Battery Mineral Resources Corp. ("Battery" or "BMR" or the "Company") announced encouraging drill core assay results from the recently completed phase 1 exploration and in-fill drill program at the Dalmacia target of the Punitaqui mine complex (`Punitaqui") in Chile. Drilling continues at the Cinabrio Norte target where three diamond drills are in operation.

The Punitaqui mine is slated for resumption of copper concentrate production in mid to late-2022. Dalmacia is located in the southern portion of Punitaqui about 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 Dalmacia target is in the southern portion of the Punitaqui area about 6km south of the Punitaqui processing plant. Prior to the 2021 program, 229 drill holes (98 RC holes and 131 diamond core holes) had been drilled at Dalmacia for a total of 53,294m. Historic exploration drilling (1994-2020) at Dalmacia outlined a zone of oxide and sulphide copper mineralized striking northeast - southwest over a 1.6km strike length.

The current BMR drilling is focused on the Dalmacia North zone (600m strike length) situated in the northeast portion of the Dalmacia target. The geological setting of the Dalmacia target is different from the Cinabrio orebody which is located 20 kilometers to the north. Dalmacia is situated within a roof-pendant of volcanic rocks, with minor calcareous intercalations of Middle to Upper Jurassic age.

This volcano-sedimentary complex is intruded by younger aged granites located in a reverse fault. Copper-gold mineralization is related to regional structures and deformation zones, 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.

These controls have different geometries leading to complex orebody shapes. 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 current Phase 1 drill program is 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. The recently completed phase 1 drill program consisted of 9,757m in 52 diamond core holes. Complete assay results were recently received for thirteen holes: DS-21-09, DS-21-15, DS-21-18 to DS-21-22, DS-21-23A and DS-21-24 to DS-21-28.

A summary of the targeting rationale and results for these recent drillholes. DS-21-09 was planned to test the down-dip and northern extent of copper mineralization intersected in two historic holes; DAL-20 that produced a 27m intercept of 0.91% Cu and DS-14-17 (27m at 1.84% Cu). The new hole did not intersect mineralization at the target depth and defined the northern limit of the mineralization intersected in DAL-20 and DS-14-17.

In the upper part of DS-21-09 an intersection of 16m at 1.84% Cu from 98m including 12m at 2.18% Cu from 101m is interpreted to be an extension of the intersection of 32 m at 1.43% Cu, in DS-21-08. A narrow zone of 2m grading 1.35% Cu was intersected at depth from 234m. DS-21-15 was designed to test both the down-dip and westward extent of the high-grade copper intersected in historic hole DAL-18 (21m at 2.56% Cu).

The new hole successfully intercepted a 23m well-mineralized section, between 122m - 145m downhole, which hosted the same altered and mineralized vesicular ocoite as DAL-18. Significant intercepts in DS-21-15 are 8m at 1.14% Cu from 128m downhole including 3m at 1.36% Cu from 133m. DS-21-18 was designed as an infill hole to test the upper high-grade intercept found in historic hole SD-04 (38m at 2.35% Cu from 24m).

Hole DS-21-18 encouragingly encountered both oxide and sulphide copper mineralization from surface to 80m. The hole undercut the modelled plunging high-grade sulphide mineralization and intersected a broad intercept of oxide and sulfide copper (68m at 1.14% Cu) from 12m downhole (including 14m at 2.07% Cu oxides) and also a deeper sulphide interval of 8m at 1.50% Cu from 72m. DS-21-19 was also drilled as an infill hole to follow-up a deeper intercept in historic hole SD-04 (28m grading 1.38% Cu).

The hole intersected copper oxide mineralization from 12m - 45m transitioning to copper sulphides between 50m and 80m. Significant mineralized intercepts reported are 36m at 0.99% Cu from 12m downhole and 6m at 1.30% Cu from 66m. DS-21-20 was planned as a 35m up-dip test of the extent of the lower intercept reported in BMR step-out hole DS-21-06 (95m at 0.78% Cu from 167m including 29m at 1.45% Cu, including a higher-grade interval of 14m at 2.44% Cu) and DS-21-14 (9m at 1.53% Cu).

The new hole was successful as it intersected moderate to high grade mineralization from 56m to 90m and several zones of moderate chalcopyrite and bornite mineralization from 90m to 135m. Significant assay intervals include 14m at 1.30% Cu from 56m downhole including 8m at 1.27% Cu from 62m and 4m at 0.72% Cu from 116m and 4m at 1.79% Cu from 140m. The hole did not intersect significant mineralization at the target depth indicating that the mineralization intersected in drill holes DS-21-06 and DS-21-14 cuts out to the north.