Mr. Scott Taylor reports

LITHOS SELLS WHOLLY OWNED SUBSIDIARY AQUEOUS RESOURCES

Lithos Group Ltd. has entered into an agreement dated Oct. 29, 2026, with an arm's-length third party for the sale of its wholly owned subsidiary Aqueous Resources LLC. Aqueous is the owner of United States patent 12,151,211 B2 Electro-Pressure Membrane Method for Recovery and Concentration of Lithium from Aqueous Sources.

Pursuant to the terms of the sale, the purchaser will purchase all the issued and outstanding shares of Aqueous for $1 (U.S.) and make immediate payment to specified arm's-length third party creditors of Aqueous. The sale has an effective date of Oct. 29, 2026.

As a result of the sale, outstanding liabilities of Aqueous will no longer be reported as liabilities of the company, resulting in a decrease in company liabilities in an amount in excess of $500,000.

In addition, immediately prior to the sale, Lithos Group Ltd. exchanged intercompany amounts owing to it by Aqueous for a limited licence to the use, knowledge and technology related to U.S. patent 12,151,211 B2 for any lithium extraction project that the company originates outside the United States and which reaches commercial production by Jan. 1, 2030.

The company continues to own its proprietary cloud solution technology known as conductive fracture imaging or CFI. The CFI subsurface imaging technology has the potential to reduce the risks of induced seismicity and optimize the pressure drive, and overall reservoir management for all brine assets.

We seek Safe Harbor.