Consolidated Lithium Metals Announces Landmark Agreement to Acquire Augustus Lithium Project in Québec

TORONTO, Canada – June 2026 – Consolidated Lithium Metals Inc. (TSXV: CLM) has announced the signing of a term sheet with Linear Minerals Corp. that could significantly expand the company's lithium exploration footprint in Québec. Under the proposed transaction, Consolidated Lithium Metals intends to acquire a 100% undivided interest in the Augustus Lithium Project along with additional lithium-focused mineral claims located in the Abitibi and James Bay regions of Québec. The agreement represents a major strategic step for the company as it seeks to strengthen its position within Canada's rapidly growing critical minerals sector.

Major Expansion of Lithium Assets

The proposed acquisition covers a total of 449 mineral claims spanning approximately 215 square kilometers across two highly prospective mining districts in Québec. The package includes 358 claims in the Abitibi region and 91 claims in the James Bay region, areas recognized for their significant potential for lithium discoveries and development.

The Augustus Lithium Project is considered one of the notable lithium exploration assets in Québec. Located near established mining infrastructure and close to the city of Val-d'Or, the project benefits from access to transportation networks, skilled labor, and a mining-friendly regulatory environment. Québec continues to attract substantial investment in battery metals and critical mineral exploration due to its supportive government policies and strong resource base.

Transaction Structure and Financial Terms

According to the announced term sheet, the total consideration for the acquisition has been valued at approximately C$2.75 million. The payment structure consists of:

• C$687,500 in cash payable upon closing of the transaction.
• C$2,062,500 in Consolidated Lithium Metals common shares, calculated based on the company's 20-day moving average trading price leading up to the agreement date.

This combination of cash and equity consideration is designed to balance immediate value for Linear Minerals while allowing Consolidated Lithium Metals to preserve capital for future exploration and development activities.

Strategic Importance of the Acquisition

The proposed transaction aligns with Consolidated Lithium Metals' long-term strategy of building a diversified portfolio of critical mineral assets across Canada. The company has been actively pursuing opportunities in lithium and rare earth elements, commodities considered essential for electric vehicles, renewable energy storage systems, and advanced technology manufacturing.

By adding the Augustus Lithium Project and adjacent claims, Consolidated Lithium Metals would significantly increase its exposure to lithium exploration opportunities in Québec, one of North America's most active jurisdictions for battery metal development. The acquisition also provides the company with a larger land position that may offer future exploration synergies and resource expansion opportunities.

Why Québec Remains a Key Lithium Hub

Québec has emerged as a leading destination for lithium exploration and development due to its rich geological potential and strong commitment to supporting the clean energy transition. The province has attracted significant investment from mining companies seeking to establish domestic supply chains for battery materials.

The Abitibi and James Bay regions, in particular, have become focal points for exploration activity because of their favorable geology and history of mineral discoveries. Several major lithium projects are currently advancing through various stages of exploration and development, reinforcing Québec's role in North America's evolving battery ecosystem.

Conditions Required for Completion

While the term sheet outlines the framework for the acquisition, completion of the transaction remains subject to several important conditions. These include:

• Successful completion of due diligence by Consolidated Lithium Metals.
• Execution of a definitive agreement between the parties.
• Receipt of all required corporate approvals.
• Approval from relevant regulatory authorities and stock exchanges.
• Satisfaction of representations, warranties, and obligations outlined in the final agreement.

The companies have indicated that they anticipate completing the transaction within approximately 45 days following execution of a definitive agreement, although there can be no guarantee that the deal will close as currently planned.

Protection Measures Included in the Agreement

The term sheet also contains several provisions designed to protect the interests of Consolidated Lithium Metals during the negotiation and completion process. Among these is a binding break fee valued at approximately C$1.687 million payable under certain circumstances, including situations where Linear Minerals accepts a superior competing proposal or breaches exclusivity obligations.

Additionally, Consolidated Lithium Metals has secured a right of first refusal regarding the sale of consideration shares issued as part of the transaction, subject to specified conditions. These provisions help provide greater certainty and transaction security for both parties.

Industry Implications

The proposed acquisition highlights the continued consolidation occurring within the lithium exploration sector as companies seek to secure high-quality assets ahead of anticipated long-term demand growth. Global demand for lithium remains closely tied to the expansion of electric vehicle production, energy storage deployment, and broader electrification trends.

Mining companies are increasingly positioning themselves to benefit from future supply requirements by acquiring strategic land packages and advancing exploration programs in proven jurisdictions. The Augustus Lithium Project acquisition reflects this broader industry trend toward securing critical mineral resources in politically stable regions such as Canada.

Outlook for Consolidated Lithium Metals

If completed, the acquisition would mark one of the most significant recent transactions for Consolidated Lithium Metals and could substantially enhance the company's exploration portfolio. Management expects to leverage the expanded land package to pursue further geological evaluation, exploration drilling, and resource development initiatives aimed at unlocking the full potential of the acquired properties.

The company has indicated that financing for the transaction is expected to come from a combination of internal resources, strategic financing initiatives, existing shareholder support, and external financial advisory assistance. This approach is intended to provide the financial flexibility needed to advance both the acquisition and future exploration activities.

Conclusion

The signing of the term sheet between Consolidated Lithium Metals and Linear Minerals represents a potentially transformative step for both companies. By pursuing ownership of the Augustus Lithium Project and additional strategic claims across Québec's prolific Abitibi and James Bay regions, Consolidated Lithium Metals is positioning itself to become a more significant participant in Canada's growing lithium exploration sector.

As global demand for battery materials continues to rise, the successful completion of this acquisition could provide the company with an expanded platform for future growth, exploration success, and long-term value creation within the critical minerals industry.

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