Mr. Don Streu reports

CONDOR RECEIVES ITS FIRST LITHIUM BRINE MINING LICENSE IN KAZAKHSTAN

The government of Kazakhstan has awarded Condor Energies Inc. a contiguous 37,300-hectare lithium brine mining licence in Kazakhstan. Condor Energies holds the 100-per-cent working interest in the first lithium licence for a six-year term.

A prior well drilled in the first lithium licence for hydrocarbon exploration encountered and tested brine deposits with lithium concentrations of 67 milligrams per litre in Carboniferous-aged intervals as reported by the Ministry of Geology of the Republic of Kazakhstan. A 670-metre column of tested and untested brine reservoir has been identified from historical wire line log and core data. This well also penetrated the very top of the Devonian-aged sediments, and reservoir sands were encountered but not tested.

Condor Energies previously entered into a binding sale and purchase agreement for a separate lithium brine mining licence with a state-owned entity, and the company is awaiting final approval from the government of Kazakhstan to complete the acquisition. A prior well drilled in the second lithium licence for hydrocarbon exploration encountered and tested brine deposits with lithium concentrations of up to 130 milligrams per litre in Devonian- and Carboniferous-aged intervals as reported by the Ministry of Geology of the Republic of Kazakhstan. A 1,000-metre column of tested and untested brine reservoir has been identified from historical wire line log and core data. Condor Energies will hold a 95-per-cent working interest in the second lithium licence, and operate and be responsible for financing all activities while the seller will maintain a 5-per-cent carried working interest. The second lithium licence was originally assigned to the seller on April 3, 2019, for a six-year term and provides the subsurface exploration rights for solid minerals on a contiguous 6,800-hectare area.

The lithium licences are strategically located between Europe and China, providing direct access to existing and robust lithium markets. The company intends to produce the lithium by utilizing closed-looped direct lithium extraction (DLE) technologies. Given that the company's lithium licences are not associated with legacy oil wells nor any reported presence of hydrogen sulphide, a less complex and capital intensive modular DLE technology is envisioned for the separation of lithium from the brine when compared with lithium extraction projects targeting oil field brines. By applying proven DLE production technologies, the company expects to have a much smaller environmental footprint than existing lithium production operations, which use open-pit mining or brine evaporation ponds. The company is also evaluating the construction of a renewable power generation project to achieve net-zero emissions for its lithium production.

The company's initial development plan over the next 12 months includes drilling and testing two wells to verify deliverability rates, confirm the lateral extension and concentrations of lithium in the tested and untested intervals, conduct preliminary engineering for the production facilities, and prepare a mineral resources or mineral reserves report compliant with National Instrument 43-101 (Standards of Disclosure for Mineral Projects). Procurement of long-lead equipment and contracting a drilling rig are under way.

The company is not treating the historical estimate as current mineral resources or mineral reserves as additional drilling and testing are necessary, and a qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves. It is uncertain if further drilling will result in the area being delineated as a mineral resource or reserve. Readers should similarly not rely on the historical lithium concentration estimate for the lithium licence as indicative of the actual lithium concentration or the likelihood that the company will be able achieve similar production results.

Readers are invited to review the company's latest corporate presentation available on the Condor Energies website.

We seek Safe Harbor.