Errawarra and Alien Metals Forge Joint Venture for Pilbara Lithium Project

Errawarra Resources Ltd has finalized an agreement with Alien Metals Ltd concerning the Pinderi Hills Project situated in the West Pilbara region. This project spans 175 km2 of promising terrain, encompassing both granted mining leases and exploration licenses. Positioned 25 km southwest of Errawarra’s Andover West exploration license, the project holds significant potential for development and exploration.

Key Points:

• Errawarra Resources has initiated a Joint Venture (JV) agreement situated within an emerging lithium-rich zone in the West Pilbara.

• The Pinderi Hills Project is deemed promising for lithium-bearing pegmatites, substantially expanding Errawarra’s land portfolio to 285 km2, solidifying its position as one of the leading explorers of battery metals in the region.

• The JV encompasses significant ultramafic/mafic complexes, identified as favorable environments for lithium-bearing pegmatites.

• A target pegmatite swarm has already been pinpointed within the JV tenement package.

• Errawarra stands to acquire up to 50% ownership in the Pinderi Hills Project, covering 175 km2, by committing to an investment of up to AUS$4 million across two stages.

• Errawarra will assume the role of JV manager, overseeing exploration endeavors throughout the earn-in period.

Thomas Reddicliffe, Executive Chairman, expressed: "We are thrilled about this latest Joint Venture, which positions Errawarra as one of the most expansive exploration entities in the burgeoning lithium region. The Pinderi Hills Project garnered significant interest and holds promise for lithium-bearing pegmatites. Situated southwest of Azure's lithium project at Andover, the potential is substantial. With the identification and verification of a sizable pegmatite swarm on the tenements, our next steps involve swift, systematic mapping and sampling to ascertain the lithium potential of these pegmatites. We aim for this to pave the way for drill testing of the most promising pegmatites."

As per the binding terms outlined in the JV Agreement, Errawarra is set to contribute up to A$4 million to secure up to a 50% stake in the Project over a span of 60 months. The agreement entails several stages: initially, Errawarra will invest $500,000 in Alien through a placement at the 10-day volume weighted average price (VWAP) preceding the agreement's execution. Subsequently, in Stage 1, Errawarra will earn a 25% interest by allocating A$1 million within 24 months from the date of the Terms of Agreement. Following this, in Stage 2, Errawarra has the opportunity to acquire an additional 25% interest by investing an extra A$2.5 million over a period of 36 months following the completion of Stage 1. Upon successful completion of both Stage 1 and Stage 2, Errawarra's interest in the Project will reach 50%. Following Stage 2, both Errawarra and Alien will contribute to the Project proportionally based on their respective interests.