to a four month and one day hold period pursuant to applicable securities laws.

About Caravan Energy

The Company is a mineral explorationcompany based in Vancouver, BC. and holds options over

the EBB Nickel-Cobalt Property located in British Columbia, Canada.

1 Source: Defense Metals’ press release dated June 6, 2023, available via SEDAR+ under Defense

Metals’ profile.

Qualified Person

The scientific and technical content of this news release has been reviewed and approved by Ike

A. Osmani, P. Geo., a consultant of the Company, who is a “qualified person” as defined by

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

Contact information

For more information please contact:

Charn Deol – President & Director

E-mail: [email protected]

Tel: 604 681 1194

Forward Looking Statements

Certain information contained herein constitutes “forward-looking information” under Canadian

securities legislation. Forward-looking information includes, but is not limited to the Closing of the

Acquisition, including the timing thereof, if it is to close at all. Generally, forward-looking

information can be identified by the use of forward-looking terminology such as “will”, “will be” or

variations of such words and phrases or statements that certain actions, events or results “will”

occur. Forward-looking statements are based on the opinions and estimates of management as

of the date such statements are made and they are from those expressed or implied by such

forward-looking statements or forward-looking information subject to known and unknown risks,

uncertainties and other factors that may cause the actual results to be materially different,

including receipt of all necessary regulatory approvals. Although management of the Company

have attempted to identify important factors that could cause actual results to differ materially

from those contained in forward-looking statements or forward-looking information, there may be

other factors that cause results not to be as anticipated, estimated or intended. There can be no

assurance that such statements will prove to be accurate, as actual results and future events

could differ materially from those anticipated in such statements. Accordingly, readers should not

place undue reliance on forward- looking statements and forward-looking information. The

Company will not update any forward-looking statements or forward-looking information that are

incorporated by reference herein, except as required by applicable securities laws.

The Canadian Securities Exchange (CSE) has not reviewed, approved, or disapproved

the contents of this press release.