Gold Mountain Limited provided an update on its option to acquire an initial 20% interest in four Brazilian lithium projects held by Mars Mines Limited ("Mars") and an update to on its recent due diligence reconnaissance field exploration activities in Brazil. Update on Corporate Transaction: As announced on 19 September 20221, the Company entered into a binding heads of agreement (HoA) with Mars Mines Limited (Mars) granting the Company a 60-day exclusive option to acquire up to a 75% interest in a package of highly prospective lithium licenses in north-eastern Brazil (Option). Following successful technical and legal due diligence, Gold Mountain notified Mars that it was proceeding with the exercise of the Option. Pursuant to the terms of the HoA, the Company will proceed with the issue of the consideration securities to Mars. Update on Field Exploration Activities: A team of geologists from Mars Mines and Gold Mountain conducted an initial reconnaissance trip to potential lithium bearing tenements in Brazil. Three of the four project areas were visited with the fourth area at Jacurici yet to be assessed. The focus of the trip was to confirm the presence of potential LCT pegmatites on the tenements and to prepare the groundwork for more extensive and detailed exploration programs in late 2022 and 2023. Cerro Cora and Porta D'Agua Project: The Cerro Cora and Porta D'Agua Projects are centred approximately 12 km north-northeast of the town of Cerro Cora. The tenement areas were pegged to cover a significant belt of LCT pegmatites, where historical mining has produced tantalum, beryl and niobium REE's.
The Porta D'Agua Project consists of a single tenement in a belt of historical beryl and tantalum occurrences and the Cerro Cora tenements comprise two large tenements with known tantalum-bearing pegmatites. Tantalum is an important element in LCT pegmatites (Lithium-Caesium-Tantalum) and the geological team is using tantalum occurrences as a pathfinder element for lithium hosting pegmatites. Numerous pegmatites have been interpreted from satellite imagery and linear artisanal workings have been mapped by the geological team. Many additional weathered pegmatites were also recognized in roads traversing the tenement. Interpreted structures subparallel to the majority of the mapped workings and interpreted
pegmatites are shown as brown lines on Figure 2 below. These structures are thought to be target zones for pegmatite intrusions and are crosscutting a regional structure at right angles.