LIFT Elects to Proceed with Second Option at Pontax Property, Quebec

Rhea-AI Summary

Li-FT Power (OTCQX: LIFFF) has elected to proceed with the second option for the Pontax Property in Quebec's Eeyou-Istchee James Bay region, following its successful acquisition of an initial 51% interest. To secure an additional 19% stake (total 70%), LIFT must make a $50,000 payment and invest $3.35 million in exploration within three years.

The company will satisfy the initial payment by issuing 14,044 shares at $3.56 per share. Upon completion, Harfang can either convert its remaining 30% interest into a 2.5% NSR royalty or form a joint venture. Additionally, LIFT granted 8,422 Deferred Share Units to independent directors at $2.30 CAD per unit.

Positive

• Acquisition of majority control (70%) in strategic Quebec lithium property
• Successfully completed first option requirements including $1.65M in exploration expenditures
• Flexible structure allowing for either royalty conversion or joint venture partnership

Negative

• Required significant additional investment of $3.35M in exploration expenditures
• Share dilution through issuance of consideration shares and DSUs
• Three-year timeline commitment for exploration requirements

News Market Reaction

-1.13%

1 alert

-1.13% News Effect

On the day this news was published, LIFFF declined 1.13%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - September 23, 2025) - Li-FT Power Ltd. (TSXV: LIFT) (OTCQX: LIFFF) (FSE: WS0) ("LIFT" or the "Company") is pleased to announce it has elected to proceed with the second option in respect of the Pontax Property located in the Eeyou-Istchee James Bay region in Quebec approximately 220 kilometres north of Matagami (the "Pontax Property"), pursuant to an option agreement between the Company and Harfang Exploration Inc. ("Harfang") dated July 20, 2022 (the "Option Agreement").

The Company previously exercised its first option and acquired an initial 51% interest in the Pontax Property by paying to the optionor an aggregate of $100,000 over a three-year period and incurring $1,650,000 in exploration expenditures on the Pontax Property, in accordance with the Option Agreement.

Following the exercise of the first option, the Company elected to accept the grant of the second option to acquire a further 19% interest (for an aggregate 70% interest). The second option requires the Company to:

• make an additional $50,000 payment in cash or common shares upon election; and
• incur an additional $3,350,000 in expenditures on the Pontax Property prior to the expiry of the second option period, which ends three years after the exercise of the first option.
• Election notice and timing: LIFT delivered the required First Notice of Election together with the $50,000 election payment within the prescribed 60-day period, in accordance with the Option Agreement.

The Company will satisfy the $50,000 payment in shares by issuing 14,044 common shares of the Company at a deemed price of $3.56 per share (the "Consideration Shares"). The Consideration Shares will be subject to a statutory hold period expiring on January 16, 2026, in accordance with applicable securities laws.

Upon exercise of the second option, Harfang will have the option of converting its remaining participating interest of 30% into a 2.5% net smelter returns royalty or to form a joint venture to further explore the property, pursuant to the terms of the Option Agreement.

The share issuance has received approval from the TSX Venture Exchange.

Post-Exercise Structure

Following LIFT's exercise of the Second Option, Harfang may elect either to:

1. convert its 30% interest into a 2.5% net smelter returns ("NSR") royalty over the Property; or
2. form a joint venture with LIFT to further advance the Property, in each case as set out in the Option Agreement.

LIFT Announces DSU Grant

LIFT announces that it has granted a total of 8,422 Deferred Share Units ("DSU") to certain independent directors of the Company in lieu of director fees for the third quarter, at a fair market value of $2.30 CAD per DSU. The DSUs were granted in accordance with the Company's Omnibus Share Incentive Plan, which was approved by shareholders on May 8^th, 2025.

Each DSU represents the right to receive one common share in the share capital of the Company. The DSUs vest one year from the grant date and are settled in accordance with the terms of the Company's Share Incentive Plan, a copy of which is available on the Company's SEDAR+ profile.

About LIFT

LIFT is a mineral exploration company engaged in the acquisition, exploration, and development of lithium pegmatite projects located in Canada. The Company's flagship project is the Yellowknife Lithium Project located in Northwest Territories, Canada. LIFT also holds three early-stage exploration properties in Quebec, Canada with excellent potential for the discovery of buried lithium pegmatites, as well as the Cali Project in Northwest Territories within the Little Nahanni Pegmatite Group.

For further information, please contact:

Francis MacDonald  Chief Executive  Tel: + 1.604.609.6185  Email: investors@li-ft.com  Website: www.li-ft.com

Daniel Gordon Officer Investor Relations Tel: +1.604.609.6185 Email: investors@li-ft.com

 

Cautionary Statement Regarding Forward-Looking Information

Certain statements included in this press release constitute forward-looking information or statements (collectively, "forward-looking statements"), including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "should" and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. This press release contains forward looking statements. These forward-looking statements and information reflect management's current beliefs and are based on assumptions made by and information currently available to the company with respect to the matter described in this new release.

Forward-looking statements involve risks and uncertainties, which are based on current expectations as of the date of this release and subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors" in the Company's latest annual information form filed on March 21, 2025, which is available under the Company's SEDAR+ profile at www.sedarplus.ca, and in other filings that the Company has made and may make with applicable securities authorities in the future. Forward-looking statements contained herein are made only as to the date of this press release and we undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release.

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 news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/267510

FAQ

What percentage stake will LIFFF own in the Pontax Property after completing the second option?

After completing the second option, LIFT will own 70% of the Pontax Property, increasing from its current 51% stake.

How much additional investment is required for LIFFF's second option at Pontax?

LIFT must make a $50,000 payment and invest an additional $3.35 million in exploration expenditures within three years.

What are Harfang's options after LIFFF completes the second option?

Harfang can either convert its 30% interest into a 2.5% NSR royalty or form a joint venture with LIFT to further explore the property.

Where is the Pontax Property located and what is its strategic importance?

The Pontax Property is located in the Eeyou-Istchee James Bay region in Quebec, approximately 220 kilometers north of Matagami, a region known for its lithium potential.

How many DSUs did LIFFF grant to directors and at what price?

LIFT granted 8,422 Deferred Share Units (DSUs) to independent directors at a fair market value of $2.30 CAD per DSU.