Surge Battery Metals Inc.

Surge Battery Metals Inc. is a junior lithium exploration company headquartered in West Vancouver, Canada, operating primarily in USA. The company's portfolio consists of 1 development project. Key assets include Nevada North. The company operates as an exploration-stage enterprise focused on the acquisition and development of mineral properties. Its business model centers on advancing projects through systematic exploration programs, including extensive soil sampling, reverse circulation, sonic, and diamond drilling campaigns. A key operational characteristic is the engagement of specialized third-party consultants for critical technical milestones, such as the calculation of mineral resource estimates and the execution of preliminary extractive metallurgical studies. This approach allows the organization to leverage external expertise to validate project potential and de-risk development. The entity's performance and positioning within its peer group were recognized through its ranking as a top 50 mining company on the TSX Venture Exchange in February 2024, a distinction based on share price appreciation, trading volume, and market capitalization growth. The operational focus remains on advancing its core assets by systematically proving out geology and processing viability before committing to larger-scale development.

Strategic priorities are centered on advancing the company's primary exploration asset toward economic viability through a multi-faceted, data-driven approach. A core objective is the systematic expansion and delineation of the known mineral resource, supported by the recent approval of an expanded exploration permit that allows for more extensive drilling activities. Management's approach involves concurrently advancing technical studies to de-risk the project, including commissioning a Preliminary Economic Assessment with M3 Engineering and Technology Company to evaluate potential project economics. To support this, the company is conducting metallurgical test work with Kemetco to confirm the viability of producing a high-purity end-product. Capital allocation is focused on funding these critical-path activities, as evidenced by a non-brokered private placement completed subsequent to the fiscal year-end. The strategy also includes portfolio optimization, demonstrated by the divestiture of a non-core asset to concentrate resources on its principal project.

Executive leadership is structured through independent contractor agreements with key personnel, including the Chairman and the President/CEO. These agreements feature significant one-year and two-year payout provisions for termination without cause or a change of control, respectively, indicating a management philosophy geared towards retaining core leadership and ensuring stability. The governance framework is shaped by its status as a venture issuer, which involves specific disclosure practices and internal control considerations. The CEO and CFO are responsible for designing internal controls over financial reporting, and the company acknowledges that weaknesses, such as a lack of segregation of duties, are present due to its size. This risk is mitigated through direct and extensive monitoring by senior management. The company also leverages the expertise of related parties and external consultants for specialized management and exploration services, including a consulting agreement with a company related by a common director to assist with exploration.

The company's approach to sustainability is demonstrated through proactive environmental assessment and direct stakeholder engagement. A key initiative involves conducting comprehensive environmental and hydrological studies to support a formal Environmental Assessment, a critical step for securing regulatory approval for an expanded exploration plan of operations. This reflects a commitment to understanding and managing the potential environmental footprint of its activities in advance of significant ground disturbance. Social responsibility and community relations are addressed through direct negotiations and formal agreements with local landholders. In March 2024, the organization successfully concluded an agreement with a local cattlemen's association, securing permission for drilling and surface use on private grounds, thereby aligning its exploration objectives with the interests of local stakeholders and ensuring continued access for its programs.

The corporate structure has been actively shaped by strategic transactions aimed at consolidating core assets and divesting non-core holdings. In October 2024, the company completed the sale of its 100% interest in the Nickel Project to FPX Nickel Corp., a move designed to streamline its portfolio. To consolidate its primary project, the company entered into an agreement in August 2024 to acquire the remaining 50% interest in the M3M Claims from M3 Metals Corp., which superseded a prior joint venture option agreement. The entity also expanded its footprint by purchasing a 25% interest in the mineral rights on adjacent private lands through separate agreements with the Wilkins Family and Y3-II in 2023. This led to a technical and financial partnership with Evolution Gold, which holds the remaining 75% interest, for exploration drilling on those specific parcels. A consulting agreement was also established with American Lithium Corp., a related party, to provide exploration assistance.