Hombre Muerto North Project

Table 1. Hombre Muerto North Lithium Brine Resource Statement

HIGHLIGHTS

• 756 parts per million Li contained within 571,000 tonnes in the Measured Indicated Categories
• Low magnesium to lithium ratio of 2.6 to 1.0
• Second well pumps at 20 liters per second limited only by pump size

Adrian Hobkirk, President and CEO of NRG, commented, “the grades we are seeing at the Hombre Muerto Project are some of the highest reported grades for any of the lithium-bearing brine deposits in Argentina.  The combination of high grades, excellent chemistry and good pumping rates are very positive indicators that we hope will allow us to advance the project through feasibility studies to production should the economic viability and technical feasibility of the project be established.”

Table 1. Hombre Muerto North Lithium Brine Resource Statement

HIGHLIGHTS
The NI 43-101 resource statement, detailed in Table 1, includes 509,000 tonnes (metric tons) of lithium carbonate (Li₂CO₃) equivalent (LCE) and 1,609,000 tonnes of potash (KCl) equivalent in the Measured and Indicated Resource categories, with an additional 62,000 tonnes of LCE and 231,000 tonnes KCl in the Indicated Resource category.

Adrian Hobkirk, President and CEO of NRG, commented, “we are very excited to see a robust and high-grade 43-101 resource estimate from our hydrogeological consultants. The Company now has a high-quality defined resource estimate with positive chemical characteristics that will hopefully allow us to advance the project through feasibility studies to production should the economic viability and technical feasibility of the project be established.”

HIGHLIGHTS

• NRG’s second drill hole at the Hombre Muerto North project has been completed to a depth of 280.8 m, and the sample results demonstrate that excellent lithium values are present in the lower portion of the hole.
• Based on these encouraging results, as well as the excellent results from the pumping well located approximately 2.1 kilometers to the east, NRG has decided to drill a second pumping well adjacent to the second core hole. The target depth of this hole is 400 m.

HIGHLIGHTS

• Initial sample results for the second core hole indicate excellent lithium values with very low Mg/Li ratios. The arithmetic average of three samples taken to a depth of 61.5 m is 719 mg/l lithium with a magnesium to lithium ratio ranging from 2.1 to 3.3.

Adrian Hobkirk, CEO of NRG Metals Inc., commented, “We are encouraged to find high lithium grades in the first part of the second hole, and these results demonstrate the presence of lithium bearing brine across our Tramo property. We will have a more complete picture once this hole is completed and when we have the results of the pumping test from the large diameter hole completed adjacent to the first core hole.”

HIGHLIGHTS

• Brine samples collected from 300 to 401 meters (m) show high grade values very similar to the assays previously reported for the samples from surface to a depth of 300 m, with an arithmetic average 918 mg/l lithium and a low magnesium to lithium ratio.
• The arithmetic average lithium concentration for all of the samples from the surface to a depth of 401 m is 900 mg/l, with a relatively low magnesium to lithium ratio of 3.0 to 1.0.

HIGHLIGHTS

• Brine samples collected from 100 - 300 meters show high grade values very similar to the assays for the samples from surface to a depth of 100 meters, with an average 888 mg/l Li and a low Mg to Li ratio.
• The hole has been completed to a depth of 401 meters.
• Adjacent rotary drill hole for pump testing has been completed to a depth of 393 meters.
• Drilling has commenced on a second diamond core hole approximately 2.1 kilometers to the east of the first hole.

HIGHLIGHTS
• Brine samples collected over the first 100 meters average 905 mg/l Li with a low Mg to Li ratio.

• The hole is now at 300.5 meters in clastic sediments, and brine samples are currently being collected from 300 to 100 meters. Drilling will resume after the sampling is completed.

• Adjacent rotary drill hole for pump testing is at a depth of 173 meters.

NRG has mobilized a rotary drill to the Hombre Muerto North Lithium project to complement the diamond drill already at site. The rotary hole, which is located 15 meters east of the core hole currently underway, is to carry out pump testing.  Drilling has reached a depth of 245 meters.

The first diamond core hole has been advanced to a depth of 105 meters with a target depth of up to 350 meters. The geological profile observed so far in the core is that of sand, gravel, and clay, with a small halite zone, consistent with the expected geology. Brine was encountered from the top of the hole, and samples have been taken every ten meters from the current depth back to surface using a double packer unit.

Panoramic view - drill pad complete, drill rig on site and drilling staging underway.

Panoramic view - road construction out to drill location is now complete.  Next step is establishing the drill pad.