Usha Resources Makes Discovery at the White Willow Project, Prepares for Drilling at the Southern Arm Copper-Gold VMS Property
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Usha Resources Makes Discovery at the White Willow Project, Prepares for Drilling at the
Southern Arm Copper-Gold VMS Property
Vancouver, British Columbia / August 9,, 2024 – Usha Resources Ltd. (“USHA” or the “Company”)
(TSXV: USHA) (OTCQB: USHAF) (FSE: JO0), a North American mineral acquisition and exploration
company, is pleased to announce that it has discovered spodumene at its White Willow Lithium Pegmatite
Project (“White Willow”).
Highlights:
• Jackpot Lake Lithium Brine property: Entered into a Letter of Intent (LOI) with Stardust Power,
Inc. (MC US$600M, NASDAQ:SDST) where it has been paid US$75,000 for exclusivity pursuant
to the L OI granting the right to earn up to a 90% interest for total consideration of up to
US$26,025,000 over five years.
• White Willow LCT Pegmatite property: Newly discovered spodumene. This milestone validates
the Company’s thesis that it has developed over the past 15 months, successfully expanding the
project from its initial roots with a high-grade tantalite assaying 120,000 ppm tantalum to a system
with a strike length of ~44 kilometres.
• Southern Arm Copper-Gold project: Entered into 2 year option agreement to acquire 100% of
the property from Abitibi Metals Corp. (AMQ.CN), fieldwork initiated to de -risk maiden drill
program in Fall 2024.
• Strong Balance Sheet: The Company has working capital of approximately $2 million putting it
in a strong position to execute aggressively throughout the Fall at its exploration projects.
With over 10 priority drill targets identified, the Company is now in a position to complete its maiden drill
program or partner with a Company similarly to its decision with the Jackpot Lake Lithium Brine Project
(“Jackpot Lake ”), where it has been paid US$75,000 by Stardust Power, Inc. (MC US$ 600M) for
exclusivity pursuant to the LOI granting the right to earn up to a 90% interest subject to a 2% Net Smelter
Royalty for total consideration that could total up to US$26,025,000 over five years inclusive of payments
comprising 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$8M).
The full details of the LOI are included in Usha’s press release dated May 17, 2024 . The transaction is
subject to the satisfaction of a number of conditions. The Company cautions that there is no guarantee that
the Definitive Agreement will be completed.
The Company’s focus for this fall will be on its recently optioned Southern Arm project, where it has begun
preparations for drilling and will shortly commence a biogeochemical survey to identify additional priority
targets prospective for high-grade gold and copper mineralization that will be included in the Company’s
maiden drill program.
Located in the prolific Abitibi Greenstone Belt, Southern Arm hosts a ~7.3 km conductive copper -gold
trend along the regional-scale Bapst fault within the volcanic rocks of the Brouillan-Fenelon Group, which
hosts the nearby Selbaie Mine (~15 km SW), which produced 53 Mt at 0.96% Cu, 1.9% Zn, 0.58 g/t Au,
40.7 g/t Ag, and Abitibi’s B26 Deposit (~16 km SW) which hosts an indicated resource of 6.97 at 2.94%
Cu Eq (1.32% Cu, 1.80% Zn, 0.60 g/t Au and 43 g/t Ag).
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Southern Arm is prospective for polymetallic VMS -style mineralization and has multiple drill targets
already identified including “Hollywood” where anomalous metals values have been identified over a ~1.8
km footprint that is open along strike.
Deepak Varshney, CEO of Usha Resources commented: “We are very excited to announce this discovery.
Developing grassroots assets is a meaningful way to create shareholder value and White Willow is the
second project which we have successfully developed in-house and advanced. With working capital of over
two million, Usha is in a very strong position to advance our Southern Arm Copper-Gold VMS Project and
we look forward to sharing updates regularly as we lead into our maiden drill program planned for this
Fall.”
Figure 1 - Regional claim map for the Southern Arm Project.
The milestone discovery of spodumene in the Maple Leaf pegmatite validates the Company’s thesis that it
has developed over the past 15 months, successfully expanding the project from its initial roots with a single
high-grade tantalite showing (up to 14.6% Ta2O5) to a spodumene-bearing LCT pegmatite field with a strike
length of ~44 km (Fig. 1). The Bingo pegmatite swarm, ~23 km west of the newly discovered spodumene
at the Maple Leaf dyke, is host to beryl and Nb-Ta oxides and has also returned geochemical characteristics
suggestive of spodumene -type degrees of fractionation in whole -rock, muscovite and K -feldspar grab
samples. The highly fractionated Bingo and Maple Leaf pegmatite groups are separated by prospective
ground comprising metasedimentary rocks of the Quetico subprovince, of which an area of only ~10% has
been explored.
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Spodumene was identified using Fourier -Transform Infra -Red spectroscopy for mineral identification
(FTIR-MIN), a proprietary technique offered by ALS laboratories, which confirm ed the source of lithium
anomalies to be fine -grained spodumene not visible in hand sample. FTIR -MIN is a powerful analytical
technique that can be used to identify and characterize minerals in a rapid and cost -effective manner. In
FTIR-MIN, a sample is illu minated with infrared radiation, and the minerals within the sample absorb
certain frequencies of light that are characteristic of its chemical composition and crystal structure. A
machine-learning algorithm then compares these absorption spectra to a database of thousands of samples
to quantify the mineralogy of the sample. In the case of the Maple Leaf pegmatite, spodumene was
identified in two samples.
Figure 2 – Map of the White Willow Project with the LCT-trend defined.
The Company is also pleased to announce that is has received approval from the TSX Venture (the
“Exchange”) to proceed with the first issuance of common shares (the “Shares”) in the capital of the
Company under the option it has executed (the “Option” or “Option Agreement”) with Abitibi Metals Corp.
(“Abitibi” or the “Optionor”) for the right to purchase an undivided 100% interest in the Southern Arm
property. The Company completed the first issuance of 2,500,000 Shares to the Optionor on August 8,
2024.
Pursuant to the Option Agreement, the Company may acquire a 100% interest in the Southern Arm property
by issuing an aggregate of 5,000,000 Shares in the capital of the Company and completing $2,000,000 of
work expenditures as indicated in the table below:
Payment Shares Work Commitment
Signing 2,500,0001 -
1st Anniversary 2,500,000 -
2nd Anniversary - 2,000,0002
Total 5,000,000 $2,000,000
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Notes 1. Payable within fifteen (15) days from receipt of approval to the Agreement
from the Exchange (the “Approval”).
2. Shares of the Company are to be issued at a deemed value based on the
Discounted Market Price at the time of issuance.
The Company has granted the Optionor a 2% net-smelter returns royalty (the “NSR”). The Company may
purchase two-thirds of the NSR at any time for consideration of $1,000,000.
The Company is also pleased to announce that, subject to the final approval of the Exchange, the Company
has closed the first tranche of its non-brokered private placement raising gross proceeds of $924,999.97
through the issuance of 8,043,478 flow-through shares (each, a “FT Share”) at $0.115 per FT Share (the
“Private Placement”). Each FT Share was issued as a "flow-through share" as defined in subsection 66(15)
of the Income Tax Act (Canada) and as defined in section 359.1 of the Quebec Tax Act with respect to
purchasers in Quebec.
Proceeds of the Private Placement will be used to conduct further exploration on the Company’s mineral
properties. The Company issued 280,000 non-transferable finders’ warrants exercisable for a period of 24
months at an exercise price of $0.115 and paid finders’ fees of $32,200 in respect of the Private Placement
as permitted by the policies of the Exchange and applicable securities laws.
All securities issued are subject to the Exchange Hold Period and a four -month and one day hold period
pursuant to securities laws in Canada expiring on December 9, 2024.
Quality Assurance/Quality Control
All collected rock samples were put in sturdy plastic bags, tagged, and sealed at site. Sample bags were
then put in rice bags and kept securely before being sent by road transport or delivered by the crew
supervisor to either AGAT Laboratories Ltd. or Act ivation Laboratories in Thunder Bay, Ontario. All
samples are analyzed with Four -Acid Digestion/Combined ICP -AES/MS package (49 elements). The
QA/QC protocol included the insertion and monitoring of appropriate reference materials, in this case high
concentration and low concentration certified OREAS and CDN lithium standards to validate the accuracy
and precision of the assay results.
Qualified person
The technical content of this news release has been reviewed and approved by Mr. Deepak Varshney,
P.Geo., a qualified person as defined by National Instrument 43 -101. Historical reports provided by the
optionors were reviewed by the qualified person. The information provided has not been verified and is
being treated as historic non-compliant intercepts.
About Usha Resources Ltd.
Usha Resources Ltd. is a North American mineral acquisition and exploration company focused on the
development of quality critical metal properties that are drill -ready with high -upside and expansion
potential. Based in Vancouver, BC, Usha’s portfolio of strategic properties provides target -rich
diversification and includes Southern Arm, a copper-gold VMS project in Quebec, Jackpot Lake, a lithium
brine project in Nevada and White Willow, a lithium pegmatite project in Ontario that is the flagship among
its growing 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.
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
www.usharesources.com
USHA RESOURCES LTD.
For more information , please call 778-899-1780, email [email protected] 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.
Forward-looking statements:
This news release may include "forward -looking information" under applicable Canadian securities
legislation. Such forward -looking information reflects management's current beliefs and are based on a
number of estimates and/or assumptions made by and information 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 events to differ materially from those expressed or implied by such
forward-looking information. Readers are cautioned that such forward -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, comp etitive, political and social uncertainties, uncertain and
volatile equity and capital markets, lack of available 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 expenditures, and may not result in the discovery of mineral
deposits that can be mined profitably. Furthermore, t he 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 future events could differ materially from those anticipated in suc h
statements.
The securities referred to in this news release have not been, nor will they be, registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the
account or benefit of, U.S. person s absent U.S. registration or an applicable exemption from the U.S.
registration requirements.
This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy
any securities. Any public offering of securities in the United States must be made by means of a prospectus
containing detailed information about the company and management, as well as financial statements.