International Battery Metals Ltd (IBATF)

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PAGE 18

24. Subsequent Events

On February 7, 2023, the Company issued 15,072,992 Milestone Shares to the shareholders of NAL in
relation to SAL achieving certain milestones subsequent to the acquisition by the Company (Note 8). Included
in the 15,072,992 Milestone Shares issued to the shareholders of NAL is 5,024,331 Milestone Shares that
were issued to Dr. John Burba, Director of Global Technology, Director and former CEO. Christina Borgese
and Marc Privitera through respective counsel, have agreed that the remaining 10,048,661 Milestone shares
issued pursuant to the terms of the Share Exchange Agreement will not be subject to the voluntary pooling
conditions agreed to and accepted by Dr. Burba. The Company issued the remaining 10,048,661 Milestone
shares to be equally distributed amongst each of Ms. Borgese and Mr. Privitera (the “Issuance”).
On February 21, 2023, the Company executed an amendment to the Chile and Argentina license agreements
with Sorcia and EAL, respectively. Sorcia and EAL agree to relinquish its rights to lease the Extraction
System in Chile and Argentina, respectively. Sorcia and EAL shall have the Preferential Right entitling Sorcia
and EAL the right for construction of the next IBAT Extraction System on IBAT’s construction schedule.
The amendment to the agreements changed the termination date that the Company can terminate the
agreement with Sorcia and EAL if the first extraction system is not installed or operational to December
31, 2028 (Note 8).
On March 21, 2023, the Company closed a private placement of 17,250,000 units of the Company at a price
per unit of $0.58 to Sorcia and EVL. Each unit consists of one common share and one common share purchase
warrant entitling the holder thereof to acquire one common share of the Company at a price per common
share of $0.58. Upon closing of the private placement, Sorcia exercised 8,202,502 of its common share
purchase warrants at $0.58 per common share for 8,202,502 common shares. Also, upon closing of the private
placement, EVL exercised all 8,625,000 of its common share purchase warrants at $0.58 per common share
for 8,625,000 common shares. In lieu of receiving cash proceeds for the issuance of 34,077,502 common
shares, the Company settled the entire $9,759,952 balance owing to Sorcia (Note 12 and 16) and $10,005,000
of its balance owing to EVL (Note 12 and 16).

On March 30, 2023, the Company entered into a non-exclusive license agreement with Entec LLC. (“Entec”)
whereby the Company will provide Entec a non-exclusive limited license to all of the patents, trade secrets
and other proprietary rights for use in an extraction system of lithium salts from lithium bearing raw brine,
outside the territories of Chile or Argentina. With respect to the first resource project or lithium extraction
facility where the Company’s licensed rights are utilized, Entec agrees to pay the Company an earned royalty
of 6% of the Netback Sales Price. Additionally, with respect to Entec’s interest in the project, Entec agrees
to grant the Company an interest in each project equal to 10% of Entec’s interest in the project. With respect
to the second project and each additional project, Entec agrees to pay the Company an earned royalty and
grant a participation interest equal to the last lithium production agreement entered into by the Company in
the country where the project resides. If no previous lithium production agreement has been executed by the
Company in the country where the project resides, Entec will grant a royalty of 6% of the Netback Sales Price
and a 10% participation interest. Entec will offer the Company the right to invest together with Entec up to
50% of the equity to be invested by Entec and receive an equity interest in the project commensurate with the
invested capital.
The interim CFO opted not to renew his contract and departed March 31, 2023. Mr. Daniel Christie will be
appointed interim CFO starting April 1, 2023

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