Mr. Greg Reimer reports

SURGE BATTERY METALS ANNOUNCES PHASE 2 DRILLING UNDERWAY WITH TWO HOLES COMPLETE

Surge Battery Metals Inc.'s second program of drilling is under way and the first two holes have been completed on the Nevada North lithium project (NNLP), located northeast of Elko, Nev.

Drill pad locations for this second program of drilling have been laid out to further test and extend the presence of clay beds that were assayed for high levels of lithium in last year's program. The possible expansion in area and at depth were interpreted from the recently completed geophysical surveying. Of the eight holes planned, seven can be regarded as stepout holes from the first drill program in 2022, with drill hole location V being located on an assumed northwest trend. Site V has the potential to extend the known lithium-rich clay from the current 1,620-metre strike length to more than 3,000 metres. Site Q will test the known width of the mineralization to 950 metres from the previously drill-indicated 400 metres.

Drill hole locations R (which is a 400-metre stepout) and M have been completed. Drilling at hole location V is under way. Hole V is a significant stepout of over 1,000 metres from previous drill holes. The stratigraphic package and general intercepts of the favourable claystone, which have been encountered in the first two holes are consistent with the 2022 drilling results.

Most recently (see news release dated July 26, 2023), the company announced a significant expansion of its landholdings at the NNLP through additional claim staking by the company (100-per-cent interest without any royalties) and by way of an agreement with M3 Metals Corp. (M3M). With the additional staked lands and including the interest in the M3M lands, the company will, once the M3M agreement has received regulatory approval, have significantly increased its land position in the area of the NNLP.

Greg Reimer, chief executive officer and director, commented: "We have initiated the second drilling program on our Nevada North lithium project, with the completion of holes R and M. Drill hole location V, our most northerly location, is under way. We are encouraged that the first two holes show similar geological characteristics to the 2022 program and expect to see an increase in the overall area of clay bearing horizons that, to date, have contained significant lithium values."

Qualified person as defined under National Instrument 43-101

Alan J. Morris, MSc, CPG, of Spring Creek, Nev., a qualified person as defined under National Instrument 43-101, has reviewed and approved the technical aspects of this news release.

Equity incentive plan and grant of restricted share units/performance share units and options

The company has, effective Aug. 14, 2023, granted a total of 6,609,000 RSUs and 6,609,000 PSUs under its equity incentive plan dated effective July 19, 2023, to certain participants (as that term is defined under the plan). As previously announced, the plan received shareholder approval on July 19, 2023. The plan subsequently has received final approval from the TSX Venture Exchange.

The vesting provisions of the RSUs are as follows: One-third of the RSUs granted to the participant vest on the first anniversary of the date of grant. An additional one-third of the RSUs granted to the participant vest on the second anniversary of the date of grant. The remaining one-third of the RSUs granted to the participant vest on the third anniversary of the grant.

The vesting provisions of the PSUs are as follows: One-third of the PSUs granted to the participant vest on the completion of a resource calculation for the company's Nevada North lithium project in the form of an NI 43-101 technical report filed on the company's issuer profile on SEDAR. An additional one-third of the PSUs granted to the participant vest upon completion of a preliminary economic assessment of the project in the form of an NI 43-101 technical report filed on the company's issuer profile on SEDAR. The remaining one-third of the PSUs granted to the participant vest upon the company listing on a senior exchange such as the TSX after the first two performance goals have been reached.

No transactions which would trigger vesting of the PSUs in the previous paragraph are currently under negotiation, nor has any agreement been reached regarding such a transaction.

The PSUs and RSUs are subject to the provisions of TSX-V Policy 4.4, which stipulate, generally, amongst other things, that vesting of PSUs and RSUs may not occur less than one year from their date of grant.

All unexercised or unvested PSUs and RSUs expire five years from the date of grant. The PSUs and RSUs are subject to early cancellation in certain circumstances, including in the event that a participant ceases to hold office or provide services to the company.

All PSUs and RSUs have an exercise price of one cent per share and all RSUs and PSUs are exercisable for the issuance of one common share of the company.

The grant of the PSUs and the RSUs is subject to the approval of the TSX-V.

The company is granting a total of 1.5 million stock options, exercisable for a period of five years, at an exercise price of 60 cents a share to certain directors, officers and consultants.

About Surge Battery Metals Inc.

The company is a Canadian-based mineral exploration company active in the exploration for lithium in Nevada whose primary listing is on the TSX-V. The company's maintains a focus on exploration for high-value battery metals required for the electric vehicle (EV) market.

About the Nevada North lithium project

The company owns the Nevada North lithium project, located in the Granite Range southeast of Jackpot, about 73 kilometres north-northeast of Wells, Elko county, Nevada. The first round of drilling, completed in October, 2022, identified a strongly mineralized zone of lithium-bearing clays occupying a strike length of almost 1,620 metres from drill hole NN2205 in the north to drill hole NN2208 in the south. Widths of the mineralized horizons are not well determined since the holes are mostly on a north-south alignment; however, widths are at least 400 metres, supported by highly anomalous soil values, indicating potential for the clay horizons to be much greater in extent. The potential for a significant lithium deposit can be illustrated by the results of drilling and surface soil sampling, which indicate an extensive area of enrichment beyond the drilling pattern to date. Drill hole NN2207 intersected the thickest intervals of lithium-rich claystone encountered to date; a total of 120.4 metres (395 feet) averaging 3,943 parts per million lithium in four zones. Additionally, drill hole NN2208 had the strongest downhole individual sample of 5,950 parts per million lithium between 45 feet and 50 feet (between 13.72 metres and 15.24 metres). The average lithium content within all near-surface clay zones intersected in 2022 drilling, applying a 1,000-part-per-million cut-off, was 3,254 parts per million (see news release dated March 29, 2023)

We seek Safe Harbor.