Megawatt Continues with Due Diligence on Australian Properties Prospective for Cobalt-Scandium-Nickel and Extends Marketing Agreement

VANCOUVER, BC, March 18, 2021 /CNW/ - Megawatt Lithium and Battery Metals Corp. (CSE: MEGA) (FSE: WR20) (OTC PINK: WALRF) (the "Company" or "Megawatt"), which announced plans to acquire 1260945 B.C. Ltd. (see news release dated March 3, 2021) and indirectly five properties in Australia prospective for rare earth elements-scandium-cobalt, is pleased to provide an update on geological due diligence focused on the New South Wales (NSW) assets.

Of the five properties that are part of this Proposed Transaction, the focus of initial due diligence has been on the three NSW properties – Chinook, Kodiak and Caribou. These properties are primarily prospective for cobalt-scandium then nickel and high purity alumina (HPA).  

DUE DILIGENCE OVERVIEW  

In recent years, with growing demand for electric vehicles, the Company believes that the Lachlan Orogenic belt has the potential to develop into a significant global supply chain hub for ethically sourced minerals, given concerns over labour and environmental exploitation in other jurisdictions.

The three properties are prospective for cobalt-scandium-nickel mineralization as they cover Ultramafic and Mafic 'Alaskan Type' Intrusions within the Lachlan Orogenic belt. Further, the Kodiak project is contiguous to Scandium International's (TSW: SCY) Nyngan Deposit which is being developed into the world's inaugural primary scandium mine and supports a JORC Complaint Mineral Resource. 

In addition, other groups are developing cobalt-scandium-nickel projects south of the Nyngan Deposit, including:

• Platina Resources (ASX: PGM): The Owendale Project has the potential to produce scandium with mineralization at shallow depth enabling open-pit mining of high grade scandium and appreciable cobalt, platinum and nickel credits.
• Clean Teq Resources (ASX: CLQ): The world-class Sunrise nickel-cobalt-scandium project is one of the largest and most cobalt-rich nickel laterite deposits in the world and is development-ready, with key permits and approvals in place.  Sunrise has one of the largest and highest-grade scandium deposits globally.

The three projects are within a 35km radius from SCY's Nyngan Deposit approximately 150km from Dubbo, which is a major regional township with 36,000 people. The region has well established mining infrastructure and the properties are readily accessible. It is contemplated that emerging cobalt-scandium projects across the region could provide a toll treatment processing solution for lateric ores.

Favourable geology, drillable targets

The NSW government's Cobar Special Metallogenic Map indicates that Alaskan-type intrusions may extend under cover in all three properties. This nexus is important as regional peers targeting the lateritic weathered profile of the 'Alaskan-type' intrusions have been proven to contain HPA-cobalt-scandium mineralisation. 

According to historical geological reports, the Chinook and Kodiak projects have similar geophysical signatures that are indicative of highly magnetic rocks in SCY's Nyngan Deposit.

Meanwhile, the Caribou project has comparable geophysical signatures linked to magnetic anomalies associated with 'Alaskan-Type' intrusions that underpin peers' cobalt-scandium deposits. 

The Company will work with historical geophysical surveys towards identifying prospective test-drill targets for cobalt-scandium mineralisation. 

Chief Executive Officer David Thornley-Hall commented: "We find the initial due diligence into the three New South Wales properties very encouraging, including historical geophysical surveys which will aid in our identification of drill targets. At the regional level, it is strategically important to have highly prospective properties in an area that could morph into a global supply hub for cobalt, scandium and nickel. This proposed acquisition is timely given the shifting fundamentals in the cobalt market." 

Due process ongoing

While this ongoing due diligence is positive, the Proposed Transaction remains subject to certain closing conditions including, without limitation, (a) entering into the Definitive Agreement; (b) the completion of due diligence; and (c) the receipt by the Company of all necessary corporate and regulatory approvals, including the approval of the Canadian Securities Exchange, as applicable. There can be no assurance that the Proposed Transaction will be completed as contemplated, or at all.

Marketing agreement

The Company also announces that it has extended its service contract (the "Service Contract") announced March 2, 2021 with MMG Market Medium GmbH & Co. KG, to provide marketing and consulting services, including certain investor relations services, for the purpose of creating market awareness of the Company. The Service Contract extension includes payment of EUR 200,000.

Qualified Person

Mr. Geoffrey Reed (MAusMM (CP)) (MAIG), Consultant for the Company, is a qualified person as defined by National Instrument 43-101 – Standards of Disclosure or Mineral Projects and has prepared or reviewed the preparation of the scientific and technical information in this press release.

About MegaWatt Lithium and Battery Metals Corp.

MegaWatt is a British Columbia based company involved in the acquisition and exploration of mineral properties in Canada. The Company holds a 100% undivided interest, subject to a 1.5% NSR on all base, rare earth elements and precious metals, in the Cobalt Hill Property, consisting of eight mineral claims covering an area of approximately 1,727.43 hectares located in the Trail Creek Mining Division in the Province of British Columbia, Canada.

Additionally, the Company has acquired a 60% interest in a company that indirectly holds a 100% interest (subject to a 2% NSR) in two prospective silver-zinc projects in Australia, being the Tyr Silver Project and the Century South Silver-Zinc Project (see press release dated August 13, 2020) and a 100% interest (subject to a 2% NSR) in and to the Route 381 Lithium Property, comprised of 40 mineral claims located in James Bay Territory, north of Matagami in the Province of Quebec, covering 2,126 hectares.

Investors can learn more about the Company and team at https://megawattmetals.com.

The CSE does not accept responsibility for the adequacy or accuracy of this release.

This press release includes "forward-looking information" that is subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements may include but are not limited to, statements relating to the trading of the Company's common shares on the Exchange and the Company's use of proceeds and are subject to all of the risks and uncertainties normally incident to such events. Investors are cautioned that any such statements are not guarantees of future events and that actual events or developments may differ materially from those projected in the forward- looking statements. Such forward-looking statements represent management's best judgment based on information currently available. No securities regulatory authority has either approved or disapproved of the contents of this news release.

SOURCE MegaWatt Lithium and Battery Metals Corp.

David Thornley-Hall Chief Executive Officer, [email protected], 604.306.7821