Collective Metals Inc. announced that it has entered into an arm's length definitive share exchange agreement dated July 11, 2023, with 1000587016 Ontario Ltd. ("587016") and the shareholders of 587016 (the "Vendors") to acquire (the "Acquisition") from the Vendors, 100% of the outstanding shares of 587016. 587016 owns 100% of the Whitemud Project (the "Project"), a lithium property in Ontario consisting of 381 single cell mining claims totaling 7,775 hectares. The Project is located 53 km east of Ear Falls, Ontario with good highway and logging road access and is in an area where numerous lithium deposits have been delineated to host significant reserves of lithium and is also adjacent to the Company's Landings Lake property.

Government mapping in the northwestern part of Whitemud Lake Area township identified several outcrops of pegmatite in the proximity of Whitemud Lake (Fenwick, 1966). Government lake sediment surveys covered the Property in summer of 2000. The anomalous suite of elements returned from the survey on the Property suggest possible granitic pegmatite source rocks (OGS 2002).

The sample sites in the project area returned some of the highest values obtained for Cs, Nb, Li, Sn, Be, Hg, and TI. There were also numerous other sites in the area which also returned elevated to anomalous values of Cs which are covered by the Property. The term "elevated" indicated analytical results above the 90(th) percentile, "anomalous" for results above the 95(th) percentile and " highly anomalous for results above the 98(th) percentile.

Nearby projects include the Seymour Lake Lithium Project owned by Green Technology Metals which hosts a 9.9Mt resource grading 1.04% Li(2) O. Also nearby is Avalon Advanced Materials Separation Rapids Lithium deposit which hosts a Measured and Indicated resource of 6.28Mt grading 1.408% Li(2)O. The Project is in the English River Subprovince and is 8km south of the sub-province boundary with the Uchi sub-province. These terrainboundary with the Uchi sub-province. These terrain boundaries are deep seated structures that divide accreted Archean terranes and can act as conduits for fertile peraluminous granites.

The Project is underlain by tonalities to granodioritic rocks of the Bluffy Lake batholith in contact with metasedimentary rocks in the north-northeast which have been metamorphosed to the lower amphibolite/upper greenschist facies. The English River sub-province consists mainly of turbiditic metasedimentary rocks, deposited during the final stages of magmatic and tectonic accretion within the Uchi Subprovince to the north at around ca. 2720 to 2710 Ma.

The sedimentary rocks were intruded by a suite of calc--alkalic plutons at 2698 Ma. Major regional deformation, amphibolite to granulite facies metamorphism, anatexis, and emplacement of an extensive peraluminous granitic suite culminated at 2691 Ma. Late episodes of metamorphism, metasomatism, and emplacement of pegmatites occurred locally at ca.

2680 and 2669 Ma (Corfu, F.1995). The Acquisition will involve the issuance of 4,000,000 common shares of the Company (the "Consideration Shares") to the Vendors (representing 11.3% of the issued and outstanding common shares of the Company on a post-issuance basis), at a deemed price of $0.31 per share, representing aggregate share consideration of $1,240,000, in exchange for all of the outstanding shares of 587016, as well as a $40,000 cash payment from the Company to a Vendor. The Consideration Shares will be issued pursuant to s. 2.16 (take-over bid and issuer bid) of National Instrument 45-106 Prospectus Exemptions.