Mr. Eugene Hodgson reports

SPARK ENERGY MINERALS VALIDATES PRIORITY LITHIUM AND GALLIUM-REE DRILL TARGETS AT ARAPAIMA PROJECT IN BRAZIL'S LITHIUM VALLEY

Spark Energy Minerals Inc. has made significant progress at its flagship Arapaima project in Brazil's Lithium Valley. Recent exploration work -- including mapping, geochemical analysis and sampling -- has confirmed high-priority lithium and gallium/rare earth element (REE) drill targets.

The company is now advancing logistics, surface access agreements and permitting in preparation for an aggressive diamond drilling program at the Cruzeta, Agua Branca and Grota do Maquem lithium targets as well as air-core and/or reverse circulation drilling at its rapidly emerging gallium/REE Caladao target.

Eugene Hodgson, chief executive officer of Spark Energy Minerals, emphasized: "Our thorough exploration efforts, which include mapping, sampling and geochemical assaying, have clearly defined our primary drill targets for both lithium and gallium/rare earth elements (REE). The strong correlation between lithium and essential pathfinder elements, along with the unique fractionated pegmatite signatures, especially noted at the Cruzeta and Grota do Maquem targets, highlights the significant potential of our tenements.

"Additionally, we are excited to push forward with our Caladao rare earths target, located near a recently announced resource and displaying notably high gallium and REE values. We are committed to moving ahead with the necessary permitting and logistics to start drilling as soon as possible, unlocking the full potential of our projects."

Spark Arapaima exploration

Exploration activities to date have resulted in:

• 123 pegmatite occurrences mapped across 31 kilometres of strike;
• Reconnaissance and stream sediment sampling completed across approximately 55 per cent of 65 drainage basins;
• 75 per cent of surveyed basins have reported lithium and pathfinder elements, including niobium, rubidium, tantalum, cesium, tin and rare earth anomalies requiring detailed follow-up;
• Surface sampling has outlined an extensive 4,500-hectare zone over the Caladao granite with anomalous gallium and REE values -- a compelling development given that Spark's tenements lie directly contiguous to Axel REE's recently reported gallium/REE discovery.

Priority lithium targets

Three high-priority lithium targets -- Cruzeta, Agua Branca and Grota do Maquem -- have been identified, where lithium is strongly correlated with pathfinder elements (cesium, tin and rubidium). This geochemical association is typical of fertile lithium-cesium-tantalum (LCT) pegmatites and spodumene-rich pegmatites (SRP). These targets represent the most advanced lithium prospects within Spark's 91,900-hectare Arapaima project.

Contour maps show lithium closely associated with manganese, a relationship further supported by the field identification of the mineral lithiophorite. This indicates that lithium has been naturally remobilized from primary sources, such as spodumene -- a common process in deep tropical weathering environments like Arapaima -- reinforcing the potential for lithium mineralization at depth below surface weathering in the area.

In lithium-rich pegmatites, lithium is strongly linked with rubidium, since both are commonly hosted in potassium-bearing minerals alongside spodumene and other lithium minerals.

Lithium also shows a notable association with thallium, which behaves similarly in geological systems and is often concentrated in the minerals spodumene and lepidolite. These correlations are classic markers of fertile pegmatites and further strengthen the case for lithium potential at Arapaima.

Principal component analysis (PCA), a statistical tool used to confirm multielement correlations, shows that lithium consistently occurs alongside key pathfinder elements, including rubidium, thallium, manganese, tin, cesium, niobium and tantalum.

At Arapaima, lithium also shows an association with scandium, though this is considered less significant. These correlations are classic indicators of fertile, lithium-bearing pegmatites and provide a strong foundation for drill targeting.

Cesium analysis

Recent discoveries in Brazil's Lithium Valley have shown that cesium can occur at potentially economic grades within lithium-rich pegmatites. Typically, cesium values above 10 parts per million are considered anomalous, with values exceeding 50 ppm strongly indicative of advanced fractionation and favourable conditions for lithium mineralization.

At Arapaima, rock-chip samples from Grota do Maquem and especially the Cruzeta target have returned cesium values above 50 ppm, reaching 267 ppm. These results reinforce Spark's priority focus on drill testing these highly prospective targets.

Spark's assays show that, when cesium values exceed 50 ppm, they are strongly associated with elevated levels of other key pathfinder elements -- including rubidium (up to 5,000 ppm), lithium (up to 1,500 ppm), tantalum (up to 90 ppm) and thallium (up to 20 ppm). This geochemical signature is characteristic of highly fractionated, lithium-fertile pegmatites and again, reinforces the potential at Arapaima.

Spark's data also show that higher cesium values (greater than 50 ppm) are associated with elevated niobium (up to 550 ppm) and tin (up to 300 ppm). Both elements are typically enriched in the later stages of lithium-rich pegmatites. Together with lithium, rubidium, tantalum and thallium, these pathfinder elements form a strong geochemical signature that points to zones with high lithium mineralization potential.

Potassium/rubidium (K/Rb) ratio analysis

K/Rb ratios are a proven exploration tool, with values below 150 indicating strong fractionation and higher lithium potential. The lower the ratio, the greater the likelihood of spodumene-rich pegmatites.

At Arapaima, all three of Spark's priority targets returned K/Rb ratios under 150, with Cruzeta standing out at below 20 -- a clear signal of highly fractionated pegmatites and strong lithium prospectivity. These results provide valuable vectors to guide detailed mapping and future drilling.

Spark's Caladao gallium and rare earths target

Axel REE has recently reported a maiden JORC-compliant (Joint Ore Reserves Committee) gallium resource and noted that a rare earth resource estimate for the same area is expected to be released in the coming weeks (see Axel REE's news release dated Aug. 22, 2025).

Spark controls more than 4,500 hectares of contiguous ground within the fertile Caladao granite complex -- directly adjacent to Axel's discovery. Surface sampling across Spark's ground has already returned anomalous gallium and REE values. In anticipation of Axel's forthcoming REE resource, Spark is preparing an air-core/reverse circulation drilling program to follow up on these anomalies to test the potential extension of Axel's mineralization onto Spark's licences.

Exploration plan

Spark's exploration team is preparing logistics and permitting to begin drilling at its priority lithium and rare earth targets. With priority targets confirmed and groundwork well advanced, the company is on track to launch its first significant drill program in Brazil's Lithium Valley -- a transformative step toward unlocking the full potential of Arapaima.

Qualified person

The scientific and technical information disclosed in this document has been reviewed and approved by Jonathan Victor Hill, BSc (honours), FAusIMM, a qualified person consistent with National Instrument 43-101 and a director of Spark Energy Minerals.

About Spark Energy Minerals Inc.

Spark Energy Minerals is a Canadian company focused on the acquisition, exploration and development of battery metals and mineral assets, with a particular emphasis on its substantial interests in Brazil. The company's flagship project is the Arapaima lithium and gallium/REE project spanning a combined 91,900 hectares in Brazil's renowned Lithium Valley, one of the most prolific mining regions in the world. This region is rapidly gaining global recognition for its vast deposits of lithium and rare earth minerals, positioning Brazil as a critical player in the global energy transition.

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