Battery Mineral Resources Corp. announced encouraging drill core assay results from the recently completed Phase 1 exploration and infill drill program at the Dalmacia zone of the Punitaqui mine complex in Chile. The Punitaqui mine is slated for resumption of mine operations in the second half of 2022.

The Dalmacia target is located in the southern portion of the Punitaqui area approximately 6 kilometers ("km") south of the Punitaqui copper processing plant. The Dalmacia target has underground mining access, partially delineated mineralized zones and is targeted as a potential new source of ore feed to the Punitaqui plant. The 2021-22 phase 1 drill program consisted of 9,757.56m in 52 diamond core holes.

The geological setting of the Dalmacia target is different from the Cinabrio ore body which is located 20 kilometers to the north. At Dalmacia, structurally controlled copper-gold mineralization is developed in the contacts between granite, sub-volcanic andesitic porphyry intrusives and volcano-sedimentary rocks. Controls on mineralization include small scale shear zones, intrusive contacts, vesicular andesites and alteration zones.

High grade copper mineralization occurs in small high-grade pods which locally occur in clusters enveloped in low grade mineralization. The upper portion of the Dalmacia target is accessed via a portal and an underground ramp with limited level development. The Phase 1 drill program focused on the northernmost 600m of the zone, was designed to infill and confirm the continuity of mineralization between previous drilling and includes a series of step-out holes to test the potential adjacent to the main zone of copper-gold-silver mineralization as defined by historic drilling.

Complete assay results were recently received for eleven holes. A summary of the targeting rationale and results for the significant recent drill holes follows below. DS-22-09 was planned to test a "drilling gap" above the lower portion of the DS-21-08 intercept (102m at 1.41% Cu including 78m at 1.67% Cu and 16m at 3.52% Cu).

This infill drill hole intersected two narrow copper zones including 6m at 1.01% Cu, 3m at 1.19% Cu higher up in the hole and deeper hits of 18m at 1.51% Cu including 8m at 2.39% Cu as well as 6m at 1.18% Cu. The higher-grade deeper intercepts correlate with an extension of the DS-21-08 mineralization. DS-22-10 was designed to test as an infill hole in the northeast part of the target area to follow-up hole DS-22-02 (11m at 1.08% Cu, including 4m at 2.32% Cu).

The new hole produced two significant assay intervals: 23m at 1.55% Cu including 12m at 2.50% Cu as well as intercepts of 4m at 1.81% Cu and 7m at 1.12% Cu. The upper intercept is interpreted to represent be the extension of the DS-22-02 mineralization while the lower assay interval is the southern extension of the copper mineralization encountered in DS-11-15 (29m at 1.05% Cu including 7m at 1.94% Cu). DS-22-11 is an infill hole drilled along the eastern margin of the target zone.

This hole cut several mineralized intercepts including: 11m at 1.96% Cu, 6m at 2.40% Cu and 11m at 1.50% Cu including 6m at 2.28% Cu. The copper mineralization encountered is interpreted as the down-dip extension of the DS-22-13 intercept (5m at 1.00% Cu). DS-22-12 was drilled as an infill hole in the northeast part of the target area to follow-up the copper zone intersected in DS-2202 (11m at 1.08% Cu, including 4m at 2.32% Cu).

DS-22-12 encountered three copper zones: 5m at 1.08% Cu, 4m at 1.22% Cu and 11m at 0.90% Cu. The upper intercept is an extension of the DS-22-02 mineralization. DS-22-13 was planned as an infill hole in the northeast part of the target area to test the up-dip extent of the copper mineralization cut in hole DS-22-11: (11m at 1.96% Cu, 6m at 2.40% Cu and 11m at 1.50% Cu including 6m at 2.28% Cu) The new hole confirmed the up-dip extension of the copper zone with an intercept of 5m at 1.00% Cu.

DS-22-15 was planned to test the for a western extension of the lower intercept in DS-22-12 (11m at 0.90% Cu). Hole DS-22-15 intersected two mineralized zones: 29m at 1.05% Cu including 7m at 1.94% Cu as well as an intercept of 15m at 0.81% Cu including 3m at 1.81% Cu and 3m at 1.34% Cu that confirmed the western extension of the DS-22-12 copper zone. DS-22-16 was designed as an infill hole that tested a "drilling gap" between a number of mineralized intercepts within the northeastern part of the target.

The new hole successfully tested the gap and yielded two intercepts: 4m at 1.17% Cu and 3m at 1.18% Cu. DS-22-17 was planned as an infill hole in the central part of the target testing a "drilling gap" between several mineralized intercepts. The new hole encountered 6mat 1.15% Cu which is interpreted as a feeder structure for the copper mineralization intersected in historic hole DS-14-12 (20m at 1.53% Cu).

DS-22-18 was designed as an infill hole in the northeast part of the target. The new hole encountered number of narrow zones of anomalous copper mineralization, hosted within an andesitic intrusive. The best intercept reported in DS-22-18 was 6m at 0.96% Cu.

DS-22-19 was designed to test the southwest margin of the target area and probe for a southeast extension of the DS-21-21 high grade copper intercept of 17m at 3.77% Cu. The new hole encountered several narrow zones of moderate grade mineralization which are interpreted to correlate with the high-grade intersections in DS-21-21. DS-22-19 intersected 17m at 0.69% Cu including 2m at 1.93% Cu DS-22-20 was planned to test for northeast extension of mineralization encountered in drill holes DS-22-02 (11m at 1.08% Cu, including 4m at 2.32% Cu), DS-22-12 (11m at 0.82% Cu) and DS-22-16 (8m at 5.29% Cu and 8m at 3.53% Cu) in the eastern part of the target area.

The new hole encountered 4m at 1.02% Cu suggesting the copper mineralized extends in this direction.