Oar Resources Limited announced it has signed a Binding Option Term Sheet with Denchi Pty Ltd. and First Standard Minerals Pty Ltd. for the 100% acquisition of a lithium project near Wiluna in Western Australia. The Project is targeting pegmatite hosted lithium mineralisation, with initial indications pointing to the existence of Lithium-Caesium-tantalum (LCT) pegmatites. This type of pegmatite is the same host rock found at several key lithium projects including Pilbara Minerals' Pilgangoora project and Talison's Greenbushes operation.

The Project covers a combined area of 217.7km across one granted tenement (EL53/2198) and two tenement applications (ELA53/2229 and ELA53/2230). Located approximately 50km west of Wiluna in the Northern Goldfields of Western Australia, the project lies 120km north-west of Liontown Resources' Kathleen Valley lithium deposit, which holds a current Mineral Resource Estimate of 156Mt at 1.4% Li2O and 130ppm Ta2O5. Historic lithium and rubidium anomalies, along with the presence of other minerals common in LCT pegmatites, were recorded in rock chips taken in 2019, which were provided to the Company by Denchi and verified using DMIRS' historic exploration reporting system, WAMEX.

Recently completed reconnaissance by the Company has confirmed the presence of pegmatites at the location of the historic rock chip samples. Sixteen samples were collected by the Company's geological team at the site of the historic samples and at numerous outcropping pegmatite dykes up to 500 metres from the initial anomalism. Acquisition Terms: The acquisition of 100% of the Project will be settled by issuing fully paid OAR ordinary shares to the Sellers, as follows: 40,000,000 fully paid OAR ordinary shares within five business days after the date of execution as a non-refundable deposit ("Deposit Shares").; 200,000,000 fully paid OAR ordinary shares on completion of the acquisition ("Completion Shares"), expected within 30 days after the date of execution.; Issuing the Sellers with the following Deferred Consideration Shares, upon satisfaction of the below milestones: 80,000,000 fully paid OAR ordinary shares, subject to and conditional upon the granting of ELA53/2229 within 12 months from completion of the acquisition ("Grant 1 Milestone Shares"); 80,000,000 fully paid OAR ordinary shares, subject to and conditional upon the granting of ELA53/2230 within 12 months from completion of the acquisition ("Grant 2 Milestone Shares"); Fully paid OAR ordinary shares, valued at $250,000, with each share having a deemed price equal to the higher of $0.01 ("Floor Price") or the 30-day VWAP of OAR shares prior to issue, subject to and conditional upon OAR having delineated a maiden inferred JORC Code compliant Mineral Resource at the Project, which exceeds 10 million tonnes of Li2O with a minimum grade of 1% Li2O, within five years from completion of the acquisition ("JORC Milestone Shares").; and Granting the Sellers, an aggregate 2% net smelter royalty in respect of all Li2O extracted by OAR from the Project.

The company has an option to buy out the royalty prior to a decision to mine. The voluntary escrow of 50% of all the fully paid OAR ordinary shares to be issued, pursuant to the project acquisition, including the Deferred Consideration Shares, for a period of 6 months from the date of issue.