Grid Metals Corp. (TSXV: GRDM; OTCQB: MSMGF) ('Grid' or the 'Company') is pleased to announce a maiden National Instrument 43-101 compliant Mineral Resource Estimate ('MRE') on its 75% owned Donner Lake Lithium Project in Manitoba, Canada of 6.81 million tonnes ('MMt') (Inferred) grading 1.39% Li2O.
In addition, the Company has signed a binding lease agreement (the 'Agreement') with 1911 Gold Corporation ('1911 Gold') to use its nearby True North mill for the production of lithium spodumene concentrate. Today's announcement further Grid's objectives of enabling near term production and growing its lithium business in southeastern Manitoba with:
Maiden resource of 6.81 MMt (Inferred) at 1.39% Li2O Lease of the True North mill - an existing processing facility will be reconfigured to enable lithium spodumene production
True North mill is a permitted gold mill utilizing a flotation circuit with nominal annual capacity of 475,000 tonnes. Mill is leased for up to five years plus a twoyear cancellation period.
True North tailings facility is also permitted (with an additional permit required to reconfigure mill and tailings to process lithium).
Contract signed with leading lithium processing engineering firm Primero Group to complete scoping level mill reconfiguration study in the next 90 days.
Grid also has ongoing discussions with Tantalum Mining Company of Canada Limited for toll milling available resources at the currently operating Tanco Mine - 35 km south of Donner Lake - a second potentially complimentary lithium processing option.
Donner Lake resource remains open for expansion, and ongoing property exploration is focused on generating new exploration targets. Robin Dunbar, CEO of Grid Metals, commented, 'We believe the resource and mill lease announced today are essential building blocks for the development of a lithium production business focused in southeastern Manitoba. Our exploration team has done a great job delineating a significant high-grade initial resource in eighteen months at Donner Lake. We now have a resource at Donner Lake and two potential low capital cost processing options within trucking distance. Going forward, we will look to utilize the excellent infrastructure in the area and the well-defined permitting process in Manitoba. Our First Nation relationships are also key as we move forward with this exciting project. We feel that Grid Metals offers a unique opportunity in the junior lithium developer space to expedite production by leveraging nearby existing milling infrastructure.'
Discussion of Key Points: Global maiden resource estimate of 6.81 MMt grading 1.39% Li2O consists of 2.10 MMt grading 1.42% Li2O of Open Pit resources (cut-off grade of 0.3% Li2O) and 4.71 MMt grading 1.37% Li2O of below pit underground resources (cut-off grade of 0.5% Li2O) from the Main Dyke and Northwest ('NW') Dyke. The mineral resources are hosted by steeply dipping pegmatite dykes that are exposed at surface and display consistent widths, spodumene content and lithium grade. Lithium mineralization at the Main and NW dykes remains open to depth with strong Li2O values in many of the deepest holes. The Company has identified a number of other exploration drill targets at Donner Lake and has an extensive land position it is actively exploring. The True North mill is part of an integrated, fully permitted gold mine, mill and tailings complex last operational in November 2022. It is located 85 km by road from the Donner Lake Property. An application to permit the processing of lithium material at the True North mill will be required. Primero Group Ltd. ('Primero'), one of the pre-eminent engineering consulting firms in the lithium industry, has been engaged to complete a plant reconfiguration scoping-level study to assess the viability and cost of reconfiguring the True North mill to process spodumene-bearing material. This study is expected to be substantially complete before the end of the 90-day due diligence period (stipulated in the Agreement with 1911 Gold) and the signing of a more detailed definitive lease agreement. In addition, Grid is in continuing discussions with the Tantalum Mining Corporation of Canada Limited to reach a definitive agreement regarding terms of toll milling of Donner Lake feed at the Tanco minesite. Grid Metals has a pre-production MOU with Tanco to process lithium material at its operational lithium circuit.
Maiden Resource at Donner Lake
The maiden lithium resource estimate was prepared by SGS Geological Services ('SGS') and is reported in accordance with National Instrument 43-101 ('NI 43-101') standards. The NI 43-101 technical report for the resource estimate will be accessible on SEDAR (www.sedar.com) within 45 days of this news release. The current mineral resource estimate comprises spodumene-enriched pegmatite from three northwest striking pegmatite dykes including the Main Dyke, a smaller, sub-parallel dyke located 50 metres north of the Main Dyke (the 'Hangingwall Dyke'), and the NW Dyke. The Main Dyke interpretation, including the Hangingwall Dyke, used 57 drillholes totalling 13,478 metres of core. The NW Dyke interpretation used 34 drillholes totalling 7,815 metres of core. The resources cover an approximate strike length of 1,100 metres for the Main Dyke and 700 metres for the NW Dyke, with vertical extents of 300 metres and 250 metres, respectively. Open pit resources cover the uppermost 100 metres in both the Main and NW dykes and are constrained by optimized pit models. Initial metallurgical testwork confirmsthat spodumene accountsfor over 90% of the lithiumbearing minerals in the Main and NW dykes. The open-pit resources total 2.10 MMt grading 1.42% Li2O, including 1.14 MMt grading 1.48% Li2O at the Main and Hangingwall dykes, and 0.96 MMt grading 1.36% Li2O at the NW Dyke. The underground resources total 4.71 MMt grading 1.37% Li2O, including 3.67 MMt grading 1.39% Li2O at the Main Dyke and 1.04 MMt grading 1.11% Li2O at the NW Dyke. Please refer to Table 1 for additional information. The mineral resources remain open at depth, particularly at the Main Dyke. In addition, the Company is actively exploring for additional spodumene-bearing pegmatites at Donner Lake and anticipates a new phase of exploration drilling later in the year. The mineral resource estimate was created and estimated using SGS's proprietary modelling software, Genesis, and the open pit shells were created in Whittle software. The mineralised wireframe was restricted to drill core that had been logged as lithiumbearing pegmatite. The block models were created using a 5m x 3m x 5m block size in the x-, y- and z-planes, respectively. Grade was estimated using inverse distance squared (ID2) methodology and three passes of estimation. All resources are classified as Inferred Resources, consistent with the 2014 CIM Definitions for Mineral Resources and Mineral Reserves.
True North Mill Overview
The True North mill, located in Bissett, Manitoba, sits approximately 85 km by existing all-weather road from the Donner Lake Lithium Project. The original processing facility at the site was constructed in 1931, but was destroyed by a fire in 1980. The facility was subsequently reconstructed in 1996 with an operating capacity of 900 tonnes per day ('tpd'), and the mill capacity was increased to 2,300 tpd in 2011. Since then, the mill capacity has been scaled back to 1,300 tpd. The mill was last in operation in November 2022 and was reprocessing gold tailings. The current processing facility consists of crushing, milling, centrifugal gravity concentration, and flotation circuits. Initial metallurgical test results from Donner Lake concluded that standard flotation was the best method for recovering lithium from the Donner Lake samples. Heavy Liquid Separation, as an initial evaluation of the Dense Media Separation process, was conducted, and it was determined that this process may not be of material value for enhancing lithium recovery. Primero Engineering Engagement - Grid Metals has engaged Primero to complete a plant reconfiguration study including preliminary capital costing analysis. Primero is one of the pre-eminent engineering consulting firms with extensive experience in the lithium sector. Primero has worked with a number of lithium companies including Sigma Lithium, Core Lithium and Sayona Mining, amongst others.
About Grid Metals Corp.
Grid Metals is focused on both lithium and Ni-Cu-PGM projects in the Bird River greenstone belt in southeastern Manitoba, approximately 150 km northeast of Winnipeg Manitoba. The company controls two major lithium properties both with known high-grade lithium pegmatites: Donner Lake and Falcon West. The 75% owned Donner Lake Property is situated 35km north of the producing Tanco mine, one of only two lithium-producing mines in Canada. In addition to the lithium assets, the Company controls a PEA stage Ni-Cu-PGM-Co project (Makwa-Mayville) undergoing exploration and development activity. The Donner Lake and Falcon Wet properties are located in the traditional territory of the Sagkeeng First Nation
We seek safe harbour. This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, 'forward-looking statements'). Such forward-looking statements include the Company's closing of the proposed financial transactions, sale of royalty and property interests. the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward- looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, metallurgical risk, currency fluctuations, fluctuations in the price of nickel, cobalt, copper and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com. This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements
GRID METALS CORP. 
