Surge Battery Metals Advances 2025 Drill Program; Leverages U.S. Critical Minerals Policy

Rhea-AI Summary

Surge Battery Metals (OTCQX:NILIF / TSXV:NILI) updated its 2025 drilling program at the Nevada North Lithium Project (NNLP) and announced engagement of Cassidy & Associates for U.S. federal policy and agency outreach.

Key operational points: the nine-hole core program (started late September) is ~80% complete and aims to upgrade resources to Indicated and Measured and collect geotechnical/hydrogeological data for a planned 2026 Pre-Feasibility Study (PFS). A recent PEA reports: After-tax NPV8% of US$9.17B, IRR 22.8% at US$24,000/t LCE, OPEX US$5,243/t LCE, 42-year LOM producing 3.6 Mt LCE, average annual production 86,300 t LCE, total CAPEX US$5.32B and after-tax payback 4.6 years.

Positive

• After-tax NPV8% US$9.17B
• IRR 22.8% at US$24,000/t LCE
• Average annual production 86,300 t LCE
• PEA LOM production 3.6 Mt LCE over 42 years
• 2025 drill program ~80% complete to upgrade resources

Negative

• Total CAPEX US$5.32B
• Sustaining capital US$1.51B

West Vancouver, British Columbia--(Newsfile Corp. - October 20, 2025) - Surge Battery Metals Inc. (TSXV: NILI) (OTCQX: NILIF) (FSE: DJ5) (the "Company" or "Surge") is pleased to provide an update on the progress of its 2025 drilling program at the Nevada North Lithium Project ("NNLP") and to highlight its strategic engagement with Cassidy & Associates in light of evolving U.S. federal policy support for the domestic battery supply chain.

2025 Drill Program

Surge is currently executing a nine-hole core drill program, (See News Release dated September 4, 2025) with the objective of updating the Resource Estimate while upgrading the resource itself to the Indicated and Measured categories. The program will collect geotechnical and hydrogeological data to support the planned 2026 Pre-Feasibility Study (PFS). Drilling commenced in the latter part of September and is expected to be completed by the end of October 2025.

To date 80% of the program has been completed and the Company expects the balance of the drilling to be completed this week. Initial visual observations from the drill core are highly encouraging. The targeted lithium-bearing claystone horizons are demonstrating excellent lateral continuity across the project area and, in some cases, are appearing thicker than previously modeled. This provides strong validation for our geological model as we work towards an updated resource.

PEA Results

The Company recently completed a Preliminary Economic Assessment (PEA) which confirms the strong economic potential of the NNLP (See News Release dated July 24, 2025). Highlights include:

• After-tax NPV_8%: US$9.17 Billion, IRR of 22.8% at US$24,000/t lithium carbonate equivalent ("LCE") price
• Operating cost ("OPEX"): US$5,243/t LCE
  • Near-surface, high-grade mineralization drives the Surge NNLP advantage
• PEA mine and processing plan produces 3.6 Mt battery-grade lithium carbonate equivalent ("LCE") over the 42-year life of mine ("LOM")
  • Average Annual Production of 86,300 tonnes LCE
  • Peak Production of 109,100 tonnes LCE in Year 6
• Lithium Plant will be built in two phases
• Phase 1 ("P1") Capital Cost ("CAPEX"): US$2.97 Billion, Phase 2 ("P2") CAPEX: US$2.35 Billion, total of US$5.32 Billion
  • Sustaining Capital: US$1.51 Billion
• After-tax payback: 4.6 years
• Average LOM annual after-tax cash flow: US$1.06 Billion

Cassidy & Associates Engagement

To better navigate the U.S. federal policy, permitting, and funding landscape, Surge has engaged Cassidy & Associates, a Washington, D.C.-based government relations and advocacy firm, to support U.S. policy outreach and agency engagement (See News Release dated October 7, 2025).

Under this agreement, Cassidy & Associates will assist Surge in:

• Advocating on federal funding opportunities and aligning with U.S. critical minerals strategies.
• Supporting outreach to relevant federal agencies (e.g. DOE, BLM, EPA); and
• Ensuring regulatory alignment as development advances.

Next Steps & Forward Strategy

• Complete the 2025 drill program
• Incorporate new drill data into an updated resource model and estimate
• Retain engineering firm to begin PFS in 2026
• Continuing metallurgical and environmental workstreams alongside stakeholder engagement
• Advance PFS through 2026
• Monitor and actively pursue applicable US federal funding and grant programs

Mr. Greg Reimer, Chief Executive Officer and a Director of the Company, commented, "With the exploration and development of the NNLP well underway, we are strategically positioning the project within the US Critical Minerals framework. The recently finalized DOE loan and current equity discussions with Lithium Americas demonstrates the US government's commitment to developing domestic lithium projects. We believe Surge is well positioned to take advantage of this support and our engagement of Cassidy & Associates strengthens our capabilities in Washington."

In addition, the Company has entered into a marketing and investor awareness agreement dated October 17, 2025, with New Era Publishing Inc ("New Era"). Under the terms of the agreement, New Era will provide marketing and promotional services to the Company for a period of two months in exchange for a fee of $225,000 USD (approximately $315,000 Canadian). New Era is a digital marketing and media firm established in 2016 based in Vancouver, BC. New Era will provide digital marketing, email and market awareness services and assist its clients with reaching potential investors. New Era will further engage www.carboncredits.com to connect North American and European audiences to bolster awareness of the Company through the carboncredits.com website, articles, lithium price dashboard and e-mail newsletters. New Era and the Company are unrelated and unaffiliated entities at arm's length of each other, and neither New Era, nor its principals have an interest, directly or indirectly, in the securities of the Company.

Qualified Persons

Alan J. Morris, MSc, CPG of Spring Creek, Nevada, Geological Advisor to the Company, and a Qualified Person as defined under National Instrument 43-101, has reviewed and approved the technical aspects of this news release. Mr. Morris has verified the data disclosed respecting the drill program by reviewing all available information. There were no limitations on the verification process.

About Surge Battery Metals Inc.

Surge Battery Metals, a Canadian-based mineral exploration company, is at the forefront of securing the supply of domestic lithium through its active engagement in the Nevada North Lithium Project. The project focuses on exploring clean, high-grade lithium energy metals in Nevada, USA, a crucial element for powering electric vehicles. With a primary listing on the TSX Venture Exchange in Canada and the OTCQX Market in the US, Surge Battery Metals Inc. is strategically positioned as a key player in advancing lithium exploration.

About the Nevada North Lithium Project

The Company owns the Nevada North Lithium Project located in the Granite Range southeast of Jackpot, Nevada about 73 km north-northeast of Wells, Elko County, Nevada. The first three rounds of drilling, completed in 2022, 2023, and 2024, identified a strongly mineralized zone of lithium bearing clays occupying a strike length of more than 4,300 meters and a known width of greater than 1500 meters. Highly anomalous soil values and geophysical surveys suggest there is potential for the clay horizons to be much greater in extent, while wide drill spacing allows for significant upside to occur during infill drilling. The Nevada North Lithium Project has a pit-constrained Inferred Resource containing an estimated 8.65 Mt of Lithium Carbonate Equivalent (LCE) grading 2,955 ppm Li at a 1,250 ppm cutoff. The recently completed PEA reported an after-tax NPV_8% US $9.17 Billion and after-tax IRR of 22.8% at $24,000/ t LCE and an OPEX of US $5,243/t LCE.

On behalf of the Board of Directors

"Greg Reimer"

Greg Reimer,
Director, President & CEO

Contact Information
Email: info@surgebatterymetals.com
Phone: 604-662-8184
Website: surgebatterymetals.com

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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 release.

This document may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan" or "planned", "possible", "potential", "forecast", "intend", "may", "schedule" and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities including lithium and nickel, the accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals including approvals of title and mining rights or licenses and environmental, local community or indigenous community approvals, the reliability of third party information, continued access to mineral properties or infrastructure or water, changes in laws, rules and regulations including in the United States, Nevada or California or any other jurisdiction which may impact upon the Company or its properties or the commercial exploitation of those properties, currency risks including the exchange rate of USD$ for Cdn$ or other currencies, fluctuations in the market for lithium related products, changes in exploration costs and government royalties, export policies or taxes in the United States or any other jurisdiction and other factors or information. The Company's current plans, expectations, and intentions with respect to development of its business and of its Nevada properties may be impacted by economic uncertainties arising out of any pandemic or by the impact of current financial and other market conditions (including US government subsidies or incentives) on its ability to secure further financing or funding of its Nevada properties. Such statements represent the Company's current views with respect to future events and are necessarily based upon several assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political, environmental (including endangered species, habitat preservation and water related risks) and social risks, contingencies, and uncertainties. Many factors, both known and unknown, could cause results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules, and regulations.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/271046

FAQ

What progress has Surge (NILIF) made on the 2025 NNLP drill program?

Surge reported the nine-hole core program is about 80% complete, with remaining drilling expected to finish by late October 2025.

What are the PEA economics for Surge's NNLP reported in 2025?

The PEA shows After-tax NPV8% US$9.17B, IRR 22.8% at US$24,000/t LCE, OPEX US$5,243/t LCE, and total CAPEX of US$5.32B.

How much lithium does the NNLP PEA project to produce and over what timeframe?

The PEA projects 3.6 Mt LCE over a 42-year life of mine, averaging 86,300 t LCE per year and peaking at 109,100 t in year 6.

What is Surge's next technical milestone after the 2025 drilling (NILIF)?

Surge plans to incorporate new drill data into an updated resource model and retain an engineering firm to start a Pre-Feasibility Study in 2026.

Why did Surge engage Cassidy & Associates and what will they do?

Surge engaged Cassidy & Associates to support U.S. federal funding outreach, agency engagement (DOE, BLM, EPA), and regulatory alignment as development advances.

Did Surge announce any marketing or investor awareness arrangements in October 2025?

Yes; Surge entered a two-month marketing agreement with New Era Publishing for a $225,000 USD fee to provide digital marketing and investor awareness services.