Winsome Resources Ltd.

Winsome Resources Ltd. is a junior lithium development company headquartered in West Perth, Australia, operating primarily in Canada. The company's portfolio consists of 2 development projects, in addition to several early-stage exploration prospects. Key assets include Adina. The company's business model is centered on the exploration and development of mineral resources, with a strategic focus on transitioning from an explorer to a developer. Operational characteristics include a dual-pathway development assessment, evaluating both greenfield construction and a brownfield scenario that involves repurposing existing infrastructure from a former mine. This brownfield option presents a significant competitive advantage by potentially lowering upfront capital expenditure, reducing project risk, and minimizing environmental impact through the use of established facilities, including a fully operational airport, power station, and camp. Processing capabilities are being defined through metallurgical test work, including Dense Media Separation (DMS) pilot-scale programs, to optimize a flowsheet incorporating crushing, ore sorting, and screening circuits. The organization's approach is supported by a strong balance sheet, enabling it to navigate market fluctuations while advancing its development pathway toward supplying the North American electric vehicle supply chain.

Strategic priorities are focused on advancing its primary asset toward development and production. This involves the completion of a Preliminary Economic Assessment and Scoping Study, which evaluates two distinct development scenarios: a standalone greenfield project and a brownfield approach leveraging the potential acquisition of nearby infrastructure. The enterprise is actively working to expand its resource base, with ongoing exploration drilling designed to test extensions of known mineralization and new targets identified through mapping and geophysics. Capital allocation is managed to maintain a robust balance sheet, supported by successful capital raising, government funding, and flow-through share provisions, which provides confidence to progress development. A key strategic decision centers on the potential exercise of an exclusive option to acquire a former mine, which could significantly de-risk the project and accelerate the timeline to production. The long-term objective is to become a key supplier of critical resources to the North American market, underpinned by a development strategy that remains certain despite market volatility.

Executive leadership includes a Managing Director with 20 years of experience in managing large-scale construction and mining development projects, including bringing a major facility into operation. The Non-Executive Chairman has a background in geology and business, with experience as the founding Managing Director of several publicly listed companies, including one he led from discovery through to production. The board of directors consists of 4 members. Governance framework includes an Audit & Risk Committee responsible for assisting the board in its oversight of corporate reporting and risk management, including climate-related financial risk. The full board undertakes the function of a Remuneration Committee, determining compensation arrangements for directors by referencing relevant employment market conditions. Executive-level responsibility for risk management is held by the Managing Director and Chief Financial Officer, who provide regular updates to the board.

Environmental stewardship is demonstrated through the initiation of numerous biophysical baseline surveys, including studies on surface water, soil quality, fish habitat, and flora, to inform mine design and de-risk project planning. The company actively engages with First Nations communities through in-person meetings and has initiated traditional land use surveys to ensure collaborative development. A progressive approach to climate risk management has been adopted, involving the engagement of an external consultant to establish emissions boundaries, calculate a baseline for Scope 1 and 2 emissions, and identify material climate-related financial risks. Workplace health and safety measures have been enhanced through updated camp and site safety plans, revised safety inductions for all personnel, and the formation of a site-based OH&S committee. The organization is also preparing for incoming Australian Sustainability Reporting Standards, reflecting a commitment to transparent climate-related financial disclosures.

A key structural initiative involves an exclusive option agreement to acquire the assets comprising the Renard mine and its associated infrastructure, or alternatively, all issued capital in Stornoway Diamonds (Canada) Inc. This option, for which the company paid a C$4 million fee and a C$2 million extension fee, provides a potential pathway to accelerated development through a brownfield conversion. The corporate group includes 3 wholly-owned, operationally significant subsidiaries: Winsome Cancet Lithium Inc, Winsome Adina Lithium Inc, and Winsome Sirmac Lithium Inc. As disclosed in substantial shareholding notices, major investors include Electrification and Decarbonization AIE LP, Li Equities Investments LP, Lithium Royalty Corp., and Waratah Capital Advisors Ltd. The company's structure is designed to advance its assets, with these arrangements providing strategic flexibility and access to capital for its transition from an explorer to a developer.