Surge Battery Metals Inc. reported a maiden Mineral Resource Estimate (MRE) on its Nevada North Lithium Project (NNLP). The MRE, which has an effective date of February 16, 2024, was prepared by Dr. Bruce Davis, FAusIMM and includes a pit- constrained Inferred Mineral Resource of 4.67 Mt of Lithium Carbonate Equivalent (LCE) grading 2,839 ppm Li at a 1,250 ppm Li cutoff. The lithium mineral resources at the NNLP are hosted by multiple shallowly dipping and laterally extensive clay beds, separated by tuff units.

The primary horizon ("Cu3") contains the highest grades and is typically the first horizon intersected in drilling. Clay units primarily consist of massive green and dark brown laminated clay with white carbonate clots and euhedral calcite crystals. Seven lithium-rich beds have been identified to date that range in thickness from >50m to 2.5m and average around 15m thick.

The MRE for the NNLP is based on twenty drill holes completed between 2022 and 2023 under a Notice of Intent (NOI) permit for a total of 2,758m and 1,973 samples. Eight of the twenty drill holes were reverse circulation (RC), five were sonic, and seven were diamond core. The 3D geological model used to inform the block model was developed in Leapfrog by SideQuest Geological Modelling.

Many of the metrics used to derive a 1,250 ppm Li base cut-off grade were obtained in part from review of available information for deposits similar to that at the NNLP. It is expected that items such as recovery, bulk density and operating cost will change in the future with additional test work and engineering studies. The metrics used to derive a 1,250 ppm Li base case cut-off grade and define the resource pit shell include: Operating Cost per Resource Tonne: USD 88.50; LCE Price: USD 20,000/t LCE; Recovery: 73.5%; Bulk Density: 1.79 t/m3; Pit Slope: 27°; Li to LCE conversion factor: 5.323.

The table includes the tonnage sensitivities to different cutoff grades up to a maximum of 4,000 ppm Li. The inferred resource estimate includes 100% of the resources on Surge's 100% owned ground and 25% of resources within the private block of ground in which Surge owns 25% of the subsurface rights. Next Steps The remainder of 2024 will be a busy year as the company prepares for a much larger and expanded drill program upon receiving its Exploration Plan of Operations Permit.

In 2024, Surge plans to complete the following: Metallurgical and Flowsheet Test Work: Metallurgical test work is well underway with Kemetco. It anticipates releasing the results of this testing in first quarter of 2024. Surface Exploration Programs: In 2024, Surge plans to complete a detailed surface mapping program over the property and additional soil sampling.

Combined, these will help identify additional areas of outcropping clay units and help to improve geological understanding. Spring /Summer Expansion Drilling: In early spring, Surge will work with the BLM to determine how much disturbance can be reclaimed under the current NOI permit to complete additional drilling in 2024. As well, Surge plans to drill on the M3 JV property.

Preliminary Economic Assessment (PEA): Surge expects to undertake a PEA study on the NNLP with an anticipated target reporting date in fourth quarter of 2024.