Surface Metals Inc. Sells Remaining Interest in Manitoba Lithium Project to Earn-in Partner Snow Lake Energy

Rhea-AI Summary

Surface Metals (OTCQB:SURMF) sold its remaining 49% interest in 37 mineral claims in south-eastern Manitoba to earn-in partner Snow Lake Energy for total consideration of $650,000 on December 22, 2025.

The Properties comprise 21 Shatford Lake claims (8,883 acres), 10 Birse Lake claims (5,196 acres) and 6 Cat-Euclid Lake claims (2,930 acres), totalling 17,009 acres. Snow Lake had previously earned a 51% interest under an option dated January 29, 2024; that option will terminate upon this sale. The transfer is subject to a 2% gross overriding royalty in favour of Lithium Royalty Corporation.

Positive

• Sale of remaining 49% interest completed for $650,000
• Consolidation: Snow Lake increases stake to 100% ownership
• Properties total 17,009 acres across three claim groups

Negative

• Properties encumbered by a 2% gross overriding royalty to LRC
• Transaction proceeds ($650,000) may be modest relative to property scale

News Market Reaction

+0.51%

1 alert

+0.51% News Effect

On the day this news was published, SURMF gained 0.51%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - December 22, 2025) - Surface Metals Inc. (CSE: SUR) (OTCQB: SURMF) ("Surface Metals" or the "Company") announces that it has completed an agreement with Snow Lake Resources Ltd. dba Snow Lake Energy (NASDAQ: LITM) ("Snow Lake") to sell its remaining 49% interest in 37 mineral claims in south-eastern Manitoba for total consideration of $650,000.

Pursuant to an option agreement dated January 29, 2024 between Surface Metals and Snow Lake, Surface Metals granted to Snow Lake an option to earn up to a 90% undivided interest in the following mineral claims located in south-eastern Manitoba (the "Properties"):

1. 21 mineral claims totaling 8,883 acres (3,595 hectares) (the "Shatford Lake Mineral Claims");

2. 10 mineral claims totaling 5,196 acres (2,102 hectares) (the "Birse Lake Mineral Claims"); and

3. 6 mineral claims totaling 2,930 acres (1,186 hectares) (the "Cat-Euclid Lake Mineral Claims").

Snow Lake had previously earned a 51% interest in the Properties under the option agreement, which agreement will terminate upon Surface Metal's sale of its remaining 49% interest.

The Properties are subject to a 2% gross overriding royalty in favour of Lithium Royalty Corporation (LRC), and Snow Lake acquires Surface Metal's remaining interest subject to the existing royalty.

About Surface Metals Inc.

Surface Metals Inc. (CSE: SUR) (OTCQB: SURMF) is a North American mineral exploration company focused on advancing a diversified portfolio of gold and lithium projects in the state of Nevada, USA. The Company's Cimarron Gold Project is located in Nye County, Nevada, in a historically productive gold district. Surface's Clayton Valley Lithium Brine Project hosts an NI-43-101 compliant inferred resource of approximately 302,900 tonnes of lithium carbonate equivalent (LCE) adjacent to Albemarle's Silver Peak Mine. Surface Metals is also advancing a lithium project in neighbouring Fish Lake Valley, Nevada.

For more information, please visit: www.surfacemetals.com

On behalf of the Board of Directors

Steve Hanson
Chief Executive Officer, President, and Director
Telephone: (604) 564-9045
info@surfacemetals.com

Neither the CSE nor its regulations service providers accept responsibility for the adequacy or accuracy of this news release. This news release contains certain statements which may constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Any forward-looking statement speaks only as of the date it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/278777

FAQ

What did Surface Metals announce on December 22, 2025 regarding SURMF?

Surface Metals sold its remaining 49% interest in 37 Manitoba mineral claims to Snow Lake for $650,000.

How many acres did Surface Metals sell in the Manitoba transaction (SURMF)?

The sale covers 21 Shatford Lake claims (8,883 acres), 10 Birse Lake claims (5,196 acres) and 6 Cat-Euclid Lake claims (2,930 acres), totalling 17,009 acres.

What ownership will Snow Lake hold after buying SURMF's remaining interest?

Snow Lake had earned 51% previously and acquires the remaining 49%, resulting in 100% ownership of the Properties.

Is there any royalty attached to the Manitoba claims sold by SURMF?

Yes. The Properties remain subject to a 2% gross overriding royalty in favour of Lithium Royalty Corporation.

When was the original option agreement between Surface Metals and Snow Lake signed?

The option agreement was dated January 29, 2024.

Does the December 22, 2025 sale terminate the prior option agreement (SURMF)?

Yes. The prior option agreement terminates upon Surface Metals' sale of its remaining 49% interest.