Usha Resources Commences Fieldwork at the Drill-Ready Southern Arm Copper-Gold VMS Property

Located in the prolific Abitibi Greenstone Belt, Southern Arm hosts a ~7.3 km conductive 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 SW), which produced 53 Mt at 0.96% Cu, 1.9% Zn, 0.58 g/t Au, 40.7 g/t Ag, and Abitibi’s B26 Deposit (~16 km SW) which hosts an indicated resource of 6.97 at 2.94% Cu Eq (1.32% Cu, 1.80% Zn, 0.60 g/t Au and 43 g/t Ag).

The Property is prospective for polymetallic VMS-style mineralization and has multiple drill targets already identified including “Hollywood” where anomalous metals values have been identified over a ~1.8 km footprint that is open along strike.

“We are excited to apply modern and novel exploration techniques to the Southern Arm Property to penetrate the thick overburden cover that has deterred previous explorers,” stated Usha Resources CEO Deepak Varshney “The Southern Arm property is exceptionally well-positioned for the Abitibi’s next major discovery, and we are working closely with the region’s most successful exploration team at Abitibi Metals Corp. Our planned exploration program will apply techniques that have proven their applicability in the Abitibi mining district, but have not previously been applied to this ground. This work will help us finalize drill target within the Hollywood Trend, prior to our fully funded maiden drill program, for which planning has already begun.”

Figure 1 - Local bedrock geology of the Southern Arm property. Geology after SIGEOM.

The purpose of the biogeochemical survey will be to identify additional priority targets prospective for high-grade gold and copper mineralization that will be included in the Company’s maiden drill program to commence this coming fall.

Biogeochemical surveys are exploration techniques that excel at testing for buried mineralization not exposed at the surface by sampling and analyzing whole or selected parts of plants. As plants grow, metals and ions dissolved in the soil and groundwater are incorporated by the plant and migrate to the various parts (roots, truck, stem, bark, leaves), and thus, the plants attain a chemistry reflective of the underlying bedrock. By sampling these biological materials along a systematic grid, Usha plans to identify areas most rich in metals or elements that indicate the most likely areas to host gold or copper mineralization.

Biogeochemical surveys have proven to be an effective method in identifying metal anomalies associated with gold and copper mineralization on adjacent properties in the Abitibi, where there is little to no outcrop exposure (Wallbridge Resources, Gaillard, 2021; Midland Exploration, St-Cyr, 2021; Probe Gold News Release June 29, 2024). The details of the sampling for the Company’s planned program (tree species, sampled material, etc.) are yet to be finalized, but the survey will be centered over the Hollywood trend of metal anomalies, which is underlain by the synvolcanic Bapst fault. In addition to this survey, Usha intends to utilize ground-based geophysics to refine target horizons within the mineralized trend.

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.

Figure 2 - Regional claim map.