Megawatt Lithium and Battery Metals Corp. announced it has entered into a mineral property option agreement dated effective September 27, 2022 with Cygnus Gold Limited whereby Cygnus has been granted the option to acquire up to an 80% interest in Megawatt's Route 381 Project and Mitsumis Project located in Quebec. Under the terms of the Agreement, Cygnus has the option to acquire an initial 51% interest in the Projects.

Following the exercise of the First Option, Cygnus has the option to acquire an additional 29% interest in the Projects. In order to exercise the First Option, Cygnus must commit $2,000,000 towards exploration on the Projects, over three years: payment of $175,000 within 3 days of the execution date of the Agreement (which includes $125,000 as an expense reimbursement to the Company); reimbursing MegaWatt's exploration expenditures of up to $375,000 from its 2022 exploration program by December 31, 2022; and funding $2,000,000 in exploration expenditures on the Projects by the third anniversary date of the Agreement as follows: $500,000 to be incurred prior to the first anniversary of the effective date of the Agreement (less any reimbursements); $500,000 to be incurred prior to the second anniversary of the effective date of the Agreement; and $1,000,000 to be incurred prior to the third anniversary of the effective date of the Agreement. Cygnus will then have the option to exercise the Second Option by: paying to MegaWatt $50,000 within 30 days of the satisfaction of the First Option; filing a NI 43-101 or JORC Code compliant mineral resource estimate which defines a lithium oxide resource on the Projects of at least 5MT with an average grade of not less than 0.8% Li2O in any resource category as defined in NI43-101 or the JORC Code, by the date which is no later than 5 years from the exercise of the First Option; and paying cash consideration to MegaWatt of $1,000,000 within 3 days of filing the above report.

Upon satisfaction of the Second Option, MegaWatt's interest will be freely carried until a feasibility study is successfully announced on the ASX. After the release of the feasibility study, or in the event the Second Option is not exercised by Cygnus, Megawatt and Cygnus will enter into a formal joint venture agreement in accordance with their participating interests.