Cygnus Metals Limited announced that it has increased the size of the Pontax Lithium Project in the highly prospective James Bay lithium district, Québec to over 180km. The additional land, comprising 70 individual claims covering 40km, was acquired from TSXV-listed Sirios Resources Inc. and sits immediately north-east of, and adjacent to, Cygnus' Pontax Project. The acquisition provides Cygnus a further 9km of continuous strike length (now 20km continuous) of the highly prospective Chambois Greenstone Belt which hosts the spodumene-bearing pegmatites at Pontax, taking the Company's total strike length to 44km.

Exploration by previous explorers has focused on silver-lead-zinc anomalies to the south-east of the greenstone belt with no lithium exploration recorded on the property. As with the Pontax project area, much of the newly acquired property is covered by shallow glacial cover and thick vegetation with very little outcrop. This is particularly notable along the trend of the greenstone belt and provides potential for utilising modern geophysics to target pegmatites under cover.

An initial program planned for Spring 2023 comprising magnetics and LiDAR will be carried out to assist with regional targeting and follow-up reconnaissance mapping. Transaction Details: Cygnus has acquired the additional ground through an outright purchase from Sirios comprising: An upfront payment of CAD 1.2 million in cash plus 750,000 fully paid ordinary shares ("Shares") (with 50% of the Shares to be subject to voluntary escrow for 12 months and the Share issue to be made utilising Cygnus' available placement capacity under Listing Rule 7.1). Milestone payment 1: Cygnus must, upon defining a JORC Resource of 4 million tonnes at a minimum grade of 0.8% Li2O or more, make a further payment of CAD 1.0 million plus, subject to the receipt of shareholder approval and the milestone being met within 5 years of the date of the agreement, issue 500,000 Shares ("Milestone 1 Shares").

Milestone payment 2: Cygnus must, upon defining a JORC Resource of 6 million tonnes at a minimum grade of 0.8% Li2O or more, make a further payment of CAD 2.0 million plus, subject to receipt of shareholder approval and the milestone being met within 5 years of the date of the agreement, issue 500,000 Shares ("Milestone 2 Shares"). In the event that shareholders do not approve the Milestone 1 Shares and/or Milestone 2 Shares, Cygnus must pay the equivalent value of the relevant tranche in cash to Sirios based on the 10 day VWAP of Cygnus Shares calculated from the date the relevant milestone was met. The Sale and Purchase Agreement with Sirios is subject to the following conditions precedent: The execution of a Deed of Assignment and Assumption with an existing royalty holder (and a related Deed of Hypothec in relation to this royalty).

The project has an existing 0.5% net smelter return royalty, with the right to buy back half for CAD 200,000. The execution and delivery of a mutually agreeable Royalty Deed with Sirios for a 1.5% net smelter return royalty payable on base metals and precious metals extracted from the Sirios tenements. Cygnus has the right to buy half the royalty back for CAD 600,000.

The execution and delivery of a mutually agreeable Voluntary Restriction Deed in relation to the escrow of the consideration shares. The Pontax project was initially acquired as an outstanding opportunity for Cygnus to create value for its shareholders due to high-grade lithium spodumene-bearing pegmatites already identified through drilling with immense scope to continue growing the economic potential through exploration. This new ground acquisition increases the regional exploration upside around Pontax and establishes a strong ground position in a world class terrain.

The spodumene-bearing pegmatites at Pontax outcrop at surface and several phases of diamond drilling have returned numerous high-grade lithium intersections.