Faraday Energy Inc. entered into a non-binding letter of intent to acquire Bird River Resources Inc. (CNSX:BDR) in a reverse merger transaction on May 26, 2021. Pursuant to the Letter of Intent, Bird River will acquire all of the issued and outstanding shares of Faraday for fair market value of Faraday, to be determined pursuant to a valuation opinion to be prepared, which will be satisfied as follows (i) the initial CAD 3 million of the value for Faraday shall be paid in cash, and (ii) such additional amount of fair market value of Faraday in excess of CAD 3 million, will be paid in shares in the capital of Bird River at the deemed price of CAD 0.25 per Bird River Share. Upon closing of the Proposed Transaction, all of Bird River's current directors and executive officers will resign and be replaced by nominees of FEI, all in a manner that complies with the requirements of governing regulatory bodies and applicable securities and corporate laws. In conjunction with, and prior to the closing of the proposed transaction, Bird River intends to complete a private placement of common shares for gross proceeds of CAD 5 million at CAD 0.25 per Bird River share.

The proposed transaction is subject to certain conditions precedent, including, among other things, the completion of satisfactory mutual due diligence, execution of a definitive legal agreement, the completion of a private placement and receipt of all requisite approvals, the conditional approval to the listing of the shares of the resulting issuer on the Canadian Securities Exchange and receipt of all required regulatory, corporate and third-party approvals, including approvals by the CSE, applicable governmental authorities, and the fulfilment of all applicable regulatory requirements and conditions necessary to complete the Proposed Transaction. As of August 10, 2021, both parties have extended the expiry date for the definitive agreement to August 31, 2021 and as a result extended the proposed transaction. As of September 29, 2021, both parties have extended the expiry date for the definitive agreement to October 31, 2021. On December 24, 2021, Bird River and FEI have agreed to extend the expiration date of their non-binding letter of intent to March 31, 2022. On April 13, 2022, the letter of intent with respect to the transaction has been extended to May 5, 2022. The transaction is anticipated to be completed in the first quarter of 2022.