Freedom Battery Metals Inc. entered into an agreement for the right to acquire a 100% interest in the Ruby Graphite project, a project area covering approximately 2,000 acres and 96 federal lode mining claims located in Beaverhead County, Montana, U.S.A. The Ruby Graphite project is located at the southwest portion of the Ruby Range mountains in southwestern Montana, approximately 14 miles (22 km) southeast of the town of Dillon, Montana. The Ruby Graphite project area consists of a combination of private and public lands totaling 1,944.76 acres (787.02 hectares) and includes 96 lode mining claims with a total size of 1,763.82 acres (713.80 hectares). Each lode claim is for vein-type deposits and the rights to explore, mine and extract minerals from the claim.

Pursuant to a securities exchange agreement dated September 16, 2022 among Freedom, Broadstone Resources Inc. (Broadstone) and a subsidiary of Broadstone (Subco), Freedom has agreed to acquire all the issued and outstanding shares of Subco in consideration for the issuance of 2,750,000 common shares of Freedom (the Consideration Shares) to Broadstone and cash consideration of $294,628.26 (the Acquisition). Broadstone currently holds an option to acquire a 100% interest in the Ruby Graphite project (the Ruby Option). The Ruby Option will be assigned to Subco pursuant to an amended and restated option agreement to be entered into on or prior to completion of the Acquisition in accordance with the terms of the Agreement.

The Ruby Option is exercisable to acquire a 100% interest in the Ruby Graphite project subject to a 2% net smelter returns royalty and a balloon payment of $3M on the commencement of commercial production. To fully exercise the Ruby Option, Freedom will be required to issue an aggregate of 1,000,000 common shares to the optionor on the occurrence of certain project milestones, incur an aggregate of $1.325 million in exploration expenditures on the project and pay aggregate cash consideration of $1 million to the optionor.