Usha Resources Announces Resumption of Drilling at the Jackpot Lake Lithium Brine Project, Commences Multiple Exploration Programs Across Ontario Lithium Pegmatite Portfolio

Rhea-AI Summary

Usha Resources Ltd. announces the resumption of drilling at the Jackpot Lake Lithium Brine Project and the commencement of exploration at six lithium pegmatite projects in Ontario. The drilling will use a larger, more powerful rig to develop and sample the holes to 2,000 feet, with the goal of delivering a 43-101 resource estimate. The company has a working capital of approximately C$3 million. Exploration activities will involve prospecting, mapping, rock and soil sampling, and geophysical surveying to identify priority targets for a fall drilling program.

Positive

• The drilling will use a larger, more powerful rig to develop and sample the holes to 2,000 feet, expanding the potential brine zones.
• Recent soil samples confirmed high grades of lithium at the Jackpot Lake project, with results over four times the historical average.
• Exploration activities in Ontario aim to identify priority targets for a fall drilling program.
• The company has a working capital of approximately C$3 million.

Negative

• None.

VANCOUVER, BC, May 18, 2023 /PRNewswire/ - Usha Resources Ltd. ("USHA" or the "Company") (TSXV: USHA) (OTCQB: USHAF) (FSE: JO0), a North American lithium mineral acquisition and exploration company focused on the development of drill-ready lithium and other battery and precious metal projects, is pleased to announce the resumption of drilling activities at its flagship Jackpot Lake Lithium Brine Project ("Jackpot Lake") and the commencement of exploration at each of its six (6) lithium pegmatite projects in Ontario.

Highlights:

• Drilling is anticipated to commence on or about June 1, 2023, with a larger, more powerful drill rig that should allow each of JP22-01 and JP22-02 to be developed and sampled to 2,000 feet in an expanded borehole, something that was not possible using the previous rig. The Company is advancing these holes as part of its fully financed maiden drill program with the goal of delivering a 43-101 resource estimate. The Company presently has a working capital of approximately C$3 million inclusive of drilling costs for JP22-01 and JP22-02.
• Drilling to 2,000 feet should allow the Company to greatly expand on the 99-foot and 273–foot intervals of the higher-porosity sand and conglomerate zones where it believes the best potential brines are present. Sampling this zone is a high priority for the project as the coarse-grained basal units are a primary focus for expansion at Albemarle's Silver Peak Lithium Brine Mineⁱ, the only domestic supplier of lithium within the US, and at Pure Energy's Clayton Valley Project, where they identified a large volume of brine with superior gradesⁱⁱ.
• The work will build on the recent identification of the highest grades of lithium at the project at JP22-02, where grades as high as 820 ppm were identified in shallow soils (<500 ft). With an average of 334 ppm Li in the thirty samples collected, these results confirmed that the soils at Jackpot Lake are highly enriched in lithium. The highest lithium assay results are over four times the reported historical average and compare very favourably to the reported average of 100 ppm for the Esmeralda Formation, one of the potential sources of the lithium enrichment for the brines present in Clayton Valley which hosts Albemarle's Silver Peak Lithium Brine Mine.
• Exploration has commenced at each of the Company's six (6) lithium pegmatite projects in Ontario. The program will involve a combination of prospecting, mapping and rock sampling, combined with soil sampling and geophysical surveying with the goal of identifying priority targets for a fall drilling program.

Jackpot Lake Exploration Update

Drilling is anticipated to commence on or about June 1, 2023, with a larger, more powerful drill rig that should allow each of JP22-01 and JP22-02 to be developed and sampled to 2,000 feet in an expanded borehole, something that was not possible using the previous rig. The Company is advancing these holes as part of its fully financed maiden drill program with the goal of delivering a 43-101 resource estimate.

Due to the increased capabilities and capacity of the larger drill rig, USHA is poised to take its exploration efforts to increased depths, expanding the scope of the project by advancing each of JP22-01 and JP22-02 to approximately 2,000 feet, thereby potentially greatly expanding on the 99-foot and 273-foot higher-porosity sand and conglomerate zones already identified in each drill hole, respectively, where it believes the best potential brines are present. Sampling these zones is a high priority for the project as the coarse-grained basal units are a primary focus for expansion at Albemarle's Silver Peak Mine, the only domestic supplier of lithium within the US, and at Pure Energy's Clayton Valley Project where a large volume of brine with superior grades has been identified.

The work will build on the recent identification of the highest grades of lithium at the project at JP22-02, where grades as high as 820 ppm were identified in shallow soils (<500 ft). With an average of 334 ppm Li in the thirty samples collected, these results confirmed that the soils at the Project are highly enriched in lithium. The highest lithium assay results are over four times the reported historical average and compare very favourably to the reported average of 100 ppm for the Esmeralda Formation, one of the potential sources of the lithium enrichment for the brines present in Clayton Valley which hosts Albemarle's Silver Peak Lithium Brine Mine.

"We are thrilled to announce the resumption of drilling operations using a larger drill rig," said Deepak Varshney, CEO of Usha Resources Ltd. "This marks an important step forward in our exploration efforts and understanding what the Jackpot Lake Basin holds. By exploring to a depth of 2,000 feet, we aim to gather a more comprehensive understanding of the mineral potential within our project area, further enhancing the overall resource estimation and project feasibility of Jackpot Lake."

The delay in resuming drilling activities is primarily attributed to additional permitting requirements associated with using the larger drill rig including larger disturbance due to earthworks and expanding the diameter of the wellbore. The company would like to extend its appreciation to the relevant agencies and stakeholders for their support throughout the permitting process.

The Company also wishes to advise that it has not yet received further assay results from the first hole and that samples submitted to the analytical laboratory are still undergoing analysis.

Ontario Lithium Pegmatite Portfolio Exploration Update

The Company is also pleased to announce the initiation of exploration activities at its Ontario Lithium Pegmatite Portfolio. The projects, named White Willow, Lee Lake, Mead, Bluett, Gathering Lake, and Triangle Lake, present significant potential for lithium mineralization in the region.

The exploration program will encompass a comprehensive range of fieldwork activities, including prospecting, mapping, soil and visible outcrop sampling. This extensive approach will provide valuable data and insights into the geological characteristics and lithium potential of each project area.

The primary focus of exploration will be identifying priority targets for a fall drilling program, in particular at White Willow, which has been confirmed to host a fertile lithium-cesium-tantalum system that contains coarse-grained tantalite crystallization only found in one other locale in Ontario: the North Aubrey pegmatite at Green Technology Metals' (GT1) Seymour Lake project, where GT1 has identified a 9.9-million-tonne resource at 1.04 per cent Li2O.

"We are excited to commence exploration at our lithium pegmatite assets," stated Deepak Varshney, CEO of Usha Resources Ltd. "Each of these projects offer considerable exploration upside, as they are situated in highly prospective geological settings known for hosting significant lithium mineralization, and we look forward to providing updates as we explore and develop these promising lithium pegmatite projects in Ontario."

The Company also wishes to confirm that, further to its press release dated April 4, 2023, it confirms it has issued 150,000 common shares (the "Shares") to the Vendors in connection with the first payment of the Option Agreement.

Qualified Person

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

The technical content of this news release relating to the White Willow and Nym Lake Projects has been reviewed and approved by Mr. Andrew Tims, P.Geo., a qualified person as defined by National Instrument 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; White Willow, a lithium project in Ontario; and Lost Basin, a gold-copper project in Arizona. Usha trades on the TSX Venture Exchange under the symbol USHA, the OTC 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.

Forward-looking statements:

This news release may include "forward-looking information" under applicable Canadian securities legislation. Such forward-looking information reflects management's current beliefs and are based on a number of estimates and/or assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Readers are cautioned that such forward-looking information are neither promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry.

The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures, and may not result in the discovery of mineral deposits that can be mined profitably. Furthermore, the Company currently has no reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

i Albemarle Corporation, 2023. SEC Technical Report Summary Pre-Feasibility Study Silver Peak Lithium Operation Nevada, USA.

ii Pure Energy Minerals, 2018. NI 43-101 Technical Report. Preliminary Economic Assessment (Rev. 1) of the Clayton Valley Lithium Project. Esmeralda County, Nevada.

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SOURCE Usha Resources Ltd.

FAQ

What is the news from Usha Resources Ltd.?

Usha Resources Ltd. has announced the resumption of drilling at the Jackpot Lake Lithium Brine Project and the commencement of exploration at six lithium pegmatite projects in Ontario.

What is the goal of the drilling program?

The goal of the drilling program is to deliver a 43-101 resource estimate.

What is the working capital of the company?

The company has a working capital of approximately C$3 million.

What activities will be involved in the exploration program?

The exploration program will involve prospecting, mapping, rock and soil sampling, and geophysical surveying.

What is the purpose of the exploration activities in Ontario?

The purpose of the exploration activities in Ontario is to identify priority targets for a fall drilling program.