Alien Metals (Alien or Company) announced that it, via its wholly owned subsidiary Alien Metals Australia Pty Ltd. ("AMA"), has entered into a joint venture with Errawarra Resources Ltd. ("Errawarra") (together with AMA, the "Parties") (the "Agreement") in respect of the lithium rights on the Pinderi Hills Project located in the West Pilbara (the "Project").Under the terms of the Agreement, Errawarra is to spend up to a total of AUD 4,000,000 to earn up to a 50% participating interest in the joint venture which will hold the lithium rights on the Project over a period of 60 months, from entering into the Agreement, as follows: Upon execution of the Agreement, a one-off payment of AUD 500,000 to Alien by way of a subscription for 130,000,000 new Common Shares at a price of 0.2p (the "Subscription Shares"), being the VWAPover the ten trading days prior to the date of the Agreement (the "Subscription"). The proceeds of the Subscription will be applied to general working capital purposes. Stage 1: Errawarra will earn-in for a 25% participating interest in the joint venture by spending AUD 1 million on the Project within 24 months of the date of entering into the Agreement; and Stage 2: Errawarra will earn-in for a further 25% participating interest in the joint venture by spending a further AUD 2.5 million on the Project within 60 months of the date of entering into the Agreement.

At the conclusion of Stage 2, Errawarra's interest in the Project will be 50% and from that point, the Parties will contribute towards any Project related expenditure on a pro-rata basis. If Errawarra does not meet the required spend in either Stage 1 or Stage 2, its interest in the joint venture will reduce proportionally. If AMA chooses not to contribute on a pro-rata basis following the completion of Errawarra's Stage 2 earn-in, AMA's 50% interest will dilute on a pro rata basis, and in the event that AMA's interest in the joint venture falls below 10% then its remaining holding will convert to a 2% gross revenue royalty (the "Royalty").

Errawarra retains a first right of refusal to buy back the Royalty, should Alien wish to sell and Errawarra will have first right of refusal to acquire all the remaining mineral rights to the Pinderi Hills nickel, copper, and platinum group metals projects. The lithium rights the subject of the Agreement ("Rights") incurred no revenue or costs in the last 12-month period,  and accordingly there are no attributable profits or losses. Further the Rights have a zero carrying value in the Company's financial statements.

AMA and Errawarra have agreed to negotiate a full form joint venture agreement incorporating the above terms within three months from the date of the Agreement.