Patriot Battery Metals Inc.

Patriot Battery Metals Inc. is a junior lithium exploration company headquartered in Vancouver, Canada, operating primarily in Canada. The company's portfolio consists of 1 development project. Key assets include Shaakichiuwaanaan (Corvette). The company's business model is centered on the identification, evaluation, and advancement of exploration properties. As an exploration-stage entity, it operates with a negative cash flow and relies on raising funds from investors and lenders to finance its activities and growth. The operational approach is underpinned by metallurgical test work, including Heavy Liquid Separation and Dense Media Separation, which indicates the potential for a simplified processing flowsheet that could reduce future capital and operating intensity. This potential for a streamlined process is a key element of its value proposition. The enterprise requires a high degree of specialized knowledge in geology, mining, mineral processing, environmental management, and community relations to execute its business plan. The competitive landscape is intense, with the organization competing against numerous other companies, some with significantly greater resources, for attractive mineral properties, qualified personnel, specialized equipment, and investment capital. The business is also dependent on a network of third-party service providers for critical on-site activities such as construction, transportation, logistics, and geological consulting. Operations are subject to seasonality, which can be influenced by adverse weather conditions that may temporarily prevent or curtail exploration and evaluation activities.

Strategic priorities are centered on accelerating the development of the company's principal discovery through aggressive, systematic exploration programs. This is funded by a multi-pronged capital raising strategy that includes private placements with strategic corporate investors, institutional financings, and the utilization of charity flow-through share offerings to leverage tax incentives for critical mineral exploration. A key governance mechanism for executing this strategy is a dedicated project steering group, comprising senior leadership and technical experts, tasked with ensuring a well-structured, practical, and efficient development approach. The growth strategy also involves the continuous consolidation of its land position through targeted acquisitions of proximal claim blocks from other entities. To support its capital needs and increase its profile, the organization has pursued a deliberate market strategy of graduating to senior stock exchanges to enhance trading liquidity, access a broader institutional investor base, and improve its reputation. Management has also proactively explored downstream value-creation opportunities, including assessing the viability of integrated processing facilities to potentially capture more of the value chain in the future. Capital allocation is focused on advancing the core asset, with proceeds from financings directed exclusively toward exploration and development activities.

Executive leadership was strategically realigned in January 2024 to support the transition from exploration to development. Ken Brinsden, an experienced mining executive, was appointed CEO and President, bringing significant project development and operational expertise. The former CEO, Blair Way, transitioned to the role of Chief Operating Officer to maintain operational continuity. The board is led by Non-Executive Chair Pierre Boivin, a seasoned lawyer with over 40 years of experience in the natural resources sector and a leader in the Global Metals and Mining Group at a major law firm. Governance is implemented through key board committees, including an Audit & Risk Committee and a Remuneration and Nomination Committee. The Audit & Risk Committee consists of 3 independent directors, all of whom are financially literate. Its membership includes a Chartered Professional Accountant with 30 years of experience as a senior financial executive, a lawyer with extensive board experience, and a consultant with a background in strategic communications and stakeholder engagement for major projects. This committee meets at least quarterly to oversee financial reporting, risk management, and internal controls. As of June 26, 2024, the company's directors and officers as a group beneficially owned approximately 3% of the issued and outstanding common shares.

The organization is actively formalizing its sustainability framework, a process guided by a dedicated Vice President of Environmental, Social, and Corporate Governance (ESG) and a Senior Advisor for Environment and Permitting. The company is currently implementing comprehensive social, environmental, and health and safety policies to govern its operations. A core component of its social responsibility involves engagement with Indigenous peoples, as its activities are situated within territory covered by a modern land claims agreement, the James Bay and Northern Quebec Agreement (JBNQA). This agreement establishes a structured process for resource management, development, and consultation. In adherence with this framework and industry best practices, the company provides formal notifications to local municipalities, stakeholders, and Indigenous groups prior to commencing exploration. Operational protocols are designed to respect local customs and land use, including the temporary suspension of certain activities during the annual goose harvesting season. Proactive environmental management is demonstrated by the ongoing Environmental and Social Impact Assessment (ESIA) process, which is anticipated to be submitted in late 2025 to secure the necessary approvals for future development, ensuring that potential impacts are identified and mitigated.

A key structural development occurred in August 2023, when the company secured a strategic investment of approximately C$109 million from Albemarle Corporation. This transaction resulted in Albemarle holding approximately 4.9% of the company’s shares on a fully-diluted in-the-money basis, with the proceeds designated to accelerate development activities. The corporate structure was reorganized in December 2023 with the creation of wholly-owned subsidiaries, including Innova Lithium Inc. and 14352891 Canada Inc., to hold specific assets. The company has systematically expanded its land holdings through a series of acquisitions, including the purchase of claim blocks from O3 Mining in 2022, Canadian Mining House in 2022, and Azimut Exploration Inc. in May 2024. These transactions are subject to various underlying net smelter royalty (NSR) obligations held by the vendors and other parties like Osisko Gold Royalties Inc. To facilitate access to global capital markets, the company's securities are listed on the Australian Securities Exchange (ASX) in the form of CHESS Depositary Interests (CDIs), in addition to its primary listing on the Toronto Stock Exchange (TSX). Under the CDI structure, 10 CDIs represent a beneficial interest in 1 Common Share, with legal title held by CHESS Depositary Nominees Pty Limited.