MegaWatt Exploration for REEs & Uranium within Central Northern Territory Properties Set to Commence and Marketing Agreement

VANCOUVER, BC, Feb. 1, 2022 /PRNewswire/ - Megawatt Lithium and Battery Metals Corp. (CSE: MEGA) (FSE: WR20) (OTC PINK: WALRF) (the "Company" or "Megawatt") is planning an expansive exploration campaign, targeting rare earth elements (REE) & uranium zones, at its two properties – Artic Fox and Isbjorn – in Central Northern Territory. The work coincides with an increasing level of interest across the region on the back of improving fundamentals for REE and uranium.

Improving fundamentals on two fronts

With China controlling potentially between 80-90% of the global rare earth elements (REE) market, there has been a growing awareness among key stakeholders for the need for supply chain diversity. European automakers focused on developing the next generation of electric vehicles will require key REEs. They require neodymium and praseodymium (NdPr) which are key REEs for electric motor magnets¹. 

According to ASX-listed Arafura Resources (ASX: ARU), it has engaged with European electric vehicle manufacturers that are interested in sourcing key REEs from it directly once production commences at its Nolans Bore Project later in the year. A key factor to secure contracts with European EV manufacturers is to ensure toxic waste is handled in line with strict environmental regulations, which requires ARU committing to processing recovered ore on site¹.

The Nolans Bore Project, which has a JORC compliant REE resource (56Mt @ 2.6% total rare-earth oxides), can potentially supply 10% of the global REEs required for use in electric motors¹.    

In the uranium sector, the Sprott Physical Uranium Trust's move to acquire a substantial position, propelling the spot price to multi-year highs², has resulted in further interest in emerging potential suppliers in the Central Northern Territory.

While the ultimate demand driver for uranium will be a resurgence in nuclear power generation, as the world transitions to lower carbon emissions, the recent energy shortfall in the United Kingdom highlights the over-reliance on fossil fuels that can potentially deliver a negative multiplier effects across an economy.

Focus on uranium

While the case for REEs, with ARU's improving profile, is well established – it is worth re-emphasising the key uranium arguments. These highlight the potential within Megawatt's properties and across the region, especially amid a significant uranium upcycle.

As part of ongoing due diligence ahead of upcoming site visits to the Artic Fox & Isbjorn properties, Megawatt's technical team has reviewed historical reports, including UK-based Power Metal Group's (AIM: POW) Selta Project (Figure 1).

Aside finding a 1973 study³ which outlined the potential for uranium mineralization within the tenure, there were numerous reports of surface occurrences including a standout 2,450ppm U from a 1994 report⁴. These findings highlight the exploration potential across the region for uranium mineralisation and requirement for further field exploration in order to identify potential drill targets.

These findings within Power Metal Group's ground, make a compelling case for uranium and build on the arguments presented earlier (refer to Uranium Potential to be Developed at Arctic Fox and Isbjorn Properties in Australia; September 15, 2021)⁵, which are repeated below:

• ARU has modelled up a JORC compliant resource for uranium oxide (U308) at the Nolons Bore Project (56Mt @ 162ppm U3O8)⁶, which is contiguous to the Artic Fox property.
• Assayed samples of scree material from gneiss source rock, within the middle of Artic Fox, returned the following high-grade results: Sample ID N1-4A: 1,000ppm U equating to 1,179ppm U3O8; and Sample ID N1-4B: 690ppm U equating to 814ppm U3O8⁷.
• Within the Isbjorn property, there are assayed alluvial and stream sediment samples at five locations which are all significant and require further on-site follow up⁸. These clearly highlight the exploration potential for U3O8 mineralization, including:
• Sample #1 ID 152798: 593ppm U equating to 699ppm U3O8; Sample #2 ID 132967: 302ppm U equating to 356ppm U3O8; Sample #3 ID 132966: 292ppm U equating to 344ppm U3O8; Sample #4 ID 152799: 514ppm U equating to 606ppm U3O8; and Sample #5 ID 152800: 586ppm U equating to 691ppm U3O8.

(The data disclosed in this news release related to sampling results is historical in nature. Megawatt has not undertaken any independent investigation of the sampling nor has it independently analysed the results of the historical exploration work in order to verify the results. Megawatt considers these historical sample results relevant as the Company will use this data as a guide to plan future exploration programs. The Company's future exploration work will include verification of the data through further analysis.)

David Thornley-Hall Chief Executive Officer commented: "The fundamentals for rare earth elements and uranium have continued to strengthen into 2022, which makes the exploration potential for the Artic Fox and Isbjorn properties in Central Northern Territory even more compelling. The Board is now intent on building a more expansive forward exploration program so that we can rapidly garner a greater understanding of our properties' potential to host REE and uranium mineralisation at this exciting point in the cycle."

Qualified Person

Mr. Geoffrey Reed (MAusMM (CP)) (MAIG), Consultant for the Company, is a qualified person as defined by National Instrument 43-101 – Standards of Disclosure or Mineral Projects and has reviewed the scientific and technical information in this press release.

References

1. Automakers Look to Hedge Against China Rare Earth Dominance; Elisabeth Behrmann; 23 September 2021. Available at: https://www.bloomberg.com/news/articles/2021-09-22/automakers-look-to-hedge-against-china-s-rare-earth-dominance and Arafura Resources Limited 2021 Annual Report. Available at: https://www.arultd.com/images/Reports/Arafura_Resources_Annual_Report_2021.pdf
   
   
2. Uranium Rally Is a High-Stakes Bet on Future of Nuclear Power; Yvonne Yue Li, Will Wade and Stephen Stapczynski; September 22, 2021. Available at: https://www.bloomberg.com/news/articles/2021-09-22/red-hot-uranium-rally-renews-debate-over-nuclear-s-future-in-zero-carbon-world
   
   
3. The Australian Mineral Development Laboratories (CR 74/19) Sixth Progress Report MP4976/73 Geochemical Survey, Arunta Area Amdel (December 1973)
   
   
4. PNC Exploration (Australia) Pty Ltd (CR 95/266) Napperby Annual Report 1994 Field Season. Available at: https://geoscience.nt.gov.au/gemis/ntgsjspui/simple-search?query=%22CR1995-0266%22&location=1/3
   
   
5. Megawatt CSE Release - Uranium Potential to be Developed at Arctic Fox and Isbjorn Properties in Australia (September 15, 2021). Available at: https://webfiles.thecse.com/megawatt_0915.pdf?pzmeoPmSl8bWAsXeBTvUJ62u5.w6jAVU
   
   
6. Arafura Resources Limited 2015 Annual Report. Available at:https://www.arultd.com/investor/asx-announcements-2021/asx-archive.html
   
   
7. Megawatt CSE Release - Megawatt Provides Further Investigative Data for Uranium and REE Prospectivity Australian Projects" (May 31, 2021) Available at:https://webfiles.thecse.com/megawatt_0531.pdf?MVGF3amnVjpZKzUgBlHctkQrryQKmk9_
   
   
8. Crossland Nickel Pty Ltd – Report Number CR2016-0105. Available at: https://geoscience.nt.gov.au/gemis/ntgsjspui/simple-search?location=1%2F3&query=%22CR2016-0105%22&rpp=10&sort_by=score&order=desc

Technical Information

All scientific and technical information in this news release has been prepared by, or approved by Geoffrey Reed, (MAusMM (CP)) (MAIG), Consultant for the Company.  Mr. Reed is a qualified person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Mr. Reed has not verified any of the information regarding any of the properties or projects referred to herein other than the Arctic Fox and Isbjorn Properties.  Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on the Arctic Fox and Isbjorn Properties.

The data disclosed in this news release related to sampling results is historical in nature. Megawatt has not undertaken any independent investigation of the sampling nor has it independently analyzed the results of the historical exploration work in order to verify the results. Megawatt considers these historical sample results relevant as the Company will use this data as a guide to plan future exploration programs. The Company's future exploration work will include verification of the data through further sampling.

Marketing Agreement

The Company has retained Sideways Frequency ("Sideways") for US$100,000 for a term of 60 days. Sideways has been engaged for native advertising and digital marketing services to increase brand awareness for the Company. Certain services to be provided by Sideways are anticipated to include investor relations activities under the policies of the CSE and applicable securities laws. The Company will continue to look at strategic consultants to expand awareness of the Company and its activities.

About MegaWatt Lithium and Battery Metals Corp.

MegaWatt is a British Columbia based company involved in the acquisition and exploration of mineral properties in Canada. The Company holds a 100% undivided interest, subject to a 1.5% NSR on all base, rare earth elements and precious metals, in the Cobalt Hill Property, consisting of eight mineral claims covering an area of approximately 1,727.43 hectares located in the Trail Creek Mining Division in the Province of British Columbia, Canada. Additionally, the Company has acquired a 60% interest in a company that indirectly holds a 100% interest (subject to a 2% NSR) in two prospective silver-zinc projects in Australia, being the Tyr Silver Project and the Century South Silver-Zinc Project (see press release dated August 13, 2020), an indirect 100% interest (subject to a 1% NSR) in and to certain mining tenements in Northern Territory and New South Wales, Australia prospective for nickel-cobalt-scandium and rare earth elements.  The Company holds a 100% interest (subject to a 2% NSR) in and to the Route 381 Lithium Property, comprised of 40 mineral claims located in James Bay Territory, north of Matagami in the Province of Quebec, covering 2,126 hectares (see press release dated February 3, 2021) and a 100% interest in 229 additional mineral exploration claims prospective for lithium, also in the James Bay area of Quebec covering an area of 12,116 hectares or 121 square kms.

Investors can learn more about the Company and team at https://megawattmetals.com.

The CSE does not accept responsibility for the adequacy or accuracy of this release. This press release includes "forward-looking information" that is subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements may include but are not limited to, statements relating to the trading of the Company's common shares on the Exchange and the Company's use of proceeds and are subject to all of the risks and uncertainties normally incident to such events. Investors are cautioned that any such statements are not guarantees of future events and that actual events or developments may differ materially from those projected in the forward- looking statements. Such forward-looking statements represent management's best judgment based on information currently available. No securities regulatory authority has either approved or disapproved of the contents of this news release.

SOURCE MegaWatt Lithium and Battery Metals Corp.

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SOURCE MegaWatt Lithium and Battery Metals Corp.