Pure Energy Minerals Ltd (PEMIF)

[Mr. Zen]

The year 2022 has been marked by substantial progress at the Company's Clayton Valley lithium brine project in central Nevada. With our partner, Schlumberger Technology Corporation ("SLB"), the modified Operating Plan for the on-site pilot plant was approved by the Bureau of Land Management, with concurrent approvals from the Nevada Division of Environmental Protection, and with additional approvals from various state agencies. Pure Energy received a finite-term water right in late 2018 with sufficient capacity for pilot plant testing. Permitting progress was somewhat slowed by covid restrictions and changes in agency personnel. However, we are pleased with the progress towards the CV pilot plant – it will be the first of its kind in Nevada and likewise the first to implement Direct Lithium Extraction technology ("DLE") there.

The advantages of DLE technology are clear, and well suited to Clayton Valley lithium brines. Of particular importance are its efficiency in recovering lithium from brine in a matter of days vs. more than a year in conventional ponds; significant recovery of precious, clean water resources for reintroduction into the valley's aquifer; plus, a much reduced footprint and environmental impact.