Rhyolite Resources Ltd. announced that the Company has reached a settlement with Fred Stanford who will resign from his duties as Chief Executive Officer of the Company, effective December 22, 2022. This follows the decision by the board of directors of the Company to cease further development of the Muckahi Mining System, including releasing all employees previously retained in the further development of the System. In connection with his resignation, the Company has agreed to make a cash payment to Mr. Stanford and transfer ownership of its wholly-owned subsidiary, Muckahi Inc., to Mr. Stanford in settlement of any remaining obligations owing.

Muckahi controls a license, and associated intellectual property, related to the Muckahi Mining System. Following completion of the transfer, the Company will have no further obligations related to the Muckahi Mining System and will retain a royalty. The Royalty will entitle the Company to receive ten percent of the gross revenue generated by any party from the use of the Muckahi Mining System, until such time as the Company has received CAD 10,000,000.

The Parties are reversing the transaction that was announced in the press release dated September 7, 2021 and returning Muckahi to Mr. Stanford. Mr. Stanford will be returning to treasury 9,500,000 common shares previously issued to him as consideration for the acquisition of Muckahi. Following completion of the cancellation, the Company will have approximately 107,185,253 common shares outstanding.

Completion of the cancellation of the shares, the transfer of ownership of Muckahi, and the grant of the Royalty, remain subject to finalization of definitive documentation and the receipt of any required regulatory approvals.