Usha Resources Announces Issuance of Shares for Jackpot Lake

Rhea-AI Summary

Usha Resources Ltd. (TSXV:USHA, OTCQB:USHAF) has issued 745,033 common shares at $0.302 each to Ares Strategic Mining Inc. as part of an option agreement for the Jackpot Lake project in Nevada. This payment represents the second milestone payment in a series related to this acquisition. The company is preparing for a maiden drill program aimed at confirming a 43-101 resource and satisfying a $1,000,000 work commitment. The Jackpot Lake Property consists of 2,800 acres and exhibits promising lithium-rich brine potential.

Positive

• Issued 745,033 common shares at $0.302 each, aligning with the Option Agreement milestones.
• Preparation for a maiden drill program is underway, which is expected to define a 43-101 resource.
• Jackpot Lake Property shows significant lithium potential with an average lithium value of 175 ppm in core samples.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / September 14, 2022 / Usha Resources Ltd. ("USHA" or the "Company") (TSXV:USHA) (OTCQB:USHAF) (FSE:JO0), a North American mineral acquisition and exploration company focused on the development of drill-ready battery and precious metal projects, announces that it has issued 745,033 common shares (the "Shares") at a deemed price of $0.302 per Share to Ares Strategic Mining Inc. (the "Vendor"), which price is based on the Company's 10-day VWAP.

The issuance of the Shares to the Vendor represents the second payment required pursuant to the option agreement dated March 17, 2022, as amended, (the "Option Agreement") entered into with the Vendor for the acquisition Jackpot Lake, located in Clark County, Nevada. The Shares are subject to a hold period of four months and one day. The Shares issued were fewer than the maximum of 937,500 Shares, being the cap included in the Option Agreement, as the Company's 10-day VWAP of $0.302 was above the 10-day VWAP at the time of signing the Option Agreement. The third payment will need to be made on or before March 17, 2023.

The Company intends on satisfying the $1,000,000 work commitment through the expenditures from its upcoming maiden drill program of which USHA is in the final stages of preparing. The Company will provide updates in the coming weeks as the project moves towards drill mobilization.

Jackpot Lake Lithium Brine Property

The Jackpot Lake Lithium Brine Property is located within Clark County, 35 kilometres northeast of Las Vegas, Nevada, and is comprised of 140 mineral claims that total 2,800 acres. The project is exploring a "playa" which appears to be within a closed basin that may contain potentially lithium-rich brines. The geologic model is similar to that of Albemarle's Silver Peak Nevada Lithium Mine which has operated continuously since 1966, where sediments from lithium‑rich surrounding source rocks accumulate and fill the deposit leading to a potential concentration of lithium brine due to successive evaporation and concentration events.

The Company has permitted 2,700 metres over 6 holes and intends on commencing its maiden drill program this fall with the goal of defining a 43-101 resource. USHA's current and ongoing program at Jackpot Lake is operated by Rangefront Mining Service, a local Nevada firm with personnel that specialize in the planning and execution of lithium brine exploration, including resource estimation.

The project is considered to be "drill-ready" based on the following work which has successfully delineated a 5 x 2 kilometre anomaly within a closed basin that suggests the presence of a highly concentrated brine:

• 129 core samples collected by the USGS with an average lithium value of 175 ppm with a high of 550 ppm and spectrographic and atomic-absorption analyses of 135 stream sediment samples confirming the potential for lithium mineral deposits.
• Gravitational surveying which has identified a closed basin, critical for ensuring brines remain within the basin without dilution from external water sources.
• Geophysical modelling based upon gravitational and controlled source audio magnetotellurics/magnetotellurics (CSAMT/MT) surveys has provided evidence of highly concentrated brines which are relatively near the surface. The CSAMT survey results of the Jackpot Lake Project demonstrate a large consistent body of very low resistivity - consistent with highly concentrated brine behavior - throughout the property, predominantly above bedrock depths of 625 meters.

Figure 1 - Topographic map of the Jackpot Lake Lithium Brine Project with MT survey results overlain. Resistivities of <2.7 ohm‑metres are interpreted to be potentially higher concentration brines and between 2.7 and 5.0 ohm-metres to be potentially moderate concentration brines.

Qualified Person

The technical content of this news release has been reviewed and approved by Mr. Seth Cude, P.G., RM, M.Sc., CASS, a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").

About Usha Resources Ltd.

Usha Resources Ltd. is a North American mineral acquisition and exploration company focused on the development of quality battery and precious metal properties that are drill-ready with high-upside and expansion potential. Based in Vancouver, BC, Usha's portfolio of strategic properties provides target-rich diversification and consist of Jackpot Lake, a lithium project in Nevada; Nicobat, a nickel‑copper‑cobalt project in Ontario; and Lost Basin, a gold-copper project in Arizona. Usha trades on the TSX Venture Exchange under the symbol USHA, the OTCQB Exchange under the symbol USHAF and the Frankfurt Stock Exchange under the symbol JO0.

USHA RESOURCES LTD.

"Deepak Varshney" CEO and Director

For more information, please call Tyler Muir, Investor Relations, at 1-888-772-2452, email tmuir@usharesources.com, or visit www.usharesources.com.

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

SOURCE: Usha Resources Ltd.

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FAQ

What is Usha Resources Ltd.'s stock symbol?

Usha Resources Ltd. trades under the stock symbol USHAF on the OTCQB.

What payment has Usha Resources made regarding the Jackpot Lake project?

Usha Resources has issued 745,033 common shares to Ares Strategic Mining Inc. as part of the second payment for the Jackpot Lake project.

What is the purpose of Usha Resources' maiden drill program at Jackpot Lake?

The maiden drill program aims to confirm a 43-101 resource and fulfill a $1,000,000 work commitment.

Where is the Jackpot Lake Lithium Brine Property located?

The Jackpot Lake Lithium Brine Property is located in Clark County, Nevada, 35 kilometers northeast of Las Vegas.

What is the significance of the lithium concentration found at Jackpot Lake?

Core samples from the Jackpot Lake project have shown an average lithium value of 175 ppm, indicating potential for economically viable lithium extraction.