Usha Resources Options Southern Arm VMS Property from Abitibi Metals with ~7.3 km Copper-Gold Trend

Highlights:

Southern Arm hosts a ~7.3 km copper-gold trend along the regional-scale Bapst fault within the volcanic rocks of the Brouillan-Fenelon Group, which hosts the nearby Selbaie Mine (~15 km W) and B26 Deposit (~16 km SW) and is prospective for polymetallic VMS-style mineralization.

Multiple drill targets identified including “Hollywood” where anomalous metals values have been identified over a ~1.8 km footprint that is open along strike.

The Property is situated in a region famous for its endowment in precious and base metals. Notable nearby projects include: ~16 km from the high-grade B26 Copper deposit, which hosts an indicated resource of 6.97 Mt at 2.94% Cu Eq (1.32% Cu, 1.80% Zn, 0.60 g/t Au and 43 g/t Ag) and an inferred resources of 4.41 Mt at 2.97% Cu Eq (2.03% Cu, 0.22% Zn, 1.07 g/t Au and 9 g/t Ag; and ~15 km from the Fenelon Gold Project, which hosts as indicated resource of 2.4 Moz Au and inferred 1.7 Moz Au; and ~15 km from the historic Selbaie mine, which produced 53 Mt at 0.96% Cu, 1.9% Zn, 0.58 g/t Au, 40.7 g/t Ag.

~16 km from the high-grade B26 Copper deposit, which hosts an indicated resource of 6.97 Mt at 2.94% Cu Eq (1.32% Cu, 1.80% Zn, 0.60 g/t Au and 43 g/t Ag) and an inferred resources of 4.41 Mt at 2.97% Cu Eq (2.03% Cu, 0.22% Zn, 1.07 g/t Au and 9 g/t Ag; and

~15 km from the Fenelon Gold Project, which hosts as indicated resource of 2.4 Moz Au and inferred 1.7 Moz Au; and

~15 km from the historic Selbaie mine, which produced 53 Mt at 0.96% Cu, 1.9% Zn, 0.58 g/t Au, 40.7 g/t Ag.

Exploration targets at Southern Arm were produced by the Abitibi Metals technical team, who will be acting in an advisory role as the Company progresses the proposed exploration strategy . Fully funded drill program planned for Fall 2024.

The Southern Arm Option was negotiated following payment of US$75,000 by Stardust Power, Inc. (MC $675M) pursuant to the Letter of Intent granting the right to earn up to a 90% interest subject to a 2% Net Smelter Royalty in Usha’s Jackpot Lake Lithium Brine Project for total consideration that could total up to US$26,025,000 over five years inclusive of payments comprising US$1,525,000 cash, US$750,000 stock, US$15,750,000 stock or cash at Stardust Power’s election, and a work commitment of (US$8M).

The full details of the LOI are included in Usha’s press release dated May 17, 2024 . The transaction is subject to the satisfaction of a number of conditions. The Company cautions that there is no guarantee that the Definitive Agreement will be completed.

Deepak Varshney, CEO of Usha Resources, commented: “We are very excited to partner with Abitibi Metals on Southern Arm, which establishes Usha as a diversified metals company in North America with an opportunity to develop a company-making asset in the best mining province in Canada. Through their rigorous systematic exploration approach, we are starting with a 7 km+ trend with multiple targets including Hollywood, where anomalous metals values have been identified over a ~1.8 km footprint that remains open. We look forward to working with the Abitibi team to advance Southern Arm and plan on completing a fully funded maiden drill program this coming Fall.”

Figure 1 - Regional Claim Map

Southern Arm Property Details

The Property comprises 76 claims totaling more than 42 km 2 in the deposit-rich Abitibi mining camp (Fig. 1). The Property contains geology favourable for polymetallic VMS-style mineralization ( Fig. 2 ) and historic drill logs documented brecciated felsic exhalite horizons that underwent chlorite and sericite alteration associated with elevated Zn values (Fig. 2).

It is situated on the eastern side of the Brouillan pluton and the bedrock geology is dominated by the volcanic rocks of the Brouillan-Fenelon Group, which also host the nearby Selbaie Mine and B26 Deposit. These rocks are situated along the regional-scale Bapst fault, which represents a splay of the Southern Detour deformation and is associated with Zn, Pb Ag, Mo and Cu mineralization along trend.

The property hosts a ~7.3 km conductive trend with multiple drill targets already identified including “Hollywood” where anomalous metals values have been identified over a ~1.8 km footprint that remains open.

Figure 2 - Bedrock geology of the Southern Arm Property

Terms of the Agreement

Pursuant to the Option Agreement, the Company may acquire a 100% interest in the Property by issuing an aggregate of 5,000,000 common shares in the capital of the Company and completing $2,000,000 of work expenditures as indicated in the table below:

The Company has granted to the Optionor a 2% net-smelter returns royalty (the “ NSR ”) on the claims making up the Property with no historical royalty.

The transaction contemplated, including the issuance of the shares, is subject to the final approval of the TSX Venture (the “Exchange”). The shares will be subject to the applicable hold periods in accordance with securities laws in Canada and exchange policies.