Karora Resources Inc. announced it has entered into an agreement with Kalamazoo Resources Limited to create a lithium and critical metals exploration company to be called Kali Metals Limited. Karora and Kalamazoo will vend their lithium exploration projects into Kali with a goal of creating a new, jointly owned but separately run lithium-focused ASX listed exploration company to be led by an experienced board and management team. The proposed transaction will allow Karora shareholders to participate in the significantly enhanced upside potential of a larger, combined lithium-focused investment vehicle that will fund its own exploration and development activities while Karora remains focused on growing its gold and nickel production base at both Beta Hunt and Higginsville.

Transaction highlights: Agreement entered into with ASX-listed Australian gold miner Kalamazoo whereby at IPO, Karora will vend into Kali its highly prospective lithium mineral rights across an extensive range of projects located south of Kalgoorlie, Western Australia ("Higginsville Lithium Project") and Kalamazoo will vend into Kali its Australian lithium projects, including Marble Bar and DOM's Hill located in the Pilbara and Jingellic and Tallangatta projects located in the Lachlan Fold Belt (New South Wales and Victoria); At listing, Kali will be a leading Australian critical minerals exploration company, having consolidated significant lithium and critical minerals tenure totaling 3,833km; Kali's extensive exploration portfolio is adjacent to world-class lithium mines and deposits in the Eastern Yilgarn (1,607km) and Pilbara (199km) WA, and prospective greenfields lithium exploration projects in the Lachlan Fold Belt (2,027km) in NSW and VIC; Kali to raise a minimum of AUD 10 million, up to a maximum of AUD 12 million at IPO to fund its exploration and drilling plans across the combined Australian lithium portfolio; Kalamazoo to own 55% of Kali, with Karora owning the remaining 45% (prior to the proposed capital raise); Kali will be led by Managing Director Graeme Sloan and Non-Executive Chairman Luke Reinehr, both bringing significant existing understanding of the newly combined Kali lithium tenements as well as strong track records of value creation in Australia's mining sector.