Mr. Massimo Bressi reports

BATTERY X METALS ANNOUNCES STRATEGIC AGREEMENT TO ADVANCE ARTIFICIAL INTELLIGENCE-DRIVEN EXPLORATION OF CRITICAL BATTERY METALS IN NEVADA, USA

Effective April 16, 2025, Battery X Metals Inc.'s wholly owned subsidiary, Battery X Discoveries Inc., has entered into a binding memorandum of understanding with TerraDX Discoveries Inc. and MineMind Metals Inc., establishing a strategic joint venture framework for collaborative exploration in the state of Nevada, United States, using innovative artificial-intelligence-powered mineral targeting technologies.

Battery X Metals' comprehensive 360-degree strategy across the battery metal value chain

As previously disclosed in the company's news release dated Feb. 24, 2025, Battery X Metals is advancing a comprehensive 360-degree strategy across the battery metal sector. This strategy encompasses the exploration of prospective battery metal properties; the development of proprietary recovery technologies, in collaboration with a globally ranked top-20 university, to recover battery-grade materials from end-of-life batteries; and the development of proprietary software and hardware technology for the rebalancing and lifespan extension of lithium-ion and electric vehicle batteries.

Battery X Discoveries' strategic agreement with TerraDX, aimed at deploying advanced artificial-intelligence-driven mineral targeting technologies, further strengthens the company's exploration efforts and reinforces its commitment to innovation across the battery metal value chain.

Convergence of artificial intelligence and battery metal exploration

Battery X Discoveries and TerraDX intend to form a dedicated joint venture that will leverage TerraDX's proprietary AI foundation model to drive subsurface intelligence and accelerate critical battery metal discoveries in Nevada.

The AI model is designed to integrate and analyze large, complex geological data sets -- often siloed and underutilized -- to uncover high-probability mineral targets. This data-driven approach is expected to derisk early-stage exploration, shorten discovery timelines, and unlock new opportunities for lithium, cobalt, graphite, nickel and manganese deposits.

The strategic intent is to acquire and explore highly prospective artificial-intelligence-identified mineral claims, using TerraDX's predictive platform to prioritize targets with the strongest potential to deliver meaningful discoveries in support of the clean energy transition.

"This agreement represents a forward-looking step in our 360-degree strategy to build an integrated battery metals supply chain," said Massimo Bellini Bressi, chief executive officer of Battery X Metals. "Expanding into the U.S. aligns with our long-term vision, and Nevada -- given its geological potential and strategic importance -- is a natural next frontier for our exploration vertical."

"Our collaboration with Battery X Metals is a compelling opportunity to apply our AI platform in one of the most promising battery metal jurisdictions in the world," said Colby Mintram, chief executive officer of TerraDX. "By harnessing large-scale geoscience data, we aim to identify and accelerate discoveries that might otherwise remain hidden for years."

Over the next quarter, TerraDX will commence training of its proprietary AI model using Nevada-specific geological data sets, with the objective of identifying high-probability mineralization targets. Subject to the availability of sufficient capital resources and the identification of highly prospective claims or projects, the proposed joint venture anticipates proceeding with the staking or acquisition of select properties, with an initial budget estimate of $50,000 to $100,000. This may be followed by fieldwork and early-stage exploration activities, including sampling and geophysical surveys, also budgeted in the range of $50,000 to $100,000. Any decision to undertake a more extensive drilling program will be contingent upon favourable exploration results and will be subject to a separate budget determination at that time.

Nevada's strategic role in advancing U.S. battery metal supply chain independence

Nevada is one of the most resource-rich jurisdictions in the United States for critical battery metals, particularly lithium. The state is estimated to hold approximately 85 per cent of the nation's known lithium deposits, largely due to the state's arid environment and closed basin hydrologic systems, which have combined over millions of years to deposit vast amounts of the mineral deemed critical to the clean energy movement.

According to the U.S. Geological Survey, commercial-scale lithium production in the United States in 2023 came solely from a continental brine operation in Nevada -- the Silver Peak facility operated by Albemarle Corp. This made Nevada the sole domestic producer of lithium that year.

Nevada is also home to Thacker Pass, located within the McDermitt caldera in Humboldt county. It is recognized as the largest measured lithium reserve and resource in the world.

In October, 2024, General Motors announced a $625-million investment in the Thacker Pass project, acquiring a 38-per-cent equity stake in a joint venture with Lithium Americas. The deal includes $430-million in direct project financing and a $195-million letter of credit facility.

These resource developments align with federal policy initiatives to secure critical mineral supply chains. The Defense Production Act has been invoked to accelerate domestic lithium production and reduce reliance on foreign sources.

Additionally, the Infrastructure Investment and Jobs Act allocates funding for critical mineral processing, battery material recovery and lithium-ion-battery recycling in the United States. As the United States prioritizes domestic critical mineral development, Battery X Discoveries aims to leverage Nevada's unique geological potential through its strategic agreement with TerraDX. The partnership aims to deploy propriety artificial intelligence to identify and explore highly prospective critical battery metal projects, including lithium, cobalt, graphite and other battery metal targets across the state.

With vast lithium occurrences, proven production and a pro-mining regulatory environment, Nevada offers an unparalleled foundation for artificial-intelligence-driven exploration. This strategic agreement reinforces Battery X Metals' integrated 360-degree strategy across the battery metal value chain -- spanning critical battery metal exploration, battery material recovery technology development in partnership with a globally recognized top 20 university and patent-pending battery lifespan extension technology -- and positions the company at the forefront of next-generation solutions supporting U.S. clean energy and electrification goals.

Terms of the MOU

Pursuant to the MOU, Battery X Discoveries and TerraDX intend to form the battery metals JV focused exclusively on the identification, acquisition and exploration of lithium, cobalt, graphite, nickel, manganese and other battery metals within the state of Nevada, U.S. The MOU also contemplates the formation of a second, separate joint venture between TerraDX and MineMind, which will focus on the exploration and development of gold, base and other critical metals in Nevada. Both joint ventures will operate independently, with clearly defined mineral scopes and co-ordination protocols to avoid operational overlap and ensure efficient project execution.

Under the terms of the binding MOU, the battery metals JV will be co-owned on a 50/50 basis by Battery X Discoveries and TerraDX. Battery X Discoveries will serve as the operator, assuming responsibility for all permitting, claim acquisition, exploration activities and on-the-ground operations. The battery metals JV will be exclusively focused on the exploration and potential development of battery metals -- specifically lithium, cobalt, graphite, nickel, manganese and other energy storage-related minerals. It will not have rights to explore or develop gold, base or critical metals, which fall under a separate joint venture established between TerraDX and MineMind. The battery metals JV will operate exclusively within the state of Nevada, unless otherwise mutually agreed upon in writing.

TerraDX will deploy its proprietary machine learning model specifically configured for battery metal exploration. The artificial-intelligence-driven platform will analyze geological, geophysical and geochemical data to generate mineral prospectivity maps and target areas, which will be made available exclusively to the battery metals JV. TerraDX will maintain strict separation between the data, outputs and AI models used in the battery metals JV and those developed for its separate joint venture with MineMind.

The battery metals JV will be governed by a management committee composed equally of representatives from Battery X Discoveries and TerraDX. Additionally, a three-party co-ordination committee -- including Battery X Discoveries, TerraDX and MineMind -- will be established to address interjoint venture matters, including potential overlaps or shared discoveries involving both battery and non-battery metals. In the event a mineral discovery contains both battery and non-battery metals in commercially viable quantities, the parties have agreed to a defined protocol: A joint evaluation committee will be formed, an independent economic assessment will be conducted, and the parties will determine whether to: (i) create a special-purpose JV; (ii) geographically divide the asset; or (iii) implement a royalty-sharing mechanism based on the relative value contribution of each mineral group.

Battery X Discoveries and TerraDX will equally share all financing and operational costs related to the battery metals JV. TerraDX may contribute up to $100,000 in preformation development credits and an additional $25,000 per year in annual maintenance credits (beginning in year two) toward its capital obligations, subject to the condition that a minimum cash contribution of $125,000 is made prior to the application of such credits.

In the event a party fails to meet its financing obligations, its interest in the battery metals JV may be diluted in accordance with the agreed dilution formula. If a party's interest falls below 10 per cent, it will automatically convert to a 1-per-cent net smelter return royalty, and the party will forfeit its voting rights and governance role within the battery metals JV. Each party will also hold a right of first refusal on any proposed transfer of interest in the battery metals JV by the other party, including NSR interests resulting from dilution.

Battery X Discoveries will receive a royalty-free, exclusive licence to use TerraDX's proprietary AI platform for the purposes of the battery metals JV. TerraDX retains ownership of its core AI technologies, while all exploration data, outputs and jointly developed mineral targeting derived from the battery metals JV will be co-owned by both parties. The MOU is effective for a term of five years, and forms the foundation for the negotiation and execution of formal joint venture and intellectual property agreements.

Definitive joint venture agreements and related intellectual property arrangements are expected to follow, aligning with the principles outlined in the MOU.

About Battery X Metals Inc.

Battery X Metals is an energy transition resource exploration and technology company committed to advancing domestic battery and critical metal resource exploration and developing next-generation proprietary technologies. Taking a diversified, 360-degree approach to the battery metal industry, the company focuses on exploration, lifespan extension and recycling of lithium-ion batteries and battery materials.

About TerraDX Discoveries Inc.

TerraDX Discoveries is a technology company specializing in machine learning applications for mineral exploration and subsurface intelligence. The company's proprietary AI models analyze geological, geochemical and geophysical data to identify high-potential mineral exploration targets with unprecedented accuracy.

We seek Safe Harbor.