Moonbound Mining Ltd. (company) announced that it has entered into a non-binding letter of intent (LOI) with Continental Lithium Africa Development Corporation (Continental Lithium), dated June 23, 2023, whereby the Company agreed to take an assignment (the"Assignment") of all of the benefits and obligations of Continental contained in the amended Memorandum of Understanding (MOU) dated June 23, 2023 among Continental Lithium, Alfeus Tomas and Paulus Nghifikepunye (Transaction). The MOU contemplates a joint venture to be formed in connection with seven mining licenses located in Namibia, referred to as the Strathmore mining claims, which are located in the Cape Cross - Uis area Pegmatite Belt (CUPB). The CUPB stretches 115km from Cape Cross in the West to Uis in the East and can be as wide as 24km.

The LOI is a non-binding agreement which sets out the principal terms on which the parties have agreed to complete the Transaction. Subject to satisfactory due diligence and successful additional negotiations, the parties intend to enter into a definitive agreement with respect to the Transaction (the "Definitive Agreement") on or before August 7, 2023. On completion of the Transaction (the "Closing"), the Company has agreed to issue 12,000,000 units in the capital of the Company, at a deemed price of $0.12 per Unit in consideration for the Assignment.

Each Unit will consist of one common share of the Company and one share purchase warrant with each Warrant entitling the holder to acquire one Share at an exercise price of $0.20 for a period of two years from the date of the closing of the Transaction. Upon execution of the LOI, the Company advanced a refundable deposit of $100,000 (Deposit) to Continental, which Deposit will be returned to the Company if the Definitive Agreement is not executed within 45 days of the date of execution of the LOI. Completion of the Transaction remains subject to a number of conditions, including satisfactory due diligence, entry into the Definitive Agreement, Continental Lithium obtaining consent for the Assignment, receipt of all requisite approvals and other conditions customary for transactions of this nature.

The LOI includes a completion deadline of August 31, 2023. The parties will endeavor to complete the Transaction as soon as practicable and intends to complete the Transaction prior to the completion deadline. There can be no assurance that the Transaction will be completed as proposed or at all.

The Transaction will be completed pursuant to available exemptions under applicable legislation.