Surge Battery Metals Core Drilling Extends High-Grade Lithium 600 Meters West and at Depth with Samples Assaying up to 5,660 ppm Lithium

West Vancouver, January 9, 2024 - Surge Battery Metals Inc. (TSXV: NILI) (OTCQX: NILIF) (FSE: DJ5) (the "Company" or "Surge") is pleased to announce that the remaining certified assays from the 2023 core drilling phase on its high-grade lithium (Li) clay discovery at Nevada North (NNLP) have intersected high-grade lithium mineralization 600 meters (about 2,000 ft) west of 2022 hole NN2203. Additionally, mineralization has been extended to depth in hole NN2311 and a narrow band of mineralization was intersected starting from surface in the northernmost hole, NN2312.

Two holes (NN2307 and NN2310) drilled from the same pad show the mineralized horizons extend at least 600 meters (about 2,000 ft) west of hole NN2203 drilled in 2022. Hole NN2307 was drilled vertically, and NN2310 was drilled at a 50-degree dip due east. Hole NN2307 cut a total of 50.3 meters averaging 2533 ppm Li and NN2310 cut 47.7 meters averaging 3220 ppm Li.

Hole NN2311 was drilled from the same pad as sonic core hole NN2302 to compare sonic and diamond core results and to extend the hole in search of deeper clay horizons. The hole adds 7 meters (23 feet) of mineralized clay to the sequence thickness at this location, and core assays align well with sonic assays. NN2311 cut a total of 39.5 meters at an average grade of 3550 ppm Li in the upper zone and 7 meters of 2732 ppm Li in the newly identified deeper zone.

Hole NN2312 was drilled north of hole NN2303 to test for further extension of mineralized clays. The hole intersected 3.6 meters at surface of mineralized clay averaging 1,480 Li ppm. Evidence from core and geophysics have led to the interpretation of a new fault (Figure 2, section 2) that suggests the main part of the basin to the south is a down-dropped block. Interestingly, low-resistivity horizons observed in the geophysics data plunge below the surface to the north of hole NN2312, suggesting there may be additional lithium mineralization to the north of this hole.

Mr. Greg Reimer, Chief Executive Officer, and Director commented, "Today's results mark the end of a successful 2023 exploration program at the NNLP. Our geophysics and drilling programs have greatly expanded the 2022 mineralized footprint and have continually produced near-surface composite grades of >3,000ppm Li. The deeper drilling has validated our interpretations and has generated additional near-surface targets to the east. We are now in the process of reviewing our geological model before handing it over to the resource estimators. We look forward to publishing our maiden Mineral Resource Estimate later in Q1."

NN2307

Drilled to a total depth of 235.31m (772 ft), hole NN2307 tested for the extension of mineralization to the west of the 2022 drilling. Westward, towards the suspected basin center, the upper mineralized horizon was expected to reside deeper below surface. This diamond core step-out hole confirmed the lateral continuity of the high-grade mineralized horizons. NN2307 returned positive sample results ranging between 1060 ppm Li to 4,390 ppm Li. These results include four contiguous mineralized horizons averaging 1410ppm Li over 7.6m, 3268 ppm Li over 21.3m, 1230ppm Li over 3.1m, and 2361ppm Li over 18.3m. The upper 7.6m-thick horizon was an unexpected intercept and appears to correlate to the upper horizon at the top of NN2303, 1500m to the north.

Composite lithium values for the mineralized horizons, using a 1,000ppm cutoff with no internal dilution, are shown in the following table:

NN2310

Drilled to a total depth of 303.89m (997 ft), hole NN2310 was collared at the same pad as NN2307 but angled at 50 degrees to the east. This diamond core hole was designed as a 100m (about 330 ft) step-out to the east of NN2307 and to better define the geometry of the shallow dipping mineralized horizons. NN2310 returned positive sample results up to 5,660 ppm Li. These results include three contiguous mineralized horizons averaging 1479 ppm Li over 7.6m, 4084ppm Li over 30.9m, and 1749ppm Li over 9.1m. The thick and high-grade middle horizon averaging >4000ppm Li correlates to intercepts in 2022 and 2023 holes positioned between 550 to 1,550 meters away. A structure is interpreted from geophysics to have faulted out the lowest horizon encountered in NN2307 (See Figure 2, section 1).

Composite lithium values for the mineralized horizons, using a 1,000ppm cutoff with no internal dilution, are shown in the following table. Note that the thicknesses reported here are from an angled hole, and the true thickness is estimated at 77% of the apparent thickness shown:

NN2311

Drilled to a total depth of 207.87m (682 ft), hole NN2311 was designed to investigate deeper mineralization beneath this year's sonic hole NN2302 and to compare results obtained in the sonic vs. diamond core drilling. This diamond core hole confirmed grades observed in sonic drilling with results including high grades up to 5200ppm Li and horizons averaging 3722 ppm Li over 34.9m, 2237 ppm Li over 4.6m, 2825 ppm Li over 3m, and 2660 ppm Li over 4m. The deeper drilling adds 7m of 2732 ppm Li mineralization to the mineralized sequence thickness at this location. Evidence from core photos, geophysics, and the offset of lithium clay horizons between the 6-meter high-grade bed at 61.4-65.9m and comparable bed from NN2302 suggests a fault runs directly through these two holes (Figure 2, section 2).

Composite lithium values for the mineralized horizons, using a 1,000ppm cutoff with no internal dilution, are shown in the following table:

NN2312

Drilled to a total depth of 199.03m (653 ft), hole NN2312 defines the limits of high-grade mineralization to the northwest at this time. This diamond core hole intercepted a mineralized horizon at surface averaging 1480 ppm Li over 3.7m. The Surge team has observed evidence of displacement by structures in the core and geophysics data. The current interpretation suggests this location is an uplifted horst block where mineralized sediments have been eroded off. Additionally, a large tongue of volcanic tuff was deposited directly into a lake environment in this location, which could have functioned as a source of Li in the lake and enhanced Li concentrations in the deeper parts of the basin. The 2023 geophysical surveys indicate a low resistivity layer that aligns with the upper section in NN2312 dips below the surface to the north. One additional low resistivity horizon is also observable at depth to the north of hole NN2312.

Composite lithium values for the mineralized horizon, using a 1,000ppm cutoff with no internal dilution, are shown in the following table:

SUMMARY OF ACHIEVEMENTS

Drilling these four diamond core holes, NN2307, NN2310, NN2311, and NN2312, has achieved six significant goals:

• Confirmed additional extension of the known deposit to the west of the 2022 discovery drilling, resulting in an increased footprint of the mineralized zone.
• Confirmed the consistency in mineralization and associated Li grades in sonic drilling, thereby continuing to bolster confidence in existing data while providing opportunities to utilize multiple methods of borehole exploration.
• Confirmed the lateral continuity of the mineralized layers, continuing to increase confidence in interpretations of data showing continuous stratiform Li clay layers, the boundaries of which remain open in most directions.
• Confirmed the existence of deeper mineralized zones that are anticipated to shallow to the east, creating additional near-surface exploration targets.
• Identified potential structural complexities and basin geomorphology, advancing our understanding of the project geology. This data is critical for developing future exploration and mine plans and will be used to guide activities moving forward.

SAMPLE CUSTODY AND HANDLING

Core samples from the diamond drilling were placed in standard waxed cardboard core boxes by the drillers who delivered the core to the Surge field office. The core samples were logged at the camp and sample intervals marked with the sample number tags. The core was then driven by Surge workers to a locked warehouse in Elko, Nevada where they were stored for splitting. At the warehouse, the core samples were split or sawn, depending on the rock composition and half of the core samples were placed in cloth bags. Samples were then submitted to the ALS facility in Elko, Nevada for analysis. ALS is independent of the Company. The sample batches included 6% insertion of QA/QC samples, including blanks, duplicates, and commercially obtained standards. Most standards ran within 5 percent of the known and duplicated values, with the blanks reporting no greater than 20 parts per million lithium.

Qualified Person as Defined Under National Instrument 43-101

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

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 Venture Exchange in Canada and the OTCQX Market in the US. The Company 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, Nevada about 73 km 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 meters. Widths of the mineralized horizons are at least 400 meters, 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 average lithium content within all near surface clay zones intersected in 2022 drilling, applying a 1000 ppm cut-off, was 3254 ppm.

Initial assay results from the first hole of the 2023 season (NN2301) had a high of 8070 ppm lithium with an average of 4,067 ppm lithium at a 1,000-ppm cut-off (See news release September 12, 2023). The 2023 drill program expanded the known lithium-rich clay from the current 1,620 meters strike length to more than 3,500 meters and the known width of the mineralization to 950 meters from the previously drill-indicated 400 meters. The 2023 drill program is now completed with all assays received. We will use the winter season to produce a maiden Mineral Resource Estimate, complete additional metallurgical studies, and prepare for additional exploration of the property in the spring.

On behalf of the Board of Directors

"Greg Reimer"

Greg Reimer,
President & CEO

Contact Information
Email: info@surgebatterymetals.com
Phone: 604-662-8184
Website: surgebatterymetals.com

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This document may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan" or "planned", "possible", "potential", "forecast", "intend", "may", "schedule" and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities including lithium and nickel, the accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals including approvals of title and mining rights or licenses and environmental, local community or indigenous community approvals, the reliability of third party information, continued access to mineral properties or infrastructure or water, changes in laws, rules and regulations including in the United States, Nevada or California or any other jurisdiction which may impact upon the Company or its properties or the commercial exploitation of those properties, currency risks including the exchange rate of USD$ for Cdn$ or other currencies, fluctuations in the market for lithium related products, changes in exploration costs and government royalties, export policies or taxes in the United States or any other jurisdiction and other factors or information. The Company's current plans, expectations, and intentions with respect to development of its business and of its Nevada properties may be impacted by economic uncertainties arising out of any pandemic or by the impact of current financial and other market conditions (including US government subsidies or incentives) on its ability to secure further financing or funding of its Nevada properties. Such statements represent the Company's current views with respect to future events and are necessarily based upon several assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political, environmental (including endangered species, habitat preservation and water related risks) and social risks, contingencies, and uncertainties. Many factors, both known and unknown, could cause results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules, and regulations.

Figure 1: Plan View showing the location of 2022 and 2023 drilling. Two section lines indicate the location of the cross sections below.

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Figure 2: Cross section 1 and 2 showing 2023 diamond and sonic holes including 2022 RC holes coloured by assay with a working geological interpretation. Normal faults are interpreted with some uncertainty by dashed lines.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/193545