Battery Mineral Resources Corp. Provides Punitaqui Update and Extends Closing Date on its Announced Offering of up to US$6M in Unsecured Convertible Debentures

Battery Mineral Resources Corp. (TSXV: BMR) (OTCQB: BTRMF) (“Battery” or “BMR” or the “Company”) is pleased to provide project updates and also announce an extension to the final closing date of its private placement (the “Private Placement”) of up to US$6,000,000 in senior unsecured convertible debentures (the “Debentures”), which was previously announced on October 17, 2023.

The Company is pleased to announce that effective January 26, 2024, it has received an exploitation permit from Chile's National Geology and Mining Service (SERNAGEOMIN) with regards to the Cinabrio mine, which forms part of the Punitaqui mining complex. The Cinabrio mine is the original mine which supported copper concentrate production during the approximately 10 years of historic copper production, primarily operated by Glencore PLC.

The exploitation permit allows BMR to extract copper ore and barren rock from the Cinabrio mine as the mine is being prepared for resumption of full production. The Company anticipates commencing pre-production maintenance activities at Cinabrio in the very near-term, including rehabilitation of existing workings, drifting and establishment of access for drilling and exploitation—all of which allows for the resumption of ore extraction.

As previously announced, an exploitation permit for the San Andres mine has been granted. The permit allows for BMR to commence drifting, ramp construction and mine development on two different elevation levels and allows for establishment of new underground exploration drilling platforms. This mine development will establish access to new zones of copper mineralization for the forthcoming mine production. Mining equipment and supplies to support these activities has been delivered and personnel recruitment is progressing well.

Repairs, replacements and upgrades of the crushing, grinding and flotation plant are progressing well, and operational commissioning of the facility is expected to begin in the latter part of Q1 2024, followed by copper concentrate production in Q2 2024.

The TSX Venture Exchange (the “TSXV”) has approved an extension to the Private Placement to February 14, 2024. The proceeds from the Debentures will be applied towards working capital and the restart of copper concentrate production at the Company’s Punitaqui mining complex in Chile (the “Restart”).

The Company continues to progress towards securing the balance of the capital required for the Restart and, to date, has successfully raised US$3,285,000 (C$4,407,484) in Debentures. The Company estimates the total capital required for the Restart to be approximately US$13 million (approximately C$17.4 million) (prior to corporate costs and other asset holding costs and inclusive of amounts to be raised in the Private Placement). The Company looks forward to providing additional updates to the market in the coming weeks as Punitaqui is propelled back into sustainable, profitable production for all stakeholders.

The Debentures will mature on September 30, 2026 (the “Maturity Date”) and will bear interest at 10% per annum, compounding annually on September 30 of each year, not in advance. Interest accrued from the date of issuance up to and including March 30, 2025, will be paid by way of issuance of common shares of the Company. Interest accrued following March 30, 2025, will be, at the option of the holder, paid either in cash or by way of issuance of common shares of the Company. The issuance of common shares as payment of interest will be at the then current market price of the Company’s common shares at the date the interest becomes payable and will be subject to the prior acceptance of the TSXV and applicable securities laws.

The holder of a Debenture may, at their option, at any time from March 31, 2024, and prior to the close of business on the business day immediately preceding the Maturity Date, convert all, but not less than all, of the principal amount of such Debenture into common shares of the Company at the conversion price of US$0.22 per share (approximately C$0.30 per share).

All Debentures issued in the Private Placement are subject to a four month hold period under applicable Canadian securities laws and under the policies of the TSXV. The Private Placement is subject to final approval by the TSXV.

All USD amounts for which CAD equivalent amounts are given in this news release were calculated at CAD/USD exchange rate of 1.3417, the exchange rate published by the Bank of Canada on January 30, 2024.

Weston Energy LLC and Weston Energy II LLC are “related parties” to BMR pursuant to pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). Prior to giving effect to the transactions disclosed in this news release and in the refinancing transactions disclosed in the Company’s press release dated October 17, 2023, Weston Energy LLC and Weston Energy II LLC and its affiliates owned or controlled (directly or indirectly) 107,578,740 BMR Common Shares on an undiluted basis and 122,491,305 BMR Common Shares assuming the conversion of all the Company’s previously outstanding secured convertible debentures (representing approximately 60.60% and 63.31%, respectively, of the outstanding BMR Common Shares).

The Debentures (including any issued in future closings) will be sold in a transaction exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) and will be sold only to persons reasonably believed to be accredited investors in the United States under Rule 506 under the Securities Act and outside the United States only to non-U.S. persons in accordance with Regulation S under the Securities Act.

The Debentures and the shares of common stock issuable upon conversion of the Debentures, if any, have not been and will not be registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from such registration requirements of the Securities Act and applicable state securities laws.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Debentures or any shares of common stock potentially issuable upon conversion of the Debentures nor shall there be any sale of Debentures (or shares issuable upon conversion thereof) in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.

There can be no assurance that any future offerings of Debentures will be completed.

Battery Mineral Resources is a battery minerals company providing shareholders exposure to the global mega-trend of electrification while being focused on growth through cash-flow, exploration, and acquisitions in favourable mining jurisdictions. Battery Mineral’s mission is the discovery, acquisition, and development of battery metals (namely cobalt, lithium, graphite, and copper), in North America, South America and South Korea and to become a premier and responsible supplier of battery minerals to the electrification marketplace. BMR is currently pursuing a near-term resumption of operations of the Punitaqui Mining Complex, a past copper-gold-silver producer, in the Coquimbo region of Chile. BMR is the largest mineral claim holder in the historic Gowganda Cobalt-Silver Camp in Ontario, Canada, and continues to pursue a focused program to build on the recently announced, +1-million-pound high-grade cobalt resource at McAra. In addition, Battery Mineral owns 100% of ESI Energy Services, Inc. (including ESI’s wholly owned USA operating subsidiary, Ozzie’s, Inc.), a profitable mainline pipeline and renewable energy equipment rental and sales company with operations in Alberta, Canada and Arizona, USA. Battery Mineral Resources is based in Canada and its shares are listed on the Toronto Venture Exchange under the symbol “BMR” and on the OTCQB under the symbol “BTRMF”. Further information about BMR and its projects can be found on www.bmrcorp.com.

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

This news release includes certain “forward-looking statements” under applicable securities laws. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections of the Company on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual 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 and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, the ability of the Company to obtain sufficient financing (including through the Private Placement) to complete exploration and development activities, the ability of the Company to close further tranches of the Private Placement, the completion, timing and size of the proposed Private Placement, the intended use of the proceeds of the Private Placement, risks related to share price and market conditions, the inherent risks involved in the mining, exploration and development of mineral properties, the ability of the Company to meet its anticipated development schedule, government regulation and fluctuating metal prices. Accordingly, readers should not place undue reliance on forward-looking statements. Battery undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein, whether as a result of new information or future events or otherwise, except as may be required by law. For further information regarding the risks please refer to the risk factors discussed in Battery’s most recent Management Discussion and Analysis filed on SEDAR+.

Martin Kostuik, CEO of Battery Mineral Resources Corp.

604-229-3830