Lodestar Battery Metals Releases H1 2023 Letter to Shareholders

Lodestar Battery Metals (TSXV: LSTR) (OTCQB: SVTNF) ('Lodestar' or the 'Company') is pleased to announce the release of its corporate update to shareholders for the six months ended June 30, 2023 ('H1 2023') and review of the restructuring from Lowell Kamin, President, CEO, and Chairman of the Board.

Lodestar will host its Annual General Meeting today, July 14, 2023, at 11 AM PT. Shareholders and the general public are welcome to dial in with the following details: Toll Free Canada [phone]

Vancouver, BC [phone]

Participant access: 942 544 407

Dear Shareholders, When I was appointed President and CEO last June, I made a significant and deliberate decision to restructure and rebrand the Company to align our corporate identity with our collective vision for the future with my personal beliefs about how junior resource companies should be managed.

Highlights of the restructuring and our key achievements over the last 12 months include: Strategic Review, Risk Management and Governance Overhaul

At the outset, we undertook a comprehensive review of our assets in Mexico and all commercial arrangements the Company had entered into. We cancelled all engagements and methodically managed the risk associated with that decision. All remaining officers and directors associated with Silver One Resources Inc. stepped aside and Scott Margach and Gary Prihar were added as Independent Directors. From day one, we substantially reduced the burn rate and identified the structural risks of the Company.

Leadership Transition, Compliance Strengthening and Asset Management in Mexico Operations

Following the resignation of our former CFO, Killian Ruby, who stepped down after the former CEO and board members resigned, we appointed an Interim CFO to fill the position. One notable achievement in the second half of 2022, from both a C-suite and Board perspective, was the successful rehiring of Killian Ruby as CFO, who also became a member of the Board. Killian demonstrated exceptional competence by assuming responsibility for all commercial arrangements in Mexico, ensuring the proper documentation and up-to-date status. Killian played a crucial role in solidifying compliance across the organization. Furthermore, Killian gained full control over the Mexican assets, bank accounts and relationships. Killian's meticulous attention to detail enabled us to navigate our 2022 audit process successfully.

Strategic Asset Realignment: Capitalizing on Battery Metals and Sustainable Energy Solutions

We embarked on a new direction for the Company, transitioning from a Mexican Silver Exploration company to a North American Battery Metals company. As part of this strategic shift, we entered into a Letter of Intent ('LOI') to acquire our flagship asset, The Peny Property, in Snow Lake, Manitoba, in July 2022. We moved quickly to close on the acquisition of this asset in September 2022. We believe this represents a significantly better opportunity to participate in a growing district with a rich mining history spanning over 100 years. The area boasts exceptional infrastructure, favourable tax treatments for exploration expenses, and several other companies exploring for lithium.

The Snow Lake Mining District: A Promising Frontier for Lithium Exploration and Extraction

Snow Lake Mining District's allure originates from its abundant pegmatite deposits and favourable geological conditions. The district boasts pegmatites, which hold significant potential for the exploration and extraction of lithium-bearing minerals. The geological history and structure of the region have fostered optimal conditions for the concentration of these minerals within pegmatite dykes.

Moreover, the district offers convenient access to a well-established mining infrastructure and a reliable power supply, creating an advantageous environment for the efficient extraction and processing of lithium. Furthermore, the escalating demand for lithium in EVs and renewable energy storage systems positions the Snow Lake Mining District as an exceptionally promising destination for mining companies aiming to capitalize on the surging market demand for this critical resource.

Today, Lodestar holds one of the largest land packages in the entire district, encompassing 47 mineral claims spanning 11,191 hectares. Consequently, it's easy to understand our excitement about unlocking the potential of this asset.

Apart from Lodestar, there has been significant activity in the region this year, including: In June 2023, Snow Lake Lithium announced the initial findings of its metallurgical testwork program conducted for the Grass River Lithium Project1. The first round of results from the recent winter drilling campaign has been received and interpreted, revealing promising outcomes. Notable highlights include intersecting significant lithium mineralization at various depths, such as 6.3 meters at 1.97% Li20 from 31.7 meters and 6.6 meters at 1.59% Li20 from 47.6 meters. These results and the remaining drilling program will contribute to a future Mineral Resource Estimate (MRE) for the Grass River Project. Snow Lake anticipates releasing a Maiden MRE and a Preliminary Economic Assessment (PEA) for the project in July, offering further insights into its potential.

Further development work in the Wekusko Lake pegmatite field is ongoing where Snow Lake Lithium has a defined indicated resources of 9.08 Mt@ 1.00% Li2O, further exploration and development work is assessing feasibility for the production of 160k tonnes per annum at 6% lithium concentrate for 8-10 years2.

In June 2023, Hudbay Minerals Inc. and Rockcliff Metals Corp. announced a definitive agreement to consolidate Rockcliff's Snow Lake camp3. Hudbay's interest in the Snow Lake Mining District can be considered a testament to the area's potential, and this agreement has the potential to open the door for future strategic partnerships between major and junior mining companies.

In June 2023, Foremost Lithium Resource & Technology Ltd. announced results from their maiden drilling program at the Jena Lake property and confirmed continuity of the B1-B2 pegmatites and reported: 1.26% Li2O over 3.35 meters, as well as numerous gold intersections, including 7.50 g/t Au over 7.66 metres4.

Updates on Lodestar's Fall 2023 Work Program

In May 2023, we announced a CAD $400,000 work program ('2023 Work Program') aimed at advancing exploration at our Peny Property.

Lodestar will continue analyzing the 86 historical drill holes and seek to explore additional pegmatite intersections on the property. The historical drill holes on the property hold significant importance as they provide invaluable data and insights for future targets. The reported pegmatite intersections found within these drill holes offer indications of potential mineralization and can serve as key markers for understanding the geological composition of the area. Details of this release can be found here.

Decision-Making for Mexican Asset Portfolio

After conducting a thorough evaluation of our Mexican assets in collaboration with Longford Exploration Inc., we made the decision to discontinue our involvement with Pluton, Mexico. This was driven by the financial burden of carrying the asset on our books on an annual basis and an inherited tax liability.

We commissioned an updated 43-101 in Penasco, Mexico, engaging the services of Micon International Limited. This decision was driven by two factors: first, the existing historic 43-101 dated back to 2008, and secondly, the methodology for calculating resources was updated in 2014 by the Canadian Institute of Mining and Metallurgy.

When assessing the risks associated with on-site operations in La Frazada, Mexico, we opted to increase our insurance coverage but refrained from sending any personnel into the region to conduct work due to identified risks.

Lastly, with the assistance of independent external counsel, we initiated a comprehensive review of the commercial arrangements with Silver One Resources Inc., who were the original sellers of the assets to former Silverton Metals Inc. This evaluation aimed to gain a better understanding of the path forward for our balance sheet and the implications of these arrangements.

The repositioning of our portfolio has led us to initiate the sale of the Penasco Quemado and La Frazada silver properties in Mexico. This strategic asset realignment enables us to adapt to changing market dynamics and capitalize on the growing demand for sustainable energy solutions, specifically focusing on battery metals. We believe this move will position us for long-term success in the evolving energy landscape. It is worth noting that these assets were inherited when we were appointed to the business a year ago, and we are actively working towards resolving any outstanding liabilities associated with them.

About Lodestar Battery Metals Corp.

Lodestar Battery Metals Corp. is a Canadian mining exploration company focused on the battery metals space. The Company's 100% owned flagship Peny Property comprises of 47 mineral claims totalling 11,191 hectares in the Snow Lake District, Manitoba, with access to tier-1 existing infrastructure: railway, roads, airstrip, and power. The Company also owns 100% interest in two significant silver assets in Mexico. The Company intends to build a strong portfolio of battery metals projects to drive future growth through exploration success and from later-stage projects with production potential. The Lodestar business plan calls for a dynamic combination of developing its existing properties, acquisitions, and partnerships to achieve this growth.

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