If You Invested in Grounded Lithium (GRDAF)

Grounded Lithium Corp. (OTCQB: GRDAF; TSX.V: GRD) is a publicly traded basic materials company focused on lithium brine exploration and development. The company operates in the "Other Industrial Metals & Mining" industry and is advancing its core assets in Southwest Saskatchewan, Canada. Grounded Lithium describes itself as a lithium brine exploration and development company with a multi-faceted business model built around the Kindersley Lithium Project ("KLP"), a lithium-from-brine project supported by an updated preliminary economic assessment ("PEA").

According to multiple company disclosures, Grounded Lithium controls or owns 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 focused land holdings in Southwest Saskatchewan. These resources are reported in the company’s NI 43-101 Technical Report titled "Preliminary Economic Assessment Kindersley Lithium Project – Phase 1 Update" dated November 7, 2023 and effective as of June 30, 2023. The same PEA reports a Phase 1 NPV8 after-tax of US$1.0 billion with an after-tax IRR of 48.5% for the KLP.

Core project: Kindersley Lithium Project (KLP)

The Kindersley Lithium Project is Grounded Lithium’s flagship lithium-from-brine development. The project targets lithium-rich brines in the Duperow/Leduc geological sequence in Southwest Saskatchewan. The company, together with its strategic partner Denison Mines Corp. ("Denison"), has undertaken a series of technical programs at the dedicated lithium well known as the 4-15-33-23W3 well (the "4-15 Well"). Work at this well has included re-entry, deepening, testing of multiple stratigraphic intervals, and extensive brine sampling.

Field programs have tested 11 intervals across the Duperow formation for flow capabilities and lithium concentrations, with brine samples sent to independent laboratories and governmental research facilities. Test results cited by the company include lithium concentrations from previously tested zones at approximately 76.5 milligrams per litre and newly drilled lower zones at approximately 66 milligrams per litre, with those lower zones demonstrating additional deliverability that may contribute to overall project deliverability.

Grounded Lithium and Denison have also initiated 3D reservoir depletion modelling to optimize well patterns, reservoir development, and site infrastructure for the KLP. This modelling uses data from brine flow rates, pressures, and lithium concentrations collected during field programs. The company has described an optimized field configuration that positions multiple production wells on each surface lease, with angled wells and horizontal legs in the most prospective reservoir layers to maximize brine drainage while seeking to reduce surface footprint and infrastructure requirements.

Partnership with Denison Mines and project de-risking

In January 2024, Grounded Lithium entered into an Earn-In Agreement with Denison under which Denison has the option to earn up to a 75% working interest in the Kindersley Lithium Project. Under this structured earn-in option, Denison may fund in aggregate up to CAD$15,150,000, comprised of up to CAD$3,150,000 in cash payments to Grounded Lithium and up to CAD$12,000,000 in project expenditures. The agreement is organized into phases, with Denison’s working interest increasing as it funds defined levels of project expenditures and cash payments.

As part of this collaboration, Denison and Grounded Lithium developed a CAD$4.5 million budget to advance the KLP to a pre-feasibility study ("PFS"). The budget is fully funded by Denison under the Earn-In Agreement and covers activities such as:

• Development of an NI 43-101 compliant PFS report for a commercial battery-grade lithium operation.
• Further delineation of the resource base through additional drilling and sampling of multiple reservoir layers within the Leduc/Duperow sequence.
• Additional brine production for storage and extensive testing in various pre-filtering and extraction technologies.
• Analysis of direct lithium extraction ("DLE") technologies, including adsorption and ion-exchange approaches.
• Creation of an extensive depletion and recovery model to support economic analysis and optimize reservoir development.

Denison has taken the lead in selecting engineering firms to author the PFS, and Grounded Lithium has announced the selection of Stantec Inc. as lead author for the PFS in accordance with NI 43-101. Stantec’s role includes reflecting lab results and field data to determine an optimal technology for extracting lithium from the brine and integrating those findings into the PFS.

Direct lithium extraction and metallurgical testing

Grounded Lithium’s disclosures highlight a focus on direct lithium extraction as a core technical pathway for the KLP. Brine from the 4-15 Well has been shipped to several DLE technology providers and to federal research facilities for lab-pilot testing. The company notes that both sorption and ion-exchange lithium extraction methodologies have promise for the final project design, with ongoing evaluations intended to inform the PFS and any future facility design.

Brine samples have been sent to three independent extraction technology labs and two governmental research labs for lab-pilot testing. These evaluations are intended to support the selection of an optimal metallurgical process and the integration of extraction technologies for producing lithium-rich eluate and ultimately a lithium hydroxide or lithium carbonate product. The company has also indicated that it is monitoring broader DLE technology developments as industry peers advance projects using various technology providers.

Business model and strategic focus

Grounded Lithium describes its approach as a multi-faceted business model that involves the consolidation, delineation, exploitation and ultimately development of its opportunity base. The company’s stated vision is to build an environmentally responsible Canadian lithium producer that supports the global energy transition shift. This model is anchored in the KLP and the associated resource base in Southwest Saskatchewan.

The company emphasizes technical and economic de-risking through staged studies: an initial PEA, followed by a PFS led by Stantec and supported by Denison-funded field and lab programs. Grounded Lithium’s communications also reference efforts to manage its balance sheet by minimizing corporate spending while progressing the KLP through a rigorous technical process with its partner.

Diversification into oil and gas mineral rights

In addition to its lithium brine focus, Grounded Lithium has announced a non-core acquisition of oil and gas mineral rights in Saskatchewan. Under a definitive Purchase Agreement dated December 30, 2025, the company agreed to acquire a 30% mineral interest in oil and gas rights on lands in south-central Saskatchewan near Lloydminster. The transaction is described as a non-arm’s length related party transaction involving Analogy Capital Advisors Inc., an entity co-owned and controlled by the company’s chairman.

As a second step, Grounded Lithium and a third-party owner agreed to farm out their combined 60% interest in these lands to the Saskatchewan Renewal Drilling Limited Partnership #1 ("SRDLP"), which raised capital to invest in oil and gas opportunities. Under the farmout, SRDLP recovers its capital and operating costs through a share of net operating income ("NOI"), with Grounded Lithium receiving a defined percentage of NOI before and after payout. Grounded Lithium will act as operator for drilling and production activities on the lands, with time and effort charged back under standard joint operating agreements.

The company has stated that this oil and gas initiative is intended to supplement cash flow and working capital reserves as the KLP advances with Denison. Grounded Lithium characterizes the oil and gas venture as complementary to its lithium business and has indicated that post-payout cash flows could help satisfy future working capital requirements and potentially contribute to funding its share of future joint venture commitments for the KLP. At the same time, the company notes that its primary public purpose remains providing exposure to critical minerals.

Capital markets and regulatory framework

Grounded Lithium trades on the TSX Venture Exchange under the symbol GRD and on the OTCQB market under the symbol GRDAF. The company operates under Canadian securities regulations, including National Instrument 43-101 for technical reporting on mineral projects. Its technical disclosures reference qualified persons as defined under NI 43-101, who supervise and prepare the scientific and technical information in its news releases and technical reports.

For U.S. investors, the company notes that current financial disclosure and real-time Level 2 quotes for its OTCQB-listed shares are available through OTC Markets. Grounded Lithium’s financial and operating results are reported in Canadian dollars, and the company regularly publishes quarterly and annual financial statements and management’s discussion and analysis.

Position within the basic materials and lithium sector

Within the basic materials sector and the "Other Industrial Metals & Mining" industry, Grounded Lithium is focused specifically on lithium from brine resources in Southwest Saskatchewan. Its strategy centers on advancing the KLP through technical studies, resource delineation, and economic assessments, supported by a partnership structure in which Denison funds significant project expenditures under an earn-in framework.

The company’s disclosures emphasize the characteristics of its brine resource, including relatively shallow access, lithium concentrations in multiple zones of the Duperow formation, and brine chemistry that it expects to be compatible with DLE technologies. The combination of NI 43-101 compliant resource estimates, a completed PEA, and an in-progress PFS provides a structured pathway for project evaluation.

FAQs about Grounded Lithium Corp. (GRDAF)

• What does Grounded Lithium Corp. do?
  Grounded Lithium Corp. is a lithium brine exploration and development company. It focuses on consolidating, delineating, exploiting and ultimately developing lithium-from-brine resources, primarily through its Kindersley Lithium Project in Southwest Saskatchewan.
• Where are Grounded Lithium’s main assets located?
  The company reports that its focused land holdings are in Southwest Saskatchewan, Canada, where it controls or owns Measured & Indicated and Inferred lithium carbonate equivalent resources associated with the Kindersley Lithium Project.
• What is the Kindersley Lithium Project (KLP)?
  The KLP is Grounded Lithium’s flagship lithium-from-brine project. It targets lithium-rich brines in the Duperow/Leduc sequence, supported by an NI 43-101 PEA that outlines Measured & Indicated and Inferred lithium carbonate equivalent resources and provides an economic assessment for a Phase 1 development scenario.
• How much lithium resource does Grounded Lithium report?
  The company states that it controls or owns approximately 1.0 million metric tonnes of Measured & Indicated lithium carbonate equivalent and approximately 3.2 million metric tonnes of Inferred lithium carbonate equivalent over its land holdings in Southwest Saskatchewan, as reported in its updated PEA for the KLP.
• Who is Grounded Lithium’s strategic partner on the KLP?
  Grounded Lithium has an Earn-In Agreement with Denison Mines Corp. Under this agreement, Denison can earn up to a 75% working interest in the KLP by funding defined levels of project expenditures and making cash payments to Grounded Lithium.
• What is the purpose of the Earn-In Agreement with Denison?
  The Earn-In Agreement allows Denison to fund project expenditures and make cash payments in phases, in exchange for an increasing working interest in the KLP. This structure is intended to advance the project through technical de-risking, including a pre-feasibility study, while limiting the need for Grounded Lithium to dilute its interests at the asset or corporate level.
• What role does direct lithium extraction (DLE) play in Grounded Lithium’s plans?
  Grounded Lithium is evaluating DLE technologies as a key component of its development strategy for the KLP. Brine samples have been sent to multiple DLE technology providers and research labs for lab-pilot testing, and the company notes that both sorption and ion-exchange methodologies show promise. The PFS is expected to base its conclusions on the technology recommended from these assessments.
• Why did Grounded Lithium acquire oil and gas mineral rights?
  The company has described its acquisition of a minority interest in oil and gas mineral rights in Saskatchewan as a non-core transaction intended to supplement cash flow and working capital reserves. Through a farmout to a limited partnership, Grounded Lithium expects to receive a share of net operating income from shallow oil wells, which it views as complementary to its lithium business and a potential source of funds for future commitments related to the KLP.
• On which exchanges does Grounded Lithium trade?
  Grounded Lithium’s shares trade on the TSX Venture Exchange under the symbol GRD and on the OTCQB market in the United States under the symbol GRDAF.
• What is Grounded Lithium’s stated long-term vision?
  The company’s stated vision is to build a best-in-class, environmentally responsible, Canadian lithium producer that supports the global energy transition shift, using its multi-faceted business model and the development of the Kindersley Lithium Project as the foundation.