Grounded Lithium Spuds First Oil and Gas Well, Advancing Near-Term Cash Flow Strategy

Rhea-AI Summary

Grounded Lithium (OTCQB: GRDAF) has begun drilling the first of a two‑well oil and gas program near Marsden, Saskatchewan, using a single pad to reduce lease and construction costs. The wells are shallow with the company planning rapid completion and fast production if successful.

Based on nearby well type curves and current commodity prices, Grounded anticipates payout in six to twelve months, after which net operating income is expected to boost working capital for the Kindersley Lithium Project.

Positive

• First well of a two‑well oil and gas program has been spudded
• Two wells drilled from a single pad, saving lease and construction capital
• Expected payout in 6–12 months based on surrounding well type curves
• Post‑payout net operating income to fund Kindersley Lithium Project working capital

Negative

• Payout timing is conditional on current commodity prices
• Cash flow depends on wells being successful; production is not guaranteed

CALGARY, AB, Feb. 25, 2026 /PRNewswire/ - (TSX.V: GRD  OTCQB: GRDAF) - Grounded Lithium Corp. ("GLC", "Grounded", or the "Company") announces we have begun drilling the first of a two well program targeting oil and gas resources near Marsden, Saskatchewan.  As communicated in our press release dated January 14, 2026, Grounded has diversified its potential resource base by acquiring certain oil and gas mineral rights. 

The two wells will be drilled from one pad or surface location, saving time and capital in lease construction and facilitating ease of our future production operations.  As the wells in the program are relatively shallow, the intention is to quickly follow drilling activities with associated completion activities and bring successful wells onto production as quickly as possible.  It is anticipated based on well type curves in the surrounding area that payout under the various agreements that Grounded is party to, will occur in six to twelve months based on current commodity prices.  Post-payout, net operating income payable to Grounded will enhance working capital reserves to fund Grounded's ongoing commitments associated with the Kindersley Lithium Project.

About Grounded Lithium Corp.

GLC is a publicly traded lithium brine exploration and development company that controls approximately 1.0 million metric tonnes of Measured & Indicated lithium carbonate equivalent mineral resource and approximately 3.2 million metric tonnes of Inferred lithium carbonate equivalent resource over our focused land holdings in Southwest Saskatchewan as per the Company's updated PEA.  The updated PEA, titled "NI 43-101 Technical Report: Preliminary Economic Assessment Kindersley Lithium Project – Phase 1 Update" dated November 7, 2023 and effective as of June 30, 2023, reports a Phase 1 NPV₈ after-tax of US$1.0 billion with an after-tax IRR of 48.5%.  GLC's multi-faceted business model involves the consolidation, delineation, exploitation and ultimately development of our opportunity base to fulfill our vision to build a best-in-class, environmentally responsible, Canadian lithium producer supporting the global energy transition shift.  U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on https://www.otcmarkets.com/. 

Qualified Person

Scientific and technical information contained in this press release has been prepared under the supervision of Doug Ashton, P.Eng., Alexey Romanov, P. Geo., Meghan Klein, P. Eng., Dean Quirk, P.Eng., Jeffrey Weiss, P.Eng., Chad Hitchings., P.L. Eng., and Michael Munteanu, P.Eng., each of whom is a qualified person within the meaning of NI 43-101 and independent consultants to the Company.

Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws.  Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", or similar words suggesting future outcomes or statements.  Forward-looking statements or information in this press release include, but are not limited to, statements regarding: the anticipated success of one or both oil and gas wells and ability to bring them onto production; ; payout to occur on the wells within six to twelve months on current commodity prices; potential of successful wells to enhance working capital reserves; Grounded's continued focus on critical minerals; Grounded's mineral resources and the value thereof; and Grounded's vision of becoming a best-in-class, environmentally responsible, Canadian lithium producer supporting the global energy transition.  The forward-looking statements and information contained in this press release are expressly qualified by this cautionary statement.

Forward-looking statements in this press release are based on a number of assumptions, including, but not limited to: the ability of Grounded to fund, advance, and develop its projects; the presence and recoverability of commercially viable oil reserves/resources from the acquired interests; the ability to obtain necessary regulatory, environmental, and partner approvals and permits; the availability and cost of capital, equipment, and personnel; anticipated commodity prices; the ability to successfully drill, complete, and produce from the planned wells; the ability to realize anticipated payback periods, rates of return, and cash flows; the demand for Grounded's products; and the ability to execute the Company's business plan as described.

Although Grounded believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements and information because Grounded can give no assurance that such expectations will prove to be correct. Actual results may differ materially from those expressed or implied by such forward-looking statements due to known and unknown risks, uncertainties, and other factors, including, but not limited to: technical and operational difficulties; the ability to obtain necessary regulatory approvals and permits; the availability and cost of equipment and personnel; fluctuations in commodity prices and market conditions; the failure to achieve anticipated drilling results or commercial production; delays or changes in project execution; the ability to raise sufficient capital on reasonable terms; health, safety, and environmental risks; and the other risk factors detailed in Grounded's Management's Discussion and Analysis for the periods ended December 31, 2024 and September 30, 2025, and in other documents Grounded files from time to time with securities regulatory authorities in Canada (available on SEDAR+ at sedarplus.ca).

The forward-looking statements and information contained in this press release are made as of the date hereof and except where required by law, Grounded undertakes no obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.  The fact that this press release remains available does not constitute a representation by Grounded that the Company believes these forward-looking statements continue to be true as of any subsequent date.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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SOURCE Grounded Lithium Corp.

FAQ

What did Grounded Lithium (GRDAF) announce about drilling on February 25, 2026?

Grounded Lithium began drilling the first of a two‑well oil and gas program near Marsden, Saskatchewan. According to the company, drilling uses one pad to save time and capital and aims for quick completion and production if wells are successful.

When does Grounded Lithium (GRDAF) expect payout from the Marsden wells?

The company expects payout in six to twelve months based on local well type curves. According to the company, that timing assumes current commodity prices and successful well completions that reach production quickly.

How will the Marsden oil and gas wells affect Grounded Lithium's funding for Kindersley project?

Net operating income after payout is expected to strengthen working capital for the Kindersley Lithium Project. According to the company, post‑payout cashflow will be used to fund ongoing commitments tied to the lithium project.

Why is Grounded drilling two wells from one pad for the GRDAF program?

Using one pad reduces lease construction time and capital costs while easing future production operations. According to the company, this approach saves time and capital and facilitates quicker transition to completion and production activities.

What are the main risks to the cash flow timeline for Grounded Lithium's (GRDAF) wells?

Cash flow timing depends on commodity prices and well success; both can delay payout beyond estimates. According to the company, the six to twelve month payout projection is conditional on current commodity prices and successful well performance.