Usha Resources Congratulates Stardust Power on NASDAQ Listing, Provides Update on LOI to Sell Up to 90% of the Jackpot Lake Project for Total Consideration of up to US$26,025,000
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Usha Resources Congratulates Stardust Power on NASDAQ Listing, Provides Update on
LOI to Sell Up to 90% of the Jackpot Lake Project for Total Consideration of up to
US$26,025,000
Vancouver, British Columbia / July 26, 2024 – Usha Resources Lt d. (“USHA” or the “Company”)
(TSXV: USHA) (OTCQB: USHAF) (FSE: JO0), a North American exploration company, congratulates
Stardust Power, Inc. (“ Stardust Power ”, “SDST” and “SDSTW”) on the completion of its business
combination with Global Partner Acquisition Corp II and the listing of its shares of Class A common stock
on the Nasdaq Global Market (“Nasdaq”).
Usha entered into a Letter of Intent (the “ LOI”) with Stardust Power dated March 15, 2024 granting
Stardust Power the right to earn up to a 90% interest subject t o a 2% Net Smelter Royalty (“ NSR”) in
Usha’s Jackpot Lake Lithium Brine Project (“ Jackpot Lake” or the “ Project”) for total consideration of
US$26,025,000 over five years.
A non-refundable sum of US$75,000 has been paid to Usha by Stardust Power pursuant to the LOI.
Stardust Power’s listing on the NASDAQ is a necessary condition for the execution of definitive agreements
(the “Definitive Agreement”) pursuant to the LOI.
Upon completion of the full earn-in of US$26,025,000, which comprises payments totaling US$1,525,000
cash, US$750,000 stock, US$15,750,000 stock or cash at Stardust Power’s election, and a work
commitment of US$8,000,000, Usha would retain 10% of the Project and a 2% NSR and would be carried
in the Joint Venture (“ JV”) formed between Usha and Star dust Power until a formal Decisi on to Mine is
reached following completion of a Feasibility Study. Stardust would be permitted to buy back 1% NSR for
a cash payment of US$7,500,000.
Deepak Varshney, CEO of Usha commented: “We congratulate Stardu st Power on its listing and its
subsequent success which demonstrates the strength of their value proposition.”
Mr. Varshney continued: “Our strategic vision at Usha has alway s been to acquire and monetize
undervalued assets. With the recent acquisition of the Southern Arm Copper-Gold VMS Project from
Abitibi Metals, our focus will now s hift towards copper and other critical metals. With working capital of
approximately $1.2M, Usha is in a strong financial position to execute over the coming year and we look
forward to our maiden drill program at Southern Arm, particular ly at “Hollywood”, which has a ~1.8 km
footprint that is open along strike.”
Stardust Power is developing a lithium refinery facility in Muskogee, Oklahoma, with capacity of producing
up to 50,000 tons per annum of battery grade lithium carbonate (“BGLC”) once fully operational. Stardust
Power’s battery-grade lithium refinery will be designed and man ufactured to foster lower carbon energy
independence for the United States. Stardust Power seeks to bec ome a sustainable, cost-effective supplier
of BGLC, primarily for the electric vehicle (“EV”) market, through the development of its innovative, large
central refinery (the “Facility”) optimized for multiple inputs of different types of lithium brine, including
concentrated lithium brine, lithium chloride, or technical and crude grade lithium feedstocks. Once
completed, Stardust Power expects to secure multiple sources of feedstock from various lithium producers,
with the Facility becoming one of the largest lithium refineries in the United States.
The LOI is non-binding, other tha n Usha’s agreement to not enga ge or communicate with any other party
with respect to the Project through September 2024. The transac tion is subject to the satisfaction of a
number of conditions, including Sta rdust Power’s satisfactory c ommercial and legal due diligence, the
negotiation and execution of the Definitive Agreement and the a pproval of the TSX Venture Exchange.
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The Company cautions that there is no guarantee that the Defini tive Agreement will be completed or that
the other conditions will be satisfied.
Jackpot Lake Lithium Brine Property
USHA’s Jackpot Lake Lithium Brin e Project is located within Cla rk County, 35 kilometers northeast of
Las Vegas, Nevada, and is comprised of 442 optioned and staked mineral claims that total 8,714 acres
(approximately 35.3 km2).
The Project’s geologic setting is similar to that of Albemarle’s Silver Peak Nevada Lithium Mine, the only
producing lithium mine in North America, which has operated con tinuously since 1966, where sediments
from lithium-rich surrounding source rocks accumulate and fill the deposit leading to a potential
concentration of lithium brine due to successive evaporation and concentration events.
Modelling indicates that the Project target comprises the entir ety of the Company’s core optioned claim
block (2,800 acres; 11.3 km 2) and is open in all directions f or expansion. The target is sh allow,
predominantly above bedrock depths of 600 meters, and is approximately 450 meters thick. The total basin
within which the target is situated is estimated to be approxim ately 10,900 acres of which the Company
now controls 8,714 acres.
Qualified Person
The technical content of this news release has been reviewed an d approved by Mr. Deepak Varshney,
P.Geo., a qualified person as defined by National Instrument 43 -101 Standards of Disclosure for Mineral
Projects (“NI 43-101”).
About Usha Resources Ltd.
Usha Resources Ltd. is a North American mineral acquisition and exploration compan y focused on the
development of quality lithium metal properties that are drill- ready with high-upside and expansion
potential. Based in Vancouver, BC, Usha’s portfolio of strategi c properties provides target-rich
diversification and includes Jackpot Lake, a lithium brine proj ect in Nevada and White Willow, a lithium
pegmatite project in Ontario that is the flagship among its gro wing portfolio of hard-rock lithium assets.
Usha trades on the TSX Venture Exchange under the symbol USHA, the OTCQB Exchange under the
symbol USHAF and the Frankfurt Stock Exchange under the symbol JO0.
USHA RESOURCES LTD.
“Deepak Varshney” CEO and Director
For more information, please call 778-899-1780, email info@usha resources.com or visit
www.usharesources.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Stardust Power Inc.
Stardust Power Inc. is a development stage manufacturer and ref iner of battery-grade lithium products
designed to supply the EV industry and help secure America's le adership in the energy transition. Stardust
Power is developing a strategically central lithium refinery in Muskogee, Oklahoma with the anticipated
capacity of producing up to 50,000 tonnes per annum of battery-grade lithium. Committed to sustainability
at each point in the process. Stardust Power is expected to bec ome a publicly traded company on Nasdaq
under the ticker symbol "SDST" via a planned business combination with Global Partner Acquisition Corp
II ("GPAC II") (NASDAQ: GPAC), a special purpose acquisition company.
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Forward-looking statements:
This news release may include "forward-looking in formation" under applicable Canadian securities
legislation. Forward-looking information includes, bu t is not limited to, statements about entering into a
Definitive Agreement and completion of the Jackpot Lake transaction with Stardust Power, strategic plans,
future work programs and objectives and expected results from such work programs. Forward-looking
information necessarily involve known and unknown risks, including, without limitation: Usha and Stardust
entering into the Definitive Agreement; risks associated with general economic conditions; inability to
access sufficient capital from internal and external sources, and/or inability to access sufficient capital on
favourable terms; and other risks.
Such forward-looking information reflects management's current beliefs and are based on a number of
estimates and/or assumptions made by and informati on currently available to the Company that, while
considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may
cause the actual results and future eve nts to differ materially from t hose expressed or implied by such
forward-looking information. Read ers are cautioned that such forwar d-looking information are neither
promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not
limited to, general business, economic, competitive, political and social uncertainties, uncertain and
volatile equity and capital markets, lack of availabl e capital, actual results of exploration activities,
environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays
in obtaining governmental approvals and permits, and other risks in the mining industry.
The Company is presently an exploration stage company . Exploration is highly speculative in nature,
involves many risks, requires substantial expenditu res, and may not result in the discovery of mineral
deposits that can be mined profitably. Furthermo re, the Company currently has no reserves on any of its
properties. As a result, there can be no assurance that such forward-looking statements will prove to be
accurate, and actual results and fu ture events could differ materially from those anticipated in such
statements.