Title

Big Hill Lithium Project

Azincourt has entered into a definitive property option agreement, dated April, 19, 2023, with Atlantis Battery Metals Corp. pursuant to which it has been granted the option to acquire up to a seventy-five percent interest in three exploration licenses covering 300 contiguous mineral claims located in the Province of Newfoundland collectively known as the Big Hill Lithium Project.

The Big Hill Lithium Project is a 7,500-hectare Lithium-Cesium-Tantalum exploration property located in southwestern Newfoundland, Canada, along the south side of the Hermitage Flexure, approximately five kilometres south of the Benton/Sokoman JV partnership (“the Alliance”) discovery of the Kraken Lithium Pegmatite Field (1.04% Li₂O over 15.23m, 8.4m of 0.95% Li₂O, and 5.5m of 1.16% Li₂O*). The Benton/Sokoman JV partnership has also discovered the cesium-tantalum-rubidium-lithium Hydra Dyke which is located 12 kilometres northeast of the Kraken Lithium Pegmatite Field. Channel samples returned results as high as 8.76% Cs₂O, 0.41% Li₂O, 0.025% Ta₂O₅, and 0.33% Rb₂O over 1.20m (Sokoman Minerals Corp., news release March 28, 2023).

The Kraken Lithium Pegmatite discovery features numerous granitic dykes and unmapped pegmatites in a variety of rock types with a strike length up to 40 kilometres in length. The Big Hill Lithium Property is host primarily in the Burgeo granite with large enclaves of older mafic paragneiss. The boundary between the two properties is marked by the Hermitage Flexure, which in part appears to be locally segmented by sub-parallel fault segments, and the intrusive contact between the Burgeo granite and older stratigraphy. Similar structural controls are recognized within the global tectonic boundary stretching from the Carolina Tin-Spodumene Belt, through Avalonia in Nova Scotia, to Newfoundland, and then on to Laurentia (Leinster) on the east side of the Atlantic Ocean.

Image 1: Location of the Big Hill Lithium Project, Southern Newfoundland, Canada

At the Big Hill Lithium Project numerous granite dykes can be seen cutting the Burgeo granite. Coarse-grained pegmatite dykes greater than 2 meters wide and 20 meters long occur south of the property and are anticipated to be present on the Big Hill exploration licences.

Recent preliminary prospecting at Big Hill has identified four known target areas, based on extrapolation of bedrock geology, structural disaggregation of stratigraphic blocks, and apparent folding and late shear faulting. Similar structural elements are observed in the Kraken Lithium Pegmatite field although host rocks differ. These targets are known as the River, Road, MK, and Ridge Targets and will be the focus the initial exploration.

Initial soil and rock assay results, along with other geological information are expected by mid-June. Other information suggesting potential for lithium-bearing pegmatite mineralization comes from extrapolation and evaluation of multiple shear fault orientations projected onto the property. Strike length of the targets ranges from 1.5-5.5 kilometres.

Image 2: Priority Target Areas, Big Hill Lithium Project, Newfoundland, Canada

The area around the Big Hill Lithium Project has seen extensive mineral exploration over the past several decades. The Peter Snout mineral occurrences immediately east of the Kraken Lithium Pegmatite discovery and the White Bear River area further to the northeast have seen exploration for many years for polymetallic mineralization, but not for lithium until 2021. The Grey River area to the southeast has been explored for many years for tungsten and gold. The Hope Brook Mine, located to the southwest of Big Hill, operated from 1987 until 1997 and produced 752,163 ounces of gold (Big Ridge Gold Corp., website presentation).

Terms and Considerations

Pursuant to terms of the Option, Azincourt can acquire a sixty percent interest in the Project by completing a series of cash payments and share issuances, and incurring certain expenditures on the Project, as follows:

:

	Cash Payments	Common Shares	Exploration Expenditures
Upon the grant of the Option	$75,000	3,850,000	Nil
Within 12 Months	$75,000*	4,500,000	$250,000
Within 24 Months	$75,000*	5,500,000	$1,000,000
Within 36 Months	Nil	Nil	$2,000,000

 

*Subject to an additional top-up payment in the event the volume-weighted average closing price of the common shares of the Company is less than $0.05 in the five trading days preceding any subsequent share issuance to the Optionor.

Following completion of these requirements, the Company will hold a sixty percent interest in the Project. The Company will then have a further option, exercisable for a period of thirty business days, to acquire a further fifteen percent interest in the Project by completing a one-time cash payment to the Optionor equivalent to the fair market value of the interest at the time. In the event the Company elects to exercise this additional option, the fair market value will be determined by a mutually agreeable independent third-party valuator.