# EDGAR Filing Document

**Accession Number:** 0001786318
**File Stem:** 0001641172-25-021581
**Filing Date:** 2025-7
**Character Count:** 1076623
**Document Hash:** 5a4d20c802a4002c9c57f38890a6b65b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-021581.hdr.sgml**: 20250730

**ACCESSION NUMBER**: 0001641172-25-021581

**CONFORMED SUBMISSION TYPE**: S-1/A

**PUBLIC DOCUMENT COUNT**: 28

**FILED AS OF DATE**: 20250730

**DATE AS OF CHANGE**: 20250730

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** INTERNATIONAL BATTERY METALS LTD.
- **CENTRAL INDEX KEY:** 0001786318
- **STANDARD INDUSTRIAL CLASSIFICATION:** MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 0131

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-286616
- **FILM NUMBER:** 251168200

**BUSINESS ADDRESS:**
- **STREET 1:** 510 - 744 WEST HASTINGS STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6C1A5
- **BUSINESS PHONE:** 7789394228

**MAIL ADDRESS:**
- **STREET 1:** 510 - 744 WEST HASTINGS STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6C1A5

**As filed with the Securities and Exchange Commission on July 30, 2025**

**Registration No. 333-286616** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**Amendment No. 1 to**

**Form S-1**

![](formdrsa_001.jpg)

**INTERNATIONAL<br> BATTERY METALS LTD.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **British Columbia, Canada** | **1400** | **Not Applicable** |
| (State or Other Jurisdiction of<br> Incorporation or Organization) | (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer <br> Identification Number) |

---

**6100 Tennyson Parkway, Suite 240<br> Plano, Texas 75024<br> (832) 683-8839**<br> (Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)

**Norma Garcia<br> General Counsel<br> International Battery Metals Ltd.<br> 6100 Tennyson Parkway, Suite 240<br> Plano, Texas 75024<br> (832) 683-8839**<br> (Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)

***Copies To***

**Kara L. MacCullough**

**Grant J. Levine**

**Greenberg Traurig, P.A.**

**401 East Las Olas Boulevard, Suite 2000**

**Fort Lauderdale, FL 33301**

**(954) 765-0500**

**Approximate date of commencement of proposed sale to the public**: From time to time after the effective date of this registration statement, as determined by market and other conditions.

If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.

If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to Section 8(a), may determine.**

**The information in this preliminary prospectus is not complete and may be changed. The selling shareholders may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

**PRELIMINARY PROSPECTUS**

**Subject to completion, dated July 30, 2025**

**93,481,739** **Common Shares**

**39,219,779** **Warrants**

![](formdrsa_001.jpg)

**INTERNATIONAL BATTERY METALS LTD.**

We have completed a series of private placements of units, with each unit consisting of one common share and one warrant (which represents the right to acquire one common share). This prospectus relates to the registration of the resale or other distribution by the selling shareholders named herein of the shares, warrants and the shares underlying the warrants issued as part of the private placements (the "**23/24 Warrants**"). Specifically, this prospectus relates to the resale or other disposition of (i) up to 93,481,739 of our common shares ("**Common Shares**"), consisting of up to 54,261,960 Common Shares previously issued and up to 39,219,779 Common Shares that may be issued upon the exercise of warrants to purchase Common Shares ("**Warrants**"), and (ii) up to 39,219,779 Warrants to purchase Common Shares, by the selling shareholders named in this prospectus. Our Common Shares are listed on the TSX Venture Exchange (the "**TSXV**") under the symbol "IBAT." Our Common Shares also quoted in the United States on the OTCQB Venture Market of the OTC Markets Group, Inc. ("**OTC**") under the symbol "IBATF". On July 29, 2025, the last reported sale price of our Common Shares on the TSXV was CAD$0.32 per share, or US$0.232 based on the exchange rate of CAD$1.3771 to US$1.00 as published by the Bank of Canada as of that date and the last reported sales price of our Common stock on the OTCQB was US$0.233 per share.

We are registering the offer and sale of the shares covered by this prospectus to satisfy certain registration rights we have granted to the selling shareholders. The selling shareholders may, from time to time, sell, transfer or otherwise dispose of any or all of their Common Shares or interests in their Common Shares on the TSXV or any stock exchange, market or trading facility on which the Common Shares are traded or in private transactions. These dispositions may be at fixed prices, at prevailing market prices on the TSXV at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices. Sales of the Warrants, if any, will be made in privately negotiated transactions. The sales price for Warrants will be determined in such privately negotiated transactions at prices negotiated between the selling shareholders and the purchasers without input from the Company. It is anticipated that these prices will be based on a number of factors, including the term of the warrants, the exercise prices of the warrants and the then price of our Common Shares. There is no established trading market for the Warrants. We do not intend to list the Warrants on any securities exchange or other trading market. We do not expect an active trading market to develop for the Warrants. Without an active trading market, the liquidity of the Warrants will be limited. We will not receive any of the proceeds from the sale or other disposition of the Common Shares by the selling shareholders. We will, however, receive the net proceeds of any of the Warrants exercised for cash. See "*Use of Proceeds*" on page 28 and "*Plan of Distribution*" beginning on page 70 of this prospectus for more information. In connection with any sales of shares offered hereunder, the selling shareholders and any agents, brokers or dealers participating in such sales may be deemed to be "underwriters" within the meaning of the U.S. Securities Act of 1933, as amended (the "**Securities Act**").

We may amend or supplement this prospectus from time to time by filing amendments or supplements as required. You should read this entire prospectus and any amendments or supplements carefully before you make your investment decision.

We are an "emerging growth company" as that term is used in the Jumpstart Our Business Startups Act of 2012, as amended, (the "**JOBS Act**"), and, and a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K under the Securities Act, as such, we have elected to comply with certain reduced public company reporting requirements. See "*Prospectus Summary – Implications of Being an Emerging Growth Company and a Smaller Reporting Company*." In addition, our Common Shares are subject to the penny stock rules under the Securities Exchange Act of 1934, as amended, and subject to certain requirements prior to and following their sale and certain risks associated with offering a penny stock. See "*Risk Factors – Risks related to our Common Shares*".

**Investing in our securities involves a high degree of risk. See the section entitled "*Risk Factors*" beginning on page 5 of this prospectus for a discussion of the risks that you should consider in connection with an investment in our securities.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.**

Prospectus dated July , 2025.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [RISK FACTORS SUMMARY](#lpa_001) | iii |
| [GLOSSARY OF INDUSTRY TERMS](#lpa_002) | v |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#lpa_004) | vi |
| [PROSPECTUS SUMMARY](#lpa_005) | 1 |
| [THE OFFERING](#lpa_006) | 4 |
| [RISK FACTORS](#lpa_007) | 5 |
| [USE OF PROCEEDS](#lpa_008) | 28 |
| [DIVIDEND POLICY](#lpa_009) | 28 |
| [BUSINESS](#lpa_010) | 29 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION](#lpa_011) | 37 |
| [MANAGEMENT](#lpa_012) | 43 |
| [EXECUTIVE COMPENSATION](#lpa_013) | 48 |
| [DIRECTOR COMPENSATION](#sk_006) | 55 |
| [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#sk_007) | 56 |
| [SELLING SHAREHOLDERS](#sk_008) | 57 |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#sk_009) | 58 |
| [DESCRIPTION OF SHARE CAPITAL](#sk_010) | 60 |
| [DESCRIPTION OF WARRANTS](#sk_011) | 64 |
| [MATERIAL UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS](#sk_012) | 65 |
| [CERTAIN CANADIAN INCOME TAX CONSIDERATIONS](#sk_013) | 69 |
| [PLAN OF DISTRIBUTION](#sk_014) | 70 |
| [LEGAL MATTERS](#sk_015) | 72 |
| [EXPERTS](#sk_016) | 72 |
| [WHERE YOU CAN FIND MORE INFORMATION](#sk_017) | 72 |

---

**Neither we nor the selling shareholders have authorized any other person to provide you with different or additional information other than that contained in this prospectus. We and the selling shareholders take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may provide. The selling shareholders are not making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. The information contained in this prospectus is accurate only as of the date of this prospectus or such other date stated in this prospectus, and our business, financial condition, results of operations and/or prospects may have changed since those dates.**

For investors outside the United States: We have not, and the selling shareholders have not, taken any action that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the securities covered hereby and the distribution of this prospectus outside the United States.

In this registration statement, unless the context otherwise requires, the terms "we," "us," "our," "Company" or "IBAT" refer to International Battery Metals Ltd., together with its direct and indirect wholly-owned subsidiaries, IBAT USA, Inc. and Selective Adsorption Lithium Inc.

Unless otherwise noted herein, all references to "CDN$," "CAD$," or "Canadian dollars" are to the currency of Canada and "$," "dollars," "US$," "United States dollars," or "U.S. dollars" are to the currency of the United States.

i

**IMPLICATIONS OF BEING AN EMERGING GROWTH COMPANY<br> AND A SMALLER REPORTING COMPANY**

As a company with less than $1.235 billion in revenue during its most recently completed fiscal year, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, as amended (the "**JOBS Act**"). As an emerging growth company, we may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include:

● Reduced
 disclosure about the Company's executive compensation arrangements;

● Exemptions
 from non-binding shareholder advisory votes on executive compensation or golden parachute
 arrangements;

● The
 Company's election under Section 107(b) of the Jumpstart Our Business Startups Act
 of 2012 to delay adoption of new or revised accounting standards with different effective
 dates for public and private companies until those standards would otherwise apply to private
 companies; and

● An
 exemption from the auditor attestation requirement under Section 404(b) of the Sarbanes-Oxley
 Act of 2002 in respect of management's assessment of the Company's internal control
 over financial reporting, which requirement would otherwise apply if we ceased to qualify
 as a smaller reporting company under the rules of the SEC.

We may take advantage of these accommodations until the last day of the fiscal year following the fifth anniversary of the date on which it first sells common equity securities pursuant to a registration statement under the Securities Act, or such earlier time that we are no longer an emerging growth company. We will remain an "emerging growth company" until the earliest of (a) the last day of the first fiscal year in which our annual gross revenues exceed $1.235 billion, (b) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, (c) the date on which we have issued more than $1.0 billion in nonconvertible debt during the preceding three-year period or (d) the last day of our fiscal year containing the fifth anniversary of the date on which we completed our initial public offering of securities.

We cannot predict whether investors will find the Common Shares less attractive because we rely upon certain of these exemptions. If some investors find the Common Shares less attractive as a result, there may be a less active trading market for the Common Shares and the Common Share price may be more volatile. On the other hand, if we no longer qualify as an emerging growth company, we would be required to divert additional management time and attention from the Company's development and other business activities and incur increased legal and financial costs to comply with the additional associated reporting requirements, which could negatively impact the Company's business, financial condition and results of operations.

We are also a "smaller reporting company" as defined under the Securities Act and Exchange Act. We may continue to be a smaller reporting company so long as either (i) the market value of our Common Shares held by non-affiliates is less than $250 million or (ii) our annual revenue was less than $100 million during the most recently completed fiscal year and the market value of our Common Shares held by non-affiliates is less than $700 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company, we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and have reduced disclosure obligations regarding executive compensation, and, similar to emerging growth companies, if we are a smaller reporting company under the requirements of (ii) above, we would not be required to obtain an attestation report on internal control over financial reporting issued by our independent registered public accounting firm.

We may choose to take advantage of some or all of these exemptions. We have taken advantage of reduced reporting requirements in this prospectus. Accordingly, the information contained herein may be different from the information you receive from other public companies in which you hold stock.

ii

**RISK FACTORS SUMMARY**

The following is a summary of some of the principal risks that could adversely affect our business, financial condition, or results of operations. This summary should be read together with the more detailed description of each risk contained in the section "*Risk Factors*" in this prospectus.

**Risks Related to Our Business**

● We are in the early commercialization stage of our business and have a very limited history of operations, and therefore will be subject to many risks.

● Our success as a company developing technology to extract and process lithium depends largely on our research and development capabilities and our ability to secure capital to fund operations.

● We have historically incurred losses, expect future losses, and may never achieve or maintain profitability.

● The success of our business will depend on our ability to convert target customers into future pipeline of potential contracts and future contracted revenues into actual revenues, and we may fail to do so. We may be exposed to counterparty risks with respect to our arrangements with future customers. Our prospects and operations may be adversely affected by changes in demand for lithium-based products.

● We are a pre-revenue, development stage company with an untested business plan in an industry with no generally accepted measure of the market size, which makes it difficult for us to forecast our financial results, creates uncertainty as to how investors will evaluate our prospects, and increases the risk that we will not succeed.

● As a development stage company, we are subject to the risks associated with new businesses.

● We have a large, accumulated deficit, expect future losses, and may never achieve or maintain profitability.

● Our failure to manage our anticipated growth successfully may adversely affect our operating results.

● Our ability to continue as a going concern is dependent on several factors beyond our control.

● We will need to continue to raise capital and we face various risks in doing so.

● We face intense competition, and we may not be able to compete successfully.

● Demand and fluctuation in market prices for lithium will greatly affect the results of our operations and our ability to successfully execute on our business plan.

● Our long-term success depends on our ability to enter into and deliver lithium carbonate product under offtake agreements.

● We may not be successful in our efforts to lease our MDLE Plant or license our technology, which could adversely affect our business.

● There is risk to the growth of lithium markets and the supply of lithium sources.

● As a smaller, development-stage company, we are likely to be more sensitive to competitive pressures that will cause our revenues and gross margins to fluctuate from quarter to quarter.

● We rely on our management and key employees, and we may not be able to attract, train and retain a sufficient number of qualified employees to maintain and grow our business.

● Volatility in the demand for lithium products or the development of alternative battery technologies that do not utilize lithium inputs may negatively impact overall prospects for growth of lithium marketing and pricing.

● Changes in government incentives relating to lithium-based end products may negatively impact our future success.

● Environmental risks and stringent regulations related to lithium-based products may lead to additional disclosure requirements and substantial expenditures to ensure compliance.

● Our business is subject to hazards common to chemical and natural resource extraction businesses, any of which could injure our employees or other persons, damage our facilities or other properties, interrupt our production and adversely affect our reputation and results of operations.

● Uncertain geopolitical tensions between the United States and China may adversely affect demand for lithium-based products.

● We may be exposed to claims and other legal actions that may adversely affect us.

● We expect that we will be dependent on one or a small group of customers for most of our revenue, and our failure to expand our customer base would have an adverse effect on our business growth and may result in changes to our business strategy.

● Our dependence on third-party suppliers could negatively affect our operating results.

iii

● Global financial conditions pose risks for us.

● We may not be able to obtain or maintain sufficient general liability insurance.

● Increased cybersecurity requirements, vulnerabilities, threats and more sophisticated and targeted computer crime could pose a risk to our systems, networks, products, solutions, services and data.

● We have no restrictions on the ability of our directors and officers to serve on the boards of directors or as officers of other companies, with the result that potential conflicts of interest may arise.

● The requirements of being a reporting public company in the United States may strain our resources and divert management's attention.

● We have identified a material weakness in our internal controls over financial reporting and if we are unable to remediate this material weakness, we may not be able to accurately or timely report our financial condition or operations.

● Changes in U.S. tax laws and tax examinations could have a material adverse effect on our business, cash flow, results of operations and financial conditions.

● We face risks relating to natural disasters, public health crises, political crises, and other catastrophic events or other events outside of our control.

● We are required to comply with anti-corruption and bribery laws, and the potential for significant penalties could result in material adverse effect on our reputation and results of operations.

● We may qualify as a passive foreign investment company, or "PFIC," which could result in adverse U.S. federal income tax consequences to U.S. investors.

**Risks Related to Government Regulation**

● We anticipate that we are and will continue to be, subject to the authority and approvals of certain regulatory agencies, both domestically and internationally, with regard to the development, testing, manufacture, and installation of the MDLE Plant, and there can be no assurance that any required regulatory approvals may be obtained or maintained.

● We may not have or be able to obtain adequate funding to complete any additional studies or other steps that regulatory authorities may impose in assessing our technology for regulatory approval.

● Domestic and foreign government regulation and enforcement of data practices and data tracking technologies is expansive, broadly defined and rapidly evolving. Such regulation could directly restrict portions of our business.

● Indemnification of our officers and directors may cause us to use corporate resources to the detriment of our shareholders.

● Resource Extraction companies are subject to numerous stringent laws, regulations and standards, including environmental protection laws and regulations. If any changes occur that would make these laws, regulations and standards more stringent, it may require capital outlays in excess of those anticipated or cause substantial delays, which would have a material adverse effect on our operations.

● Canada's new modern slavery reporting legislation may adversely affect supply chains and the Company's business and retention of key employees, directors, and officers.

**Risks Related to Intellectual Property**

● Patent terms may be inadequate to protect our competitive position on our core technology for an adequate amount of time and do not necessarily address all potential threats to our business.

● We may be subject to claims that our employees, consultants or independent contractors have wrongfully used or disclosed confidential information of their former employers or other third parties.

● Our ability to obtain intellectual property protection for our technology is limited. If we cannot obtain intellectual property protection for our technology our business may be negatively impacted.

● If we infringe the intellectual property rights of others, we may be required to cease operations related to infringement in some markets and our business may be negatively affected.

**Risks related to our Common Shares**

● Our Common Shares are listed on the TSX Venture Exchange and quoted on the OTCQB however the shares are thinly traded and the public price for our Common Shares is volatile. We can offer no assurance that an active trading market for our Common Shares will develop or that the public price of our Common Shares will become less volatile

● This is not an initial public offering of stock to investors at large, and there is no guarantee that any of the Selling Shareholders will sell the Common Shares. Alternatively, if a large number of Shares are sold, the public price of our Common Shares on the TSXV or OTCQB will decrease.

● If we sell Common Shares in future financings or if we issue shares related to warrants, options and restricted share units, existing shareholders may experience immediate dilution and our share price may decline consequently.

● Our Common Shares are considered a "penny stock," and is thereby subject to additional sale and trading regulations that may make it more difficult to sell. Further, the market for penny stocks has suffered in recent years from patterns of fraud and abuse.

iv

**GLOSSARY OF INDUSTRY TERMS**

Unless otherwise indicated in this prospectus, the following terms have the indicated meanings.

"**DLE**" means direct lithium extraction.

"**EVs**" means electric vehicles.

"**ESG**" means environmental, social, and governance.

"**mg/L**" milligrams per liter.

"**MDLE**" means modular direct lithium extraction.

"**ppm**" means parts per million.

v

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains statements that we believe are, or may be considered to be, "forward-looking statements" within the meaning of U.S. federal securities laws and Canadian provincial and territorial securities laws. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on current beliefs, expectations or assumptions, whether express or implied, regarding the future of the business, future plans and strategies, operational results and other future conditions and are being made pursuant to the "safe harbor" provisions of U.S. federal securities laws and Canadian provincial and territorial securities laws.

All statements other than statements of historical fact included in this registration statement regarding the prospects of the Company's industry or its prospects, plans, financial position or business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as "plans," "expects" or "does not expect," "is expected," "look forward to," "budget," "scheduled," "estimates," "forecasts," "will continue," "intends," "the intent of," "have the potential," "anticipates," "does not anticipate," "believes," "should," "should not," or variations of such words and phrases that indicate that certain actions, events or results "may," "could," "would," "might," or "will," "be taken," "occur," or "be achieved," or the negative of these terms or variations of them or similar terms. Furthermore, forward-looking statements may be included in various filings that we make with the SEC or press releases or oral statements made by or with the approval of one of the Company's authorized executive officers. Although we believe that the expectations reflected in these forward-looking statements are reasonable, it cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements.

Specifically, this prospectus contains forward-looking statements regarding:

● any assumptions that we make regarding the data that we may rely on as well as our knowledge of the industry;

● our strategy, future operations, financial positions, estimated revenues and losses, forecasts, projected costs, prospects and plans;

● our ongoing commitment to research and development and innovation;

● our intention to expand into new geographical areas as well as our opportunities and strategies for growth, including our intention to expand into international markets;

● our ability to identify and pursue customers that are complementary to our strategy;

● our expectations regarding competition in the industry, as well as our ability to compete effectively;

● our ability to attract and retain talent and the effectiveness of our compensation strategies and leadership;

● our future capital requirements and ability to source additional working capital, as well the uses of such funds;

● our expectations regarding our ability to obtain and maintain intellectual property protection and not infringe on the rights of others;

● our expectations regarding the expenses that we may incur, as well as our ability to generate revenue and sustain profitability; and

● our ability to comply with the various obligations of our existing license agreements and any future license agreements that we may enter into.

vi

These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties, and assumptions. Forward-looking information contained in this prospectus while considered reasonable by us as of the date of such statements, does not take into account the effect of transactions or other items announced or occurring after the statements are made. We undertake no obligation to update forward-looking statements to reflect events or circumstances after the date hereof, unless otherwise required by law. You should not place undue reliance on any forward-looking statements contained in this prospectus. We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from those expressed in any forward-looking statement. The most important factors that could prevent us from achieving our goals, and cause the assumptions underlying forward-looking statements and the actual results to differ materially from those expressed in or implied by those forward-looking statements include, but are not limited to, the following:

● our
 ability to compete with other companies and implement a robust business plan;

● our
 belief in the sufficiency of our intellectual property rights in our technology;

● the
 success or failure of management's efforts to continue to develop the second generation
 MDLE Plant technology;

● our
 ability to attract a substantial customer base to successfully establish and maintain appropriate
 collaborations and derive significant revenue from those collaborations;

● rapid
 technological change that could cause our technology to become obsolete and if we do not
 improvise on our technology through our research and development efforts, we may be unable
 to effectively compete;

● the
 loss of key members of our management team;

● our
 ability to expand in existing and new markets;

● our
 ability to obtain adequate or timely funding to expand our business; and

● other
 risks, including those described under the headings "*Risk Factors Summary* "
 and "*Risk Factors*" in this prospectus.

You are advised to consult any additional disclosures we make in its reports to the SEC. All subsequent written and oral forward-looking statements attributable to we or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained in this prospectus.

vii

**PROSPECTUS SUMMARY**

*This summary highlights information contained in greater detail elsewhere in this prospectus. This summary is incomplete and does not contain all the information you should consider in making your investment decision. You should read the entire prospectus carefully before investing in our Common Shares. You should carefully consider, among other things, our financial statements and the related notes and the sections entitled "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere in this prospectus. Unless otherwise indicated or the context otherwise requires, the terms "we," "us," "our," and "our company" refer to International Battery Metals, Inc.*

**Our Company**

**Overview**

We are an advanced technology and manufacturing company focused on environmentally responsible methods of extracting lithium compounds from brine. Although we intend to provide our technology and equipment to holders of resource properties such as oilfield brines, subsurface brine aquifers and industrial customers who have lithium rich brine by-products from their operations, we have not yet delivered our technology and equipment to customers and are therefore, a pre-revenue company. We believe that our proprietary extraction process is sustainable, low cost and capable of producing high-quality commercial grade lithium products.

**Market Opportunity** 

In recent years, the lithium-ion battery market has been the primary driver of the growth of lithium demand and is anticipated to continue to drive growth in the future according to a report by McKinsey & Company dated January 16, 2023. The proliferation of vehicle electrification has required a significant increase in the production of lithium-ion batteries, which is expected to drive lithium market growth over time. Moreover, pressure from regulators on automakers to reduce carbon dioxide emissions from vehicles has resulted in further demand for lithium-ion batteries in the automotive sector, as automakers shifted interest toward producing more EVs. However, according to Goldman Sachs Research report dated May 21, 2024 recent market forecast for demand associated with the EV market, a primary market for lithium-ion batteries, has declined as the rate of sales growth for EVs has slowed. According to a Fastmarkets report dated February 6, 2025, a leading cross-commodity price reporting agency in the agriculture, forest products and metals and mining markets, this has led to market perception that the lithium market is oversupplied and resulted in a dramatic decline in prices for lithium carbonate and lithium hydroxide, the primary lithium compounds used to produce lithium-ion batteries. We expect these market conditions to continue for the next year or two, which emphasizes the importance of being the low-cost lithium extraction technology.

Traditionally, lithium has been produced from either hard rock mining or solar evaporation ponds which each produce lithium with high environmental costs.

● Hard rock mining entails drilling and blasting of solid rock in open pit mines to obtain the lithium containing minerals spodumene, lepidolite or petalite which can be crushed and processed to extract lithium. The hard rock mining process is very energy intensive and consumes large quantities of water and chemicals. Furthermore, hard rock mining produces significant amount of waste rock or tailings which can contain toxic chemicals or heavy metals.

● In solar evaporation for lithium extraction, lithium containing brines are pumped from underground aquifers into large ponds on the surface, resulting in the long-term depletion of the aquifer. This process consumes a staggering amount of water, with some studies, including a June 2024 report by the International Lithium Association, reflecting that approximately 180+ metric tons of water is necessary to produce 1 metric ton of lithium. The brine is concentrated by allowing the water to evaporate over 12 to 18 months. The brine is then processed to extract the lithium salts by removing other metals and dissolved solids through chemical processes that include large quantities of freshwater, often depleting, and risking contamination of nearby freshwater aquifers. The lithium salts are then further processed into either lithium carbonate or lithium hydroxide for shipment to customers.

In response to the environmental costs of hard rock mining and the use of solar evaporation to extract lithium compounds, the industry has focused on developing direct lithium extraction ("**DLE**") technologies. DLE technologies are focused on extracting the lithium compounds directly from the brine and allowing the brine to be re-injected back into the reservoir. While DLE technologies still require freshwater, the systems are designed to recycle the freshwater to reduce the environmental impact. The development of DLE technologies have focused on absorption and adsorption technologies, ion exchange, solvent extraction and membrane technologies. While each of these technologies have made advancements in the laboratory and small pilot scale projects, the only one project that has achieved commercial success was designed and overseen by our founder, Dr. Burba, based on the first generation of technology on which our technology is based.

**Our Strategy**

Our strategy is to continue to build upon the proprietary technology developed by Dr. Burba and develop and deploy DLE technologies that effectively extract lithium with a lower capital expenditure and operational costs and leave a significantly smaller environmental footprint than our competitors and competing technologies. We believe that our strategy of employing advanced brine extraction technologies and methodologies for selective mineral extraction is less capital intensive and a more environmentally responsible approach compared to traditional lithium extraction processes of hard rock mining and solar evaporation. We believe that this approach is environmentally sustainable because our process does not deconstruct land structures as is the case from hard rock mining nor does it waste precious water as is the case in solar evaporation. Instead, our technology is designed to extract the desired metal salts from subsurface brine and typically re-injects the brine into the aquifer to maintain pressure after lithium extraction. Essential features of our growth strategy include:

●  ***Deploy our current MDLE Plant in a Commercial Setting*** . We are the only DLE technology provider that has developed and deployed a commercial scale MDLE Plant for a demonstration project, which produced approximately 25 tons of battery-grade lithium carbonate during the demonstration period. We intend to build upon this success by deploying our initial MDLE Plant with industrial customers that have already committed to DLE technologies. While our MDLE Plants are modular and capable of being located on a wide variety of geographies, the MDLE Plant must be customized to the specific needs and resources of each customer.

●  ***Continue the Development of the Second Generation of MDLE Plant Technology.*** We believe that our patented MDLE Plant technology will continue to be an important component of the green energy transition. We are currently in the preliminary stages of researching and developing the media and design for the Second Generation of MDLE Technology which we anticipate could provide customers with additional options for processing brine solutions and increasing lithium chloride production.

●  ***Expand into new geographic areas*** . We believe there is increasing support by U.S. and international governments for the sustainable production of lithium compounds. We plan to expand our operations in North America and into new geographical areas.

●  ***License our technology*** . We believe there will be opportunities to license our technology to lithium brine resource developers to allow them to deploy our proprietary columns, media, and processes in their plant and developments, thus allowing them to control the construction of their own DLE plant while also benefitting of our technology.

●  ***Engage in joint-ventures*** . We will evaluate opportunities to enter into joint venture agreements or strategic partnerships with one or more parties, including landowners, producers and financial backers, to participate in the full development of lithium brine resources. We would deploy IBAT's MDLE technology into the development and participate in the extraction of brine resources, full plant development, and ultimate sale of lithium carbonate.

**Our Strengths and Competitive Advantage** 

We believe our patented MDLE Plant technology provides us the following competitive advantages as compared to other DLE technologies and other lithium extraction processes:

●  ***Demonstrated Commercial-Scale Technology*** . Based on the results of our 2024 demonstration study, our proprietary MDLE Plant technology is capable of achieving commercial scale production of lithium chloride which can be processed into lithium carbonate with over 99% purity. In a September 2022 pilot test of our MDLE Plant we achieved an average of 81% lithium extraction with an average of 69% lithium recovery to product and obtained water recovery of approximately 94%. In June 2023, a third-party laboratory performed a supplemental laboratory demonstration test which confirmed the MDLE Plant could achieve overall recovery of lithium of 95%.

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●  ***Increase Lithium Recovery through our Highly Selective Proprietary Absorption Technology*** . The proprietary absorbent utilized in our proprietary extraction columns is highly selective of lithium ions and screens for chloride ions which efficiently produces a lithium chloride solution by flushing the extraction columns with fresh water. Competing direct lithium extraction technologies use various combinations of selective membranes and ion exchanges, requiring alternating applications of acids and bases with less selectivity, resulting in having to run multiple cycles and generating excess salts as waste materials. Our process benefits from reduced cycles, reducing energy consumption, eliminating most of the chemicals and avoiding waste materials.

●  ***Maximize Water-Conservation through Reduced Water Usage and Waste.*** Our MDLE Plant and extraction process for lithium chloride has significant water conservation advantages for both the management of the brine aquifers and reduction of clean water usage as compared to other DLE technologies. Our proprietary process maintains the cleanliness of the water used in the process because it does not require chemicals for the lithium extraction and the operator of the brine re-injects the remaining brine back into the reservoir.

●  ***Eliminate Dangerous Chemicals in the Lithium Extraction Process*** . Our proprietary MDLE extraction absorption process does not rely on hydrochloric acid and sodium hydroxide to process the brine. Instead, our absorbent removes the lithium and allows the remaining brine to be injected back into the aquifer without further treatment. This has cost advantages over competitors that use chemicals in their process as they must either dispose of the contaminated brine (reducing the brine aquifer) or further process the brine for reinjection. Additionally, for the clean water used in our process, we are able to recycle up to 98% of the water due to the efficiency of our reverse osmosis unit and the lack of chemicals in the process.

●  ***Enhance Optionality for Plant Design and Reduce CapEx Through our Patented Modular Technology*** . We believe that the modular design of our proprietary and patented MDLE Plant provides an economic advantage compared to existing alternative technologies based on our ability to customize the plant to reflect site limitations and requirements. Our MDLE Plant customers can customize the MDLE Plant to meet the specific site requirements, by modifying the modules to support the size and geography of the resource site, the quantity of brine available, the concentration of lithium in the brine, and their desired level of production. Furthermore, the modularity gives customers the option to scale up operations by adding additional modules in the future with little disruption to the existing operations. The modules are fabricated in manufacturing facilities which reduces costs from traditional onsite construction plants.

●  ***Deliver Customers Cost-Efficient DLE with Reduced Operating Costs*** . As a result of our highly selective absorption process and the elimination of chemicals from the extraction process, we believe our MDLE Plant is more efficient for customers and has lower operating costs as compared to our DLE competitors.

**Company History and Executive Offices**

We were originally incorporated under the Business Corporations Act (British Columbia) on July 29, 2010. On April 13, 2018, pursuant to a share exchange agreement (the "**Share Exchange Agreement**") we acquired (i) from North American Lithium, Inc. ("**NAL**") all of its data, analysis and reports related to lithium extraction from oilfield brines for petrol-lithium extraction projects, (ii) from Selective Adsorption Lithium, Inc., ("**SAL**") all of the outstanding shares of SAL, and (iii) from the SAL shareholders additional intellectual property, including patents, relating to lithium extraction from oil field brines for petro lithium extraction projects. Dr. John Burba, the Company's Chief Technology Officer, and two former employees and members of the Company's Board of Directors were the shareholders of NAL and SAL. The purpose of the transaction was to focus all the Company's efforts on the development of Dr. Burba's vision for lithium extraction technologies and the development of a MDLE Plant. In connection with the acquisitions, we issued 4,700,000 Common Shares at closing and subsequently issued 20,609,488 Common Shares upon the satisfaction of certain milestones. In addition, we entered into a royalty agreement with NAL pursuant to which we agreed to pay on a fiscal quarterly basis a royalty equal to 5% of our product income (as defined in the Royalty Agreement). In connection with the acquisitions, we changed our name to International Battery Metals, Inc. in September 2017. Our principal executive offices are located at 6100 Tennyson Parkway, Suite 240, Plano, Texas 75024.

**THE OFFERING**

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| | |
|:---|:---|
| Common Shares offered by the selling shareholders | Up to an aggregate of 93,481,739 Common Shares, consisting of (a) up to 54,261,960 Common Shares previously issued to the selling shareholders and (b) up to 39,219,779 Common Shares that may be issued to the selling shareholders upon the exercise of Warrants held by the selling shareholders. |
| Warrants offered by the selling shareholders | Up to 39,219,779 Warrants to purchase Common Shares. |
| Common Shares outstanding prior to the exercise of any Warrants as of July 22, 2025 | 271,338,418 Common Shares.<sup>(1)</sup> |
| Common Shares outstanding assuming the exercise of all Warrants registered hereby as of July 22, 2025 | 343,313,166 Common Shares. |
| Terms of the offering | The selling shareholders will determine if, when and how they will dispose of the Common Shares registered pursuant to the registration statement of which this prospectus forms a part. See "*Plan of Distribution*." |
| Use of proceeds | The selling shareholders will receive all of the proceeds from the sale or other disposition of the Common Shares covered by this prospectus. We will not receive any proceeds from such sales or dispositions. We may receive proceeds from the cash exercise of the Warrants by the selling shareholders. See "*Use of Proceeds*." |
| Plan of distribution | The selling shareholders may sell all or a portion of the Common Shares beneficially owned by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents. Registration of the resale of the Common Shares does not mean, however, that such Common Shares necessarily will be offered or sold. See "*Plan of Distribution*." |
| Risk factors | Investing in our Common Shares involves a high degree of risk. See "*Risk Factors*" beginning on page 5 of this prospectus for a discussion of factors you should consider before making a decision to invest in our securities.<br>The potential issuance of additional Common Shares could result in the dilution of the ownership interests of the holders of our securities and may create downward pressure on the trading price, if any, of our Common Shares. The registration rights of certain of our shareholders and the sales of substantial amounts of our Common Shares following the effectiveness of the registration statement of which this prospectus is a part or other effective registration statements of the Company, or the perception that these sales may occur, could cause the market price of our Common Shares to decline and impair our ability to raise capital. |
| Listing information | Our Common Shares are listed on the TSXV under the symbol "IBAT" and are also traded on the OTCQB under the symbol "IBATF". We cannot assure you that an active trading market for our Common Shares will develop on the TSXV, OTCQB, or elsewhere or, if developed, that any market will be sustained. Our Warrants are not listed and there is no active trading market for the Warrants. |

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(1) In this prospectus, unless
 otherwise indicated, the number of Common Shares outstanding as of July 22, 2025 and the other information based thereon does
 not reflect the 25,765,259 Common Shares issuable upon closing of the 2025 Encompass Offering (as defined below) or the 25,765,259
 Common Shares issuable upon exercise of the warrants which form a part of the 2025 Encompass Units (as defined below) and does not
 include:

● 10,169,402 Common Shares issuable upon exercise of outstanding Stock Options;

● 8,355,630 Common Shares issuable upon vesting of outstanding RSUs or approximately 21,097,738 Common Shares issuable upon PSUS that the Company may be obligated to issue in the future, depending on the performance of the Company;

● Common Shares that may be issued under the Stock Option Plan pursuant to future awards of Stock Options, which amount shall not exceed 10% of the issued and outstanding Common Shares plus shares issuable upon exercise of all outstanding Stock Options on the particular date of the grant of any Stock Option;

● 11,809,694 Common Shares issuable under the Restricted Share Unit Plan; and

● The exercise of outstanding Warrants to purchase up to 69,628,875 Common Shares, which does not reflect the 25,765,259 Warrants issuable upon closing of the 2025 Encompass Offering.

**RISK FACTORS**

*Investing in our securities involves risks. You should carefully consider the risks described in "*Risk Factors*" before deciding to invest in our securities. If any of these risks actually occur, our business, financial condition and results of operations would likely be materially adversely affected. In such case, the trading price of our securities would likely decline, and you may lose all or part of your investment.* 

**Risks Relating to Our Business**

***We are in the early commercialization stage of our business and have a very limited history of operations, and therefore will be subject to many risks.***

We are in early commercialization stage of our business and have a very limited history of operations. Our business prospects must be considered in light of the risks, expenses, and difficulties often encountered by companies at this stage. Since we have not yet achieved full commercialization, the risks include but are not limited to: ability to raise sufficient capital, continued operating losses, difficulty in implementing our business plan, uncertainty regarding our ability to generate revenue and be profitable, uncertainty of the success and acceptance of our technology, the evolving and unpredictable nature of our business, our ability to anticipate and adapt to a rapidly evolving market, acceptance by consumers of our proprietary technology and our patented MDLE Plant, our ability to identify, attract and retain qualified personnel, reliance on third parties to carry out contractual arrangements, commercialization or other activities, cost and complexity of compliance with regulations in connection with our operations, and meeting the challenges of the other risk factors described herein. There can be no assurance that we will succeed in adequately mitigating any of these risks. In addition, the novel nature of our business and technologies could result in unforeseen costs, additional changes to the process chemistry and engineering, and other unforeseen circumstances that could result in additional delays relating to the further development and commencement of commercial operations of the MDLE Plant, all of which could have a material adverse effect on our business, financial condition, and results of operations.

***Our success as a company developing technology to extract and process lithium depends largely on our research and development capabilities and our ability to secure capital to fund operations.***

Our success as a company developing technology to extract and process lithium depends on our ability to develop and implement more efficient production capabilities of our patented MDLE Plant technology. Many DLE technologies are emerging and being tested at scale, with a handful of projects already in the commercial stage. Furthermore, the industries and market segments in which we operate are subject to rapid technological developments, evolving industry standards, changes in customer requirements, including with respect to purity, and competitive new products and features. As a result, our success, in part, will depend on our ability to build and enhance our MDLE Plant technology offerings in a timely and efficient manner and to develop and introduce new products that meet our customers' demands. We expect to make significant investment in research and development of lithium extraction and processing, and we will need to continue to invest heavily to scale our operational capabilities to ultimately enable our customers to extract sufficient levels of lithium that would meaningfully impact our revenue. For example, once we have entered into an agreement with an initial commercial customer, we will need to secure capital to customize the MDLE Plant to the specific geography and brine quality of the customer. We cannot assure you that we will secure sufficient funds to customize the MDLE Plant or that our future research and development efforts will be successful or be completed within the anticipated time frame or budget. There is no guarantee we will achieve anticipated sales targets or be able to operate in a profitable manner. In addition, we cannot assure you that our existing or potential competitors will not develop technologies which are similar or superior to our technology or are more competitively priced. As it is often difficult to project the time frame for developing new technologies and the duration of the market window for these products, there is a substantial risk that we may have to abandon a potential technology that is no longer commercially viable, even after we have invested significant resources in the development of such technologies. If we fail in developing competitively advantaged technology or securing adequate capital, our business, prospects, financial condition and results of operations may be materially and adversely affected.

***We must incur significant expense in sales and marketing to launch a new product or technology, and we may not generate sufficient revenue from new offerings to offset our costs***.

We invest, and plan to continue to invest, significant capital and resources in attracting new customers by marketing our technology to customers who have brine resources from existing chemical, mineral and metal production, and brine aquifer resource holders. We may not even be able to recoup the costs that we incur to attract new customers, including the costs necessary to customize the MDLE Plant for our initial commercial customer. In addition, delays in implementing effective sales and marketing strategy to attract new customers could negatively impact our revenue and operating results. The time that it takes for us to recover our investment after implementation of the MDLE Plant technology at a customer's site depends on various factors including our customer acquisition costs and customer retention rate. Because of the lengthy period of time required to recoup our investment, unexpected developments beyond our control could occur that result in the customer ceasing or suspending use of our MDLE Plant before we generate any revenue from it, which would impose additional challenges in our ability to repurpose our MDLE Plant for other customers or applications. Any termination or suspension by a future customer of their use of our MDLE Plant technology could negatively impact customer adoption generally. Because of any of the above, we may ultimately be unable to recover the full investment that we make in attracting new customers or achieve any level of profitability from such product offering.

***We have historically incurred losses, expect future losses, and may never achieve or maintain profitability.***

We are a pre-revenue, development stage company. We have incurred substantial losses since our inception, and we expect to incur additional operating losses as a result of ongoing operating costs, including the additional costs of operating as a public company. The extent of our future losses is unpredictable, and our prospects must be weighed against the risks and uncertainties encountered by us in the continuously evolving mining and minerals industry, including the risks described throughout this prospectus. If we cannot successfully address these risks, our business and financial condition may suffer.

***The success of our business will depend on our ability to identity and successfully negotiate commercially reasonable lease and service agreements with potential customers to install and operate our MDLE Plants.***

We are a pre-revenue company that does not have any current customers. While we completed a commercial scale demonstration project of our first MDLE Plant with US Magnesium, the project was terminated earlier than anticipated due to the cost of lithium production at the US Magnesium facility and its impact on the profitability to US Magnesium. Our success is highly dependent on our ability to effectively identify and negotiate a lease and service agreement, on commercially reasonable terms, of our current MDLE Plant to a new customer and to build and market additional MDLE Plants based on our proprietary technology. Furthermore, we will need to customize our current MDLE Plant to address the specific geography and brine quality of our initial commercial customer. There are a limited number of customers who have resources that could utilize our MDLE technology and they may prefer other DLE technology or other DLE technology may provide a less expensive or more effective process based on the nature of their natural resources. Should future customers prefer DLE technology from our competitors, it could materially and adversely affect our business or financial condition.

***We are a pre-revenue, development stage company with an untested business plan in an industry with no generally accepted measure of the market size, which makes it difficult for us to forecast our financial results, creates uncertainty as to how investors will evaluate our prospects, and increases the risk that we will not succeed***.

Pursuant to the Share Exchange Agreement with NAL and SAL on April 13, 2018, we were established to develop and market technology to extract lithium from brine. We have not yet established profitable operations or generated revenue. We realized a net loss from operations of $3.5 million and $8.5 million for the years ended March 31, 2025, and 2024, respectively. We have an untested business plan, and the royalty structure for all stakeholders, including resources owners, remains largely undefined in the lithium extraction market, which leads to uncertainty as to the terms we can expect to obtain from counterparties, which may not be sufficient to allow us to become profitable. Therefore, it is uncertain how our business model will affect investors' perceptions and expectations with respect to our business and economic prospects. Our business model may not succeed, and no assurance can be given that we will ever generate positive cash flow.

In addition, although there are various estimates, there is no generally accepted measure of the market size for lithium-based products. As such, it is difficult for us to evaluate the market demand for our technology and product offerings consistent with our business plan. If we have overestimated the demand for our technology and product offerings based on a misunderstanding of the market size for the end product, we may not be successful in our business model, and our business, results of operations and financial condition would suffer.

***As a development stage company, we are subject to the risks associated with new businesses*.**

Accordingly, you should consider our prospects in light of the costs, uncertainties, delays and difficulties often encountered by companies in their pre-revenue generating stages, particularly those in the extraction and processing of lithium. Potential investors should carefully consider the risks and uncertainties that a company with no history of generating revenue will face. In particular, potential investors should consider that there is a significant risk that we will not be able to:

● implement or execute our current business plan, or that our business plan is sound;

● maintain our anticipated management team who are key to the successful implementation of our business plan;

● raise sufficient funds in the capital markets or otherwise to carry out our business plan;

● volatility of global prices of raw materials and lithium;

● the nature and extent of future competition in our principal markets;

● risks relating to the estimation of demand for lithium and its byproducts;

● changes in governmental regulations; and/or

● determine that the processes and technologies that we have developed are commercially viable.

If we cannot execute any one of the above, our business may fail, in which case you would lose the entire amount of your investment in us.

We also expect to encounter unforeseen expenses, difficulties, complications, delays and other known and unknown factors which we cannot foresee and plan for. It is difficult to predict future revenues and expenses, and we have limited insight into trends that may emerge and affect our business. We are a pre-revenue company facing substantial business and operational risks, including an untested market strategy, all of which makes forecasting future business results particularly difficult and results in a significant level of execution risk, which could have a material adverse effect us.

***We have a large, accumulated deficit, expect future losses, and may never achieve or maintain profitability.***

We have a large, accumulated deficit, expect future losses, and may never achieve or maintain profitability. We have incurred substantial losses since our inception, and we expect to incur additional operating losses as a result of ongoing operating costs including the additional costs of operating as a public company. The extent of our future losses is highly uncertain, and our prospects must be considered in light of the risks and uncertainties encountered by us in the continuously evolving mining and minerals industry, including the risks described throughout this prospectus. If we cannot successfully address these risks, our business and financial condition may suffer.

***Our failure to manage our anticipated growth successfully may adversely affect our operating results.***

Our failure to manage our anticipated growth successfully may adversely affect our operating results. As we grow, we must continue to build our operational, financial and management controls, contracting relationships, marketing and business development plans and controls and reporting systems and procedures. Our ability to manage our growth will also depend upon a number of factors, including the ability for us to rapidly:

● expand our internal financial controls and disclosure controls, particularly now that we are registering our Common Shares with the SEC and are becoming subject to U.S. federal securities laws, among other things;

● attract and retain qualified technical personnel in order to continue to develop reliable and flexible technologies to meet evolving customer needs;

● build a corporate development team to keep resource holders and potential industrial customers informed regarding the technical features and key selling points of our proprietary technologies, and patented MDLE Plant; and

● develop operational engineering and maintenance support capacity for customers operating our MDLE Plants.

Implementing each of these items will increase our costs, and we cannot assure you that we will have offsetting revenue. Our inability to achieve any of these objectives could harm our business, financial condition, and results of operations.

***Our ability to continue as a going concern is dependent on several factors beyond our control.***

Our ability to continue as a going concern is dependent on a variety of factors, each of which are beyond our control:

● Historically, we have relied on equity financing transactions to fund our operations, as conventional bank financing has historically not been available to us, given our early commercialization stage. If we fail to achieve our business plan or are negatively impacted by risks outside of our control, there can be no assurance that such financing transactions will be available in the future or available on such terms as are acceptable by us.

● We face significant competition from emerging companies with DLE technologies who have substantially greater capital resources than we do. In addition to competing for access to capital, access to undeveloped resources, skilled personnel, access to equipment and materials, and potentially the ability to obtain required approvals from regulatory agencies, our competitors may offer project financing to our customers on terms and conditions which we are unable provide.

● We are reliant on protecting our intellectual property, both patents and trade secrets, to protect our business. Patent challenges or the enforcement of patent and intellectual property rights from misappropriation can involve legal challenges and lawsuits which can incur substantial legal fees and related costs, negatively impacting our cash flow and business prospects.

● We have spent and continue to spend substantial funds in connection with the development and commercialization of our MDLE Plant, and we have not earned any revenues to offset such expenditures.

● We expect to incur significant expenses and, when necessary, add additional personnel to enable us to operate as a public company, including as a result of our being subject to reporting obligations under both the Canadian Securities Act and the U.S. federal securities laws and the other U.S. laws and regulations to which we are and will become subject.

● We have not generated any funds from our operations and we anticipate future funds from operations to be limited for the foreseeable future.

● We may need to raise substantial capital to continue to fund our operations, support our marketing efforts, support our R&D programs, develop our engineering capabilities, and support any regulatory approval processes, and we will need funds to purchase certain components for the fabrication of our MDLE Plant to meet the potential demand for our product offering.

● Fabrication costs and timelines can be impacted by a wide variety of factors, many of which are beyond our control and can result in a significant increase in both the time and costs to build our future MDLE Plants. These include, but are not limited to, weather conditions, ground conditions, access to construction materials, supply chain constraints, availability of equipment and supplies, customer site-specific requirements, change orders, access to engineers and skilled labor, and performance of key contractors and suppliers.

Each of these risks could materially impact our ability to continue as a going concern and our financial position.

***We will need to continue to raise capital and we face various risks in doing so.***

We will need to continue to raise capital to fund our business, including to fund the costs of customizing the initial MDLE Plant for our initial commercial customer, and we face several risks in seeking to do so. The current financing environment in the United States, particularly for early-stage development companies and for DLE companies like us, is exceptionally challenging and we can provide no assurances as to when such an environment may improve. If we continue to raise equity or equity-linked instruments, this may be dilutive to our existing shareholders. If we raise debt, the interest rate may be high, the financial leverage associated with the debt may add financial stress to our balance sheet and for our shareholders, and compliance with any associated negative and financial covenants contained in any debt agreement may limit our operational flexibility. There can be no assurance that additional funding will be available on terms acceptable to us, or available to us at all.

In addition, as the development and commercial deployment of our MDLE Plant is still at its early stage, our ability to fund ongoing development and the availability of financing is affected by the strength of the economy and other general economic factors. This risk could negatively affect our ability to secure additional future financing due to unfavorable lithium price volatility and demand.

***We face intense competition, and we may not be able to compete successfully.***

The lithium extraction market in which we participate is highly complex, competitive and growing very rapidly. It is characterized by aggressive expansion and entry from existing and new players and emerging technologies. We compete with other companies that are developing or have developed technology designed to exploit similar markets to those in which we plan to operate. However, many of these other companies have substantially greater financial and other resources than we do. There can be no assurance that developments by other companies will not adversely affect the competitiveness of our technology. The DLE industry is characterized by extensive R&D efforts and rapid technological change. Competition can be expected to increase as technological advances are made and commercial applications for DLE technology increase. In addition, our competitors may use different technologies or approaches to develop technology like the technology we have developed or may develop new or enhanced technology or processes that may be more effective and less expensive. Furthermore, battery grade lithium does not have uniform specifications among end customers. Therefore, our MDLE Plant technology installed at a customer's site needs to be customized and tailored to extract lithium per individual customer specifications and demands. It is critical to our success that we are able to anticipate and respond to changes in technology and industry standards and new customer challenges by consistently developing and refining our core technology to meet or exceed the changing challenges and needs of our customers.

Moreover, our success is largely dependent on our ability to achieve and maintain the competitive differentiation of our MDLE Plant technology. Any failure to develop high-quality advancements to our technology could adversely affect our reputation, our ability to lease our MDLE Plants to existing and prospective customers, and our operating results. There can be no assurance that our MDLE Plant or any other technology developed by us will compete successfully or that research and new industry developments will not render our technology obsolete or uneconomical.

***Demand and fluctuation in market prices for lithium will greatly affect the results of our operations and our ability to successfully execute on our business plan.***

The prices of commodities fluctuate daily. Price volatility could have dramatic effects on the results of operations and our ability to execute our business plan. According to a January 2024 U.S. Geological Survey report, the average U.S. lithium carbonate price for fixed contracts was $46,000 per metric ton in 2023, which represents a decline of 32% from the average price in 2022. Although lithium prices have been on a downward trajectory, there can be no guarantees that the price of lithium carbonate will remain stable or increase, given the continued rise and focus by governments on transitioning away from fossil fuels to meet global clean energy goals. The price of lithium materials may also be reduced by the discovery of new lithium deposits and production methods, which could not only increase the overall supply of lithium (causing downward pressure on its price) but could draw new entrants into the lithium extraction industry that could compete with us. Even if our MDLE Plant technology is able to produce commercial quantities of lithium, there is no guarantee that a profitable market will exist for the sale of lithium-based end products.

Our business will be significantly affected by changes in the market price of lithium-based end products, such as lithium carbonate and lithium hydroxide. Factors beyond our control may affect the marketability of any lithium produced. The prices of various metals have experienced significant fluctuations over short periods of time and are affected by numerous factors beyond our control, including international economic and geopolitical trends, inflation, currency exchange rates, changes in interest rates and global or regional consumption patterns, speculative activities and increased production due to improved mining and production methods. The supply of and demand for lithium is affected by various factors, including, among others, political events, economic conditions, and production costs in major producing regions. Furthermore, the price of lithium-based end products is significantly affected by their purity and performance, and by the specifications of end-user battery manufacturers. If the lithium produced from our MDLE Plant technology does not meet battery-grade quality and/or does not meet customer specifications, pricing will be reduced from that expected for battery-grade product. In turn, the availability of customers may also decrease. We may not be able to effectively mitigate against pricing risks for our products. Depressed pricing for lithium-based end products will affect the level of revenues expected to be generated by us, which in turn could affect our share price and the potential value of our MDLE Plant technology. There can be no assurance that the price of lithium will be such that our MDLE Plant technology can be deployed at a profit.

***Our long-term success depends on our ability to enter into and deliver lithium carbonate product under offtake agreements.***

We may encounter difficulty entering into and fulfilling offtake agreements for our product offerings. We may fail to deliver the quality of lithium required by such agreements or may experience production costs in excess of the price to be paid to us under such agreements. Given there are no uniform specifications among end user clients for battery grade lithium, Failure to meet these specifications could result in price adjustments, the rejection of deliveries, or termination of the contracts. Furthermore, our offtake agreements may contain *force majeure* provisions allowing temporary suspension of performance by the customer or us during certain events beyond the control of the affected party. As a result of these issues, we may not achieve the revenue or profit we expect to achieve from our future offtake agreements.

Our business, results of operations, and financial condition may be materially and adversely affected if we are unable to enter into offtake agreements with future customers, or incur costs in excess of the price set forth in such agreements.

***We may not be successful in our efforts to lease our MDLE Plant or license our technology, which could adversely affect our business.***

The success of our business depends in large part on our ability to successfully identify new customers, generally through the leasing of our current and future MDLE Plants to customers or the licensing of our technology. Our leasing and licensing efforts focus on identifying businesses with reliable and proven access to high quality brine that have already received regulatory environmental permits and have the infrastructure that allows us to implement our MDLE Plant technology.

We expect that the terms of any such future leases or licenses would provide that, once defined production targets are achieved, we would be entitled to rents and royalties based on the quantities of lithium carbonate produced and the prices that are realized in the market. Since future royalty payments may be tied to the successful achievement of certain commercialization benchmarks, which may or may not be achieved, we may not be able to recover our investment into the development of the MDLE Plant technology.

Furthermore, the potential lease or licensing agreements with our target customers will typically require customization to address the specific geography and brine quality of the customer or could require us to build pilot plants for testing, which may be cost and time intensive and ultimately not yield much profit. If we are unable to identify a sufficient number of potential customers for leasing or licensing our MDLE Plant technology, or if the customers that we identify do not prove to be as valuable as we anticipated, we will not be able to successfully receive rents or royalties from those customers, and our business, financial condition and results of operations may suffer materially as a result.

***There is risk to the growth of lithium markets and the supply of lithium sources.***

Our business is significantly dependent on the development and adoption of new applications for lithium batteries and the growth in demand for plug-in hybrid electric vehicles, battery electric vehicles and other power storage solutions that rely on lithium batteries. As such, our business results inherently depend on decarbonization of the global economy. The past couple of years saw weaker than expected EV sales, which signals a decline in demand for one of the principal end products for lithium carbonate. To the extent that the development, adoption, decarbonization and growth of the lithium markets do not occur in the volume and/or manner that we contemplate, or demand for principal end products that incorporate lithium carbonate does not grow at expected rates, the long-term growth in the markets for lithium products may be adversely affected, which would have a material adverse effect on our business, financial condition and operating results. Moreover, we depend on the availability of brine resources from existing chemical, mineral and metal production, and brine aquifer resource holders in order to extract lithium carbonate using our MDLE Plant. Although there have been discoveries of high lithium concentration in the Smackover Formation, a geological formation in Arkansas, to our knowledge, there has been no extraction of lithium from this formation to date, and therefore the scope of any such opportunity is uncertain. If for regulatory or other reasons, the resource holders are not able to exploit the lithium deposits in the brines in the Smackover Formation, this could have an adverse effect on the potential growth of the lithium markets as the expected supply make not be able to meet anticipated demand.

***As a smaller, development-stage company, we are likely to be more sensitive to competitive pressures that will cause our revenues and gross margins to fluctuate from quarter to quarter.***

Our revenues can change from one quarter to the next and gross margins are subject to a number of factors that could cause lower than expected or even negative gross margins. Some factors that may influence our quarterly revenue, gross margins and operating results may include:

● lower than anticipated demand for our MDLE Plant;

● pricing campaigns designed to attract customers;

● manufacturing issues;

● fluctuations in material costs;

● fluctuations in the market prices for lithium;

● repair and warranty costs;

● availability of qualified personnel;

● changes in regulatory environment; and

● pressure to reduce prices from competition.

As a smaller, early commercial-stage company, we may be more sensitive to such factors than many of our competitors, and we may find that we are unable to compete within our markets successfully.

***We rely on our management and key employees, and we may not be able to attract, train and retain a sufficient number of qualified employees to maintain and grow our business.***

We depend and will continue to depend on the business and technical expertise of our management and key employees who have expertise in technology, chemistry and engineering. In light of the specialized and technical nature of our business, the loss of our key personnel could slow our ability to innovate and execute on our development goals. As our operations expand, additional general management resources will be required. If we need to expand our operations, our ability to recruit, train, integrate and manage new employees is uncertain and failure to do so would have a negative impact on our ability to execute on our business plan.

We expect that our potential expansion into areas and activities requiring additional expertise, such as governmental approvals, manufacturing, sales, marketing, and distribution will place additional requirements on our management and our operational and financial resources. We expect these demands will require an increase in management and scientific personnel and the development of additional expertise by existing management personnel. There is currently aggressive competition for employees who have experience in technology, chemistry and engineering. This intense competition may make it more difficult for us to attract and retain qualified personnel, as a number of the companies against which we compete for personnel are in a later stage of their company lifecycle and thus may have greater financial resources than we do, and/or are able to provide benefits that are more comprehensive or are otherwise viewed as more attractive than ours. These competitors may also actively seek to hire our existing personnel away from us, even if such employees have entered into a non-compete agreement. We may be unable to enforce these agreements under the laws of the jurisdictions in which our employees work. The failure to attract and retain such personnel or to develop such expertise could materially adversely affect our business, financial condition, and results of operations. The loss of our executive officers or our other key personnel, particularly with little or no notice, could cause delays in business development projects and could have adverse impact on our business and results of operations.

***Volatility in the demand for lithium products or the development of alternative battery technologies that do not utilize lithium inputs may negatively impact overall prospects for growth of lithium marketing and pricing.***

The development of our MDLE Plant is highly dependent upon the currently projected demand for and uses of lithium-based end products. This includes lithium-ion batteries for electric vehicles (EVs), power storage solutions and other large format batteries that currently have limited market share and whose projected adoption rates are not assured. To the extent that such markets do not develop in the manner contemplated by us or demand for such end products declines or do not grow as expected, then the long-term growth in the market for lithium products will be adversely affected, which would inhibit the potential for development of our MDLE Plant and would otherwise have a negative effect on our business and financial condition. For example, the past couple of years saw weaker than expected EV sales, which signals a decline in demand for one of the principal end products for lithium carbonate. In addition, as a commodity, lithium market demand is subject to the substitution effect in which end-users adopt an alternate commodity as a response to supply constraints or increases in market pricing. To the extent that these factors arise in the market for lithium, it could have a negative impact on overall prospects for growth of the lithium market and pricing, which in turn could have a negative effect on the Company. Further, although current batteries utilized in EV production rely on lithium compounds as a critical input, alternative materials and technologies are being researched with the goal of making batteries lighter, more efficient, faster charging and less expensive, and some of these technologies could be less reliant on lithium compounds. We cannot predict which new technologies may ultimately prove to be commercially viable and when, but any future battery technologies that use less or no lithium could materially and adversely impact our business and future results of operations.

***Changes in government incentives relating to lithium-based end products may negatively impact our future success.***

Demand for lithium-based end products, such as lithium-ion batteries for use in EVs and power storage solutions, may be impacted by changes to government regulation and economic incentives. Government economic incentives that support the development and adoption of EVs in the United States and abroad, including certain tax exemptions, tax credits and rebates, may be reduced, eliminated or exhausted from time to time. For example, previously available incentives favoring EVs in areas including Canada, Germany, Hong Kong, Denmark and California have expired or were cancelled or made temporarily unavailable, and in some cases were not eventually replaced or reinstituted. Any similar developments could have a negative impact on overall prospects for growth of the lithium market and pricing, which in turn could have a negative effect on the Company.

***Environmental risks and stringent regulations related to lithium-based products may lead to additional disclosure requirements and substantial expenditures to ensure compliance.***

All phases of mineral extraction and development businesses present environmental risks and hazards and are subject to extensive environmental laws and regulations. U.S. and non-U.S. environmental laws (including in Argentina and Chile, where we may operate) and regulations provide for, among other things, restrictions and prohibitions on spills, releases or emissions of various substances used and or produced in association with natural resource exploration and production operations. Under certain circumstances, we may be responsible under our future agreements with customers to operate the MDLE Plant on behalf of our customers, which may subject us to potential liability for any non-compliance under such environmental laws. These laws and regulations also require that facility sites be operated, maintained, abandoned, and reclaimed to the satisfaction of applicable regulatory authorities. Such regulations relate to many aspects of our operations. In addition, environmental regulations are evolving in a manner that is expected to require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors, and employees.

While from a sustainability standpoint, DLE offers several advantages compared to traditional hard rock mining, there still remain challenges, including:

● Reinjection of brine could dilute the brine's purity.

● Obtaining operational and environmental permits can take time and is complex, possibly causing project delays.

● Violating applicable laws and regulations may result in the imposition of fines and penalties, some of which may be material, as well as reputational damage. The discharge of pollutants into the air, soil or water may give rise to liabilities to foreign governments and third parties and may require us to incur costs to remedy such discharge.

● Applicable environmental laws and regulations require enhanced public disclosure and consultation.

No assurance can be given that the application of environmental laws to our business and operations, whether as a result of our activities or those of our customers, will not result in a curtailment of production or a material increase in the costs of production, development or exploration activities or otherwise adversely affect our financial condition, results of operations or prospects.

***Our business is subject to hazards common to chemical and natural resource extraction businesses, any of which could injure our employees or other persons, damage our facilities or other properties, interrupt our production and adversely affect our reputation and results of operations.***

Our business is subject to general hazards faced by chemical manufacturing, fabrication, storage, and extraction businesses, including explosions, fires, severe weather, natural disasters, mechanical failure, unscheduled downtime, transportation interruptions, remediation, chemical spills, discharges or releases of toxic or hazardous substances or gases and other risks. These hazards can cause personal injury and loss of life to our employees and other personnel. In addition, the occurrence of disruptions, shutdowns or other material operating problems at our MDLE Plants installed at a customer's site, due to any of these hazards may diminish our ability to meet our contractual obligations with those customers and achieve the desired production and output. Accordingly, these hazards and their consequences could adversely affect our reputation and have a material adverse effect on our operations as a whole, including our results of operations and cash flows, both during and after the period of operational difficulties.

***Uncertain geopolitical tensions between the United States and China may adversely affect demand for lithium based products.***

In recent years, there has been a substantial increase in political tensions among many jurisdictions, including between the United States and China. This political tension is particularly acute in respect of critical mineral and rare earth metals, including lithium, in these jurisdictions and is the subject of increasingly active industrial policy. There is a risk that legislation, tariffs, embargoes, or other trade restrictions could impede our ability to contract our MDLE Plants in foreign markets. Such restriction may negatively impact our ability to advance our business, including becoming subject to restrictions arising from industrial policies, a reduced ability to obtain financing and impediments to obtaining government approvals, all of which could have a material adverse impact on the Company.

***We may be exposed to claims and other legal actions that may adversely affect us.***

In the ordinary course of our business, we may become party to litigation or other proceedings in local or international jurisdictions in respect of any aspect of our business, whether under criminal law, contract or otherwise. The causes of potential litigation cannot be known and may arise from, among other things, business activities, employment matters, including compensation issues, environmental, health and safety laws and regulations, tax matters, volatility in our stock price, failure to comply with disclosure obligations or labor disruptions. Regulatory and government agencies may initiate investigations relating to the enforcement of applicable laws or regulations and we may incur expenses in defending them and be subject to fines or penalties in case of any violation and could face damage to its reputation. We may attempt to resolve disputes involving foreign contractors/suppliers through arbitration in another county and such arbitration proceedings may be costly and protracted, which may have an adverse effect on our financial condition. Litigation may be costly and time-consuming and can divert the attention of our management and key personnel from operations and, if adjudged adversely, may have a material and adverse effect on our cash flows, results of operations and financial condition.

***We expect that we will be dependent on one or a small group of customers for most of our revenue, and our failure to expand our customer base would have an adverse effect on our business growth and may result in changes to our business strategy.***

We have not generated any revenue to date, and the entity, US Magnesium, with which we entered into a commercial scale demonstration project of our first MDLE Plant terminated its operations, including its use of our MDLE Plant at its site in September 2024 prior to us achieving defined production targets. As a result, our lease agreement with US Magnesium was terminated and our MDLE Plant was decommissioned and relocated out of US Magnesium's site to an offsite storage facility where we are actively marketing the MDLE Plant to potential customers. There are a limited number of potential customers that own or control the natural resources that would utilize our MDLE Plant. Consequently, we expect that we will be highly dependent on a limited number of customers in the future. This expected concentration of our customer base increases risks related to the financial condition of our customers, and the deterioration in financial condition of a single customer or the failure of a single customer to perform their respective contractual obligations could have a material adverse effect on our future results of operations and cash flow. In the event that any of our future customers experience a decline in usage of our MDLE Plant technology for any reason or decide to discontinue the use of our MDLE Plant technology, we may be compelled to lower our lease prices or risk losing a significant customer. Such developments could adversely affect our profit margins and financial position, leading to a negative impact on our revenue and operational results. There are inherent risks whenever a large percentage of revenues are concentrated with a limited number of customers. We are unable to predict the future level of demand for our MDLE Plant technology that will be generated by our future customers. In addition, we cannot assure that any of our future customers will not cease purchasing our proprietary technology from us. Should future customers prefer DLE technology from our competitors, significantly reduce orders, or seek price reductions in the future, any such event could have a material adverse effect on our revenue, profitability, and results of operations.

***Our dependence on third-party suppliers could negatively affect our operating results.***

We rely on third-party suppliers to provide components and raw materials (including lithium bearing salt brines) for our MDLE Plant. While we have not recognized any trends or experienced any major disruptions or delays related to manufacturing costs or the availability of components supplied to us by our vendors, actions taken by third-party suppliers in operating their business, as well as any disruptions to their business operations (or their supplier's business operations), could disrupt our supply chain or operations and materially negatively impact our ability to supply the market, substantially decrease sales, lead to higher costs, and damage our reputation with our future customers. Longer-term disruptions could potentially result in the permanent loss of our future customers, which could reduce our future recurring revenues and long-term profitability.

***Global financial conditions pose risks for us.***

Global financial conditions have been subject to continued volatility. Government debt, the risk of sovereign defaults, bank failures, political instability and wider economic concerns in many countries have been causing significant uncertainties in the markets. Disruptions in the credit and capital markets can have a negative impact on the availability and terms of credit and capital. Uncertainties in these markets could have a material adverse effect on our liquidity, ability to raise capital and cost of capital. High levels of volatility and market turmoil could also adversely impact commodity prices, exchange rates and interest rates and have a detrimental effect on our business. Concerns over global economic conditions may also have the effect of heightening many of the other risks described herein, including, but not limited to, risks relating to fluctuations in the market price of lithium-based products, the terms and availability of financing, supply chain constraints and cost overruns, geopolitical concerns, and changes in law, policies or regulatory requirements.

***We may not be able to obtain or maintain sufficient general liability insurance.***

Our business may expose us to a number of risks and hazards, including general liability risks related to our technology. Such occurrences could result in damage to property, inventory, facilities, personal injury or death to end-user customers or operators, damage to our properties or the properties of others, monetary losses and possible legal liability. Although we maintain insurance to protect against certain risks in such amounts as we consider to be reasonable, our insurance may not cover all the potential risks associated with our operations. We may be unable to maintain insurance to cover these risks at economically feasible premiums. Insurance coverage may not continue to be available or may not be adequate to cover any resulting liability. We might become subject to liability which may not be insured against or which we may elect not to insure against because of premium costs or other reasons. Losses from these events may cause us to incur significant costs that could have a material adverse effect upon our financial performance and results of operations.

***Increased cybersecurity requirements, vulnerabilities, threats and more sophisticated and targeted computer crime could pose a risk to our systems, networks, products, solutions, services and data.***

Increased global cybersecurity vulnerabilities, threats, computer viruses and more sophisticated and targeted cyber-related attacks, as well as cybersecurity failures resulting from human error and technological errors, pose a risk to the security of our and our customers', business partners' and suppliers' products, systems and networks and the confidentiality, availability and integrity of data on these products, systems and networks. As the perpetrators of such attacks become more capable, and as critical infrastructure is increasingly becoming digitized, the risks in this area continue to grow. While we attempt to mitigate these risks by employing a number of measures, including employee training, monitoring and testing, and maintenance of protective systems, we remain potentially vulnerable to additional known or unknown threats, and we cannot assure that the impact from such threats will not be material. In addition to existing risks, the adoption of new technologies may also increase our exposure to cybersecurity breaches and failures. Additionally, we have access to sensitive, confidential or personal data or information that is subject to privacy and security laws, regulations or customer-imposed controls. Despite our implementation of controls to protect our systems and sensitive, confidential or personal data or information, we may be vulnerable to material security breaches, theft, misplaced, lost or corrupted data, employee errors and/or malfeasance (including misappropriation by departing employees) that could potentially lead to the compromising of sensitive, confidential or personal data or information, improper use of our systems, software solutions or networks, unauthorized access, use, disclosure, modification or destruction of information, defective products, production downtimes and operational disruptions. In addition, a cyber-related attack could result in other negative consequences, including damage to our reputation or competitiveness, remediation or increased protection costs, litigation or regulatory action. Although we have experienced occasional actual or attempted breaches of our computer systems, to date we do not believe any of these breaches has had a material effect on our business, operations or reputation.

***We do not have an absolute restrictions on the ability of our directors and officers to serve on the boards of directors or as officers of other companies, with the result that potential conflicts of interest may arise.***

We do not have an absolute restrictions on the ability of our directors and officers to serve on the boards of directors or as officers of other companies, although our Code of Conduct, as amended in March 2025, which is applicable to all directors and executive officers prohibits any activity that could give rise to conflicts of interest is prohibited unless specifically approved in advance. Furthermore, where a conflict involves a member of the Board, our Articles and Code of Conduct both require that the Board member involved must disclose the nature and extent of the conflict as required by the Business Corporations Act to the Board and refrain from voting on the matter giving rise to the conflict, in accordance with applicable law. Conflicts of interest may therefore arise as a result of any of our directors or officers also holding positions as directors or officers of other companies. Some of the individuals that are directors and officers of our Company have been and may in the future be engaged in the identification and evaluation of assets, businesses and companies on their own behalf and on behalf of other companies, and situations may arise where our directors and officers will be in direct competition with us. This could potentially result in the diversion of opportunities which would be appropriate for us to other entities or persons with which any such director or officer of our Company is associated or has an interest, rather than offering such opportunities to us. To the extent that such conflicts of interests are approved by the disinterested directors or are not adequately disclosed, it could result in the loss of potential opportunities.

***The requirements of being a reporting public company in the United States may strain our resources and divert management's attention.***

As a reporting public company in the United States, we will be subject to the reporting requirements of the Exchange Act, the U.S. Sarbanes-Oxley Act, the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "**Dodd-Frank Act**"), the U.S. Foreign Corrupt Practices Act and other applicable rules and regulations. Compliance with these rules and regulations will increase our legal and financial compliance costs, make some activities more difficult, time-consuming, or costly and increase demand on our systems and resources, particularly after we are no longer an "emerging growth company" or a "smaller reporting company" and lose the benefit of certain accommodations and exemption granted to such registrants. The Exchange Act requires, among other things, that we file annual, quarterly, and current reports with respect to our business and results of operations.

Changing laws, regulations and standards relating to corporate governance and public disclosure create uncertainty for public companies, increase legal and financial compliance costs and increase time expenditures for internal personnel. These laws, regulations and standards are subject to interpretation, in many cases due to their lack of specificity, and their application in practice may evolve over time as regulators and governing bodies provide new guidance. These changes may result in continued uncertainty regarding compliance matters and may necessitate higher costs due to ongoing revisions to filings, disclosures and governance practices. If we invest additional resources to comply with evolving laws, regulations and standards, this investment would likely result in increased general and administrative expenses and a diversion of management's time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities may initiate regulatory or legal proceedings against us and our business may be adversely affected.

***Failure to maintain effective controls over financial reporting could have a material adverse effect on our business and share price.***

Our consolidated financial statements are prepared in accordance with United States generally accepted accounting principles. We must periodically adjust and strengthen our operating, financial, accounting, and other systems, procedures, and controls, which could increase our costs and may adversely affect our gross profits and our ability to achieve profitability if we do not generate increased revenues to offset the costs. As a public company, our information and control systems must enable us to prepare accurate and timely financial information and other required disclosures. If we discover deficiencies in our existing information and control systems that impede our ability to satisfy our reporting requirements, we must successfully implement improvements to those systems in an efficient and timely manner. Any failure to identify and remediate such deficiencies could subject us to regulatory enforcement action, and materially adversely affect our share price and reputation.

In addition, the assets, liabilities, and expenses reported in the consolidated financial statements depend on varying degrees of estimates made by management. An estimate is considered a critical accounting estimate if it requires us to make assumptions about matters that are highly uncertain and if different estimates could have been used that would have a material impact. The significant areas requiring the use of management estimates relate to the valuation of inventory, useful lives of property and equipment and intangible assets and the valuation of share-based payments and Warrants issued in the Company exercisable for Common Shares. These estimates are based on historical experience and reflect certain assumptions about the future that we believe to be both reasonable and conservative. Actual results could differ from those estimates. We continually evaluate these estimates and assumptions.

***We have identified a material weakness in our internal controls over financial reporting. If we are unable to remediate this material weakness, or if we identify additional material weaknesses in the future or otherwise fail to maintain an effective system for internal control over financial reporting, our ability to produce timely and accurate financial statements could be impaired, which could adversely affect our operating results, our ability to operate our business, our share price and access to the capital markets.***

We have identified a material weakness in our internal control over financial reporting, leading to the conclusion that our internal control over financial reporting and disclosure controls and procedures were not effective as of December 31, 2024. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of annual or interim financial statements will not be prevented or detected on a timely basis. The material weakness related to our failure to design or maintain sufficient controls over the capitalization of capital assets or the initial determination and reassessment of their useful lives. The above material weakness resulted in a material misstatement of our unaudited condensed consolidated financial statements as of and for the three and six months ended September 30, 2024, and as of and for the three and nine months ended December 31, 2024, for which we recently amended and restated.

We have taken and are taking steps to remediate this material weakness, including establishing and implementing a formal written policy governing the Company's approach to capital asset accounting. We have also implemented additional review controls and processes that require additional levels of review for material capital assets at each reporting period.

We cannot assure you that we have identified all material weaknesses. Material weaknesses may still exist when we report on the effectiveness of our internal control over financial reporting as required under Section 404 of the Sarbanes-Oxley Act after the completion of this offering. In the future, it is possible that additional material weaknesses or significant deficiencies may be identified. Our ability to comply with the annual internal control reporting requirements will depend on the effectiveness of our financial reporting and data systems and controls across our Company. Any weaknesses or deficiencies or any failure to implement new or improved controls, or difficulties encountered in the implementation or operation of these controls, could harm our operating results and cause us to fail to meet our financial reporting obligations, or result in material misstatements in our consolidated financial statements, which could adversely affect our business, financial condition and results of operations and reduce our share price.

We can give no assurance that the measures we have taken and plan to take in the future will remediate the material weaknesses identified or that any additional material weaknesses or restatements of financial results will not arise in the future due to a failure to implement and maintain adequate internal control over financial reporting or circumvention of these controls. In addition, even if we are successful in strengthening our controls and procedures, in the future, those controls and procedures may not be adequate to prevent or identify irregularities or errors or to facilitate the fair presentation of our financial statements.

***Changes in U.S. tax laws and tax examinations could have a material adverse effect on our business, cash flow, results of operations and financial conditions.***

We are subject to income and other taxes in the U.S. at the state and federal level. Changes in applicable U.S. state or federal tax laws and regulations, or their interpretation and application, could materially affect our tax expense and profitability. Tax examinations are often complex as tax authorities may disagree with the treatment of items reported by us, the result of which could have a material adverse effect on our financial condition and results of operations.

***We face risks relating to natural disasters, public health crises, political crises, and other catastrophic events or other events outside of our control.***

We and our third-party manufacturers, suppliers and other outside parties upon which we rely are exposed to a number of global and regional risks outside of our control. These include, but are not limited to natural disasters, such as earthquakes, tsunamis, power shortages or outages, floods or monsoons; public health crises, such as pandemics and epidemics; political crises, such as terrorism, war, political instability or other conflict; or other events outside of our control. These events may damage our facilities or disrupt our operations, or damage the facilities or disrupt the operations of our third-party manufacturers, suppliers or other outside parties upon which we rely, and could delay or impair our ability to initiate or complete or commercialize our technology.

We cannot predict the scope and severity of any potential business shutdowns or disruptions, but if we or any of the outside parties with whom we engage, including our third-party manufacturers, suppliers, regulators and other outside parties with whom we conduct business, were to experience shutdowns or other business disruptions, our ability to conduct our business in the manner and on the timelines presently planned could be materially and negatively impacted.

Additionally, we may be affected by possible political or economic instability in the countries in which we expect to operate, such as Argentina and Chile. The risks include, but are not limited to, changes in government, domestic or foreign terrorism, military operations, extreme fluctuations in currency exchange rates and high rates of inflation. Our operations may be affected in varying degrees by government regulations. The effect of these factors cannot be accurately predicted.

***We are required to comply with anti-corruption and bribery laws, and the potential for significant penalties could result in material adverse effect on our reputation and results of operations.***

Our operations are governed by, and involve interactions with, many levels of government in other countries. We are required to comply with anti-corruption and anti-bribery laws, including the Criminal Code, the Corruption of Foreign Public Officials Act (Canada), the U.S. Foreign Corrupt Practices Act as well as similar laws in the countries in which we conduct our business. In recent years, there has been a general increase in both the frequency of enforcement and the severity of penalties under such laws, resulting in greater scrutiny and punishment to companies convicted of violating anti-corruption and anti-bribery laws. Measures that we have adopted to ensure compliance with these laws are not always effective in ensuring that we, our employees, or third-party agents will comply strictly with such laws. Furthermore, a company may be found liable for violations by not only its employees, but also by its contractors and third-party agents. If we finds ourself subject to an enforcement action or is found to be in violation of such laws, this may result in significant penalties, fines and/or sanctions imposed on us, which could result in a material adverse effect on our reputation and results of operations.

***We may qualify as a passive foreign investment company, or "PFIC," which could result in adverse U.S. federal income tax consequences to U.S. investors.***

If we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder (as defined in the section of this prospectus captioned "*Material United States Federal Income Tax Considerations*") of our ordinary shares or rights, the U.S. Holder may be subject to adverse U.S. federal income tax consequences and may be subject to additional reporting requirements. Our actual PFIC status for our current taxable year may depend on whether we qualify for the PFIC start-up exception (see the section of this prospectus captioned "*Material United States Federal Income Tax Considerations — U.S. Holders — Passive Foreign Investment Company Status*"). Depending on particular circumstances, the application of the start-up exception may be subject to uncertainty, and there cannot be any assurance that we will qualify for the start-up exception. Accordingly, there can be no assurances with respect to our status as a PFIC for our current taxable year or any future taxable year. Our actual PFIC status for any taxable year, however, will not be determinable until after the end of such taxable year. If we determine we are a PFIC for any taxable year, we will endeavor to provide to a U.S. Holder such information as the Internal Revenue Service ("**IRS**") may require, including a PFIC annual information statement, in order to enable the U.S. Holder to make and maintain a "qualified electing fund" election, but there can be no assurance that we will timely provide such required information, and such election would likely be unavailable with respect to our rights.

We urge U.S. Holders to consult their own tax advisors regarding the possible application of the PFIC rules. For a more detailed explanation of the tax consequences of PFIC classification to U.S. Holders, see the section of this prospectus captioned "*Material United States Federal Income Tax Considerations — U.S. Holders — Passive Foreign Investment Company Status*."

**Risks Relating to Government Regulation**

***We anticipate that we are and will continue to be, subject to the authority and approvals of certain regulatory agencies, both domestically and internationally, with regard to the development, testing, manufacture, and installation of the MDLE Plant, and there can be no assurance that any required regulatory approvals may be obtained or maintained.***

Mining operations and exploration activities are subject to extensive laws and regulations. Such regulations relate to production, development, exploration, exports, imports, taxes and royalties, labor standards, occupational health, waste disposal, protection, and remediation of the environment, mine decommissioning and reclamation, mine safety, toxic and radioactive substances, transportation safety and emergency response, and other matters. Compliance with such laws and regulations increases the costs of exploring, drilling, developing, constructing and operating refining and other facilities. It is possible that in the future the costs, delays and other effects associated with such laws and regulations may impact our future customers' decisions with respect to the exploration and development of properties and, as a consequence, our decisions with respect to the deployment of the MDLE Plant. Our customers and, to the extent we have agreed to operate the MDLE Plant on behalf of our customers, we, will be required to expend significant financial and managerial resources to comply with such laws and regulations. Since legal requirements change frequently, are subject to interpretation and may be enforced in varying degrees in practice, we are unable to predict the ultimate cost of compliance with these requirements or their effect on operations. Furthermore, future changes in governments, regulations and policies and practices, such as those affecting exploration and development of the properties in which the MDLE Plant is located, could materially and adversely affect our results of operations and financial condition in a particular year and in its long-term business prospects.

We may be subject to the authority and approvals of certain regulatory agencies both domestically and internationally. The process of obtaining such approvals can be costly and time consuming, and there can be no assurance that any required regulatory approvals may be obtained or maintained. Any failure to obtain (or significant delay in obtaining) or maintain approvals could materially adversely affect our ability to market our products successfully and could therefore have a material adverse effect on our business.

***Ensuring maintenance of community relations and license to operate is critical in ensuring the future success of our existing operations.***

Our relationship with the host communities where we operate is critical to ensure the future success of our existing operations and the construction and development of our projects. There is an increasing level of public concern relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Certain non-governmental organizations, some of which oppose globalization and resource development, are often vocal critics of the mining industry and its practices, including the use of cyanide and other hazardous substances in processing activities. Adverse publicity generated by such non-governmental organizations or others related to extractive industries generally, or our development activities specifically, could have an adverse effect on our reputation. Reputation loss may result in decreased investor confidence, increased challenges in developing and maintaining community relations and an impediment to our overall ability to advance our MDLE Plant, which could have a material adverse impact on our results of operations, financial condition, and prospects. While we are committed to operating in a socially responsible manner, there is no guarantee that our efforts in this respect will address these potential risks.

***We may not have or be able to obtain adequate funding to complete any additional studies or other steps that regulatory authorities may impose in assessing our technology for regulatory approval.***

If regulatory authorities require additional time or studies to assess the performance, reliability, and safety of our technology, we may not have or be able to obtain adequate funding to complete the necessary steps for approval for the technology or may be unable to technically meet their requirements. Additional delays may result if any required regulatory authority/certifications recommend non-approval or restrictions on any potential approval.

***Domestic and foreign government regulation and enforcement of data practices and data tracking technologies is expansive, broadly defined and rapidly evolving. Such regulation could directly restrict portions of our business.***

As a Company incorporated in British Columbia, Canada, we are subject to diverse laws and regulations relating to data privacy and security, including the Personal Information Protection and Electronic Documents Act (Canada) ("**PIPEDA**"), the Personal Information Protection Act (British Columbia) ("**PIPA**"). The PIPEDA and the PIPA implement stringent operational requirements for controllers of personal data, including, for example, higher standards for obtaining consent from individuals to process their personal data (including, in certain circumstances for marketing and other follower engagement), more robust disclosures to individuals and a strengthened individual data rights regime, shortened timelines for data breach notifications, limitations on retention of information, additional obligations when we contract third-party processors in connection with the processing of personal data, and certain restrictions when transferring personal data outside of Canada.

Failure to comply with Canadian privacy laws, including failure under the PIPEDA and the PIPA may result in significant fines on us, which may be onerous and adversely affect our business, financial condition, results of operations and prospects. The PIPEDA and the PIPA also confers a private right of action on data subjects and consumer associations to lodge complaints with supervisory authorities, seek judicial remedies, and obtain compensation for damages resulting from violations of data privacy and security.

If our treatment of data, privacy practices or data security measures fail to comply with these current or future laws and regulations in any of the jurisdictions in which we collect and/or process information, we may be subject to litigation, regulatory investigations, civil or criminal enforcement, financial penalties, audits or other liabilities in such jurisdictions, or our customers may terminate their relationships with us. In addition, data protection laws, such as the PIPEDA and the PIPA, foreign court judgments or regulatory actions could affect our ability to transfer, process and/or receive transnational data that is critical to our operations, including data relating to users, customers, or partners outside Canada.

Furthermore, the uncertain and shifting regulatory environment and trust climate may cause concerns regarding data privacy and may cause our customers or our customers' customers to resist providing the data necessary to allow our customers to use our services effectively. Even the perception that the privacy of personal information is not satisfactorily protected or does not meet regulatory requirements could inhibit sales of our services or technology.

Any failure or perceived failure by us to comply with federal, state or foreign laws or regulations, industry standards, contractual obligations or other legal obligations, or any actual or suspected security incident, whether or not resulting in unauthorized access to, or acquisition, release or transfer of personal data or other data, may result in governmental enforcement actions and prosecutions, private litigation, fines and penalties or adverse publicity and could cause our customers to lose trust in us, which could have an adverse effect on our reputation and business. Any inability to adequately address privacy and security concerns, even if unfounded, or comply with applicable laws, regulations, policies, industry standards, contractual obligations or other legal obligations could result in additional cost and liability to us, damage our reputation, inhibit sales and adversely affect our business.

***Indemnification of our officers and directors may cause us to use corporate resources to the detriment of our shareholders.***

Our Articles eliminate the personal liability of our directors for monetary damages arising from a breach of their fiduciary duty as directors to the fullest extent permitted by British Columbia law. This limitation does not affect the availability of equitable remedies, such as injunctive relief or rescission.

Under British Columbia law, we may indemnify our directors or officers or other persons who were, are or are threatened to be made a named defendant or respondent in a proceeding because the person is or was our director, officer, employee or agent, if we determine that the person:

● conducted himself or herself in good faith, reasonably believed, in the case of conduct in his or her official capacity as our director or officer, that his or her conduct was in our best interests, and, in all other cases, that his or her conduct was at least not opposed to our best interests; and

● in the case of any criminal proceeding, had no reasonable cause to believe that his or her conduct was unlawful.

These persons may be indemnified against expenses, including attorneys' fees, judgments, fines, excise taxes and amounts paid in settlement, actually and reasonably incurred by the person in connection with the proceeding. If the person is found liable to the corporation, no indemnification will be made unless the court in which the action was brought determines that the person is fairly and reasonably entitled to indemnity in an amount that the court will establish. As permitted by British Columbia law, we have entered into indemnification agreements with each of directors and executive officers.

***Resource Extraction companies are subject to numerous stringent laws, regulations and standards, including environmental protection laws and regulations. If any changes occur that would make these laws, regulations and standards more stringent, it may require capital outlays in excess of those anticipated or cause substantial delays, which would have a material adverse effect on our operations.***

Resource extraction activities are subject to stringent environmental protection laws and regulations at the federal, state and local levels. These laws and regulations include but are not limited to, permitting and reclamation requirements, regulate emissions, water storage and discharges and disposal of hazardous wastes. Resource extraction activities are also subject to laws and regulations which seek to maintain health and safety standards by regulating the design and use of resource extraction methods. Various permits from governmental and regulatory bodies are required for resource extraction activities to commence or continue, and no assurance can be provided that required permits will be received in a timely manner. Furthermore, environmental protection laws and regulations may become more stringent in the future, and compliance with such changes may require capital outlays in excess of those anticipated or cause substantial delays, which would have a material adverse effect on our operations.

While the very heart of our business—lithium extraction from resource-bearing sources—helps to address global climate change and reduce air pollution, the world's focus on addressing climate change will require the Company to continue to conduct all of its operations in a manner that minimizes the use of resources, including the unnecessary use of energy resources, in order to continue to minimize air emissions at our facilities, which can also increase mine and facility, construction, development and operating costs. Regulatory and environmental standards may also change over time to address global climate change, which could further increase these costs. To the best of our knowledge, our operations are in compliance, in all material respects, with all applicable laws, regulations and standards.

We are also subject to corporate sustainability, corporate social responsibility, and environmental, social, and governance principles, which are integral to our operations but also present potential challenges. Compliance with evolving environmental, social, and governance expectations may necessitate increased reporting requirements, operational adjustments, and resource allocation, which could lead to higher administrative and operational costs. Additionally, failure to meet stakeholder expectations on sustainability and governance matters could adversely impact our reputation and ability to attract investment. These considerations highlight the potential financial and operational impacts associated with integrating environmental, social, and governance principles into our business.

***Canada's new modern slavery reporting legislation may adversely affect supply chains and the Company's business and retention of key employees, directors, and officers.***

The Fighting Against Forced Labor and Child Labor Supply Chains Act (the "**FAFLCL**") received royal assent on May 11, 2023, and came into effect on January 1, 2024. The purposes of the FAFLCL is to implement Canada's international commitment to combat forced labor and child labor by imposing reporting obligations on (i) government institutions producing, purchasing or distributing goods in Canada or elsewhere; and (ii) certain business entities producing goods in Canada or elsewhere or importing goods produced outside Canada. The FAFLCL imposes certain obligations on in-scope entities to report on, among other things, the steps taken during the previous financial year to prevent and reduce the risk of child labor or forced labor being used by them or in their supply chains. The FAFLCL gives significant investigative powers to persons designated by the minister and the minister has broad power to require an entity to take any measures that the minister considers necessary to ensure compliance.

Every person or entity that fails to comply with the FAFLCL (including by failing to prepare a report or make a report publicly available, by failing to assist in an investigation, by obstructing an investigation or by failing to comply with a corrective order), is guilty of an offence punishable on summary conviction and liable to a fine of not more than CAD$250,000. Every person or entity that knowingly makes any false or misleading information or knowingly provides false or misleading information to the minister or one of the minister's designates is also guilty of an offence punishable on summary conviction and liable to a fine of not more than CAD$250,000.

The Company's incorporation in British Columbia and operations in the United States, makes it subject to the provisions and obligations of the FAFLCL and the Company may inquire significant capital expenditures to ensure its ongoing compliance with the FAFLCL, as well as defending any potential claims that could arise in the future for a breach of the FAFLCL.

**Risks Related to Intellectual Property**

***Patent terms may be inadequate to protect our competitive position on our core technology for an adequate amount of time.***

Patents have a limited lifespan, and the protection patents afford is limited. In the United States, if all maintenance fees are timely paid, the natural expiration of a patent is generally 20 years from its earliest U.S. non-provisional filing date. Even if patents covering our core technology is obtained, once the patent life has expired, we may be subject to competition from competitive products and technologies. As a result, our patent portfolio may not provide us with sufficient rights to exclude others from commercializing DLE technology similar or identical to ours. In addition, although upon issuance in the United States a patent's life can be increased based on certain delays caused by the USPTO, this increase can be reduced or eliminated based on certain delays caused by the patent applicant during patent prosecution. If we do not have sufficient patent life to protect our technologies, products, and product candidates, our business and results of operations will be adversely affected.

***Intellectual property rights do not necessarily address all potential threats to our business.***

While we seek broad coverage under our patents for the core technology of our MDLE Plant, there is always a risk that an alteration to the core technology or process for lithium extraction may provide sufficient basis for a competitor to avoid infringing our patent claims. In addition, patents, if granted, expire and we cannot provide any assurance that any potentially issued patents will adequately protect our products and technology. Once granted, patents may remain open to invalidity challenges including opposition, interference, re-examination, post-grant review, inter partes review, nullification or derivation action in court or before patent offices or similar proceedings for a given period after allowance or grant, during which time third parties can raise objections against such grant. In the course of such proceedings, which may continue for a protracted period of time, the patent owner may be compelled to limit the scope of the allowed or granted claims thus attacked or may lose the allowed or granted claims altogether.

In addition, the degree of future protection afforded by our intellectual property rights is uncertain because even granted intellectual property rights have limitations, and may not adequately protect our business, provide a lawful barrier to entry against our competitors or potential competitors or permit us to maintain our competitive advantage. Moreover, if a third party has intellectual property rights that cover the practice of our DLE processes or technologies, we may not be able to fully exercise or extract value from our intellectual property rights. The following examples are illustrative:

● others may be able to develop and/or practice DLE processes or technologies that are similar to our processes or technologies or aspects of our processes or technologies, but that are not covered by the claims of the patents that we own or control, assuming such patents have issued or do issue;

● we or our licensees or any future strategic partners might not have been the first to conceive or reduce to practice the core technologies covered by the issued patents that we own or have exclusively licensed;

● we or our licensees or any future strategic partners might not have been the first to file patent applications covering our core technologies;

● others may independently develop similar or alternative processes or technologies to extract lithium or duplicate any of our processes or technologies without infringing our intellectual property rights;

● it is possible that our pending patent applications will not lead to issued patents;

● issued patents that we own or have exclusively licensed may not provide us with any competitive advantage, or may be held invalid or unenforceable, as a result of legal challenges by our competitors;

● our competitors might conduct research and development activities in countries where we do not have patent rights and then use the information learned from such activities to develop competitive lithium extraction processes or technologies to service our potential customers;

● parties may assert an ownership interest in our intellectual property and, if successful, such disputes may preclude us from exercising exclusive rights over that intellectual property;

● we may not develop or in-license additional proprietary technologies that are patentable;

● we may not be able to obtain and maintain necessary licenses on commercially reasonable terms, or at all; and

● the patents of others may have an adverse effect on our business.

Should any of these events occur, they could have a material adverse effect on our business, financial condition, results of operations and prospects.

***We may be subject to claims that our employees, consultants or independent contractors have wrongfully used or disclosed confidential information of their former employers or other third parties.***

We do and may employ individuals who were previously employed at other material science companies, including our competitors or potential competitors. Although we try to ensure that our employees, consultants, and independent contractors do not use the proprietary information or know-how of others in their work for us, and we are not currently subject to any claims that our employees, consultants or independent contractors have wrongfully used or disclosed confidential information of third parties, we may in the future be subject to such claims.

Litigation may be necessary to defend against these claims. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights or personnel. Such intellectual property rights could be awarded to a third party, and we could be required to obtain a license from such third party to commercialize our DLE process and MDLE Plant technology. Such a license may not be available on commercially reasonable terms or at all. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to management and other employees and could result in customers seeking other sources for the DLE technology or processes or ceasing from doing business with us.

***Our ability to obtain intellectual property protection for our technology is limited. If we cannot obtain intellectual property protection for our technology our business may be negatively impacted.***

Our success depends, in part, on our ability to maintain or obtain and enforce patent and other intellectual property protections for our processes and technologies and to operate without infringing upon the proprietary rights of outside parties or having outside parties circumvent the rights we own or license. We have applications and registrations in the United States and other jurisdictions, and we expect to seek additional patents and registrations in the future.

Patents provide some degree of protection for intellectual property. However, patent protection involves complex legal and factual determinations and is therefore uncertain. We cannot be assured that our patents or patent applications will be valid or will issue over prior art. Additionally, we cannot be assured that the scope of any claims granted in any patent will be commercially useful or will provide adequate protection for the technology used currently or in the future. Moreover, we cannot be certain that the creators/conceptualizers of the core technology incorporated into our MDLE Plan were the first inventors of the DLE processes covered by our patents and patent applications or that they were the first to file. Accordingly, it cannot be assured that our patents will be valid or will afford protection against competitors with similar technology or processes. Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy or otherwise obtain and use our proprietary information. Monitoring unauthorized use of confidential information is difficult and we cannot be certain the steps taken to prevent unauthorized use of confidential information will be effective. In addition, the laws governing patent protection continue to evolve and are different from one country to another, all of which causes further uncertainty in the usefulness of a patent. In addition, issued patents or patents licensed to us may be successfully challenged, invalidated, circumvented or may be unenforceable so that our patent rights would not create an effective competitive barrier. We also rely upon unpatented proprietary manufacturing expertise, innovation and other trade secrets and know-how to develop and maintain our competitive position. In addition, our trade secrets and know-how may be improperly obtained by other means, such as a breach of our information technologies security systems or other theft.

Moreover, the laws of some countries may not protect our proprietary rights to the same extent, as do the laws of the United States. There are also countries in which we intend to sell or lease our technology, but have no patents or pending patent applications, or trademark registrations. Our ability to prevent others from making or selling duplicate or similar technologies will be impaired in those countries in which there is no intellectual property protection. If we are not able to adequately protect our intellectual property and proprietary technology, our competitive position, future business prospects and financial performance may be adversely affected. Unpatented trade secrets, technological innovation and confidential know-how are important to our success. Although protection is sought for proprietary information through confidentiality agreements and other appropriate means, these measures may not effectively prevent disclosure of proprietary information, may not provide meaningful protection for our trade secrets and proprietary manufacturing expertise, may not provide us with adequate remedies in the event of an unauthorized use or disclosure of our trade secrets or manufacturing expertise, and it cannot be assured that others will not independently develop the same or similar information or gain access to the same or similar information. In view of these factors, our intellectual property positions have a degree of uncertainty. Setbacks in these areas could negatively affect our ability to compete and materially and adversely affect our business, financial condition, and results of operations.

***If we infringe the intellectual property rights of others, we may be required to cease operations related to infringement in some markets and our business may be negatively affected.***

Our commercial success depends, in part, upon not infringing or violating intellectual property rights owned by others. The markets in which we intend to compete has participants that own, or claim to own, intellectual property. We cannot determine with certainty whether any existing outside-party patents, or the issuance of any new outside-party patents, would require us to alter our technologies, obtain licenses or cease certain activities.

We may in the future receive claims from outside parties asserting infringement and other related claims. Litigation may be necessary to determine the scope, enforceability, and validity of outside-party intellectual property rights or to protect, maintain and enforce our intellectual property rights. Some of our competitors have, or are affiliated with companies having, substantially greater resources, and these competitors may be able to sustain the costs of complex intellectual litigation to a greater degree and for longer periods than we can. Regardless of whether claims that it is infringing or violating patents or other intellectual property rights have any merit, those claims could:

● adversely affect our relationships with future customers who utilize our technology;

● adversely affect our reputation with potential customers;

● be time-consuming and expensive to evaluate and defend;

● divert management's attention and resources;

● subject us to significant liabilities and damages;

● require us to enter into royalty or licensing agreements; or

● require us to cease certain activities, including the sale or lease of our technology.

If it is determined that we have infringed, violated or is infringing or violating a patent or the intellectual property right of any other person or if we are found liable in respect of any other related claim, then, in addition to being liable for potentially substantial damages, we may be prohibited from developing, using, distributing, selling or commercializing certain technologies unless it obtains a license from the holder of the patent or other intellectual property right. We cannot assure that we will be able to obtain any such license on a timely basis or on commercially favorable terms, or that any such licenses will be available, or that workarounds will be feasible and cost-efficient. If we do not obtain such a license or find a cost-efficient workaround, our business, operating results and financial condition may be materially affected, and we may be required to cease related business operations in some markets and restructure our business to focus on our continuing operations in other markets.

**Risks Relating to Our Common Shares**

***This is not an initial public offering of stock to investors at large, and there is no guarantee that any of the Selling Shareholders will sell the Common Shares. Alternatively, if a large number of Common Shares are sold, the public price of our Common Shares on the TSX Venture Exchange and the OTCQB will decrease.***

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This registration statement is being filed to offer liquidity to the Selling Shareholders, who are our existing security holders and security holders who have rights to the Common Stock underlying warrants previously issued to them in our previous financing rounds. This is not an initial public offering of stock to investors at large, and there is not a fixed number of securities available for sale. Each Selling Shareholder may offer, sell or distribute all or a portion of his, her or its Common Shares publicly or through private transactions at prevailing market prices on the TSXV or at negotiated prices, or choose not to sell any or part of the Common Shares at all. Given the Selling Shareholder's discretion in this regard, a reader should not expect a guaranteed ability to purchase any of the Common Shares registered hereunder. We disclaim any responsibility for causing the Selling Shareholder to sell to any person reading this registration statement and offer no assurance as to how many Selling Shareholders will decide to sell their Common Shares. The reader should be advised that if, alternatively, a large number of Selling Shareholders sell their Common Shares or there is a public perception that a large number of Selling Shareholders may sell their Shares, the public price of our Common Shares on the TSX Venture Exchange or the OTCQB may decrease in value.

***Our Common Shares is currently thinly traded on the TSX Venture Exchange and on OTCQB and the public price for our Common Shares is volatile. We can offer no assurance that an active trading market for our Common Shares will develop or that the public price of our Common Shares will become less volatile.***

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An active market for our shares of Common Shares may never develop. In the absence of an active public trading market, investors may not be able to liquidate their investments in our shares of Common Shares. An inactive market may also impair our ability to raise capital by selling our shares of Common Shares, our ability to motivate our employees through future equity incentive awards and our ability to acquire other companies, products or technologies by using our shares of Common Shares as consideration. We can offer no assurance that the public price of our Common Shares will cease to be volatile, as there are many factors which affect the public price which are beyond our control. These factors include, without limitation:

● the number of shares of our Common Shares publicly owned and available for trading;

● overall performance of the equity markets and/or publicly-listed companies that offer DLE;

● changes in the financial projections we provide to the public or our failure to meet these projections;

● failure of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our company, or our failure to meet the estimates or the expectations of investors;

● any major change in our Board, management, or key personnel;

● the economy as a whole and market conditions in our industry;

● rumors and market speculation involving us or other companies in our industry;

● new laws or regulations or new interpretations of existing laws or regulations applicable to our business, in the U.S. or globally;

● other events or factors, including those resulting from war, incidents of terrorism, or responses to these events and

● sales or expected sales of our Common Shares by us and our officers, directors, and principal shareholders.

In addition, stock markets have experienced price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. Stock prices of many companies have fluctuated in a manner often unrelated to the operating performance of those companies. In the past, shareholders have instituted securities class action litigation against companies following periods of market volatility. If we were to become involved in securities litigation, it could subject us to substantial costs, divert resources and the attention of management from our business and harm our business, results of operations and financial condition.

***We are a "smaller reporting company" and we cannot be certain if the reduced disclosure requirements applicable to smaller reporting companies will make our Common Shares less attractive to investors.***

We are a "smaller reporting company," as defined in Rule 12b-2 under the U.S. Exchange Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies, such as, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Our status as a smaller reporting company is determined on an annual basis. We cannot predict if investors will find our Common Shares less attractive or our Company less comparable to certain other public companies because we will rely on these exemptions. For example, if we do not adopt a new or revised accounting standard, our future financial results may not be as comparable to the financial results of certain other companies in our industry that adopted such standards. If some investors find our Common Shares less attractive as a result, there may be a less active trading market for our Common Shares and our stock price may be more volatile.

***We are an "emerging growth company" and the reduced disclosure requirements applicable to emerging growth companies could make our Common Shares less attractive to investors.***

We are an "emerging growth company". Under the Jumpstart Our Business Startups Act of 2012, or "JOBS Act," emerging growth companies can take advantage of certain exemptions from various U.S. securities law reporting requirements that are applicable to other public companies (other than, in some cases, smaller reporting companies) including, without limitation, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, exemptions from the requirements of holding a non-binding advisory shareholder vote on executive compensation and golden parachute payments, exemption from the "pay versus performance" proxy disclosure requirements of Section 14(i) of the Exchange Act and from the pay ratio disclosure requirements of Section 953(b) of the Dodd-Frank Act and certain disclosure requirements of the Dodd-Frank Act relating to compensation of chief executive officers; exemption from the requirement of auditor attestation in the assessment of our internal control over financial reporting, and exemption from any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about our audit and the financial statements (auditor discussion and analysis). As a result of the foregoing, the information that we provide shareholders may be different than what is available with respect to other public companies (other than, in some cases, smaller reporting companies).

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the U.S. Securities Act for complying with new or revised accounting standards. We plan to elect to use the extended period for compliance and, as a result, our financial statements may not be comparable to companies that comply with public company effective dates.

***Our operating results may fluctuate, which may cause volatility in the trading price of our Common Shares.***

Our operating results may fluctuate in the future, which may cause volatility in the trading price for our Common Shares. Our net sales, expenses and operating results may vary significantly from year to year and quarter to quarter for several reasons, including, without limitation:

● our ability to implement our business plan;

● there will likely be ongoing development activities relating to our MDLE Plant;

● the ability of our sales force to effectively market and promote our technology, and the extent to which our technology gains market acceptance;

● the possibility that cybersecurity breaches, data breaches, and other disruptions could compromise our proprietary information or result in the unauthorized disclosure of confidential information;

● the rate and size of expenditures incurred on our manufacturing, sales, marketing, and technology development efforts;

● the availability of key components, materials and contract services, which depends on our ability to forecast sales, among other things;

● variations in timing and quality in lithium bearing source brine;

● temporary manufacturing interruptions or disruptions;

● increased competition, or new technologies;

● litigation, including patent, employment, securities class action, stockholder derivative, general commercial and other lawsuits;

● volatility in the global market and worldwide economic conditions;

● volatility in commodities prices, including for lithium;

● compliance with various local, state and federal environmental laws and regulations including but not limited to obtaining various permits and approvals before installing our MDLE Plant technology on a customer's site;

● the financial health of our customers and their ability to purchase our technology in the current economic environment; and

● the other risks summarized in this "Risk Factors" section.

As a result of any of these factors, our consolidated results of operations may fluctuate significantly, which may in turn cause volatility in the trading price of our Common Shares.

***As a pre-revenue company, we expect to fund our operations with equity offerings, including common shares and warrants, until we can generate sufficient cash from operations to support the business. In connection with these equity offerings, shareholders may experience immediate dilution and, as a result, our share price may decline.***

As a pre-revenue company we expect to fund our operations with equity offerings, including common shares and warrants, until we can generate sufficient cash from operations to support the business. As a result, we expect that, from time-to-time, we will sell additional Common Shares at a discount from the existing trading price of our Common Shares. Consequently, our shareholders would experience immediate dilution upon the sale of any of our Common Shares at such discount. In addition, as opportunities present themselves, we may enter into financing or similar arrangements in the future, including the issuance of Common Shares, warrants and/or debt securities. If we issue Common Shares or securities convertible into Common Shares, our shareholders would experience additional dilution and, as a result, our share price may decline.

We have outstanding warrants and options. Conversions of these securities could result in substantial dilution of our Common Shares and may cause a decline in our market price. Our Board of Directors may seek to change the number of authorized shares in the future, may seek to adjust the number of shares issued or issuable upon the exercise of warrants, may choose to reduce the exercise price of any outstanding warrants and may choose to issue shares to acquire businesses or to provide additional financing in the future. The issuance of any such shares may result in a reduction of market price of the outstanding Common Shares. If we issue any such additional shares, such issuance will cause a reduction in the proportionate ownership of current shareholders.

***Volatility in the price of our Common Shares may be caused by message board and social media influences and, as a result, our share price may decline.***

There are many message boards, chat rooms, blogs, or written articles that are followed by our shareholders. Opinions regarding our Company are expressed on message boards that may or may not be factual in nature. We are not in a position to respond to or actively influence these news forums. Influencers can drastically affect the stock price based on little to no material information, and potentially could cause a collapse in the stock price that may not be recoverable by the Company.

***Our Warrants are not currently traded and our*** ***Common Shares may become thinly traded and investors may be unable to sell at or near ask prices, or at all, and may lose some or all of their investment. A positive return in an investment in the Common Shares is not guaranteed.***

We cannot predict the extent to which an active public market for trading our Common Shares will be sustained or if an active trading market for our Warrants will be developed. The trading volume of our Common Shares may be sporadically or "thinly-traded," meaning that the number of persons interested in purchasing our Common Shares at or near bid prices at certain given times may be relatively small or non-existent. Furthermore, our Warrants are not currently traded and given there is no active trading for the Warrants, that may make it more difficult to sell the Warrants resulting in lack of liquidity. All of this, could consequently result in our Common Shares and Warrants being less attractive, causing our overall stock price to be more volatile.

This situation is attributable to a number of factors, including the fact that we are a small company, which is relatively unknown to stock analysts, stockbrokers, institutional investors and others in the investment community who generate or influence sales volumes. Even if we came to the attention of such persons, those persons may be reluctant to follow, purchase, or recommend the purchase of shares of an unproven company such as ours until such time as we become more seasoned and viable. As a consequence, there may be periods of several days or more when trading activity in our shares is minimal or non-existent, as compared to a seasoned issuer which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on share price. We cannot give any assurance that a broader or more active public trading market for our Common Shares will develop or be sustained.

Additionally, there is no guarantee that an investment in our Common Shares will earn any positive return in the short or long term. A purchase of our Common Shares involves a high degree of risk and should be undertaken only by investors whose financial resources are sufficient to enable them to assume such risks and who have no need for immediate liquidity in their investment. An investment in our Common Shares is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment.

***Volatility in the price of our Common Shares may cause our share price to decline and subject us to securities litigation.***

The market for our Common Shares may be characterized by significant price volatility as compared to seasoned issuers, and we expect that our share price will be more volatile than that of a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action litigation against a company following periods of volatility in the market price of its securities. Should this occur or continue to occur, we may be the target of similar litigation. Securities litigation could result in substantial costs and liabilities and could divert management's attention and resources.

***If securities or industry analysts do not publish research or reports about our Company, or if they issue adverse or misleading opinions regarding us or our stock, our stock price and trading volume could decline.***

Although we have only limited research coverage by securities and industry analysts, if coverage is not maintained, the market price for our stock may be adversely affected. Our stock price also may decline if any analyst who covers us issues an adverse or erroneous opinion regarding us, our business model, our intellectual property or our stock performance, or if our commercialization activities and operating results fail to meet analysts' expectations. If analysts cease coverage of us or fail to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our stock price or trading volume to decline and possibly adversely affect our ability to engage in future financings.

***The market price of the Common Shares is volatile and may not accurately reflect the long-term value of the Company.***

Securities markets have a high level of price and volume volatility, and the market price of securities of many companies have experienced substantial volatility in the past, often based on factors unrelated to the financial performance or prospects of the companies involved. These factors included macroeconomic developments in North America and globally, and market perceptions of the attractiveness of particular industries. The price of the Common Shares is also likely to be significantly affected by changes in the financial condition or results of operations as reflected in our financial reports. If an active market for the Common Shares does not continue, the liquidity of an investor's investment may be limited and the price of the Common Shares may decline below the price at which such Common Shares were purchased. If an active market does not continue, investors may lose their entire investment in the Common Shares. As a result of any of these factors, the market price of the Common Shares at any given point in time may not accurately reflect the long-term value of the Company.

***Our Common Shares are considered a "penny stock," and is thereby subject to additional sale and trading regulations that may make it more difficult to sell. Further, the market for penny stocks has suffered in recent years from patterns of fraud and abuse.***

Our Common Shares are considered a "penny stock" as defined in Rule 3a51-1 promulgated by the SEC under the U.S. Exchange Act. The penny stock rules require a broker-dealer, prior to a transaction in penny stock not otherwise exempt from the rules, to deliver a disclosure schedule prepared by the SEC relating to the penny stock market, which, in highlight form, sets forth (x) the basis on which the broker or dealer made the suitability determination and (y) the fact that the broker or dealer received a signed, written agreement from the investor prior to the transaction. Disclosure also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks.

These disclosure rules have the effect of reducing the level of trading activity in the secondary market for a stock that becomes subject to the penny stock rules. So long as our Common Shares are subject to the penny stock rules, it may be more difficult to sell the Common Shares. Further, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include but are not limited to: (1) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (2) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (3) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (4) excessive and undisclosed bid-ask differential and markups by selling broker-dealers and (5) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities. The occurrence of these patterns or practices could increase the volatility of our share price.

***Techniques employed by short sellers may drive down the market price of the Common Shares.***

Short selling is the practice of selling securities that the seller does not own but rather has borrowed from a third party with the intention of buying identical securities back at a later date to return to the lender. The short seller hopes to profit from a decline in the value of the securities between the sale of the borrowed securities and the purchase of the replacement shares, as the short seller expects to pay less in that purchase than it received in the sale.

As it is in the short seller's interest for the price of the security to decline, many short sellers publish, or arrange for the publication of, negative opinions regarding the relevant issuer and our prospects to create negative market momentum and generate profits for themselves after selling a security short. These short attacks have, in the past, led to selling of shares in the market.

It is not clear what effect such negative publicity could have on us. If we were to become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we could have to expend significant resources to investigate such allegations and/or defend ourselves.

While we would strongly defend against any such short seller attacks, we may be constrained in the manner in which we can proceed against the relevant short seller by principles of freedom of speech, applicable state law or issues of commercial confidentiality. Such a situation could be costly and time-consuming, and could distract our management from growing our business. Even if such allegations are ultimately proven to be groundless, allegations against us could severely impact our business, and any investment in the Common Shares could be greatly reduced or even rendered worthless.

**USE OF PROCEEDS**

We will not receive any proceeds from the sale of any of our Common Shares or warrants by the selling shareholders. We may receive proceeds from the cash exercise of the Warrants by the selling shareholders. We will pay certain expenses associated with the registration of the securities covered by this prospectus, as described in the section entitled "*Plan of Distribution*."

**DIVIDEND POLICY**

Our Board of Directors has discretion as to whether we will pay dividends in the future, subject to restrictions under the Business Corporations Act (British Columbia) (the "**BCBCA**") and our Articles. We have never declared or paid any cash dividends on our Common Shares. We intend to retain future earnings, if any, to finance the operation and expansion of our business and do not anticipate paying any cash dividends in the foreseeable future. Any future determination related to dividend policy will be made at the discretion of our Board of Directors after considering our financial condition, results of operations, capital requirements, business prospects and other factors our Board of Directors deems relevant, and subject to the restrictions contained in the BCBCA or any future credit facilities or other financing arrangements.

**BUSINESS**

**Overview**

We are an advanced technology and manufacturing company focused on environmentally responsible methods of extracting lithium compounds from brine. Although we intend to provide our technology and equipment to holders of resource properties such as oilfield brines, subsurface brine aquifers and industrial customers who have lithium rich brine by-products from their operations, we have not yet delivered our technology and equipment to customers and are therefore a pre-revenue company. We believe that our proprietary extraction process is sustainable, low cost and capable of producing high-quality commercial grade lithium products.

**Market Opportunity** 

In recent years, the lithium-ion battery market has been the primary driver of the growth of lithium demand and is anticipated to continue to drive growth in the future according to a report by McKinsey & Company dated January 16, 2023. The proliferation of vehicle electrification has required a significant increase in the production of lithium-ion batteries, which is expected to drive lithium market growth over time. Moreover, pressure from regulators on automakers to reduce carbon dioxide emissions from vehicles has resulted in further demand for lithium-ion batteries in the automotive sector, as automakers shifted interest toward producing more EVs. However, according to Goldman Sachs Research report dated May 21, 2024, recent market forecast for demand associated with the EV market, a primary market for lithium-ion batteries, has declined as the rate of sales growth for EVs has slowed. According to a Fastmarkets report dated February 6, 2025, a leading cross-commodity price reporting agency in the agriculture, forest products and metals and mining markets, this has led to market perception that the lithium market is oversupplied and resulted in a dramatic decline in prices for lithium carbonate and lithium hydroxide, the primary lithium compounds used to produce lithium-ion batteries. We expect these market conditions to continue for the next year or two, which emphasizes the importance of being the low-cost lithium extraction technology.

Traditionally, lithium has been produced from either hard rock mining or solar evaporation ponds which each produce lithium with high environmental costs.

● Hard rock mining entails drilling and blasting of solid rock in open pit mines to obtain the lithium containing minerals spodumene, lepidolite or petalite which can be crushed and processed to extract lithium. The hard rock mining process is very energy intensive and consumes large quantities of water and chemicals. Furthermore, hard rock mining produces significant amount of waste rock or tailings which can contain toxic chemicals or heavy metals.

● In solar evaporation for lithium extraction, lithium containing brines are pumped from underground aquifers into large ponds on the surface, resulting in the long-term depletion of the aquifer. This process consumes a staggering amount of water, with some studies including a June 2024 report by the International Lithium Association, reflecting that approximately 180+ metric tons of water is necessary to produce 1 metric ton of lithium. The brine is concentrated by allowing the water to evaporate over 12 to 18 months. The brine is then processed to extract the lithium salts by removing other metals and dissolved solids through chemical processes that include large quantities of freshwater, often depleting, and risking contamination of nearby freshwater aquifers. The lithium salts are then further processed into either lithium carbonate or lithium hydroxide for shipment to customers.

In response to the environmental costs of hard rock mining and the use of solar evaporation to extract lithium compounds, the industry has focused on developing direct lithium extraction ("DLE") technologies. DLE technologies are focused on extracting the lithium compounds directly from the brine and allowing the brine to be re-injected back into the reservoir. While DLE technologies still require freshwater, the systems are designed to recycle the freshwater to reduce the environmental impact. The development of DLE technologies have focused on absorption and adsorption technologies, ion exchange, solvent extraction and membrane technologies. While each of these technologies have made advancements in the laboratory and small pilot scale projects, the only one project that has achieved commercial success was designed and overseen by our founder, Dr. Burba, based on the first generation of technology on which our technology is based.

**Our Strategy**

Our strategy is to continue to build upon the proprietary technology developed by Dr. Burba and develop and deploy DLE technologies that effectively extract lithium with a lower capital expenditure and operational costs, and leave a significantly smaller environmental footprint than our competitors and competing technologies. We believe that our strategy of employing advanced brine extraction technologies and methodologies for selective mineral extraction is less capital intensive and a more environmentally responsible approach compared to traditional lithium extraction processes of hard rock mining and solar evaporation. We believe that this approach is environmentally sustainable because our process does not deconstruct land structures as is the case from hard rock mining nor does it waste precious water as is the case in solar evaporation. Instead, our technology is designed to extract the desired metal salts from subsurface brine and typically re-injects the brine into the aquifer to maintain pressure after lithium extraction. Essential features of our growth strategy include:

●  ***Deploy our current MDLE Plant in a Commercial Setting*** . We are the only DLE technology provider that has developed and deployed a commercial scale MDLE Plant for a demonstration project, which produced approximately 25 tons of battery-grade lithium carbonate during the demonstration period. We intend to build upon this success by deploying our initial MDLE Plant with industrial customers that have already committed to DLE technologies. While our MDLE Plants are modular and capable of being located on a wide variety of geographies, the MDLE Plant must be customized to the specific needs and resources of each customer.

●  ***Continue the Development of the Second Generation of MDLE Plant Technology.*** We believe that our patented MDLE Plant technology will continue to be an important component of the green energy transition. We are currently in the preliminary stages of researching and developing the media and design for the Second Generation of MDLE Technology which we anticipate could provide customers with additional options for processing brine solutions and increasing lithium chloride production.

●  ***Expand into new geographic areas*** . We believe there is increasing support by U.S. and international governments for the sustainable production of lithium compounds. We plan to expand our operations in North America and into new geographical areas.

●  ***License our technology*** . We believe there will be opportunities to license our technology to lithium brine resource developers to allow them to deploy our proprietary columns, media, and processes in their plant and developments, thus allowing them to control the construction of their own DLE plant while also benefitting of our technology.

●  ***Engage in joint-ventures*** . We will evaluate opportunities to enter into joint venture agreements or strategic partnerships with one or more parties, including landowners, producers and financial backers, to participate in the full development of lithium brine resources. We would deploy IBAT's MDLE technology into the development and participate in the extraction of brine resources, full plant development, and ultimate sale of lithium carbonate.

**Our Strengths and Competitive Advantage** 

We believe our patented MDLE Plant technology provides us the following competitive advantages as compared to other DLE technologies and other lithium extraction processes:

●  ***Demonstrated Commercial-Scale Technology*** . Based on the results of our 2024 demonstration study, our proprietary MDLE Plant technology is capable of achieving commercial scale production of lithium chloride which can be processed into lithium carbonate with over 99% purity. In a September 2022 pilot test of our MDLE Plant we achieved an average of 81% lithium extraction with an average of 69% lithium recovery to product and obtained water recovery of approximately 94%. In June 2023, a third-party laboratory performed a supplemental laboratory demonstration test which confirmed the MDLE Plant could achieve overall recovery of lithium of 95%.

●  ***Increase Lithium Recovery through our Highly Selective Proprietary Absorption Technology*** . The proprietary absorbent utilized in our proprietary extraction columns is highly selective of lithium ions and screens for chloride ions which efficiently produces a lithium chloride solution by flushing the extraction columns with fresh water. Competing direct lithium extraction technologies use various combinations of selective membranes and ion exchanges, requiring alternating applications of acids and bases with less selectivity, resulting in having to run multiple cycles and generating excess salts as waste materials. Our process benefits from reduced cycles, reducing energy consumption, eliminating most of the chemicals and avoiding waste materials.

●  ***Maximize Water-Conservation through Reduced Water Usage and Waste.*** Our MDLE Plant and extraction process for lithium chloride has significant water conservation advantages for both the management of the brine aquifers and reduction of clean water usage as compared to other DLE technologies. Our proprietary process maintains the cleanliness of the water used in the process because it does not require chemicals for the lithium extraction and the operator of the brine re-injects the remaining brine back into the reservoir.

●  ***Eliminate Dangerous Chemicals in the Lithium Extraction Process*** . Our proprietary MDLE extraction absorption process does not rely on hydrochloric acid and sodium hydroxide to process the brine. Instead, our absorbent removes the lithium and allows the remaining brine to be injected back into the aquifer without further treatment. This has cost advantages over competitors that use chemicals in their process as they must either dispose of the contaminated brine (reducing the brine aquifer), or further process the brine for reinjection. Additionally, for the clean water used in our process, we are able to recycle up to 98% of the water due to the efficiency of our reverse osmosis unit and the lack of chemicals in the process.

●  ***Enhance Optionality for Plant Design and Reduce CapEx Through our Patented Modular Technology*** . We believe that the modular design of our proprietary and patented MDLE Plant provides an economic advantage compared to existing alternative technologies based on our ability to customize the plant to reflect site limitations and requirements. Our MDLE Plant customers can customize the MDLE Plant to meet the specific site requirements, by modifying the modules to support the size and geography of the resource site, the quantity of brine available, the concentration of lithium in the brine, and their desired level of production. Furthermore, the modularity gives customers the option to scale up operations by adding additional modules in the future with little disruption to the existing operations. The modules are fabricated in manufacturing facilities which reduces costs from traditional onsite construction plants.

●  ***Deliver Customers Cost-Efficient DLE with Reduced Operating Costs*** . As a result of our highly selective absorption process and the elimination of chemicals from the extraction process, we believe our MDLE Plant is more efficient for customers and has lower operating costs as compared to our DLE competitors.

**Our Technology**

Furthermore, our MDLE Plant is a component-driven system, which allows us to specially configure valves, pumps, and any other pieces to customize the plant to a customer's requirements based on their needs. While traditional lithium extraction solutions take five to six years to construct, our MDLE Plant is built for flexibility and speed, which allows us to deploy the technology in the field in 18-24 months. Furthermore, the plants' low capital and operating expenses enable a customer to achieve profitability faster than expected. We believe that this puts us in a favorable position to meet growing demand. The MDLE Plant is modular, which also allows potential customers to execute their lithium extraction plans in phases, which helps them manage risks and may shorten the time to market.

Our commercial scale demonstration project of our first MDLE Plant was constructed in Lake Charles, Louisiana. The purpose of this demonstration was to perform feasibility testing and provide a commercial scale demonstration to potential customers. This demonstration MDLE Plant was in place for a three-month period, and we are currently evaluating opportunities for reinstalling this fully-operational MDLE Plant with another industrial customer.

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**MDLE Plant Case Study**

The following is a representative example of how our customer benefited from the MDLE Plant at their facility in Salt Lake City, Utah. As used in the case study, "mg/L" means milligrams per liter and "ppm" means parts per million. The case study represents how (i) the MDLE Plant's selectivity feature enabled it to extract enough lithium to produce >25 tons of battery grade lithium carbonate (+99.9% purity) and an additional similar quantity for testing and analysis, (ii) the proprietary technology used its customization feature and adapted to the unique operating conditions at the customer's job site to modify the plant's original design and process brine with much higher lithium concentrations (~3000 to 5300 mg/L (ppm)) compared to what the MDLE Plant is originally designed to process (~300-1500 mg/L), and (iii) the agile and modular nature of the MDLE Plant took less than four weeks to move the 36 plant modules across 1,600 miles to the customer's job site.

We are developing a second-generation module of the MDLE Plant technology which we expect will provide customers with the option to greatly increase the scale of the MDLE Plant's capacity to process brine solutions and increase lithium chloride production.

**Implementation** 

Although we are in the early commercialization stage of our business, we intend to enter into contracts with new customers that we aim to attract, which contracts may be based on a fixed fee model, a royalty model, a lease with option to purchase model, or a combination of these models. However, we have not yet entered into any contracts with customers. We plan to use the existing data from our case study to host large scale demonstrations of the workings of our MDLE Plant with the goal of receiving additional project opportunities and fabrication orders for additional MDLE Plants, while in parallel completing design and engineering work on the second-generation version of the MDLE Plant modules. The goal of the second-generation module is to have standard module sets that allow a customer to scale the configuration of the MDLE Plant to meet their site-specific requirements. For instance, the second-generation lithium extraction modules containing our proprietary absorbent are expected to have four times the production capacity of the first-generation modules, which would allow a customer to economically process significantly larger volumes of source brine. We intend to develop standard sets of modules for each phase of our MDLE Plant including pretreating filtration, heat exchangers, boilers, extraction columns, polishing module, reverse osmosis and concentration module. The introduction of the second-generation modules for the MDLE Plants would be complementary to our first-generation modules.

**Research and Development**

The industries and market segments in which we operate and plan to operate are subject to rapid technological developments, evolving industry standards, changes in customer requirements and competitive new products and features. As a result, we believe our success, in part, will depend on our ability to build and enhance our products in a timely and efficient manner and to develop and introduce new products that meet potential customers' needs. To achieve these objectives, we plan to make research and development investments through activities such as (i) deploying artificial intelligence (AI) and machine learning techniques to automate our MDLE Plant technology which could help identify patterns and anomalies indicative of lithium rich deposits, drastically reducing the time and resources required for exploration and extraction, (ii) efficiently customizing column sizing to adapt the MDLE Plant to a customer's requirements based on their needs and (iii) developing a quick-to-deploy demonstration set-up at customer sites, harnessing the modular feature of our MDLE Plant. However, as a pre-revenue company with a difficult path to the commercialization of a new technology, we are required to closely control resource utilization, there can be no assurance that we will be able to make the research and development investments to achieve these objectives.

**Intellectual Property**

We believe that our intellectual property, including our patents, trademarks, trade secrets, and other intellectual property are essential to our business operations, ability to compete, and market position. We own and actively manage a broad intellectual property portfolio, which covers and protects our technology, brands, and proprietary information. Specifically, we rely on a combination of patent, trademark, trade secrets, intellectual property licenses, and other intellectual property for the protection of the intellectual property used in our business.

*Patents -* We have filed patent applications for, and have obtained issued patents related to our core technologies. For example, our issued patents and pending patent applications cover our technologies including, but not limited to, various types of extraction apparatuses, mobile extraction arrays, lithium carbonate and lithium hydroxide preparations, ion extraction columns, silica fouling prevention technologies, sorbents for lithium extraction, and other related technologies. We have filed for patents in key jurisdictions including the United States, Argentina, Chile, Australia, Canada, Europe, and Hong Kong. We believe that our patent filings provide us with a competitive edge by protecting our proprietary technologies and preventing unauthorized use by competitors.

As of the date of this filing, we currently hold four issued patents and twenty-four pending patent applications. Additional patent filings related to our core technologies and related technologies are currently under consideration. We also commission freedom-to-operate searches and opinions and landscape analyses as it relates to our technologies. We continue to invest in research and development to expand the Company's patent portfolio.

*Trademarks* - We own and have registered trademarks to protect our key brand name, brand acronym, logos, and slogans, including INTERNATIONAL BATTERY METALS, design logos for INTERNATIONAL BATTERY METALS, IBAT, our battery logo, ETHICAL LITHIUM PRODUCTION, and ETHICAL LITHIUM EXTRACTION. We have filed for trademarks in key jurisdictions including the United States, Chile and Canada. Our trademarks distinguish our products and services from competitors in the marketplace and are integral to our marketing and branding strategies. As of the date of this filing, we currently hold nine registered trademarks and fifteen pending trademark applications. Additional trademark filings related to our brands are currently under consideration.

*Trade Secrets* – We rely on trade secrets to protect certain aspects of our proprietary apparatuses, processes, formulas, compositions, and business strategies. For example, we rely on trade secrets relating to extraction apparatuses, extraction arrays, chemical preparations, extraction columns, fouling preventing technologies, sorbents, and other related technologies. Our trade secrets are safeguarded through the protective measures.

*Know How* - In addition to our portfolio of patents, trademarks, and trade secrets, we also possess valuable know how and proprietary technologies relating to our business operations. Our know how includes an accumulation of skills, processes, knowledge, and experience relating to the extraction of lithium and other metals, the processing of lithium and other metal-based salts, extraction apparatuses, extraction arrays, chemical preparations, extraction columns, fouling preventing technologies, sorbents, and other related technologies.

*Licenses* - In addition to marketing our MDLE Plan directly, we have entered into licensing agreements, as a licensor, to facilitate the deployment of our technology and to monetize our intellectual property portfolio. We currently have entered into exclusive licensing agreements with two entities that are controlled by one of our material shareholders with respect to potential sales in Chile and Argentina.

**Customers**

We are focused on marketing our technology to customers who have brine resources from existing chemical, mineral and metal production, and brine aquifer resource holders. These marketing efforts are focused, in the near term, on the western United States, the central United States area referred to as the Smackover formation, and Canada. In addition, we are working with our licensee to evaluate the opportunities in Argentina and Chile.

**Sales and Marketing**

We initially evaluate and test the brine samples from brine reservoirs being supplied to us by potential customers and have recently begun testing brines from an operator in the Smackover play in Arkansas and another operator in Argentina. We have also been having discussions regarding brine testing with additional operators from the Smackover play of East Texas as well as Argentina, Chile and other locations in the USA. Demonstrating the capability of our Technology through these brine tests is the first step to developing a long-term commercial relationship. Once we establish the brine content and its compatibility with our technology, we will seek to enter into commercial contracts, licensing agreements and various joint venture agreements to continue to commercialize our proprietary technology and produce a lithium eluent that can be produced into battery grade Lithium carbonate through a carbonation plant. The battery grade Lithium will be sold directly to customers through offtake agreements throughout North America, Asia and Europe. We anticipate that we would be paid based on the commercial contracts or licensing agreements entered into with the brine resource owner or through the joint venture agreement. As we continue to commercialize our MDLE Plants, we expect to hire more sales and marketing professionals. We plan to hire sales engineers with deep technical expertise and background in process engineering to help us implement customer acquisition plans and provide technical support to our prospective customers.

**Competition**

There are several DLE technologies under development and being proposed and often associated with lithium brine mining companies. The primary reason for this focus is the increasing environmental concerns present in the traditional evaporation ponds being used today. The other reason is that new potential lithium brine deposits with very low concentration of lithium ions and existing in North America and elsewhere, do not have suitable locations for feasible traditional extraction operations.

Our proprietary DLE technology and patented MDLE Plant compete with other emerging companies with competing DLE technologies and more broadly in the mineral and mining industry with traditional mining companies extracting lithium from hard rock mines and evaporation ponds. We compete by providing advanced technology which will allow potential customers to extract lithium from brine with a high degree of purity, reliability and at the lowest costs, while prioritizing safety and environmental sustainability. The competition includes the ability to access capital, access to undeveloped resources, skilled personnel, access to equipment and materials, and potentially the ability to obtain required approvals from regulatory agencies. Many of our competitors, both emerging DLE companies as well as traditional mining companies who may expand their portfolio into DLE technology licensing services, have substantially greater access to capital than we do.

As we may derive a portion of our revenues from royalties based on the sale of lithium-based products under future arrangements with customers, we indirectly compete with large, well-capitalized and diversified mining and chemical companies in the highly competitive market for lithium compounds. The pricing and ability to contract for the sale of lithium compounds is determined by product quality, product diversity, reliability and quantity of supply and customer service. Furthermore, significant customers of lithium products, such as automotive original equipment manufacturers have invested in and have long-term contractual relationships with mining and chemical companies which may limit access to these customers.

**Human Capital**

Our ability to hire and retain talent is essential to our success. Our human capital objective is to hire and develop skilled personnel who have the technical knowhow capabilities and are able to further the Company's vision.

As of the date of this prospectus, we had ten employees in the United States. In order to manage variable cash flows, we have relied on consultants and outsource services providers to perform the necessary administrative and operational functions. As we expand our business, we anticipate increasing our number of employees in the future.

*Health and safety*

The health and safety of our employees is an integral part of our core values.

Our employees, contractors, and visitors follow a comprehensive set of written health and safety policies and procedures at both the corporate and local site levels.

*Workplace Practices and Policies – Diversity, Equity and Inclusion*

We are a pre-revenue company with a more limited budget and a difficult path to the commercialization of a new technology that requires us to closely control resource utilization. This requires us to hire fewer personnel with specialized talent and technical know how to fill the small number of roles. We are an equal opportunity employer and seek to foster a diverse and inclusive corporate culture through our commitment to providing a workplace free of harassment, prejudice or discrimination.

We remain committed to building and sustaining an inclusive workforce that provides broad representation of the communities we serve. Currently, two out of our ten employees are women.

*Compensation and Benefits*

We provide a competitive compensation and benefits package designed to attract and retain a skilled and diverse workforce.

**Seasonality**

Our operations are generally not impacted by seasonality.

**Government Regulation**

Our business is subject to a broad array of employee health and safety laws and regulations, including those under the Occupational Safety and Health Administration ("**OSHA**"). We also are subject to similar state laws and regulations as well as local laws and regulations for our non-U.S. operations. Compliance with these laws and regulations generally will be the responsibility of the customers for whom we deploy MDLE Plants, however the ability of our customers to comply with these laws and regulations will have a material effect on our business. We engage licensed third-party manufacturers to construct the components of our MDLE Plants in fully regulated and licensed workshops, and those third parties are required to comply with OSHA and other applicable health and safety laws and regulations in connection with these contracted activities.

The Foreign Corrupt Practices Act ("**FCPA**") prohibits any U.S. individual or business from paying, offering, or authorizing payment or offering of anything of value, directly or indirectly, to any foreign official, political party or candidate for the purpose of influencing any act or decision of the foreign entity in order to assist the individual or business in obtaining or retaining business. The FCPA also obligates companies whose securities are listed in the United States to comply with accounting provisions requiring us to maintain books and records that accurately and fairly reflect all transactions of the corporation, including international subsidiaries, if any, and to devise and maintain an adequate system of internal accounting controls for international operations.

We are also subject to government regulation in the US, which may differ from state to state, and in non-U.S. jurisdictions in which we conduct our business. These jurisdictions may have different tax codes, environmental regulations, labor codes and legal frameworks, which add complexity to our compliance with these regulations. The requirements for compliance with these laws and regulations may be unclear or indeterminate and may involve significant costs, including additional capital expenditures or increased operating expenses, or require changes in business practice, in each case that could result in reduced profitability for our business. Our having to comply with these foreign laws or regulations may provide a competitive advantage to competitors who are not subject to comparable restrictions or prevent us from taking advantage of growth opportunities. Determination of noncompliance can result in penalties or sanctions that could also adversely impact our operating results and financial condition.

The Company's incorporation in British Columbia and registration with the TSXV, also requires us to comply with anti-corruption, anti-bribery, and anti-money laundering laws in Canada, including the Criminal Code, the Corruption of Foreign Public Officials Act (Canada), the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada), and other applicable laws that prohibit certain actions of the Company. In recent years, there has been a general increase in both the frequency of enforcement and the severity of penalties under such laws, resulting in greater scrutiny and punishment to companies convicted of violating anti-corruption, anti-bribery, or anti-money laundering laws. Measures that we have adopted to mitigate these risks are not always effective in ensuring that the Company, its employees, or third-party agents will comply strictly with such laws. Furthermore, a company may be found liable for violations by not only its employees, but also by its contractors and third-party agents. If we find ourselves subject to an enforcement action or is found to be in violation of such laws, this may result in significant penalties, fines and/or sanctions imposed on us, resulting in a material adverse effect on the Company's reputation and results of its operations.

**Environmental Regulation**

We are subject to numerous foreign, federal, state and local environmental laws and regulations, including those governing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes and the cleanup of contaminated properties. Ongoing compliance with such laws and regulations is an important consideration for us. Key aspects of our operations are subject to these laws and regulations. In addition, we incur substantial capital and operating costs in our efforts to comply with them.

Under certain circumstances, we may be responsible under our agreements with prospective customers to operate the MDLE Plant on behalf of our customers, which may subject us to potential liability for any non-compliance under applicable environmental laws. Our future customers may become subject to claims for personal injury and/or property damage relating to the release of such substances into the environment which in turn could impact us. The occurrence of disruptions, shutdowns or other material operating problems at our MDLE Plants installed at a customer's site, due to any of these hazards may diminish our ability to meet our contractual obligations with those customers and achieve the desired production and output.

**Availability of Reports and Other Information**

Once the registration statement of which this prospectus forms a part is declared effective by the SEC, we will be required to file proxy statements, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K with the SEC. The SEC maintains an internet site, www.sec.gov, where these reports are available free of charge. We will also make these reports available free of charge on our website, *https://www.ibatterymetals.com*, under the heading "Investors." The reference to our website does not constitute incorporation by reference of any information contained on that site.

**Properties**

We currently lease our principal corporate office located at 6100 Tennyson Parkway, Suite 240, Plano, Texas 75024. Our lease expires in August 2027. We have no other material properties.

**Legal Proceedings**

In the ordinary course of business, we may be subject to certain contingent liabilities with respect to existing or potential claims, lawsuits, and other proceedings, including those involving tax, social security, labor lawsuits and other matters.

On April 23, 2021, Ms. Christina Borgese and Mr. Marc Privitera, two former employees and member of board of directors of the Company, as well as shareholders of NAL, the entity with which we entered into the Share Exchange Agreement, filed claims against us in the United States District Court for the District of Colorado ("Court"), seeking specific performance and damages. The complaint alleges that we breached the executive employment agreements entered into with Ms. Borgese and Mr. Privitera by not permitting them to pursue external consulting opportunities and that we breached certain portions of the Share Exchange Agreement. On April 22, 2022, we filed a counterclaim against the plaintiffs and moved a motion for summary judgment denying the allegations in the complaint and stating that the allegations are without merit. On September 30, 2024, the Court granted our motion in large part, dismissing some of the plaintiff's claims and directed us to jointly file with the plaintiffs a joint notice to the Court, identifying the precise claims, counterclaims and theories that remain in this action to be tried. On November 11, 2024, the plaintiffs and us filed such joint notice of claims identifying the remaining claims that are still in dispute. On April 28, 2025, the Parties engaged in a settlement conference that resulted in a settlement agreement and the claims were subsequently dismissed on July 14, 2025.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION**

*You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. See "Cautionary Note Regarding Forward-Looking Statements," You should review the "Risk Factors" section of this prospectus for a discussion of important factors that could cause our actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.*

**Overview**

We are an advanced technology and manufacturing company focused on environmentally responsible methods of extracting lithium compounds from brine. Although we intend to provide our technology and equipment to holders of resource properties such as oilfield brines, subsurface brine aquifers and industrial customers who have lithium rich brine by-products from their operations, we have not yet generated commercial revenue. We believe that our proprietary extraction process is sustainable, low cost and capable of producing high-quality commercial grade lithium products.

Our current operations consist of the development of the MDLE Plant, which can be rapidly deployed and assembled onsite at a customer's property. The MDLE Plant is designed to process brine solutions to extract lithium chloride which can be further processed into lithium carbonate and used for industrial purposes or as a battery component. We constructed our first MDLE Plant in Lake Charles, Louisiana. We used this plant to perform feasibility testing and made it available for demonstration to potential customers.

On May 1, 2024, we entered into a lease agreement with US Magnesium, a producer of metals and minerals to produce lithium carbonate which was intended to be initially a commercial scale demonstration project of our first MDLE Plant and if defined productions targets were achieved, a longer-term relationship. Pursuant to the lease agreement, we mobilized the first MDLE Plant to US Magnesium's facility in Salt Lake City, Utah, and in June 2024, we completed commission of the MDLE Plant and US Magnesium assumed operational control of the MDLE Plant. In September 2024, US Magnesium suspended operations of the MDLE Plant at their site due to the low demand and market price of lithium and its impact on their desired profitability, prior to our achieving defined production targets. As a result, our lease agreement with US Magnesium was terminated without future obligations to either party and the MDLE Plant was decommissioned and relocated out of US Magnesium's site to an offsite storage facility while we are actively marketing the MDLE Plant to potential customers.

We are currently in the preliminary stages of researching and developing the media and design for the Second Generation of MDLE Technology which we anticipate could provide customers with additional options for processing brine solutions and increasing lithium chloride production. The Company has recently purchased two larger diameter columns and is currently conducting laboratory studies to determine the optimal process for utilizing these columns. The Company estimates that the cost for instrumentation and engineering related to the second-generation module of the MDLE Plant will be approximately $500,000 with an additional estimated $250,000 relating to the construction and testing of the larger diameter columns.

**Components of the Statement of Operations**

**Revenue**

We anticipate generating future revenues through a combination of technology licensing agreements, equipment rentals, participation in joint ventures or special purpose entities with resource developers and management fees for overseeing the construction and development of future lithium extraction facilities. Generally, a resource holder has access to brine resources from a subsurface brine aquifer, brines from produced water in connections with oilfield operations, geothermal brines or have a brine resulting as a byproduct of another commercial operation.

**Operating Costs**

We operate with a small number of corporate employees to oversee our operations and development with the primary functions including accounting, engineering, fabrication, laboratory, legal, and research being outsourced to third party service providers. This model has allowed us to continue to develop our business and scale the operations as we had funds available. We anticipate that we will add to both our corporate staff and field staff as we commence commercial operations and works to continue developing our technology. To date, we have not experienced any shortages of available employees or outsourced service providers.

**Results of Operations**

***Year Ended March 31, 2025 as compared to March 31, 2024***

The operating results for the fiscal years ended March 31, 2025, and March 31, 2024, are summarized as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **Year Ended March 31,** | **Year Ended March 31,** |
|  | **2025** | **2024** |
| **REVENUE** | $**871** | $**-** |
| **OPERATING COSTS AND EXPENSES** |  |  |
| &nbsp;&nbsp;&nbsp; Operating costs, excluding depreciation | 3533 |  |
| &nbsp;&nbsp;&nbsp; Selling, general and administrative expenses, excluding depreciation | 9042 | 9513 |
| &nbsp;&nbsp;&nbsp; Reimbursable expense | 871 |  |
| &nbsp;&nbsp;&nbsp; Amortization of intangible assets | 1076 | 1076 |
| &nbsp;&nbsp;&nbsp; Depreciation | 1552 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating loss | (15203) | (10592) |
| Bad debt expense | (502) |  |
| Excess fair value of warrants over private placement proceeds | (1040) |  |
| Change in fair value of warrant liability | (13229) | 2082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss before income tax provision | (3516) | (8510) |
| Provision for income taxes | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net loss and comprehensive loss** | $**(3516)** | $**(8510)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net loss per share, basic and diluted** | $**(0.01)** | $**(0.04)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Weighted average shares outstanding, basic and diluted** | **238431** | **204216** |

---

Revenue

For the fiscal year ended March 31, 2025, we generated revenue associated with the incurring reimbursable costs during the start-up of the MDLE Plant. For the fiscal year ended March 31, 2024, we did not generate any revenue from operations. Our primary focus in 2024 was marketing the MDLE Plant and the Company's technology to potential customers and maintaining the corporate office. The primary focus in 2025 was to prove the Company's technology and begin marketing that technology across the industry.

Selling, General and Administrative Expenses

The major components of selling, general and administrative expenses for the fiscal years ended March 31, 2025, and March 31, 2024, are as follows (*in thousands*):

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| | | |
|:---|:---|:---|
|  | **Year Ended March 31.** | **Year Ended March 31.** |
|  | **2025** | **2024** |
| Compensation expense | $2310 | $1763 |
| Share-based compensation | 1752  | 2649 |
| Professional fees | 1219  | 1161 |
| Legal fees | 2017  | 1872 |
| Engineering | 11  | 836 |
| Rent and miscellaneous office | 808  | 870 |
| Other | 925  | 362 |
|  | $9042  | $9513  |

---

For the fiscal years ended March 31, 2025, and 2024, we focused our efforts on marketing the MDLE Plant and our technology to potential customers and maintaining the corporate office. We maintained limited number of employees and outsourced several functions to manage costs. During 2025, we began bringing some of those functions in-house.

 *Compensation expense* for the fiscal year ended March 31, 2025 increased compared to the prior year period primarily due to increase in the permanent employee headcount during the year including onboarding our Chief Financial Officer and a Co-Chief Executive Officer. The Chief Financial Officer replaced an Interim Chief Financial Officer who was a consultant and whose costs were included in professional fees and the Co-Chief Executive Officer was a new position.

 *Share-based compensation* for the fiscal year ended March 31, 2025 decreased compared to the prior year period primarily due to the equity grants in prior year for the board members.

 *Professional fees* for the fiscal year ended March 31, 2025 remained relatively flat compared to the prior year period due to an increase in business activity which resulted in increased accounting-related expenses partially offset by a decrease in marketing expenses.

 *Legal fees* for the fiscal year ended March 31, 2025 increased compared to the prior year period primarily due to an increase general legal fees associated patents, contracts, proposal preparation, financings, the Company's outstanding litigation, and an increase in legal expenses related to registering our Common Shares in the United States.

 *Engineering costs* for the fiscal year ended March 31, 2025 decreased compared to the prior year period primarily due to these employee costs being categorized as operating costs once the MDLE Plant was mobilized and operational.

 *Rent and miscellaneous office costs* for the fiscal year ended March 31, 2025 remained relatively flat compared to the prior year period while being able to increase business activity and relocate our US headquarters from Houston, TX to Plano, TX.

 *Other expenses* increased for the fiscal year ended March 31, 2025 compared to the same period in the prior year due to an increase in business activity and travel and an increase in recruitment fees related to the permanent employees hired this year.

 *Excess Fair Value of Warrants over Private Placement Proceeds*

The Company estimated the fair value of warrants issued in the Company's private placement of units closed on June 19, 2024 and recorded an expense of approximately $1.0 million for excess of fair value of warrants over private placement proceeds. The Company did not have a similar transaction in the prior year period.

 *Changes in Fair Value of Warrant Liability*

The Company values the outstanding warrant liabilities at each balance sheet date based on the Black-Scholes option pricing model. Any change in the fair value of the warrants is recognized as a change in fair value of warrant liability in the condensed consolidated statement of loss. During the twelve months ended March 31, 2025 and 2024, the Company recognized a gain of approximately $13.2 million and $2.1 million, respectively for the change in fair value of warrant liability during the period. The primary reason for the decrease in the warrant liability valuation was the change in the Company's stock price.

**Liquidity and Capital Resources**

As of fiscal year, ended March 31, 2025, we had an accumulated deficit of approximately $39.6 million and a working capital of approximately $10.6 million, due to raising capital through a $7.6 million private placement that funded on March 31, 2025. As of March 31, 2024, the Company's had an accumulated deficit of approximately $36.1 million. However, the Company had working capital deficit of approximately $1.2 million.

On May 6, 2024, the Company completed a private placement with EV Metals VI and Encompass Capital Advisors LLC acting for certain fund entities and managed accounts for which Encompass Capital Advisors LLC exercises investment direction (collectively, "**Encompass**"), issuing 7,924,157 units and 10,717,977 units, respectively, for a total of 18,642,134 units and total proceeds of approximately $10.4 million. Each unit consisted of one common share and one common share purchase warrant, with each warrant entitling the holder to purchase on additional common share for a period of two years from the date of issuance at an exercise price of CAD$0.9579. The Company agreed to pay EV Metals VI a structuring fee of approximately $322,000 which was paid by issuing an additional 574,840 common shares and agreed to cover certain costs incurred in connection with the private placement by Encompass, which was paid by issuing an additional 80,385 common shares.

On June 19, 2024, the Company completed another private placement with EV Metals VI and Encompass, issuing 8,478,246 units and 3,000,000 units, respectively, for a total of 11,478,246 units and total proceeds of approximately $6.4 million. Each unit consisted of one common share and one common share purchase warrant with each warrant entitling the holder to purchase one additional common share for a period of two years from the date of issuance at an exercise price of CAD$0.9579. The Company agreed to pay Jacob Warnock, a director of the Company and controlling shareholder of EV Metals VI, a structuring fee of approximately $238,000 which was paid by issuing an additional 423,912 common shares and agreed to cover certain costs incurred in connection with the private placement by Encompass, which was paid in cash totaling $45,000.

On February 28, 2025, the Company entered into a letter agreement (the "**2025 Letter Agreement**") with EV Metals 7 LLC ("**EV Metals**"), a company controlled by Jacob Warnock, a director of the Company, agreeing to the principal terms and conditions upon which EV Metals, directly or through one or more of its subsidiaries or affiliates, has the option but not the obligation to purchase, in one or more transactions, up to $15.0 million of units (the "**2025 EV Metals Offering**"), which each unit (the "**2025 EV Metals Units**") consisting of one Common Share and one warrant to purchase a Common Share. On March 2, 2025, two entities controlled by EV Metals, EV Metals 7 LLC and EV Metals VI LLC, entered into binding subscription agreements for the purchase of a portion of the 2025 EV Metals Units. The first issuance under the 2025 Letter Agreement occurred on March 31, 2025 for gross proceeds of $7.55 million and the second issuance under the 2025 Letter Agreement occurred on April 11, 2025 for gross proceeds of $679,000. In connection with the two issuances, EV Metals 7 LLC and EV Metals VI LLC acquired a total of 27,739,348 (25,393,475 in the first issuance and 2,345,873 in the second issuance) and 690,979 2025 EV Metal Units, respectively. The pricing of the 2025 EV Metals Units was CAD $0.4168 per share (USD$0.2894 per share), which was based on the five-day trading average of the Common Shares on the TSXV, less a discount of 20% (the maximum allowable discount permitted by the rules of the TSXV).

The pricing of the 2025 EV Metals Units was based on the five-day trading average of the Common Shares on the TSXV for the applicable tranche less the maximum allowable discount permitted by the rules of the TSXV. The warrants included in the 2025 EV Metals Units will have a term of four years from date of issuance and will entitle the holders to purchase a common share at an exercise price equal to the closing price of the common shares on the TSXV as of the date immediately preceding the date of the news release announcing the 2025 EV Metals Offering or the closing of the applicable tranche of the 2025 EV Metals Offering. In connection with the first and second issuance of the 2025 EV Metals Units, the Company paid structuring fees of $411,450 to Mr. Warnock, a director and control person of EV Metals.

On July 20, 2025, the Company entered into binding subscription agreements ("**Encompass Subscription Agreements**") with Encompass for the purchase of up to 25,765,259 units (the "**2025 Encompass Units**") at a price of CAD $0.26625 per unit (USD$0.19406 per unit) for gross proceeds of $5.0 million to the Company (the "**2025 Encompass Offering**"). Each 2025 Encompass Unit consists of one Common Share and one warrant, with each warrant entitling the holder to purchase one additional Common Share for a period of three years from the closing date of the 2025 Encompass Offering at an exercise price of CAD$0.355 per share. In addition, the Company has agreed to grant Encompass the right but not the obligation, to purchase up to $2.0 million of additional units of the Company, at any time on or before December 31, 2025.

The 2025 Encompass Offering is expected to close on or around August 8, 2025, subject to satisfaction of customary closing conditions, including (i) receipt of the requisite regulatory approvals, including the approval of the TSXV and the amendment of the current warrants held by the selling shareholders, (ii) the accuracy of the representations and warranties of the other party, (iii) compliance with the terms, covenants, agreements and conditions of the Encompass Subscription Agreements, and (iv) no Material Adverse Effect (as defined in the Encompass Subscription Agreements) has occurred nor has any event or events occurred that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

Based on the completion of the first and second issuances of the 2025 EV Metals Offering and upon closing of the 2025 Encompass Offering, we currently believe that we have sufficient cash to meet our current financial commitments for the next twelve months. However, we continue to incur operating losses and negative cash flows and therefore will need to continue to rely on private placements to support the Company's operations until we have entered into an agreement for the placement of our MDLE Plant. The Company has not made any adjustments to the carrying value of the Company's assets or liabilities which would be necessary in the event that the Company is unable to continue as a going-concern.

***Summary of Cash Flows***

The cash flows for the fiscal years ended March 31, 2025, and March 31, 2024, are as follows *(in thousands):*

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| | | |
|:---|:---|:---|
|  | **Year Ended March 31.** | **Year Ended March 31.** |
|  | **2025** | **2024** |
| Cash used in operating activities | $(13455) | $(5907) |
| Cash used in investing activities | (1328 ) | (2617 ) |
| Cash provided by financing activities | 24494 | 9249 |
| &nbsp;&nbsp;&nbsp;Net change in cash | $9711 | $725 |

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 *Operating Activities*

 

Cash used in operating activities for the year ended March 31, 2025 increased compared to prior year period because operating expenses increased year-over-year as activity increased and employees were hired as the MDLE Plant was deployed. Additionally, the non-cash gain related to the fair value of warrant liabilities increased year over year by $11.1 million.

 *Investing Activities*

 

Cash used in investing activities for the year ended March 31, 2024 decreased compared to prior year period because we completed the majority of the purchases related to the MDLE Plant buildout in the prior year and our purchase of equipment was limited in the current year.

 *Financing Activities*

Cash provided by financing activities for the year ended March 31, 2025 increased compared to prior year period, which consisted of approximately $24.4 million proceeds from private placements. During the prior year ended March 31, 2024, we raised proceeds of $9.3 million for the proceeds of private placements and approximately $181,000 from the exercise of warrants and $112,000 from the exercise of stock options.

**Critical Accounting Estimates**

The preparation of the Company's consolidated financial statements in conformity with United States Generally Accepted Accounting Practice ("**US GAAP**") requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the consolidated financial statements and reported amounts of income and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates.

Judgement, estimates and assumptions where there is significant risk of material adjustments to assets and liabilities in future accounting periods are outlined below:

We have determined that intangible asset costs incurred which were capitalized have future economic benefits and will be economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits including anticipated cash flows and estimated economic life. The amortization expense related to intangible assets is determined using estimates relating to the useful life of the intangible asset.

The functional currency for us and our subsidiaries is the currency of the primary economic environment in which the entity operates. Determination of the functional currency involves certain judgments to determine the primary economic environment and we reconsiders the functional currency of our entities if there is a change in events and conditions which determined the primary economic environment. We have determined that our functional currency is the United States dollar.

The evaluation of the fair value of financial instruments, including the Company's warrants and options to purchase Common Shares requires judgement in selecting the appropriate methodologies and models, and evaluating the ranges of assumptions and financial inputs to calculate estimates of fair value.

These consolidated financial statements have been prepared on a basis which assumes we will continue to operate for the foreseeable future and will be able to realize our assets and discharge our liabilities in the normal course of operations. In assessing whether this assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, 12 months from the end of the reporting period. This assessment is based upon planned actions that may or may not occur for a number of reasons including the Company's own resources and external market conditions.

Critical accounting policies are disclosed in the Company's annual audited consolidated financial statements for the fiscal year ended March 31, 2025.

**Off-Balance Sheet Arrangements**

We do not have any off-balance sheet arrangements and does not contemplate having them in the foreseeable future.

**Financial Instruments and Other Instruments**

The carrying values of cash, other receivable, trade payables and other liabilities and lease liability approximate their fair values because of the short-term maturity of these financial instruments. We have no exposure to asset backed commercial paper.

**Accounting Policies**

A detailed summary of all the Company's significant accounting policies is included in *Note 3* to the audited consolidated financial statements for the year ended March 31, 2025, found elsewhere in this prospectus.

**New Accounting Standards Issued but Not Yet Effective**

Certain new accounting standards and interpretations have been issued but are not mandatory for the current period and have not been early adopted. These new accounting standards include:

In December 2023, the Financial Accounting Standard Board ("**FASB**") issued ASU No. 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. This ASU enhances existing income tax disclosures to better assess how an entity's operation and related tax risks, tax planning, and operational opportunities affect its tax rate and prospects for future cash flows. The ASU is effective for annual periods beginning after December 15, 2024. We are currently evaluating the effect the guidance will have on our consolidated financial statements.

**MANAGEMENT**

**Director and Executive Officer Biographies**

The following table sets forth our directors and executive officers as of the date of this prospectus and their respective positions.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Joseph A. Mills | 65 | Chief Executive Officer, Director |
| Michael Rutledge | 55 | Chief Financial Officer |
| Dr. John Burba | 73 | Chief Technology Officer, Founder and Chairman |
| Norma Garcia | 58 | General Counsel, Corporate Secretary |
| James Schultz | 65 | Director |
| Keith Solar | 64 | Director |
| John Souther | 40 | Director |
| Jacob Warnock | 40 | Director |

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***Joseph A. Mills, Chief Executive Officer, Director***

Mr. Mills joined us as Chief Executive Officer and member of the Board in April 2025. Prior to joining us, Mr. Mills served as Chief Executive Officer of Samson Resources II, LLC, a privately held E&P company, from March 2017 to May 2021 and from September 2023 to April 2025, and has served as a member of the board of directors since March 2017. From August 2024 to January 2025, Mr. Mills served as the Interim CEO and President of Talos Energy Company, the 4th largest deepwater Gulf of Mexico Operator where he also served as a member of the Board of directors from March 2024 to January 2025. From 2018 to 2019, Mr. Mills served as the Executive Chairman, PEO and member of the Board of directors of Roan Resources Company, a publicly traded upstream company, where he successfully reduced the spend rate, improved drilling results and ultimately led the Company through a Strategic Evaluation which resulted in the sale of the company for $1.0 B cash to Citizens Energy. Prior to that, Mr. Mills served as the Chief Executive Officer and Chairman of the Board of Eagle Rock Energy Partners, L.P., a publicly traded midstream / upstream MLP from 2007 until its merger with Vanguard Natural Resources in October 2015. Mr. Mills began his career with Sonat Exploration where during his 18-year tenure served as the Vice President and Business Unit Manager of the Gulf of Mexico Business Unit and Mid-Continent Business Unit. Mr. Mills is a graduate of the University of Houston with an MBA in Finance and the University of Texas with a BBA in Petroleum Land Management.

Mr. Mills brings to the board his extensive experience and expertise in creating, building and leading oil & gas Upstream, Midstream and Mineral businesses and vast public company knowledge and leadership experience having held various leadership and board positions in public companies, including CEO, president, chairman of the board and audit committee chair.

***Michael Rutledge, Chief Financial Officer***

Mr. Rutledge joined us as our Interim Chief Financial Officer in March 2025. From September 2021 to October 2024, Mr. Rutledge served as Chief Financial Officer, President of ADDvantage Technologies Group. From 2015 to 2020, Mr. Rutledge served as Vice President, Finance at SomnoMed Group prior to spending two years as the Chief Financial Officer at BG Staffing, where he played a key role in taking the company public and raising $16 million. Prior to that, he spent three years as Vice President of Finance with Cantel Medical Corporation, a publicly owned manufacturer of medical products, which acquired Byrne Medical, Inc., where he was the Chief Financial Officer. He joined Byrne Medical from N.F. Smith & Associates, a privately owned distributor of electronic components, where he spent four years as the Chief Financial Officer. Mr. Rutledge began his career at Ernst & Young, where he spent 12 years ultimately as Senior Audit Manager and was involved in several IPOs. Mr. Rutledge is a CPA in the State of Texas and holds a Bachelor of Business Administration in Accounting from Texas A&M University.

***Dr. John Burba, Chief Technology Officer and Chairman***

Dr. Burba joined us in 2018 in connection with our acquisition of NAL and SAL which he founded in 2016. Dr. Burba served as our Chief Executive Officer from 2018 until December 2022, our Chief Technology Officer from 2018 through present and a member of our Board since 2018. In November 2024, Dr. Burba was appointed as Chairman of the Board. Dr. Burba is a physical chemist and has deep experience in lithium and other mineral extraction technologies and created the patents upon which our current technology is based. He has more than 40-years of experience working on a number of lithium brine projects in North and South America, notably with Dow Chemical Co., FMC Corp., and Chemtura Corp. Dr. Burba served as CEO of Simbol Materials, a company focused on the recovery of lithium from geothermal brines in Southern California from 2013 to 2016. Under his leadership, Simbol Materials successfully developed a proprietary process capable of producing low-cost, high-purity lithium products from brines that were previously believed to be too high in contaminants to be economically processed. Prior to that, Dr. Burba served as Chief Technology Officer and Executive Vice President of Molycorp Inc. since December 2009, where he was instrumental in identifying and developing numerous rare earths technologies as part for the Project Phoenix re-development of the Mountain Pass facilities. Dr. Burba received a Bachelor of Science in Chemistry and completed doctoral studies in Physical Chemistry at Baylor University.

Dr. Burba brings to the Board his vast expertise and experience in our technology and industry.

***Norma Garcia, General Counsel and Corporate Secretary***

Ms. Garcia joined us as General Counsel, Corporate Secretary in November 2024. From August 2022 to October 2024, Ms. Garcia served as General Counsel, Corporate Secretary and Chief Human Resource Officer with Stryve Foods. Ms. Garcia previously served as Vice President - Assistant General Counsel & Chief Diversity Officer for Rent-A-Center from September 2011 through June 2022 providing leadership and oversight to their Risk Management & Safety department and supported operations with human resources and legal matters in Puerto Rico. She led the Rent-A-Center's diversity and inclusion initiatives and is the co-founder of Rent-A-Center's Women's Leadership mentoring circles and the company's Women's Leadership Program. Before Rent-A-Center, Norma was Assistant General Counsel for Walmart. During her time at Walmart, she served in various roles of increasing responsibility to include oversight of compliance initiatives. class action litigation, employment litigation, real estate matters, and Puerto Rico labor and employment. Norma started her legal career as an Assistant District Attorney with the Collin County District Attorney's Office in Texas where she served as Chief of Domestic Violence and tried numerous criminal jury trials. Ms. Garcia received her Juris Doctor degree from Oklahoma City University School of Law.

***Jacob Warnock, Director***

Mr. Warnock joined us as a director in February 2024 as the nominee of EV Metals in connection with the February 2024 financing transaction. Since 2020, Mr. Warnock has served as the Chief Executive Officer of Silver Creek Resources, LLC, a company specializing in mineral and royalty acquisitions of high-growth oil and gas rights within top-tier U.S. basins. As CEO, Mr. Warnock has overseen company operations and acquisitions in the Eagle Ford and Haynesville Shale. Mr. Warnock formerly served as the Managing Partner of Delago Resources, LLC, a Texas-based upstream oil and gas company primarily focused on the acquisition and development of oil and gas reserves, until 2019 when he was instrumental in the sale of the asset to Marathon Oil for $185 million. A serial entrepreneur, Mr. Warnock currently manages 18 companies and has over 20 years of experience establishing and overseeing numerous upstream oil and gas enterprises, along with multiple joint ventures across several US basins. Warnock graduated from Midwestern State University with a Bachelor of Science in Business Management.

Mr. Warnock brings to the Board expertise in leasing, curative, permitting, surface operations, facility construction, pipelines, negotiations and strategic exits.

***James Schultz, Director***

Mr. Schultz joined us as a director in October 2024. Mr. Schultz founded Open Prairie Ventures, Inc. in 1999, a private capital management company, and has served as its Chairman and Chief Executive Officer since 1999. He previously led and oversaw the management of four private equity funds with investments in innovative technologies spanning agriculture, advanced materials, medical devices, and information systems. Mr. Schultz also served in newly elected State of Illinois Governor Bruce Rauner's cabinet as the Director of the Illinois Department of Commerce and Economic Opportunity. Currently, Mr. Schultz is a member of Prime Banc Corporation/Dieterich Bank Board's Audit Committee and Asset/Liability Management Committee along with serving on the Loan Committee. He earned his MBA in Finance and Entrepreneurship from the Kellogg School of Management at Northwestern University, a Juris Doctor Degree from DePaul University College of Law, and a Bachelor of Business Administration from Southern Methodist University.

Mr. Schultz brings to the Board expertise in advanced materials, semiconductor, software development, e-commerce, construction, financial services and information technology.

***Keith Solar, Director***

Mr. Solar joined us as a director in November 2024. Mr. Solar is a founding partner at Parks & Solar, LLP and has been a partner with them since June 2017. Mr. Solar currently represents IDE Americas, Inc. and served as special counsel to the City of Carlsbad from 2002 to 2024. In his role as special counsel, he assisted the city and the Carlsbad Municipal Water District in negotiating land use and water purchase agreements, respectively, for the Claude "Bud" Lewis Carlsbad Seawater Desalination Plant. From 2000 to 2006, Mr. Solar was general counsel to Basin Water, Inc., which became publicly traded on Nasdaq following its initial public offering in May 2006. From 2000 to 2009, Mr. Solar served as a member of the board of directors of Basin Water, Inc., including as chair of its compensation committee from 2006 to 2009 and as chair of its nominating and governance committee from 2007 to 2009. Mr. Solar has authored several published commentaries on water issues and is a lecturer at local and international water conferences and CLE programs. Mr. Solar earned his Juris Doctor, with highest distinction, from McGeorge School of Law, University of the Pacific. He is admitted to practice law in California, Texas and Tennessee.

Mr. Solar brings to the Board significant legal and governance experience representing public and private clients regarding water rights and water-related issues, with particular emphasis in desalination and potable reuse.

***John Souther, Director***

Mr. Souther joined us as a director in November 2024. Mr. Souther has been with Carrier Corporation since 2019. In his current role as Chief Information Officer, Mr. Souther oversees the digital strategy for a $10 billion business portfolio, spearheading major technology initiatives such as ERP transformations and the expansion of IoT and connected solutions. His proven track record of leading cross-functional teams, making data-driven decisions, and delivering measurable business results has solidified his reputation as a strategic executive in the digital transformation space. Mr. Souther holds an MBA from Harvard Business School and a BA in Government from Harvard College.

Mr. Souther brings to the Board significant experience driving digital transformation and operational excellence across diverse industries — including industrials, retail, technology, and consumer packaged goods.

**Corporate Governance**

***Board Size and Term***

Our Articles of Incorporation provide that our Board of Directors shall consist of at least three directors and that each director shall hold office until the close of the next annual general meeting of our shareholders, or until his or her successor is duly elected or appointed, unless his or her office is earlier vacated. Our Board of Directors currently consists of six directors.

***Family Relationships***

There are no family relationships among any of our directors or executive officers.

***Director Independence***

As we are listed on the TSXV, we evaluate whether our directors are "independent" in accordance with National Policy 58-201 - Corporate Governance Guidelines ("**NP 58-201**") issued by the British Columbia Securities Commission ("**BCSC**"). NP 58-201 states that "a director is independent if he or she would be independent for the purposes of National Instrument 58-101 Disclosure of Corporate Governance Practices ("**NI 58-101**") NI 58-101(2) states that "[i]n British Columbia, a director is independent if . . . a reasonable person with knowledge of all the relevant circumstances would conclude that the director is independent of management of the issuer and of any significant security holder . . . ." In addition, we evaluate whether our directors who serve on our Audit Committee meet the enhanced level of independence required for Audit Committee members in accordance with National Instrument 52-110 "*Audit Committees"* (*"***NI 52-110***"*). NI 52-110 provides under Section 1.4 "*Meaning of Independence"* that "(1) [a]n audit committee member is independent if he or she has no direct or indirect material relationship with the issuer."

In determining whether a "material relationship" exists NI 52-110 provides certain situations where an individual is deemed to have a material relationship, which include but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an
 individual who is, or has been within the last three years, an employee or executive officer
 of the issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an
 individual whose immediate family member is, or has been within the last three years, an
 executive officer of the issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an
 individual whose immediate family member is, or has been within the last three years, an
 executive officer of the issuer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an
 individual who accepts, directly or indirectly, any consulting, advisory or other compensatory
 fee from the issuer or any subsidiary entity of the issuer, other than as remuneration for
 acting in his or her capacity as a member of the board of directors or any board committee,
 or as a part-time chair or vice-chair of the board or any board committee; or is an affiliated
 entity of the issuer or any of its subsidiary entities.

Consistent with TSXV rules, our Board conducted its annual review of director independence. During the review, our Board considered relationships and transactions since incorporation between each director or any member of her immediate family, on the one hand, and us on the other hand. The purpose of this review was to determine whether any such relationships or transactions were inconsistent with a determination that the director is independent. Our Board of Directors has determined that each of our directors (i.e., James Schultz, Keith Solar, and John Souther), other than Dr. John Burba, Mr. Jacob Warnock and Mr. Joseph Mills, are considered to be "independent" in accordance with NI 58-101.

***Related Party Transactions***

The Board has adopted a written related party transactions policy, which is administered by the Audit Committee. This policy applies to any transaction or series of related transactions involving a related party and the Company or any subsidiary. However, under U.S. securities laws, the Company may not make any loan or other extension of credit to any of its directors or executive officers.

For purposes of the policy, "related party" consist of executive officers, directors, director nominees, any shareholder beneficially owning more than five percent of any class of our voting securities, and immediate family members of any such persons. In reviewing related party transactions or potential conflict of interest, the Audit Committee will be provided with written materials when appropriate and will consider all relevant facts and circumstances, including without limitation the commercial reasonableness of the terms, the benefit and perceived benefit, or lack thereof, to the Company, opportunity costs of alternate transactions, the materiality and character of the Related Party's direct or indirect interest, and the actual or apparent conflict of interest of the Related Party. If the Audit Committee determines that the potential conflict of interest issues and other circumstances warrant, the Audit Committee shall consider recommending to the Board that the proposed transaction be approved by the independent directors.

No member of the Audit Committee may participate in any discussion, consideration, approval or ratification of a proposed related party transaction for which he or she or any of his or her immediate family members is the related party. All related party transactions will be disclosed in filings as required under applicable securities laws.

***Board Committees***

---

| | | | |
|:---|:---|:---|:---|
| **Member** | **Independent <sup>(1)</sup>** | **Audit** | **Corporate Governance, Nominating and Compensation Committee** |
| Dr. John Burba<sup>(2)</sup> | No | No | No |
| Joseph Mills | No | No | No |
| John Souther**<sup>(</sup>**<sup>1**)**</sup> | Yes | Yes | Yes |
| James Schultz<sup>(1)</sup> | Yes | Yes<sup>(3)</sup> | No |
| Keith Solar**<sup>(</sup>**<sup>1)</sup> | Yes | Yes | Yes<sup>(3)</sup> |
| Jacob Warnock | No | No | Yes |

---

(1) Independent
 as determined under Canadian securities laws and TSXV corporate governance rules.

(2) Dr.
 John Burba is the Chairman of the Board of Directors.

(3) Denotes
 Chairperson of the relevant Committee.

***Audit Committee***

The Audit Committee of the Board consists of three members, John Souther, James Schultz and Keith Solar, with Mr. Schultz being the Chairman of the Audit Committee.

Our Board of Directors has determined that each of the Audit Committee members meets the heightened Audit Committee independence requirements under NI 52-110, and that James Schultz is considered an "audit committee financial expert," as defined in applicable SEC regulations.

The Audit Committee is responsible for overseeing our financial reporting process on behalf of the Board, including overseeing the work of the independent auditors who report directly to the Audit Committee. The specific responsibilities of our Audit Committee, among others, include:

● assisting directors to meet their oversight responsibilities;

● enhancing communication between directors and the external auditors;

● ensuring the independence of the external auditor;

● increasing the credibility and objectivity of financial reports; and

● strengthening the role of the directors by facilitating in-depth discussions among directors, management, and the external auditor.

Our Board of Directors has adopted a written charter for our Audit Committee, which is available on our website at www.ibatterymetals.com.

**Corporate Governance, Nominating & Compensation Committee**

The Corporate Governance, Nominating and Compensation Committee (the "**CGNC Committee**") consists of Keith Solar, John Souther and Jacob Warnock, with Mr. Solar serving as Chairman of the CGNC Committee.

The CGNC Committee as appointed by the Board is designed to enable the Board to discharge its responsibilities and obligations with respect to:

● developing and implementing an effective corporate governance system;

● reviewing and assessing on an ongoing basis the Company's corporate governance and public disclosure;

● identifying and recommending candidates for election to the Board and all committees of the Board;

● developing and reviewing compensation plans;

● assessing on an annual basis the performance of the Board;

● managing compensation related risk;

● recommending to the Board corporate governance principles, and any changes thereto as appropriate;

● performance reviews of the Board, Board committees and individual directors;

● establishing criteria for selecting new directors which shall reflect, among other facets, a candidate's integrity and business ethics, strength of character, judgment, experience and independence, as well as factors relating to the composition of the Board, including its size and structure, the relative strengths and experience of current Board members and principles of diversity;

● recruiting candidates to fill new positions on the Board;

● advising the Board with respect to the charters, structure and operations of the various committees of the Board and qualifications for membership thereon; and

● developing and reviewing compensation plans and assessing the Board's performance on an annual basis.

Our Board of Directors has adopted a written charter for our CGNC Committee, which is available on our website at www.ibatterymetals.com.

**Code of Conduct**

We have adopted a written Code of Conduct which addresses issues including, but not limited to conflicts of interest, related party transactions, compliance with laws and regulations, protection and proper use of corporate opportunities, protection and proper use of corporate assets, confidentiality of corporate information, fair dealing with customers, suppliers, competitors and employees, insider trading, whistle blowing, and integrity of business records and financial disclosure. The Code of Conduct applies to all of our directors, officers and employees. Any waivers of the provisions of the Code of Conduct for our executive officers or directors must be approved by the Board of Directors and will be promptly disclosed.

**EXECUTIVE COMPENSATION**

As an emerging growth company under the JOBS Act, we have opted to comply with the executive compensation disclosure rules applicable to "smaller reporting companies" as such term is defined in the rules promulgated under the Securities Act, which permit us to limit reporting of executive compensation to our principal executive officer and our two other most highly compensated executive officers.

The following table contains compensation data for our named executive officers for the fiscal year ended March 31, 2025. In this section, "Named Executive Officer" or "NEO" means (i) all individuals serving as the our principal executive officer or acting in a similar capacity during the last completed fiscal year (ii) each of the two most highly compensated executive officers, other than the principal executive officer, who were serving as executive officer of us at March 31, 2025 and whose total salary and bonus exceeds $100,000, and (iii) up to two additional individuals for whom disclosure would have been provided under clause (ii) except that the individual was not serving as an executive officer of us at March 31, 2025. For the 2025 fiscal year, our NEOs are as follows:

● ● Iris Jancik, Former Chief Executive Officer Douglas Smith, Former Chief Financial Officer;

● Dr. John Burba, Chief Technology Officer;

● ● Norma Garcia, General Counsel Garry Flowers, Former Chief Executive Officer; and

● Libor Michel, Former Co-Chief Executive Officer.

Iris Jancik served as the Chief Executive Officer from August 11, 2024 until April 7, 2025. Mr. Smith served as Chief Financial Officer from December 11, 2023 until March 6, 2025. Mr. Michel served as Co-Chief Executive Officer from December 11, 2023, and resigned from such role effective as of April 10, 2024. Mr. Flowers served as Chief Executive Officer from December 2, 2022, and served until August 20, 2024.

**Summary Compensation Table**

The following table sets forth all compensation paid to or earned by the NEOs for the last two fiscal years ended March 31, 2025 and March 31, 2024.

**Summary Compensation Table**

The following table sets forth all compensation paid to or earned by the NEOs for the last two fiscal years ended March 31, 2025 and March 31, 2024.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary ($)** | **Bonus ($)** | **Stock**<br> **Awards**<br> **($)<sup>(1)</sup>** |  | **Option**<br> **Awards**<br> **($)<sup>(1)</sup>** | **All Other**<br> **Compensation**<br> **($)<sup>(3)</sup>** | **Total**<br> **($)** |
| Iris Jancik, *Former CEO***<sup>(4)</sup>** | 2025 | 370385 |  | $2916634 | (2) | $1442988 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 4730007 |
| Garry Flowers, *Former CEO*<sup>(5)</sup> | 2025 | 125417 | 20000 |  |  |  |  | 145417 |
|  | 2024 | 325000 |  |  |  | 282493 |  | 607493 |
| Libor Michel, *Former Co-CEO*<sup>(6)</sup> | 2025 | 12500 |  |  |  |  | 100000 | 112500 |
|  | 2024 | 93182 |  |  |  | 321551 |  | 414733 |
| Dr. John Burba, *Chief Technology Officer*<sup>(7)</sup> | 2025 | 221667 |  | 126689 |  |  |  | 348356 |
|  | 2024 | 200000 |  |  |  | 211873 |  | 411873 |
| Norma Garcia, *General Counsel<sup>(8)</sup>* | 2025 | 99375 |  | 34620 |  | 120519 |  | 254514 |
| Doug Smith, *Former CFO* <sup>(9)</sup> | 2025 | 265458 | 45000 |  |  |  | 162063 | 472522 |
|  | 2024 | 85417 |  |  |  | 241163 |  | 326580 |

---

(1) Represents
 the aggregate grant date fair value computed in accordance with ASC Topic 718. These amounts
 reflect the Company's calculation of the value of these awards at the grant date and
 do not necessarily correspond to the actual value that may ultimately be realized by the
 NEO. Assumptions used in the calculation of these amounts are included in Note 11 to the
 Company's audited consolidated financial statements for the fiscal years ended March
 31, 2024, which are included elsewhere in this prospectus.

(2) The
 performance metrics of PSU awards with a fair market value of $1,842,526 were deemed not
 probable in accordance with ASC Topic 718 and therefore no amounts were initially accrued
 but are included in this table. PSUs are either earned at 100% or not earned at all based
 on Company's achievement on the relevant performance metric. As discussed below, in connection with Ms. Jancik's termination all outstanding PSU awards and stock options
were forfeited.

(3) With
 respect to Mr. Libor, represents severance payments made or accrued in connection with his
 termination on April 10, 2024. With respect to Mr. Smith, represents severance payments made
 or accrued in connection with his termination on March 6, 2025. Mr. Smith received severance
 equal to six months of salary payable over six months and a portion of his COBRA premiums
 for the same period.

(4) Ms.
 Jancik served as Chief Executive Officer from August 11, 2024, until April 7, 2025.

(5) Garry
 Flowers was appointed as CEO of the Company on December 2, 2022, and resigned from such role
 effective as of August 20, 2024.

(6) Libor
 Michel was appointed as Co-CEO of the Company on December 11, 2023, and resigned from such
 role effective as of April 10, 2024

(7) Dr.
 John Burba is also a member of the Board of Directors. The table above reflects the compensation
 paid to Dr. Burba for his service as Chief Technology Officer as well as the $126,689
 RSUs granted in 2025 as compensation for his role as a director.

(8) Ms.
 Garcia was appointed as General Counsel on November 18, 2024.

(9) Mr.
 Smith served as Chief Financial Officer from December 11, 2023 until March 6, 2025. In connection
 with his termination, Mr. Smith's unvested options were forfeited.

 **Agreements With NEOs**

 ***Joseph Mills, Chief Executive Officer***

  ****

On April 7, 2025, we entered into an executive employment agreement with Mr. Joseph Mills ("**Mills Employment Agreement**"). The Mills Employment Agreement has a three-year term beginning on April 7, 2025, and ending on the third anniversary of the date of the Mills Employment Agreement ("**Expiration Date**"). Following the Expiration Date, the Mills Employment Agreement will automatically renew each year thereafter for a period of one year ("**Renewal Date**"), provided, neither party has provided written notice within 60 days of the Expiration Date or the Renewal Date, as the case may be, of such party's intention to terminate the Mills Employment Agreement.

Pursuant to the Mills Employment Agreement, Mr. Mills is entitled to: (i) an annual base salary of $600,000 (subject to annual review by the CGNC Committee); (ii) a discretionary bonus with a target amount equal to 100% of Mr. Mills' annual base salary, to be determined by the Board and based on the Company's financial performance and the Board's assessment of Mr. Mills' individual performance; and (iii) an award of 3,000,000 Restricted Share Units ("**RSUs**"), of which, 1,000,000 will vest on April 7, 2026, and 2,000,000 will vest upon completion of the building and deployment of two additional DLE plants (the "DLE Award"). In addition, subject to approval of additional shares in the Company's RSU plan (i) upon listing of the Company on the Toronto Stock Exchange, Mr. Mills will be granted an additional 500,000 RSUs, (ii) upon vesting of the DLE Award, Mr. Mills will be entitled to an RSU award representing 0.5% of the then outstanding fully-diluted Common Shares, which shall vest based on production and (iii) RSU awards equal to 2.5% of the Company's then outstanding fully-diluted Common Shares of which 1% shall vest based on the Company achieving EBITDA of $25 million, 0.5% shall vest upon the Company having a market capitalization of $750 million and 1% shall vest based on a Change of Control with a minimum equity value of $1.0 billion. Mr. Mills is also eligible to participate in all benefit plans and programs made available by us for our employees, including participation in bonus and incentive compensation plans and programs established for officers and directors of the Company on terms determined by the Board.

Under the Mills Employment Agreement, in the event that Mr. Mills' employment is terminated by the Company for cause or if Mr. Mills terminates his employment without good reason, Mr. Mills is entitled to receive: (i) accrued but unpaid base salary, bonus, expense reimbursement and other accrued benefits; (ii) reimbursement for unreimbursed business expenses properly incurred by Mr. Mills; and (iv) such employee benefits (including equity compensation) to which Mr. Mills may have been entitled under an applicable award agreement or benefit plan as of the termination date ((i) through (iv) collectively referred to as "**Mills Accrued Amounts**").

Under the Mills Employment Agreement, in the event that Mr. Mills' employment is terminated by Mr. Mills for good reason or by the Company without cause, Mr. Mills is entitled to: (i) the Mills Accrued Amounts; (ii) his then base salary for twelve months, to be paid in periodic installments; (iii) any unpaid bonus with respect to any calendar year preceding the year in which the termination occurs, plus a pro rata portion of his annual bonus as determined by the Board; (iv) reimbursement of premiums for health insurance continuation benefits for a period of 12 months following his termination; (v) acceleration of vesting of all time based RSUs; and (vi) subject to the actual achievement of the performance-based vesting conditions, continued vesting of any performance-based RSUs that would have vested during the 12 month period following the termination date had Mr. Mills' employment continued ((i) through (vi) collectively referred to as the "**Mills Separation Benefits**").

In the event the Company terminates Mr. Mills' employment without cause or Mr. Mills terminates his employment for good reason two and one-half months prior to a change of control or within 12 months following a change in control, Mr. Mills would be entitled to the Mills Separation Benefits, except that Mr. Mills' would be entitled to receive his then base salary for twelve months in a single lump sum within 30 days of such termination.

Mr. Mills is subject to a one-year non-compete covenant following termination of his employment anywhere in the United States or any other country which the Company operates, regardless of whether the termination is voluntary or involuntary. He is also subject to a one-year non-solicitation covenant following termination of his employment, regardless of whether the termination is voluntary or involuntary.

 ****

***Iris Jancik, Former CEO***

During her employment with us, the terms of Ms. Jancik's employment was governed by an executive employment agreement entered into on August 6, 2024 (the "**Jancik Employment Agreement**"). Pursuant to the Jancik Employment Agreement, Ms. Jancik was entitled to (i) an annual base salary of $600,000 (subject to annual review by the CGNC Committee), (ii) a discretionary bonus to be determined by the Board and based on the Company's financial performance and the Board's assessment of Ms. Jancik's individual performance, (iii) an award of 4,227,630 Restricted Share Units ("**RSUs**") and (iv) Stock Options to purchase up to 2,113,814 Common Shares.

Under the Jancik Employment Agreement, in the event that Ms. Jancik's employment is terminated by the Company for cause or if Ms. Jancik terminates her employment without good reason, Ms. Jancik is entitled to receive (i) accrued but unpaid base salary, bonus, expense reimbursement and other accrued benefits; (ii) reimbursement for unreimbursed business expenses properly incurred by Ms. Jancik; and (iv) such employee benefits (including equity compensation) to which Ms. Jancik may have been entitled under an applicable award agreement or benefit plan as of the termination date ((i) through (iv) collectively referred to as "**Jancik Accrued Amounts**").

Under the Jancik Employment Agreement, in the event that Ms. Jancik's employment is terminated by Ms. Jancik for good reason or by the Company without cause whether or not such termination follows a change of control of the Company, Ms. Jancik is entitled to (i) the Jancik Accrued Amounts, (ii) her then base salary for twelve months, to be paid in periodic installments, (iii) any unpaid bonus with respect to any calendar year preceding the year in which the termination occurs, plus a pro rata portion of her annual bonus as determined by the Board, (iv) reimbursement of premiums for health insurance continuation benefits for a period of 12 months following her termination and (v) acceleration of all vesting of RSUs and Stock Options with any performance-based vesting conditions applicable to the award being deemed met on the date of termination or date of the change in control.

On April 11, 2025, we entered into a Severance and General Release Agreement (the "**Jancik Severance Agreement**") with Ms. Jancik. . Pursuant to the Jancik Severance Agreement, Ms. Jancik and the Company agreed that her employment would be terminated effective April 11, 2025 and that in connection with such termination she would be entitled to receive, in lieu of the amounts and benefits set forth in the Jancik Employment Agreement, (i) $800,000 to be paid in three periodic installments over a four-month period and (ii) continued health and medical benefits for a period of six months following the date of termination. In exchange, Ms. Jancik agreed to (i) forfeit all vested and unvested stock options and vested and unvested RSUs, (ii) provide a customary general release and waiver of any and all claims relating to her employment with Company, (iii) a twelve-month non-compete for anywhere in the United States and in all other countries where the Company operates through license of its intellectual property or otherwise and (iv) a twelve-month non-solicitation of any of the Company's employees or independent contractors and any current, former or prospective customers of the Company with whom Ms. Jancik had contact with during her employment.

**Garry Flowers, Former CEO**

During his employment with us, the terms of Mr. Flowers' employment were governed by an executive employment agreement entered into on July 1, 2022 (as amended on July 29, 2024, and further amended on July 31, 2024, the "**Flowers Employment Agreement**"). Pursuant to the Flowers Employment Agreement, Mr. Flowers' was hired as our President, with a term commencing on July 1, 2022, and ending on July 1, 2024, which term was further extended until August 20, 2024, unless terminated earlier or extended by mutual consent of the parties. On December 2, 2022, Mr. Flowers' was promoted to the role of Chief Executive Officer in succession of Dr. John Burba, which role terminated upon Mr. Flowers' resignation on August 20, 2024. In accordance with his employment agreement, Mr. Flowers was entitled to (i) an annual base salary of $275,000 (subject to annual review by the CNGC Committee), (ii) an additional salary of $50,000 in periodic installments, (iii) a discretionary bonus up to the Board's discretion, (iv) Stock Options to purchase up to 600,000 Common Shares, (v) 600,000 RSUs (which were converted to 220,902 Stock Options on September 29, 2023), (vi) a one-time bonus of $20,000 payable at the end of his employment term, and (vii) reimbursement of certain relocation expenses.

Under the Flowers Employment Agreement, in the event that Mr. Flowers' employment was terminated by the Company for cause or if Mr. Flowers terminated his employment without good reason, Mr. Flowers was entitled to receive any Accrued Amounts to which he would have been entitled as of the termination date.

Under the Flowers Employment Agreement, in the event that Mr. Flowers' employment was terminated by Mr. Flowers for good reason or by the Company without cause within two years following a change of control of the Company, Mr. Flowers was entitled to (i) the Accrued Amounts, (ii) a lump sum amount equal to Mr. Flowers' then base salary for a period of six months and (iii) retain all RSUs and Stock Options granted pursuant to the Flowers Employment Agreement.

Under the Flowers Employment Agreement, in the event that Mr. Flowers' employment was terminated by the Company without cause or by Mr. Flowers for good reason, Mr. Flowers was entitled to (i) the Accrued Amounts, (ii) his then base salary for six months, to be paid in periodic installments, (iii) a pro rata portion of his annual bonus as determined by the Board, (iv) reimbursement of premiums for health insurance continuation benefits for a period of 12 months following his termination and (v) acceleration of vesting of all RSUs and Stock Options granted pursuant to the Flowers Employment Agreement.

Mr. Flowers is subject to a 24-month non-compete covenant following termination of his employment anywhere in the United States and in all other countries where the Company operates through license of its intellectual property or otherwise, regardless of whether the termination is for cause or for any other reason. He is also subject to a 24-month non-solicitation covenant following termination of his employment, regardless of whether the termination is for cause or for any other reason.

**Libor Michel, Former Co-CEO**

During his employment with us, the terms of Mr. Michel's employment were governed by an executive employment agreement entered into on December 11, 2023 (the "**Michel Employment Agreement**"). Pursuant to the Michel Employment Agreement, Mr. Michel was hired as our Co-Chief Executive Officer with a term commencing on December 11, 2023, for an indefinite term until terminated, which role terminated upon his resignation on April 10, 2024. In accordance with his employment agreement, Mr. Michel was entitled to (i) an annual base salary of $300,000 (subject to annual review by the CNGC Committee), (ii) discretionary bonus of up to 100% of his annual base salary, (iii) a one-time bonus of $150,000 payable on or before April 1, 2024 upon a specified capital raise by the Company, (iv) a signing bonus in the form of an equity grant of Common Shares with a value equal to $150,000, and (v) Stock Options to purchase up to 600,000 Common Shares.

Under the Michel Employment Agreement, in the event that Mr. Michel's employment was terminated by the Company for cause or if Mr. Michel terminated his employment without good reason, Mr. Michel was entitled to receive any Accrued Amounts to which he would have been entitled as of the termination date.

Under the Michel Employment Agreement, in the event that Mr. Michel employment was terminated by Mr. Michel for good reason or by the Company without cause within two years following a change of control of the Company, Mr. Michel was entitled to (i) the Accrued Amounts, (ii) a lump sum amount equal to Mr. Michel's then base salary for a period of 18 months and (iii) retain all RSUs and Stock Options granted pursuant to the Michel Employment Agreement.

Under the Michel Employment Agreement, in the event that Mr. Michel's employment was terminated by the Company without cause or for good reason, Mr. Michel was entitled to (i) the Accrued Amounts, (ii) his then base salary for six months, to be paid in periodic installments, (iii) a pro rata portion of his annual bonus as determined by the Board, (iv) reimbursement of premiums for health insurance continuation benefits for a period of 12 months following his termination and (v) acceleration of vesting of all RSUs and Stock Options granted pursuant to the Michel Employment Agreement.

Mr. Michel was subject to a six-month non-compete covenant following termination of his employment anywhere in the United States and in all other countries where the Company operates through license of its intellectual property or otherwise, regardless of whether the termination was for cause or for any other reason. He was also subject to a six-month non-solicitation covenant following termination of his employment, regardless of whether the termination was for cause or for any other reason.

**Dr. John Burba, Chief Technology Officer**

On June 26, 2018, we entered into an executive employment agreement with Dr. John Burba. Pursuant to the employment agreement, Dr. Burba was hired as our Chief Executive Officer, with a term commencing on June 26, 2018, for an indefinite term unless terminated on account of his death, resignation or disability or terminated by us for cause or without cause (the "**Dr. Burba Employment Agreement**). Dr. Burba served as our Chief Executive Officer from June 26, 2018, and then assumed the role of Chief Technology Officer on July 26, 2023. In accordance with the Dr. Burba Employment Agreement, he is entitled to an annual base salary of $200,000 (subject to annual review by the CGNC Committee) and is eligible to participate in all benefit plans and programs made available by us for our employees, including participation in bonus and incentive compensation plans and programs established for officers and directors of the Company on terms determined by the Board.

Pursuant to the Dr. Burba Employment Agreement, in the event that Dr. Burba's employment is terminated as a result of death, disability or for cause, he would be entitled to accrued salary, benefits and vacation, including the then unused accrued vacation (the "**Dr. Burba Accrued Benefits**"), up to and including the date of termination in a single lump sum within 30 days of such termination.

Pursuant to the Dr. Burba Employment Agreement, if the Company terminates Dr. Burba's employment without cause or if Dr. Burba terminates his employment for good reason, and such termination does not occur within the 24-month period following a change of control, Dr. Burba will be entitled to: (i) the Dr. Burba Accrued Benefits in a single lump sum and (i) an amount equal to Dr. Burba's target bonus amount.

Pursuant to the Dr. Burba Employment Agreement, if, during the 24-month period following a change of control, the Company terminates Dr. Burba's employment without cause or Dr. Burba terminates his employment for good reason, Dr. Burba will be entitled to: (i) the Dr. Burba Accrued Benefits in a single lump sum within 30 days of such termination, (ii) a lump sum payment in an amount equal to his base salary at the time of such termination, payable in a lump sum, as well as continuation of his base salary for a period of one year following such termination, and (iv) a lump sum payment in an amount equal to two times his target bonus amount, payable in lump sum.

Dr. Burba is subject to a one-year non-compete covenant following termination of his employment anywhere in North America, Central America, South America, Asia and Australia, regardless of whether the termination is voluntary or involuntary. He is also subject to a one-year non-solicitation covenant following termination of his employment, regardless of whether the termination is voluntary or involuntary.

 ***Michael Rutledge, Chief Financial Officer***

  ****

On June 2, 2025, we entered into an executive employment agreement with Mr. Michael Rutledge ("**Rutledge Employment Agreement**"). The Rutledge Employment Agreement has a two-year term beginning on June 2, 2025, and ending on the second anniversary of the date of the Rutledge Employment Agreement ("**Expiration Date**"). Following the Expiration Date, the Rutledge Employment Agreement will automatically renew each year thereafter for a period of one year ("**Renewal Date**"), provided, neither party has provided written notice within 60 days of the Expiration Date or the Renewal Date, as the case may be, of such party's intention to terminate the Rutledge Employment Agreement.

Pursuant to the Rutledge Employment Agreement, Mr. Rutledge is entitled to: (i) an annual base salary of $350,000 (subject to annual review by the CGNC Committee); (ii) a discretionary bonus with a target amount equal to 60% of Mr. Rutledge's annual base salary, to be determined by the Board and based on the Company's financial performance and the Board's assessment of Mr. Rutledge's individual performance; and (iii) an award of 1,350,000 RSUs, of which, 450,000 will vest on June 2, 2026, and 900,000 will vest upon completion of the building and deployment of two additional DLE plants (the "DLE Award"). In addition, subject to approval of additional shares in the Company's RSU plan (i) upon listing of the Company on the Toronto Stock Exchange, Mr. Rutledge will be granted an additional 300,000 RSUs, (ii) upon vesting of the DLE Award, Mr. Rutledge will be entitled to an RSU award representing 0.25% of the then outstanding fully-diluted Common Shares, which shall vest based on production and (iii) RSU awards equal to 1.15% of the Company's then outstanding fully-diluted Common Shares of which 0.45% shall vest based on the Company achieving EBITDA of $25 million, 0.25% shall vest upon the Company having a market capitalization of $750 million and 0.45% shall vest based on a Change of Control with a minimum equity value of $1.0 billion. Mr. Rutledge is also eligible to participate in all benefit plans and programs made available by us for our employees, including participation in bonus and incentive compensation plans and programs established for officers on terms determined by the Board.

Under the Rutledge Employment Agreement, in the event that Mr. Rutledge's employment is terminated by the Company for cause or if Mr. Rutledge terminates his employment without good reason, Mr. Rutledge is entitled to receive: (i) accrued but unpaid base salary, bonus, expense reimbursement and other accrued benefits; (ii) reimbursement for unreimbursed business expenses properly incurred by Mr. Rutledge; and (iii) such employee benefits (including equity compensation) to which Mr. Rutledge may have been entitled under an applicable award agreement or benefit plan as of the termination date ((i) through (iii) collectively referred to as "**Rutledge Accrued Amounts**").

Under the Rutledge Employment Agreement, in the event that Mr. Rutledge's employment is terminated by Mr. Rutledge for good reason or by the Company without cause, Mr. Rutledge is entitled to: (i) the Rutledge Accrued Amounts; (ii) his then base salary for ten months, to be paid in periodic installments; (iii) any unpaid bonus with respect to any calendar year preceding the year in which the termination occurs, plus a pro rata portion of his annual bonus as determined by the Board; and (iv) reimbursement of premiums for health insurance continuation benefits for a period of 10 months following his termination ((i) through (iv) collectively referred to as the "**Rutledge Separation Benefits**").

In the event the Company terminates Mr. Rutledge's employment without cause or Mr. Rutledge terminates his employment for good reason in connection with a change of control, Mr. Rutledge would be entitled to the Rutledge Separation Benefits, except that Mr. Rutledge would be entitled to receive his then base salary for ten months in a single lump sum within 30 days of such termination.

Mr. Rutledge is subject to a one-year non-compete covenant following termination of his employment anywhere in the United States or any other country which the Company operates, regardless of whether the termination is voluntary or involuntary. He is also subject to a one-year non-solicitation covenant following termination of his employment, regardless of whether the termination is voluntary or involuntary.

**Douglas Smith, Former Chief Financial Officer**

On December 11, 2023, we entered into an executive employment agreement with Mr. Douglas Smith (the "**Smith Employment Agreement**"). Pursuant to the Smith Employment Agreement, Mr. Smith was hired as our Chief Financial Officer, with a term commencing on December 11, 2023, for an indefinite term until terminated. In accordance with his employment agreement, Mr. Smith is entitled to (i) an annual base salary of $275,000 (subject to annual review by the CGNC Committee), (ii) a discretionary bonus of up to 100% of his annual base salary, and (iii) Stock Options to purchase up to 450,000 Common Shares.

Under the Smith Employment Agreement, in the event that Mr. Smith's employment is terminated by the Company for cause or if Mr. Smith terminates his employment without good reason, Mr. Smith is entitled to receive any Accrued Amounts to which he would have been entitled as of the termination date. Under the Smith Employment Agreement, in the event that Mr. Smith's employment is terminated by Mr. Smith for good reason or by the Company without cause within two years following a change of control of the Company, Mr. Smith is entitled to (i) the Accrued Amounts, (ii) a lump sum amount equal to Mr. Smith's then base salary for a period of 18 months and (iii) retain all RSUs and Stock Options granted pursuant to the Smith Employment Agreement. Under the Smith Employment Agreement, in the event that Mr. Smith's employment is terminated by the Company without cause or by Mr. Smith for good reason, Mr. Smith is entitled to (i) the Accrued Amounts, (ii) his then base salary for six months, to be paid in periodic installments, (iii) a pro rata portion of his annual bonus as determined by the Board, (iv) reimbursement of premiums for health insurance continuation benefits for a period of 12 months following his termination and (v) acceleration of all vesting of RSUs and Stock Options granted pursuant to the Smith Employment Agreement.

On March 4, 2025, we entered into a Severance and General Release Agreement (the "Smith Severance Agreement") with Mr. Smith. Pursuant to the Smith Severance Agreement, Mr. Smith and the Company agreed that his employment would be terminated effective March 4, 2025 and that in connection with such termination he would be entitled to receive, in lieu of the amounts and benefits set forth in the Smith Employment Agreement, (i) $157,500 to be paid in periodic installments over a six-month period, (ii) continued health and medical benefits for a period of six months following the date of termination. In exchange, Mr. Smith agreed to (i) forfeit unvested stock options, (ii) agreed to a one-year post-termination expiration date for all vested Stock Options (ii) provided a customary general release and waiver of any and all claims relating to her employment with Company, (iii) a six-month non-compete for anywhere in the United States and in all other countries where the Company operates through license of its intellectual property or otherwise and (iv) a six-month non-solicitation of any of the Company's employees or independent contractors and any current, former or prospective customers of the Company with whom Mr. Smith had contact with during his employment.

**Offer Letter** 

***Norma Garcia, General Counsel***

 ****

On October 13, 2024, we entered into an offer letter with Ms. Garcia (the "**Garcia Offer Letter**") pursuant to which Ms. Garcia is entitled to receive (i) an annual base salary of $265,000 which will increase to $300,000 following completion of 12 months of continuous employment, (ii) Stock Options to purchase up to 400,000 Common Shares (iii) an award of 100,000 RSUs and (iv) a discretionary performance bonus to be determined by the CEO and the Board.

Under the Garcia Offer Letter, in the event that Ms. Garcia's employment is terminated by the Company without cause or by Ms. Garcia for good reason following a change in control event, Ms. Garcia will be entitled to (i) her then base salary for 12 months to be paid in periodic installments in accordance with the Company's customary payroll, (ii) acceleration of vesting of all Stock Options granted to Ms. Garcia and (iii) a continuation of all medical, dental and retirement plans including 401k plan for a period of 12 months following her termination.

**Outstanding Equity Awards at Fiscal Year-End**

The following table sets forth outstanding equity awards for the NEOs as of the end of the fiscal year ended March 31, 2025.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | | **Restricted Stock Units** | **Restricted Stock Units** | **Restricted Stock Units** | **Restricted Stock Units** | **Restricted Stock Units** |
| | **Number of Securities Underlying Unexercised Options (#)** | **Number of Securities Underlying Unexercised Options (#)** |  | | | |  | | **Equity Incentive Plan Awards** | **Equity Incentive Plan Awards** |
| <br>**Name** | **Exercisable** | **Unexercisable** |  |<br>**Option Exercise Price** | <br>**Option Expiration Date** |<br>**Number of RSUs Not Vested ($)** |  |<br>**Market Value RUSs Not Vested ($)** | **RSUs not Vested and Unearned<sup>(5)</sup> (#)** | **RSUs Not Vested and Unearned ($) <sup>(5)</sup>** |
| Iris Jancik | 852352 | 1261512 | (1) | CAD$0.93 | 8/20/2034 |  |  |  | 3927630 | 2120920 |
| Garry Flowers | 600000 |  |  | CAD$1.41 | 8/19/2025 |  |  |  |  |  |
|  | 220092 |  |  | CAD$3.50 | 8/19/2025 |  |  |  |  |  |
| Libor Michel | 200000 |  |  | CAD$0.89 | 4/9/2025 |  |  |  |  |  |
| Dr. John Burba | 300000 |  |  | CAD$1.12 | 5/3/2028 | 541126 | (3) | CAD $292,208 |  |  |
|  | 4898500 |  |  | CAD$0.38 | 1/5/2026 |  |  |  |  |  |
| Norma Garcia |  | 400000 | (2) | CAD$0.50 | 2/12/2030 | 100000 | (4) | CAD $54,000 |  |  |
| Douglas Smith | 300000 |  |  | CAD$0.89 | 3/4/2026 |  |  |  |  |  |

---

(1) Represents
 1,261,512 Stock Options held by Ms. Jancik which were scheduled to vest in five equal amounts on the last
 day of each six-month period following the grant date. All of these Stock Options were forfeited upon her termination in accordance
with the Jancik Severance Agreement.

(2) Represents 400,000
 Stock Options held by Ms. Garcia of which, 200,000 will vest on the first and second anniversary
 of the grant date.

(3) The RSUs held by Dr.
 Burba will vest on November 26, 2025.

(4) The 100,000 RSUs held
 by Ms. Garcia vest over a three-year period, with one-third of the RSUs vesting on each subsequent
 anniversary of the grant date.

(5) Represents 3,927,630
 performance based RSUs which were scheduled to vest upon the satisfaction of the performance criteria specified
 by the Board. All of these RSUs were forfeited upon Ms. Jancik's termination in accordance with the Jancik Severance Agreement.

The following is a summary of the material terms of the Stock Option Plan:

● The aggregate number of Common Shares reserved for issuance pursuant to Stock Options under the Stock Option Plan shall not exceed 10% of the issued and outstanding Common Shares on the particular date of the grant of any Stock Option. This number shall include any Common Shares which may be issued upon the exercise of any Stock Options outstanding as of the date of the Stock Option Plan granted either individually or pursuant to predecessor stock option plans of the Company. If any option expires or otherwise terminates for any reason without having been exercised in full, the number of Common Shares in respect of which the option was not exercised shall be available for the purposes of the Stock Option Plan;

● In accordance with the TSXV Policies, (a) the maximum aggregate number of Common Shares issuable pursuant to Stock Options that may be issued under the Stock Option Plan, together with any other security based compensation plan or arrangement (collectively, referred to herein as the "**Security Based Compensation Plans**") within any 12 month period, may not exceed 5% of the outstanding Common Shares calculated on the date of grant of any Stock Option; (b) the maximum aggregate number of Common Shares issuable pursuant to Stock Options that may be issued to insiders (as a group) under the Stock Option Plan, together with all of the Company's other Security Based Compensation Plans, within any 12 month period, may not exceed 10% of the issued Common Shares calculated on the date of grant of any Stock Option; (c) the maximum aggregate number of Common Shares issuable pursuant to Stock Options that may be issued to insiders (as a group) under the Stock Option Plan, together with all of the Company's other Security Based Compensation Plans, may not exceed 10% of the issued Common Shares at any time; (d) the maximum aggregate number of Common Shares issuable pursuant to Stock Options that may be issued to any one consultant under the Stock Option Plan, together with all of the Company's other Security Based Compensation Plans, within any 12 month period, may not exceed 2% of the issued Common Shares calculated on the date of grant of any Stock Option; and (e) the maximum aggregate number of Common Shares issuable pursuant to Stock Options that may be issued to persons employed or contracted to provide investor relations activities (as a group), within any 12 month period, may not exceed 2% of the issued Common Shares of the calculated on the date of grant of any Stock Option;

● Stock Options granted must be exercised no later than 10 years from the date of grant or such lesser period as may be determined by the Board, subject to extensions during black-out periods;

● upon the death of a Participant, the legal representative of the Eligible Participant may exercise any outstanding portion of the Participant's Stock Options within one year after the date of the Participant's death;

● if an Participant ceases to be an eligible Participant under this Stock Option Plan for any reason other than death, the Participant may, but only within a reasonable period, not exceeding 12 months, to be set out in the applicable Stock Option Agreement at the time of the grant, following the Participant's ceasing to be an eligible Participant (or 30 days in the case of an Participant engaged in Investor Relations Activities) or prior to the expiry of the Stock Option Period, whichever is earlier, exercise any Stock Option held by the Participant, but only to the extent that the Participant was entitled to exercise the Stock Option at the date of such cessation. For greater certainty, any Participant who is deemed to be an employee pursuant to any medical or disability plan shall be deemed to be an employee for the purposes of the Stock Option Plan;

● subject to the policies of the applicable stock exchange and any limitations imposed by any relevant regulatory authority, the exercise price of an Stock Option granted under the Stock Option Plan shall be as determined by the Board when such Stock Option is granted and shall be an amount at least equal to the Discounted Market Price (as defined in the policies of the applicable stock exchange) of the Common Shares; and

● the Board may permit Stock Options granted to be exercised using the "Cashless Exercise" or "Net Exercise" provisions of Policy 4.4 of the TSXV Policies.

The following is a summary of the material terms of the Restricted Share Unit Plan (the "RSU Plan"):

● The RSU Plan is a "fixed" 10% plan. Subject to adjustment as may be permitted under the RSU Plan, the maximum number of Common Shares which may be reserved for issuance under the RSU Plan at any time shall be 20,577,824. For purposes of determining the number of Common Shares that remain available for issuance under the RSU Plan, the number of Common Shares underlying any grants of RSUs that are surrendered, forfeited, waived and/or cancelled shall be added back to the RSU Plan and again be available for future grant, whereas the number of Common Shares underlying any grants of RSUs that are issued upon exercise of RSUs shall not be available for future grant;

● the Board shall from time to time determine the eligible Participants to whom RSUs shall be granted and the provisions and restrictions with respect to such grants, all such determinations to be made in accordance with the terms and conditions of the RSU Plan, and the Board may take into consideration the present and potential contributions of and the services rendered by the particular Participant to the success of the Company and any other factors which the Board deems appropriate and relevant;

● an RSU award granted to a particular Participant in a year will be a bonus for services rendered by the Participant and the number of RSUs awarded will be credited to the Participant's account, effective as of the grant date;

● the RSUs shall have a term, which shall be determined by the Board on the date of award of the RSUs, which term shall not exceed 10 years. Each award of RSUs will vest on the date(s) and/or the satisfaction of the performance criteria specified by the Board on the award date and reflected in the applicable grant letter, provided that subject to the TSXV Policies, RSUs may not vest before the date that is one year following the date of grant or issue;

● in the event that a dividend (other than a stock dividend) is declared and paid by the Company on Common Shares, the Company may elect to credit each Participant with additional RSUs. In such case, the number of additional RSUs will be equal to the aggregate amount of dividends that would have been paid to the Participant if the RSUs in the Participant's account had been Common Shares divided by the market value of a Common Share on the date on which dividends were paid by the Company; and

● in accordance with the TSXV Policies, (a) the maximum aggregate number of Common Shares that may be issuable to any one Participant pursuant to all Security Based Compensation of the Company granted or issued within any 12 month period may not exceed 5% of the outstanding Common Shares calculated on the date of grant; (b) the maximum aggregate number of Common Shares that may be issuable to insiders of the Company (as a group) pursuant to all Security Based Compensation of the Company granted or issued within any 12 month period may not exceed 10% of the outstanding Common Shares calculated on the date of grant; (c) the maximum aggregate number of Common Shares that may be issuable to insiders of the Company (as a group) pursuant to all Security Based Compensation of the Company may not exceed 10% of the outstanding Common Shares at any point in time; and (d) the maximum aggregate number of Common Shares that may be issuable to any consultant of the Company pursuant to all Security Based Compensation of the Company granted or issued within any 12 month period may not exceed 2% of the outstanding Common Shares calculated on the date of grant of any Security Based Compensation.

**DIRECTOR COMPENSATION**

The form and amount of director compensation is reviewed annually and as deemed advisable by the Corporate Governance, Nominating and Compensation Committee ("**CGNC Committee**"), which shall make recommendations to the Board based on such review. The CGNC Committee reviews director compensation on an annual basis to ensure that we offer director compensation that is: (i) commensurate with the efforts we expect from existing Board members; (ii) competitive in the Company's industry in order that we might attract the best possible candidates to assist we and its shareholders in a fiduciary capacity to maximize the opportunity presented by that growth; and (iii) aligned with shareholder interests as we grows. The Board retains the ultimate authority to determine the form and amount of director compensation.

The chart below outlines the Company's current director compensation program for its non-employee directors:

---

| | | |
|:---|:---|:---|
| **Type of Fee** | **Role** | **Amount (Per Year)** |
| Board Retainers | Board Member | $60000 |
| Committee Retainers | Audit Committee Chair | $10000 |
|  | CGNC Committee Chair | $7500 |
|  | Audit Committee Member | $5000 |
|  | CGNC Committee Member | $3750 |
| Annual Equity Award | Board Member | $125,000 RSUs |

---

In addition, each member of the Board of Directors is entitled to reimbursement for reasonable travel and other expenses incurred in connection with attending Board meetings and meetings for any committee on which he or she serves.

The following table sets forth all compensation paid to or earned by each director during the fiscal year ended March 31, 2025, other than Dr. Burba whose compensation is set forth above in the Summary Compensation Table.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Fees earned or paid in cash**<br> **(US$)** | **Stock awards<sup>(1)</sup>**<br> **(US$)** | **Option awards**<br> **(US$)** | **Total** <br> **(US$)** |
| Tony Colletti<sup>(2)</sup> | 56250 |  | – | 56250 |
| Daniel Layton<sup>(3)</sup> |  |  | – |  |
| Jacob Warnock | 15938 | 126689 | – | 142627 |
| William Webster<sup>(2)</sup> | 67500 |  | – | 67500 |
| James Schultz | 35000 | 126689 | – | 161689 |
| John Souther | 34376 | 126689 | – | 161065 |
| Keith Solar | 36250 | 126689 | – | 162939 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The amounts reported in the
 Stock Awards column reflects aggregate grant date fair value computed in accordance with ASC Topic 718. These amounts reflect the
 Company's calculation of the value of these awards at the grant date and do not necessarily correspond to the actual value
 that may ultimately be realized by the director. Assumptions used in the calculation of these amounts are included in Note 11
 to the Company's audited consolidated financial statements for the fiscal years ended March 31, 2025, and 2024,
 which are included elsewhere in this prospectus.

---

| | | |
|:---|:---|:---|
| **Name** | **Aggregate Number of Stock awards (a)** | **Aggregate Number** <br> **of Option**<br> **awards (b)** |
| Tony Colletti<sup>(2)</sup> |  | 600000 |
| Daniel Layton<sup>(3)</sup> |  |  |
| Jacob Warnock | 541126 |  |
| William Webster<sup>(2)</sup> |  | 600000 |
| James Schultz | 541126 |  |
| John Souther | 541126 |  |
| Keith Solar | 541126 |  |

---

(a) The
 Stock Awards represent an award of RSUs issued to each director on November 24, 2024 as compensation
 which vest on the first anniversary.

(b) Upon
 the termination of their role as directors, the Board approved that the stock options for
 Mr. Colletti and Webster would expire on the first anniversary of their leaving the Board.

(2) Mr. Colletti's and
 Mr. Webster's service as a director ended effective October 31, 2024.

(3) Mr. Layton was appointed
 to the Board on January 18, 2024, and was not entitled to any compensation as a director for the fiscal year ending March 31, 2025.
 Mr. Layton's service as a director ended effective September 25, 2024.

**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

The following table sets forth the beneficial ownership of the Common Shares as of July 22, 2025, for (i) each member of the Board of Directors, (ii) each NEO, (iii) each person known to us to be the beneficial owner of more than 5% of the Company's securities and (iv) the members of the Board and the executive officers as a group.

The percentage ownership of Common Shares is based on 271,338,418 Common Shares outstanding as of July 22, 2025, which does not reflect the 25,765,259 Common Shares issuable upon closing of the 2025 Encompass Offering pending approval of the TSXV.

The information regarding beneficial ownership of our Common Shares has been presented in accordance with the rules of the SEC. Under these rules, a person may be deemed to beneficially own any of our Common Shares as to which such person, directly or indirectly, has or shares voting power or investment power, and as to which such person has the right to acquire voting or investment power within 60 days through the exercise of any stock option or other right. The percentage of beneficial ownership as to any person as of a particular date is calculated by dividing (1) (i) the number of shares beneficially owned by such person plus (ii) the number of shares as to which such person has the right to acquire voting or investment power within 60 days by (2) the total number of shares outstanding as of such date, plus any shares that such person has the right to acquire from us within 60 days. Including those shares in the tables does not, however, constitute an admission that the named shareholder is a direct or indirect beneficial owner of those shares. Unless otherwise indicated, each person or entity named in the table has sole voting power and investment power (or shares that power with that person's spouse) with respect to all Common Shares listed as owned by that person or entity, subject to applicable community property laws.

Unless otherwise indicated, the address of each of the executive officers and directors named below is c/o International Battery Metals Ltd., 6100 Tennyson Parkway, Suite 240, Plano, Texas 75024.

---

| | | |
|:---|:---|:---|
| **Name and Address** | **Amount and nature of beneficial ownership** | **Percent of Class** |
| ***Directors and Named Executive Officers*** |  |  |
| Dr. John Burba | 15530393<sup>(1)</sup> | 5.6% |
| Jacob Warnock | 119429055<sup>(2)</sup> | 37.2% |
| James Schultz |  |  |
| Keith Solar |  |  |
| John Souther |  | \* |
| Joseph Mills | —  | —  |
| Garry Flowers | 2857774<sup>(3)</sup> | 1.1% |
| Libor Michel | 200000<sup>(4)</sup> | \* |
| Iris Jancik | 300000 | \* |
| Norma Garcia |  |  |
| Douglas Smith | 680886<sup>(5)</sup> | \* |
| All directors and executive officers as a group (10 persons) | 112615308<sup>(6)</sup> | 37.3% |
| ***Greater than 5% shareholders*** |  |  |
| Ensorcia Metals Corporation | 23609445<br><sup>(7)</sup> | 8.7% |
| EV Metals VI LLC | 119429055<sup>(8)</sup> | 37.2% |
| Entities managed or sub-managed by Encompass Capital Advisors LLC | 52246798<sup>(9)</sup> | 17.9% |

---

\* Represents less than 1% issued and outstanding Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes options to acquire 5,198,500 Common Shares and 77,611 Warrants.

(2) Mr. Jacob Warnock's indirect beneficial ownership of shares held
by EV Metals and related affiliated parties. Amount includes 49,535,130 Common Shares underlying warrants which are vested or will
vest within 60 days.

(3) Includes options to acquire 820,902 Common Shares and 970,142 Common
 Shares underlying warrants which are vested or will vest within 60 days.

(4) Includes options to acquire 200,000 Common Shares.

(5) Includes options to acquire 300,000 Common Shares and 190,443 Common
 Shares underlying warrants which are vested or will vest within 60 days.

(6) Includes options to acquire 6,519,402 Common Shares and 23,699,548 Common Shares underlying warrants, in each case which are vested or will vest within 60 days.

(7) Ensorcia Metals Corporation's address is 333 West Wacker Drive
 Suite 2600, Chicago, IL. 60606. Mr. Layton exercises sole voting and dispositive control over the Common Shares beneficially
 owned by Ensorcia Metals Corporation.

(8) EV Metals VI LLC's address is 1 Calle Cervantes #5 San Juan PR
 00907. Mr. Warnock serves as investment advisor to EV Metals and exercises sole voting and dispositive control over the Common Shares
 beneficially owned by EV Metals. Includes EV Metals LLC, EV Metals II LLC, EV Metals III LLC, EV Metals IV LLC, EV Metals VI LLC,
 Elegante Energy LLC, Perk Salar LLC, and JAW Puerto Rico Trust. Amount includes 49,535,130 Common Shares underlying warrants which
 are vested or will vest within 60 days Of the shares included, 11,707,404 of the Common Shares are subject to a pledge.

(9) Includes 20,114,976 Common Shares underlying warrants which are
 vested or will vest within 60 days. Does not include (i) 25,765,259 Common Shares and (ii) 25,765,259 warrants (including the
 underlying Common Shares issuable upon exercise of the warrants) to be issued upon closing of the 2025 Encompass Offering, which is
 subject to TSXV approval and other customary closing conditions. Each of the warrants are restricted from being exercised to the
 extent that Common Shares beneficially held by the Encompass entities would exceed 19.9% of our Common Shares
 outstanding. The securities are held by certain fund entities and managed accounts for
 which Encompass Capital Advisors LLC exercises investment discretion. Todd Kantor, as the managing member of Encompass Capital
 Advisors LLC, may be deemed to have shared voting and dispositive power with respect to the shares held by Encompass and Mr. Kantor
 may also be deemed to beneficially own such securities. Mr. Kantor disclaims beneficial ownership of the foregoing, except to the
 extent of his pecuniary interest therein. The business address of Encompass Capital Advisors LLC and Mr. Kantor is 200 Park Avenue,
 Suite 1604, New York, New York 10166.

**SELLING SHAREHOLDERS**

The Common Shares and Warrants being offered by the selling shareholders are those previously sold to the selling shareholders pursuant to private placement transactions in April 2023 and May through June 2024 and are being registered pursuant to separate amended and restated registration rights agreements entered into by and between us and each of the respective selling shareholders dated May 3, 2024 (the "**Registration Rights Agreements**"). For additional information regarding the issuance of the Common Shares and Warrants, see "*Certain Relationships and Related Party Transactions*" in this prospectus. We are registering the Common Shares and Warrants in order to permit the selling shareholders to offer the Common Shares and Warrants for resale from time to time. Except for the ownership of these Common Shares and Warrants and for the transactions as described in the section "*Certain Relationships and Related Party Transactions*" in this prospectus, the selling shareholders have not had any material relationship with us within the past three years.

The table below lists the selling shareholders and other information regarding the beneficial ownership of Common Shares and Warrants by each of the selling shareholders being offered in this prospectus as of July 22, 2025. For the purposes of the following table, we have assumed that the selling shareholders will have sold all of the Common Shares and Warrants covered by this prospectus upon the completion of this offering. However, the selling shareholders may sell all, some or none of their Common Shares or Warrants in this offering. See "*Plan of Distribution*."

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name of Selling Shareholder** | **Number of Common Shares Beneficially Owned prior to this Offering** | **Number of Warrants Beneficially Owned prior to this Offering** | **Percentage of Common Shares Beneficially Owned Prior to the Offering** | **Maximum number of Common Shares to be Sold pursuant to this Prospectus** | **Maximum number of Warrants to be Sold pursuant to this Prospectus** | **Number of Common Shares Beneficially Owned after this Offering<sup>(1)</sup>** | **Percentage of Common Shares Beneficially Owned after this Offering<sup>(2)</sup>** | **Number of Warrants Beneficially Owned after this Offering<sup>(1)</sup>** |
|  | | | **%** | | | | **%** | |
| Entities managed or sub-managed by Encompass Capital Advisors LLC<sup>(3)</sup> | 52246798 | 20114976 | 17.9% | 33913338 | 20114976 | 18333460 | 6.8% |  |
| EV Metals LLC<sup>(4)</sup> | 2665625 |  | 1.0% | 2665625 |  |  |  |  |
| EV Metals II LLC<sup>(4)</sup> | 746250 |  | \* | 746250 |  |  |  |  |
| EV Metals III LLC<sup>(4)</sup> | 735000 |  | \* | 735000 |  |  |  |  |
| EV Metals IV LLC | 3970000 |  | 1.5% | 3970000 |  |  |  |  |
| EV Metals VI LLC<sup>(4)</sup> | 38436449 | 19795782 | 13.2% | 37054491 | 19104803 | 1381958 | \* | 690979 |
| Elegante Energy LLC<sup>(5)</sup> | 9792659 |  | 3.9% | 8792659 |  | 1000000 | \* |  |
| Perk Salar, LLC | 3248504 |  | 1.2% | 3248504 |  |  |  |  |
| JAW Puerto Rico Trust<sup>(5)</sup> | 2355872 |  | 1.1% | 2355872 |  |  | \* |  |

---

\* Less than 1%

(1) The
 percentage of beneficial ownership after this offering is calculated based on 271,338,418 Common Shares outstanding as of the date
 of this prospectus, which does not reflect the 25,765,259 Common Shares issuable upon closing of the 2025 Encompass Offering
 pending approval of the TSXV. Unless otherwise indicated, we believe that all persons named in the table have sole voting and
 investment power with respect to all shares beneficially owned by them. The amount of Common Shares that will be held by the selling
 shareholder after completion of this offering is based on the assumptions that (a) all Common Shares and Warrants registered for
 resale by the registration statement of which this prospectus is part will be sold and (b) no other Common Shares or Warrants are
 acquired or sold by the selling shareholder prior to completion of this offering. However, each selling shareholder may sell all,
 some or none of the Common Shares offered pursuant to this prospectus and may sell other Common Shares that they may own pursuant to
 another registration statement under the Securities Act or sell some or all of their shares pursuant to an exemption from the
 registration provisions of the Securities Act, including under Rule 144.

(2) Represents
 the percentage of Common Shares beneficially owned by the selling shareholders after this offering without taking into account any
 limitations on exercises of Warrants.

(3) Includes
 20,114,976 Common Shares issuable upon exercise of outstanding Warrants. Does not include 25,765,259 Common Shares and 25,765,259
 warrants (including the underlying common shares issuable upon exercise of the warrants) to be issued upon closing of the 2025 Encompass
 Offering, which is subject to TSXV approval and other customary closing conditions. Each of the warrants are restricted from being
 exercised to the extent that Common Shares beneficially held by the Encompass entities would exceed 19.9% of our Common Shares outstanding. The securities are held by certain fund entities and managed accounts for which Encompass Capital Advisors LLC exercises investment
 discretion. Todd Kantor, as the managing member of Encompass Capital Advisors LLC, may be deemed to have shared voting and dispositive
 power with respect to the shares held by Encompass and Mr. Kantor may also be deemed to beneficially own such securities. Mr. Kantor
 disclaims beneficial ownership of the foregoing, except to the extent of his pecuniary interest therein. The business address of
 Encompass Capital Advisors LLC and Mr. Kantor is 200 Park Avenue, Suite 1604, New York, New York 10166.

(4) Includes 19,795,782 Common Shares issuable upon exercise of Warrants.

(5) Includes 797,640 and 558,909 Common
 Shares issuable to Elegante Energy LLC and JAW Puerto Rico Trust, respectively, upon the exercise of warrants within 60 days that
 were purchased from an entity other than the Company.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

We describe below transactions or series of similar transactions, since April 1, 2022, or currently proposed, to which we were a party or will be a party, in which, the amounts involved exceeded $120,000 or 1% of the Company's average total assets at year-end for the last two fiscal years, whichever is less, and in which any of our directors, executive officers or beneficial holders of more than 5% of any class of our capital stock, or any immediate family member of, or person sharing the household with, any of these individuals or entities, had or will have a direct or indirect material interest.

We recognize that transactions between us and any of our directors or executives or with a third party in which one of our officers, directors or significant shareholders has an interest can present potential or actual conflicts of interest and create the appearance that our decisions are based on considerations other than the best interests of us and our shareholders.

On March 4, 2018, we entered into a Royalty Agreement ("**Royalty Agreement**") with NAL. The Royalty Agreement was entered into in connection with the acquisition by the Company of all of NAL's data, analysis and reports related to lithium extraction from oilfield brines for petrol-lithium extraction projects. Pursuant to the Royalty Agreement, the Company agreed to pay to NAL on a fiscal quarterly basis a royalty equal to 5% of the Company's "Product Income", which is defined in the agreement as "the proceeds received by the Company from the sale of any Products less the Production Costs incurred by the Company." The Royalty Agreement defines Products as "any saleable material." The royalty may be paid at the election of NAL in cash, issuance of Common Shares or any combination of both. Based on the Company's current business model, the Company does not anticipate selling any "Products" in the foreseeable future but rather leasing the MDLE Plants, which would generate lease revenue, and operating and maintaining the MDLE Plant, which would generate services revenue. The controlling shareholder of NAL is Dr. John Burba, the Company's Chief Technology Officer. However, Dr. Burba was not at the time of entering into the Royalty Agreement, a related party.

On November 7, 2018, we entered into a licensing agreement with (i) Ensorcia Metals, a British Virgin Islands corporation and (ii) Sorcia Minerals, a Delaware limited liability company, controlled by Ensorcia Metals which provided to Sorcia Minerals, exclusive limited license to the Company's technology in Chile and Argentina (Ensorcia Metals and Sorcia Minerals are collectively referred to as "**Ensorcia**" and the agreement is referred to as the "**Ensorcia Licensing Agreement**"). The controlling shareholder of Ensorcia is Mr. Daniel Layton, a former member of our Board who held in excess of 10% of our Common Shares at the time of the transaction (who now holds approximately 8.7% of our common shares). The Ensorcia Licensing Agreement provide Ensorcia the exclusive rights to market and develop the Company's technology in Chile and Argentina provided that an MDLE Plant is installed and operational no later than December 31, 2028. The Ensorica Licensing Agreement provide Ensorcia the right to use the Company's technology but does not transfer any ownership to Ensorcia. As consideration for us providing technology, know-how, design, construction, installation, operation of the MDLE Plant and making certain technical employees available, the Ensorica Licensing Agreement provides that we are entitled to a 6% royalty based on net sales, and a 10% equity interest in each project, as defined under the Ensorcia Licensing Agreements. The Ensorcia Licensing Agreements include other customary terms and conditions.

On February 19, 2021, the Company entered into a private placement transaction wherein the Company agreed to issue up to 17,250,000 units to each of Sorcia Minerals and EVL Holdings, with each unit comprised of one Common Share and one Warrant (the "**2021 Private Placement**"). The controlling shareholder of Sorcia Minerals is Mr. Daniel Layton, who is a greater than 5% shareholder and is a former member of our Board of Directors. Sorcia Minerals and EVL Holdings is a greater than 5% shareholder.

On March 30, 2023, we entered into a licensing agreement with Entec LLC ("**Entec**"), a Delaware limited liability company controlled by Mr. Daniel Layton, a former member of our Board, and a controlling shareholder of Entec, who owns approximately 12.9% of our Common Shares (the "**Entec Licensing Agreement**"). The Entec Licensing Agreement provides Entec, a non-exclusive, world-wide license (except Argentina and Chile) to access all patents, trade secrets, and other proprietary rights ("**IP Rights**") for use by Entec solely for the purposes of (i) extracting lithium salts from brine and (ii) for the production and sale of products using the Company's patented extraction systems licensed under the Entec Licensing Agreement. In consideration for receiving the IP Rights, Entec agreed to provide us with a royalty equal to 6% of the net sales, as defined under the Entec Licensing Agreement, with respect to the first resource project or lithium extraction facility utilizing the Company's licensed technology as well as an interest in the underlying project equal to 10% of Entec's interest in the same project. The Entec Licensing Agreement allows Entec to sub-license the IP Rights to affiliates of Entec without written consent from the Company.

On April 21, 2023, we completed a non-brokered private placement ("**April 2023 Placement**") and issued 6,396,999 Units, consisting of 6,396,999 Common Shares and 6,396,999 Warrants ("**April 2023 Warrants**") to Encompass, an accredited investor, in reliance on Regulation S of the Securities Act, with each Unit being priced at CAD$1.04635 per share for gross proceeds of $5.0 million. Each unit is comprised of one Common Share and one Warrant entitling the holder to purchase one Common Share for a period of two years at an exercise price of CAD$1.21. The proceeds from the private placement were used for working capital needs, to accelerate research and development efforts, product development and technology adoption, and for preplacement orders of MDLE Plants for sitting on customer brine resources.

On December 8, 2023, we entered into a transaction, whereby Mr. Garry Flowers, former Chief Executive Officer, Dr. John Burba, current Chief Technology Officer and Director, and an outside consultant subscribed for an aggregate of 1,629,838 units, with each unit comprised of one Common Share and one Warrant, for an aggregate amount of US$840,000.

On December 29, 2023, we entered into a transaction, whereby we agreed to issue 2,694,804 units, with each unit comprised of one Common Share and one Warrant to certain investors, including Douglas Smith, current Chief Financial Officer of the Company for gross proceeds of approximately $1.4 million. Pursuant to the private placement, Mr. Smith subscribed for 190,443 units for an aggregate subscription price of US$100,000.

On February 11, 2024, we entered into a binding term sheet with EV Metals VI, a private company controlled by Mr. Jacob Warnock, a current director of ours pursuant to which EV Metals VI agreed to subscribe for units for aggregate consideration of up to US$20 million (the "**Term Sheet**"). Below is a summary of the various transactions that have occurred to date pursuant to the Term Sheet:

● On February 29, 2024 (the "**February 2024 Placement** "), EV Metals VI acquired 2,702,400 units at a deemed unit price of US$1.00 for aggregate proceeds of US$2 million. Each unit is comprised of one Common Share and one Warrant entitling the holder thereof to acquire one additional Common Share at an exercise price of CAD$1.25, until March 1, 2026 ()"**February 2024 Warrants** ").

● On May 6, 2024 (the "**May 2024 Placement** "), EV Metals VI and Encompass acquired a total of 18,642,134 units at a deemed unit price of CAD$0.76632 for aggregate proceeds of approximately US$10.4 million ()"**May 2024 Warrants** "). Encompass was not a party to the Term Sheet and acquired the units as a result of its exercise of the pre-emptive rights granted to Encompass ()"**Encompass Pre-Emptive Rights**") pursuant to the terms of an investment agreement dated April 21, 2023 ()"**Encompass Investment Agreement**") entered into with Encompass in respect of the April 2023 Placement. Each unit is comprised of one Common Share and one Warrant entitling the holder thereof to acquire one additional Common Share at an exercise price of CAD$0.9579, until May 3, 2026. In addition to the issuance of the May 2024 Warrants, we also agreed to extend the expiry date of the April 2023 Warrants previously issued on April 21, 2023, from April 21, 2025 to May 3, 2026 (For more information about this transaction, See *"Item 15. Recent Sales of Unregistered Securities"*). In connection with the May 2024 Placement, EV Metals VI acquired 7,924,157 Units for gross proceeds of US$4.4 million, representing approximately 42.51% of the aggregate proceeds we raised in the private placement. In addition, we paid EV Metals VI a structuring and financing fee in connection with the private placement in the amount of USD$322,000, payable through the issuance of 574,840 Common Shares with each share having a deemed issuance price of CAD$0.76632. Furthermore, we also issued an additional 80,385 Common Shares to Encompass as payment to cover certain expenses incurred by Encompass.

● On June 19, 2024 (the "**June 2024 Placement** "), EV Metals VI and Encompass (pursuant to the Encompass Pre-Emptive Rights) acquired a total of 11,478,246 units at a deemed unit price of CAD$0.76632 for aggregate proceeds of approximately US$6.4 million. Each unit was comprised of one Common Share and one Warrant entitling the holder thereof to acquire one additional Common Share at an exercise price of CAD$0.9579, until June 19, 2026 (the "**June 2024 Warrants** ").

● In connection with the June 2024 Placement, we paid EV Metals VI a financing and structuring fee in the amount of US$238,000, which was satisfied through the issuance of an additional 423,912 Common Shares to Mr. Jacob Warnock, a current director who controls EV Metals VI. In connection with the June 2024 Placement, EV Metals VI acquired 8,478,246 Units for gross proceeds of approximately USD$4.8 million, representing approximately 73.86% of the aggregate proceeds raised by us in the private placement, and Encompass acquired 3,000,000 Units for gross proceeds of USD$1.6 million, pursuant to the Encompass Pre-Emptive Rights, which represented approximately 26.14% of the aggregate proceeds raised by us in the June 2024 Placement.

On February 28, 2025, the Company entered into the 2025 Letter Agreement with EV Metals, a company controlled by Jacob Warnock, a director of the Company, agreeing to the principal terms and conditions upon which EV Metals, directly or through one or more of its subsidiaries or affiliates, has the option but not the oblation to purchase up to $15.0 million of 2025 EV Metals Units in the 2025 EV Metals Offering. The 2025 EV Metals Units consist of one Common Share of stock and one warrant to purchase a Common Share. The first issuance of the 2025 EV Metals Offering occurred on March 31, 2025 for gross proceeds of $7.6 million and the second issuance of the 2025 EV Metals Offering occurred on April 11, 2025 for gross proceeds of $0.7 million. In connection with the two issuances, EV Metals 7 LLC and EV Metals VI LLC acquired a total of 27,739,348 and 690,979 2025 EV Metals Units, respectively.

The pricing of the 2025 EV Metals Units was CAD $0.4168 per share (USD$0.2894 per share), which was based on the five-day trading average of the Common Shares on the TSXV, less a discount of 20% (the maximum allowable discount permitted by the rules of the TSXV). The warrants included in the 2025 EV Metals Units will have a term of four years from date of issuance and will entitle the holders to purchase a Common Share at an exercise price equal to the closing price of the Common Shares on the TSXV as of the date immediately preceding the date of the news release announcing the 2025 EV Metals Offering or the closing of the applicable tranche of the 2025 EV Metals Offering. In connection with the first and second issuance of the 2025 EV Metals Offering, the Company paid structuring fees of $411,450 to Mr. Warnock, a director and control person of EV Metals.

In connection with the 2025 EV Metals Offering, on March 31, 2025, we entered into an amendment (the "**IRA Amendment**") to the investor rights agreement dated February 23, 2024 between the Company and EV Metals, which, among other things, previously granted EV Metals the right to appoint one director to the Company's board of directors for as long as EV Metals and its affiliates maintained beneficial ownership of at least 5% of the issued and outstanding Common Shares and so long as the board of directors is comprised of five or less individuals. EV Metals initial nominee to the Company's board of directors was Jacob Warnock. The IRA Amendment grants EV Metals the right to approve, in its sole discretion, the appointment of one additional individual to the Company's board of directors so long as the board of directors is comprised of more than five individuals, provided that the additional appointee is independent of EV Metals and IBAT. Such nomination right will continue for as long as EV Metals and its affiliates maintain beneficial ownership of at least 5% of the issued and outstanding Common Shares.

On July 20, 2025, the Company entered into the Encompass Subscription Agreements with Encompass, a beneficial owner of more than 5% of the Company's securities, for the purchase of up to 25,765,259 units at a price of CAD $0.26625 per unit (USD$0.19406 per unit) for gross proceeds of $5.0 million to the Company. Each 2025 Encompass Unit consists of one Common Share and one warrant, with each warrant entitling the holder to purchase one additional Common Share for a period of three years from the closing date of the 2025 Encompass Offering at an exercise price of CAD$0.355 per share. In addition, the Company has agreed to grant Encompass the right but not the obligation to purchase up to $2.0 million additional units of the Company at any time on or before December 31, 2025.

The 2025 Encompass Offering is expected to close on or around August 8, 2025, subject to satisfaction of customary closing conditions, including (i) receipt of the requisite regulatory approvals, including the approval of the TSXV and the Warrant Amendments (as defined below), (ii) the accuracy of the representations and warranties of the other party, (iii) compliance with the terms, covenants, agreements and conditions of the Encompass Subscription Agreements, and (iv) no occurrence of a Material Adverse Effect (as defined in the Encompass Subscription Agreements) or that could reasonably be expected to occur, on the part of the Company.

On July 20, 2025, the Company entered into amended and restated registration rights agreements ("**A&R Registration Rights Agreements**") which amended the Registration Rights Agreements with each of EV Metals and Encompass. Pursuant to the A&R Registration Rights Agreements, we have agreed to use our reasonable best efforts to cause this Registration Statement to be declared effective as promptly as reasonably practicable but in no event later than July 20, 2026. In addition, pursuant to the Encompass A&R Registration Rights Agreement, upon the closing of the 2025 Encompass Offering we have agreed that, upon request of Encompass, we will use our commercially reasonable efforts to (i) file a registration statement registering the Common Shares to be issued at closing of the 2025 Encompass Offering, including the Common Shares issuable upon exercise of the warrants which form a part of the 2025 Encompass Units within 90 days and (ii) have such registration statement declared effective as promptly as reasonably practicable following the filing thereof but in no event later than 60 days if the registration statement is not reviewed by the SEC or 180 days if subject to review. The A&R Registration Rights Agreements provide that, subject to certain requirements and customary conditions, each of EV Metals and Encompass will have "piggy-back" registration rights with respect to underwritten offerings by us and other shareholders. In addition, upon the request of EV Metals, we have agreed to take necessary steps to facilitate up to two underwritten offerings which must occur prior to the third anniversary of the effective date of this registration statement on Form S-1; provided that the aggregate price of such offering is expected to be $25 million or less.

The A&R Registration Rights Agreements contain customary cross-indemnification provisions, under which we are obligated to indemnify the selling shareholders in the event of material misstatements or omissions in the registration statement and any violation or alleged violation by us of the Securities Act, Exchange Act, or any state securities law, or any rule or regulation thereunder, and the selling shareholders are obligated to indemnify us for material misstatements or omissions attributable to them. We will generally pay all registration expenses in connection with our obligations under the A&R Registration Rights Agreements, regardless of whether any our Common Shares are sold pursuant to a registration statement.

In connection of the foregoing, pursuant to the A&R Registration Rights Agreements, we agreed to to extend the expiration date of the warrants previously issued to Encompass and EV Metals pursuant to the private placements which occurred on April 21, 2023, February 29, 2024, May 3, 2024, and June 19, 2024 to the earlier of (i) five years from the date of such warrants original issuance or (ii) three years from the date of the closing of the 2025 Encompass Offering (the "**Warrant Amendments**") and each of EV Metals and Encompass has agreed to waive their respective rights to any possible claims, including the right to liquidation damages, under the Registration Rights Agreements provided that the Warrant Amendments are approved by the TSXV.

**DESCRIPTION OF SHARE CAPITAL**

The following description of our share capital summarizes certain provisions of our Articles. The summary does not purport to be complete and is subject to, and is qualified in its entirety by reference to, all of the provisions of our Articles, a copy of which has been filed as an exhibit to the registration statement of which this prospectus forms a part. Prospective investors are urged to read the exhibits to the registration statement of which this prospectus forms a part for a complete understanding of our Articles.

**Authorized/Issued Capital**

The Company's authorized share capital consists of an unlimited number of Common Shares without par value.

**Common Shares**

Each Common Share carries the right to attend and vote at all general meetings of shareholders. Holders of the Company's Common Shares are entitled to dividends, if any, as and when declared by the Board and to one vote per Common Share at meetings of shareholders. In addition, upon liquidation, dissolution or winding-up of the Company, holders of Common Shares may share, on a *pro rata* basis, the remaining assets as are distributable to holders of Common Shares of the Company. We may, subject to certain exceptions, purchase, redeem or otherwise acquire any of its shares at the price and upon the terms determined by the Board of Directors. The Company's Common Shares are not subject to call or assessment rights, rights regarding purchase for cancellation or surrender, or any pre-emptive or conversion rights.

As of July 18, 2025, we had 123 holders of record of our Common Shares.

**Warrants**

As of July 22, 2025, an aggregate of 71,974,478 Common Shares are issuable upon the exercise of outstanding Warrants at a weighted average exercise price of CAD$0.82 per Warrant, which does not reflect the 25,765,259 Common Shares issuable upon exercise of the warrants to be issued at closing of the 2025 Encompass Offering pending approval of the TSXV. Each Warrant entitles the holder to purchase or receive one Common Share.

**Stock Options**

As of July 22, 2025, an aggregate of 10,169,402 Common Shares are issuable upon the exercise of outstanding incentive stock options at a weighted average exercise price of CAD$0.80 per option. Each stock option entitles the holder to purchase or receive one Common Share of the Company.

**Voting Rights**

All holders of Common Shares will be entitled to receive notice of any meeting of shareholders of the Company, and to attend, vote and speak at such meetings. A quorum for the transaction of business at a meeting of shareholders shall be one shareholder present and being, or one shareholder represented by proxy, with such shareholder holding not less than one Common Share. On all matters upon which holders of Common Shares are entitled to vote, each Common Share is entitled to one vote per Common Share.

**Dividend Rights**

Holders of Common Shares are entitled to receive dividends out of the assets available for the payment or distribution of dividends at such times and in such amount and form as the Company's Board may from time to time determine. We are permitted to pay dividends unless there are reasonable grounds for believing that: (i) we is insolvent; or (ii) the payment of the dividend would render we insolvent.

**Registration Rights**

We are currently a party to Registration Rights Agreements with each of Encompass and EV Metals providing for the filing of the registration statement of which this prospectus forms a part with the SEC registering the resale of Common Shares, Warrants and Common Shares underlying the Warrants issued in various private placements in 2023 and the first half of 2024. In connection with the Encompass A&R Registration Rights Agreement, we have agreed that after the closing of the 2025 Encompass Offering, we will, upon request of Encompass, use our commercially reasonable efforts to file a registration statement registering the 25,765,259 Common Shares to be issued at closing of the 2025 Encompass Offering and the 25,765,259 Common Shares issuable upon exercise of the warrants which form a part of the 2025 Encompass Units.

The registration statement of which this prospectus forms a part is intended to satisfy our requirements under the A&R Registration Rights Agreement.

**Liquidation Rights**

In the event of the liquidation, dissolution or winding-up or any other distribution of its assets among its shareholders for the purpose of winding-up its affairs, whether voluntarily or involuntarily, the holders of Common Shares will be entitled to receive all of the Company's assets remaining after payment of all debts and other liabilities.

**Pre-emptive and Redemption Rights**

In accordance with the Encompass Investment Agreement, we provided Encompass pre-emptive rights for a period of 24 months from April 25, 2023, being the closing date under the Encompass Investment Agreement, which provided Encompass with a right to subscribe for and be issued an equivalent number of securities to maintain its respective *pro rata* percentage shareholding in us existing immediately prior to any equity financing option pursued by the Company, at a price proposed by us or on terms substantially similar to the equity financing options pursued by the Company. These pre-emptive rights have expired.

**Anti-takeover Provisions in the Company's Articles and the BCBCA**

Certain provisions of the Articles, as well as certain provisions of the BCBCA, may make more difficult or discourage a takeover of our business.

Under the BCBCA and our Articles, certain extraordinary company alterations, such as changes to authorized share structure, continuances, into or out of province, certain amalgamations, sales, leases or other dispositions of all or substantially all of the undertaking of a company (other than in the ordinary course of business) liquidations, dissolutions, and certain arrangements are required to be approved by ordinary or special resolution as applicable.

An ordinary resolution is a resolution (i) passed at a shareholders' meeting by a simple majority, or (ii) passed, after being submitted to all of the shareholders, by being consented to in writing by shareholders who, in the aggregate, hold shares carrying at least two-thirds of the votes entitled to be cast on the resolution. A special resolution is a resolution (i) passed by not less than two-thirds of the votes cast by the shareholders who voted in respect of the resolution at a meeting duly called and held for that purpose or (ii) signed by all shareholders entitled to vote on the resolution.

Under the BCBCA, an action that prejudices or interferes with a right or special right attached to issued shares of a class or series of shares must be approved by a special separate resolution of the holders of the class or series of shares being affected.

Under the BCBCA, arrangements are permitted, and a company may make any proposal it considers appropriate "despite any other provision" of the BCBCA. In general, a plan of arrangement is approved by a company's board of directors and then is submitted to a court for approval. It is not unusual for a company in such circumstances to apply to a court initially for an interim order governing various procedural matters prior to calling any security holder meeting to consider the proposed arrangement. Plans of arrangement involving shareholders must be approved by a special resolution of shareholders, including holders of shares not normally entitled to vote. The court may, in respect of an arrangement proposed with persons other than shareholders and creditors, require that those persons approve the arrangement in the manner and to the extent required by the court. The court determines, among other things, to whom notice shall be given and whether, and in what manner, approval of any person is to be obtained and also determines whether any shareholders may dissent from the proposed arrangement and receive payment of the fair value of their shares. Following compliance with the procedural steps contemplated in any such interim order (including as to obtaining security holder approval), the court would conduct a final hearing and approve or reject the proposed arrangement.

Under the policies of the TSXV, the TSXV defines a "Control Person" as any Person that holds or is one of a combination of Persons that holds a sufficient number of any of the securities of an issuer so as to affect materially the control of that issuer, or that holds more than 20% of the outstanding voting shares of an issuer except where there is evidence showing that the holder of those securities does not materially affect the control of the issuer. In situations where transactions are being contemplated by us that would lead to a new Control Person, the TSXV will require disinterested shareholder approval (i.e. those shareholders other than the new Control Person) of an ordinary resolution approving the new Control Person unless a formal exemption is obtained.

According to our Articles, all directors cease to hold office immediately before the election or appointment of directors at every annual general meeting but are eligible for re-election or re-appointment. Under Section 14.1 of the Articles, shareholders may remove any director before the expiration of his or her term of office by a special resolution of shareholders. This system of electing and removing directors generally makes it more difficult for shareholders to replace a majority of our directors.

Under the BCBCA, the holders of not less than 5% of the Company's Common Shares may require that the directors call a meeting of shareholders for the purpose of transacting any business that may be transacted at a general meeting. Upon receiving a requisition that complies with the technical requirements set out in the BCBCA, the directors must, subject to certain limited exceptions, call a meeting of shareholders to be held not more than 4 months after receiving the requisition. If the directors do not call such a meeting within 21 days after receiving the requisition, the requisitioning shareholders or any of them holding in aggregate not less than 2.5% of our issued shares that carry the right to vote at general meetings may call the meeting.

Under the BCBCA, shareholder proposals may be made by registered or beneficial owners of shares entitled to vote at general meetings of shareholders who have been the registered or beneficial owner of such shares for an uninterrupted period of at least two years before the date of signing of the proposal, and who together in the aggregate constitute at least 1% of the issued shares that carry on the right to vote at general meetings or have a fair market value of shares in excess of CAD$2,000. Those registered or beneficial holders must, alongside the proposal, submit and sign a declaration providing the requisite information under the BCBCA. To be a valid proposal, the proposal must be submitted at least three months before the anniversary of the previous year's annual reference date.

Nominations of persons for election to the Company's Board of Directors may be made at any annual meeting of shareholders, or at any special meeting of shareholders if one of the purposes for which the special meeting was called was the election of directors: (a) by or at the direction of the board of directors, including pursuant to a notice of meeting; (b) by or at the direction or request of one or more shareholders pursuant to a proposal made in accordance with the provisions of the BCBCA, or a requisition of the shareholders made in accordance with the provisions of the BCBCA; or (c) by any person (a "**Nominating Shareholder**"): (A) who, at the close of business on the date of the giving of the notice and on the record date for notice of such meeting, is entered in the securities register as a holder of one or more shares carrying the right to vote at such meeting or who beneficially owns shares that are entitled to be voted at such meeting; and (B) who complies with the notice procedures set forth in our Articles.

These provisions may have the effect of deterring unsolicited offers to acquire we or delaying changes in control of our management. These provisions could also have the effect of delaying until the next shareholder meeting any shareholder actions, even if they are favored by the holders of a majority of our outstanding voting securities.

**Protection of Minority Shareholder Interests**

In addition to the Anti-takeover provisions as provided pursuant to the Articles and the BCBCA, we are also subject to certain minority protection requirements pursuant to NP 61-101 "*Protection of Minority Securities Holders in Special Transactions*" of the BCSC ("**NP 61-101**"), when completing a "Related Party Transaction" as such term is defined within NP 61-101.

In situations where a transaction is deemed to be a "Related Party Transaction", unless exempted pursuant to Section 5.7(1)(a) or (b) of NP 61-101, such transaction will require disinterested shareholder approval (i.e. those shareholders not a party to the transaction) of an ordinary resolution approving the Related Party Transaction.

**Certain Amendments**

In addition to any other voting right or power to which the holders of Common Shares shall be entitled by law or regulation or other provisions of the Articles from time to time in effect, but subject to the provisions of the Articles, holders of Common Shares shall each be entitled to vote separately as a class, in addition to any other vote of shareholders that may be required, in respect of any alteration, repeal or amendment of the Company's Articles which would adversely affect the rights or special rights of the holders of Common Shares.

The rights, privileges, conditions and restrictions attaching to the Common Shares may be modified if the amendment is authorized by not less than 66 2/3% of the votes cast at a meeting of holders of Common Shares duly held for that purpose.

**Transfer Agent and Registrar**

Our transfer agent and registrar is Computershare Trust Company of Canada whose address is 100 University Ave, 8th Floor, Toronto, Ontario, M5J 2Y1. Computershare Trust Company of Canada maintains our registered list of shareholders.

**DESCRIPTION OF WARRANTS**

During 2023 and 2024, we completed a series of private placements of units, with each unit consisting of one Common Share and one warrant (which represents the right to acquire one Common Share).

The following description summarizes the 23/24 Warrants, issued pursuant to the April 2023 Placement, the February 2024 Placement, the May 2024 Placement, and the June 2024 Placement, the resale of which are being registered pursuant to this prospectus. The summary does not purport to be complete and is subject to and is qualified by the forms of such warrants filed as Exhibits 4.1, 4.2, 4.3 and 4.4. to the Registration Statement of which this prospectus forms a part (the "**Warrant Certificates**"). On July 20, 2025, we entered into the Warrant Amendments pursuant to which we agreed, subject and upon approval of the TSXV, to amend the expiration dates of the April 2023 Warrants, the February 2024 Warrants, the May 2024 Warrants and the June 2024 Warrants to the earlier of (1) five years from the date of issuance or (2) three years after the closing of the 2025 Encompass Offering.

**Warrants issued pursuant to the April 2023 Placement** (the "**April 2023 Warrants**")

● <u>Amount of warrants</u>: 6,396,999.

● <u>Exercise price</u>: The April 2023 Warrants entitle the respective underlying holders to purchase from us Common Shares at an exercise price of CAD$1.21.

● <u>Expiration Date</u>: May 3, 2026.

**Warrants issued pursuant to the February 2024 Placement** (the "**February 2024 Warrants**")

● <u>Amount of warrants</u>: 2,702,400.

● <u>Exercise Price</u>: The February 2024 Warrants entitle the respective underlying holders to purchase from us Common Shares at an exercise price of CAD$1.25.

● <u>Expiration Date</u>: March 1, 2026.

**Warrants issued pursuant to the May 2024 Placement** (the "**May 2024 Warrants**")

● <u>Amount of warrants</u>: 18,642,134.

● <u>Exercise Price</u>: The May 2024 Warrants entitle the respective underlying holders to purchase from us Common Shares at an exercise price of CAD$0.9579.

● <u>Expiration Date</u>: May 3, 2026.

**Warrants issued pursuant to the June 2024 Placement** (the "**June 2024 Warrants**")

● <u>Amount of warrants</u>: 11,478,246.

● <u>Exercise Price</u>: The June 2024 Warrants entitle the respective underlying holders to purchase from us Common Shares at an exercise price of CAD$0.9579.

● <u>Expiration Date</u>: June 19, 2026.

Each of the April 2023 Warrants, the May 2024 Warrants, the February 2024 Warrants and the June 2024 Warrants, which we refer to as the 23/24 Warrants (i) can be exercised in whole or in part, at any time prior to the expiration date by paying the applicable exercise price, (ii) are subject to adjustment upon the payment of dividends in Common Shares, sub-divisions, combinations, reclassifications, and (iii) are transferable on terms and conditions specified in the respective Warrant Certificates.

**MATERIAL UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS**

The following discussion is a summary of the material U.S. federal income tax consequences of the purchase, ownership and disposition of our Common Shares to a U.S. Holder (as defined below), but does not purport to be a complete analysis of all potential tax considerations relevant to a U.S. Holder. This discussion is based upon current U.S. federal income tax law, which is subject to change, possibly with retroactive effect. This discussion does not address all of the U.S. federal income tax consequences that may be relevant to a U.S. Holder in light of such holder's particular circumstances or to U.S. Holders subject to special rules under the U.S. federal income tax laws, including:

● banks, other financial institutions, or insurance companies;

● tax-exempt entities, qualified retirement plans, individual retirement accounts, or other tax-deferred accounts;

● persons who hold shares as part of a straddle, synthetic security, hedge or other integrated transaction, conversion transaction or other integrated investment;

● persons who have been, but are no longer, citizens or residents of the United States or former long-term residents of the United States;

● controlled foreign corporations or passive foreign investment companies;

● persons holding shares through a partnership (including any entity or arrangement treated as a partnership for U.S. federal income tax purposes), S corporation, or other fiscally transparent entity;

● dealers or traders in securities, commodities or currencies;

● U.S. persons whose "functional currency" is not the U.S. dollar;

● regulated investment companies and real estate investment trusts;

● persons that are subject to the "applicable financial statement" rules under Section 451(b) of the Code (as defined below);

● persons who received shares through the exercise of incentive options or through the issuance of restricted stock under an equity incentive plan or through a tax-qualified retirement plan; or

● persons who own (directly, indirectly or constructively) 10 percent or more of our shares by vote or value.

In addition, this discussion is limited to U.S. Holders who hold our Common Shares as capital assets for U.S. federal income tax purposes, and does not address the U.S. federal alternative minimum tax, any U.S. federal taxes other than the U.S. federal income taxes (such as estate and gift taxes), or any U.S. state, local, or non-U.S. tax considerations.

This discussion is based on the Internal Revenue Code of 1986, as amended (the "Code"), the Treasury regulations, and judicial and administrative interpretations thereof, each as in effect and available on the date of this prospectus supplement. Each of the foregoing is subject to change, potentially with retroactive effect, and any such change could affect the U.S. federal income tax considerations described below:

**In General**

For purposes of this discussion, a "U.S. Holder" is a beneficial owner of our Common Shares that for U.S. federal income tax purposes is:

● a citizen or individual resident of the United States;

● a corporation created or organized under the laws of the United States, any state thereof or the District of Columbia;

● an estate whose income is subject to U.S. federal income tax regardless of its source; or

● a trust if either (1) a U.S. court is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust or (2) the trust has a valid election in effect to be treated as a U.S. person under applicable Treasury regulations.

If a partnership or other entity treated as a partnership for U.S. federal income tax purposes holds our Common Shares, the tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. A partner in a partnership considering an investment in our Common Shares should consult its tax advisor with regard to the U.S. federal income tax treatment of the purchase, ownership and disposition of our Common Shares.

Each prospective purchaser of our Common Shares should consult its tax advisor concerning the tax consequences of an investment in our Common Shares in light of its particular circumstances, including the application of the U.S. federal income tax considerations discussed below, as well as the application of state, local, non-U.S. or other tax laws.

**Taxation of Distributions**

Subject to the discussion under "—Passive Foreign Investment Company Status" below, the gross amount of any distribution made by us with respect to our Common Shares (including any amounts withheld in respect of Canadian withholding taxes), will be taxable to U.S. Holders as a dividend for U.S. federal income tax purposes to the extent paid out of our current or accumulated earnings and profits (as determined for U.S. federal income tax purposes). Such amount (including any Canadian taxes withheld) will be included in a U.S. Holder's gross income on the day actually or constructively received. Such dividends will not be eligible for the dividends received deduction allowed to corporations. To the extent that the amount of any distribution exceeds our earnings and profits, the distribution will first be treated as a tax-free return of capital (with a corresponding reduction in the adjusted tax basis of a U.S. Holder's Common Shares), and thereafter will be taxed as capital gain recognized on a taxable disposition.

Subject to the discussion under "—Passive Foreign Investment Company Status" below, as long as our Common Shares are traded on the NYSE (or certain other exchanges) and/or we qualify for benefits under the U.S.-Canada Tax Treaty, dividends received by individuals and other non-corporate U.S. Holders will be subject to tax at preferential rates applicable to long-term capital gains, provided that such persons hold the Common Shares for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date and meet other requirements. U.S. Holders should consult their tax advisors regarding the application of the relevant rules to their particular circumstances.

The amount of any dividend paid in a foreign currency will be the U.S. dollar amount calculated by reference to the exchange rate in effect on the date of receipt, regardless of whether the payment is in fact converted into U.S. dollars. If the dividend is converted into U.S. dollars on the date of receipt, U.S. Holders generally will not be required to recognize foreign currency gain or loss in respect of the dividend income. However, a U.S. Holder may have foreign currency gain or loss if the dividend is converted into U.S. dollars after the date of receipt. The foreign currency gain or loss will be equal to the difference, if any, between (i) the U.S. dollar value of the amount included in income when the dividend was received and (ii) the amount received on the conversion of the foreign currency into U.S. dollars. Generally, any such gain or loss will be treated as ordinary income or loss and will generally be treated as U.S. source income. U.S. Holders are encouraged to consult their tax advisors regarding the treatment of foreign currency gain or loss on any foreign currency received that is converted into U.S. dollars on a date subsequent to the date of receipt.

A dividend distribution will generally be treated as foreign-source "passive" income for U.S. foreign tax credit purposes. A U.S. Holder may be entitled to deduct or credit any Canadian withholding taxes on dividends in determining its U.S. income tax liability, subject to certain limitations (including that the election to deduct or credit foreign taxes applies to all of such U.S. Holder's foreign taxes for a particular tax year). However, under U.S. foreign tax credit rules, a withholding tax may need to satisfy certain additional requirements in order to be considered a creditable tax for a U.S. Holder. We have not determined whether these requirements have been met and, accordingly, no assurance can be given that any withholding tax on dividends paid by us will be creditable. The rules governing the calculation and timing of foreign tax credits and the deduction of foreign taxes are complex and depend upon a U.S. Holder's particular circumstances. U.S. Holders should consult their tax advisors regarding the availability of the foreign tax credit in their particular circumstances.

**Sale or Other Disposition of Common Shares**

Subject to the discussion under "—*Passive Foreign Investment Company Status*" below, a U.S. Holder will recognize gain or loss for U.S. federal income tax purposes upon a sale or other disposition of its Common Shares in an amount equal to the difference, if any, between the amount realized from such sale or disposition and the U.S. Holder's adjusted tax basis in such Common Shares. Such gain or loss will be capital gain or loss and will be long term capital gain or loss if our Common Shares have been held for more than one year. Long term capital gain recognized by individuals and other non-corporate U.S. Holders are generally eligible for reduced rates of taxation. The deductibility of capital losses is subject to limitations.

If a Canadian tax is imposed on the sale or other disposition of our Common Shares, a U.S. Holder's amount realized will include the gross amount of the proceeds before deduction of the Canadian tax. Because a U.S. Holder's gain from the sale or other disposition of Common Shares will generally be U.S. source gain, a U.S. Holder generally will be unable to claim a credit against its U.S. federal tax liability for any Canadian tax on any such gains. In lieu of claiming a foreign tax credit, a U.S. Holder may elect to deduct foreign taxes, including Canadian taxes, if any, in computing taxable income, subject to generally applicable limitations under U.S. federal income tax law (including that the election to deduct or credit foreign taxes applies to all of such U.S. Holder's foreign taxes for a particular tax year). The rules governing the calculation and timing of foreign tax credits and the deduction of foreign taxes are complex and depend upon a U.S. Holder's particular circumstances. U.S. Holders should consult their tax advisors regarding the availability of the foreign tax credit in their particular circumstances.

**Medicare Tax**

Certain U.S. Holders that are individuals, estates or trusts are subject to a 3.8% tax on all or a portion of their "net investment income," which may include all or a portion of their dividend income and net gains from the disposition of Common Shares. Each U.S. Holder that is an individual, estate or trust is encouraged to consult its tax advisors regarding the applicability of the Medicare tax to its income and gains in respect of its investment in the Common Shares.

**Passive Foreign Investment Company Status**

Certain adverse tax consequences could apply to a U.S. Holder if we are treated as a passive foreign investment company, or PFIC, for any taxable year during which the U.S. Holder holds our Common Shares. A non-U.S. corporation, such as our company, will be classified as a PFIC for U.S. federal income tax purposes for any taxable year in which, after applying certain look-through rules, either (i) 75% or more of its gross income for such year consists of certain types of "passive" income or (ii) 50% or more of the value of its assets (determined on the basis of a quarterly average) during such year produce or are held for the production of passive income. Passive income generally includes dividends, interest, royalties, rents, annuities, net gains from the sale or exchange of property producing such income and net foreign currency gains.

Because we are in the early commercialization stage of our business and have historically incurred losses, there is a risk that we will be classified a PFIC for our current taxable year or in future taxable years. However, the determination of whether we are or will be a PFIC must be made annually as of the close of each taxable year. Because PFIC status depends upon the composition of our income and assets and the market value of our Common Shares and our assets from time to time, there can be no assurance as to our PFIC status for any taxable year, or that the IRS or a court will agree with our determination.

If we were to be treated as a PFIC, U.S. Holders of our Common Shares could be subject to certain adverse U.S. federal income tax consequences with respect to gain realized on a taxable disposition of such shares, and certain distributions received on such shares. In addition, dividends received with respect to our Common Shares would not constitute qualified dividend income eligible for preferential tax rates if we are treated as a PFIC for the taxable year of the distribution or for the preceding taxable year. Certain elections (including a mark-to-market election) may be available to U.S. Holders to mitigate some of the adverse tax consequences resulting from PFIC treatment. We do not expect to provide U.S. Holders with the information that is necessary to make a qualified electing fund election. U.S. Holders should consult their tax advisors regarding the application of the PFIC rules to their investment in our Common Shares.

**Foreign Asset Reporting**

Certain U.S. Holders may be required to submit to the IRS certain information with respect to their beneficial ownership of our Common Shares, if such Common Shares are not held on their behalf by a financial institution. Substantial penalties may be imposed on a U.S. Holder if such U.S. Holder is required to submit such information to the IRS and fails to do so.

**FATCA**

Pursuant to legislation commonly known as the Foreign Account Tax Compliance Act ("FATCA"), foreign financial institutions (which include most foreign hedge funds, private equity funds, mutual funds, securitization vehicles and other investment vehicles) and certain other foreign entities must comply with information reporting rules with respect to their U.S. account holders and investors or be subject to a withholding tax on certain U.S. source payments made to them (whether received as a beneficial owner or as an intermediary for another party). More specifically, a foreign financial institution or other foreign entity that does not comply with FATCA reporting requirements will generally be subject to a 30% withholding tax with respect to "withholdable payments." For this purpose, "withholdable payments" include generally U.S.-source payments otherwise subject to nonresident withholding tax (*e.g.*, U.S.-source dividends). Pursuant to proposed Treasury regulations, this 30% withholding does not apply to gross proceeds. In its preamble to the proposed Treasury regulations, the U.S. Treasury stated that taxpayers may generally rely on the proposed regulations until final regulations are issued. The FATCA withholding tax will apply even if the payment would otherwise not be subject to U.S. nonresident withholding tax.

**Information Reporting and Backup Withholding**

Dividend payments with respect to our Common Shares and proceeds from the sale, exchange or redemption of our Common Shares, may be subject to information reporting to the IRS and possible U.S. federal backup withholding. Backup withholding will not apply, however, to a U.S. Holder who furnishes a correct taxpayer identification number and makes other required certifications, or who is otherwise exempt from backup withholding and establishes such exempt status.

Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against a U.S. Holder's U.S. federal income tax liability, and a U.S. Holder generally may obtain a refund of any excess amounts withheld under the backup withholding rules by timely filing the appropriate claim for refund with the IRS and furnishing any required information.

**CERTAIN CANADIAN INCOME TAX CONSIDERATIONS**

The following is, as of the date of this prospectus, as summary of the principal Canadian federal income tax considerations under the Tax Act generally applicable to a holder of Common Shares acquired under this offering. This summary applies to a holder who either: (i) at all relevant times for purposes of Tax Act, is or is deemed to be resident in Canada, deal at arm's length with and is not affiliated with the Company, any underwriters or a subsequent purchaser of the Common Shares and acquires and holds the Common Shares as capital property (a "**Resident Holder**"); or (ii) at all relevant times for purposes of the Tax Act, is not resident or deemed to be resident in Canada, deals at arm's length with and is not affiliated with the Company, any underwriters or a subsequent purchaser of the Common Shares acquires and holds the Common Shares as capital property and does not use or hold the Common Shares in the courses of carrying on, or otherwise in connection with, a business in Canada or as "designated insurance property", and who has never been a resident of Canada, and has not held or used (and does not hold or use) the Common Shares in connection with a permanent establishment or fixed base in Canada (a "**Non-Resident Holder**").

Generally, the Common Shares will be considered to be capital property to a holder thereof provided that the holder does not use the Common Shares in the course of carrying on a business and such holder has not acquired them in one or more transactions considered to be an adventure or concern in the nature of trade. Certain Resident Holders may, in certain circumstances, make an irrevocable election under subsection 39(4) of the Tax Act to have their Common Shares, and every "Canadian security" (as defined in the Tax Act) owned by such Resident Holder in the taxation year of the election and in all subsequent years deemed to be capital property. Resident Holders should consult their own tax advisors for advice as to whether an election under subsection 39(4) is available and/or advisable in their particular circumstances.

This summary is not applicable to (i) a holder that is a "financial institution" (as defined in the Tax Act for the purposes of the mark-to-market rules) or a "specified financial institution", (ii) a holder, an interest in which is a "tax shelter investment" for the purposes of the Tax Act; (iii) a Non-Resident Holder who is a non-resident insurer carrying on an insurance business in Canada and elsewhere; (iv) an "authorized foreign bank" (as defined in the Tax Act); or (v) a holder that has made a functional currency reporting election under the Tax Act. Such holders should consult their own tax advisors with respect to an investment in Units.

This summary is based upon the current provisions of the regulations thereunder (the "**Regulations**") in force as of the date hereof, all specific proposals (the "Proposed Amendment") to amend the Tax Act or the Regulations that have been publicly announced by, or on behalf of, the Minister of Finance (Canada) prior to the date hereof and our understanding of the current published administrative and assessing practices of the Canada Revenue Agency (the "CRA"). No assurance can be given that the Proposed Amendments will be enacted in their current proposed form, if at all.

This summary is of a general nature only, is not exhaustive of all possible Canadian federal income tax considerations and is not intended to be, nor should it be construed to be, legal or tax advice to any particular holder. **Holders should consult their own tax advisors with respect to their particular circumstances**.

**PLAN OF DISTRIBUTION**

We are registering the issuance by us of up to 39,219,779 Common Shares that may be issued upon exercise of warrants to purchase Common Shares. We are also registering the resale by the selling shareholder or their permitted transferees of 72,036,511 Common Shares and 39,219,779 Warrants.

The Selling Holders may offer and sell, from time-to-time, their respective Common Shares and warrants covered by this prospectus. The Selling Holders will act independently of us in making decisions with respect to the timing, manner and size of each sale. Such sales may be made on one or more exchanges or in the over-the-counter market or otherwise, at prices and under terms then prevailing or at prices related to the then-current market price or in negotiated transactions. A selling shareholder may use any one or more of the following methods when disposing the securities:

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

● block trades in which the broker-dealer will attempt to sell the securities as agent, but may position and resell a portion of the block as principal to facilitate the transaction;

● purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

● settlement of short sales;

● in transactions through broker-dealers that agree with the selling shareholders to sell a specified number of such securities at a stipulated price per security;

● through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

● a combination of any such methods of sale; or

● any other method permitted pursuant to applicable law.

The selling shareholders may also sell Common Shares under Rule 144 or any other exemption from registration under the U.S. Securities Act, if available. The selling shareholders also may transfer the Common Shares in other circumstances, in which case the transferees or other successors-in-interest will be the selling beneficial owners for purposes of this prospectus.

The Selling Holders may sell the securities at prices then prevailing, related to the then-prevailing market price or at negotiated prices. The offering price of the securities from time-to-time will be determined by the Selling Holders and, at the time of the determination, may be higher or lower than the market price of our securities on any exchange or market on which our Common Shares are listed.

The Selling Holders may also sell our securities short and deliver the securities to close out their short positions or loan or pledge the securities to broker-dealers that, in turn, may sell the securities. The shares may be sold directly or through broker-dealers acting as principal or agent or pursuant to a distribution by one or more underwriters on a firm commitment or best-efforts basis. The securities may be offered to the public through underwriting syndicates represented by managing underwriters or by underwriters without a syndicate.

Broker-dealers engaged by the selling shareholders may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling shareholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown in compliance with FINRA Rule 2121.

In connection with the sale of the Common Shares or interests therein, the selling shareholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the Common Shares in the course of hedging the positions they assume. The selling shareholders may also sell Common Shares short and deliver these Common Shares to close out their short positions, or loan or pledge the securities to broker-dealers that in turn may sell these securities. The selling shareholders may also enter into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other financial institution of Common Shares offered by this prospectus, which Common Shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

The selling shareholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the Common Shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.

We are required to pay certain fees and expenses incurred by us incident to the registration of the securities. We have agreed to indemnify the selling shareholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

We agreed to keep this prospectus effective until the earlier of (i) the date on which the Common Shares may be freely resold by the selling shareholders without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144 or (ii) all of the Common Shares have been sold pursuant to this prospectus. The Common Shares will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the Common Shares covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the Common Shares may not simultaneously engage in market making activities with respect to the securities for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution. In addition, the selling shareholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the Common Shares by the selling shareholders or any other person. We will make copies of this prospectus available to the selling shareholders and have informed them of the need to deliver a copy of this prospectus to each purchaser of the Common Shares at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

At the time a particular offer of securities is made, if required, a prospectus supplement will be distributed that will set forth the number of securities being offered and the terms of the offering, including the name of any underwriter, dealer or agent, the purchase price paid by any underwriter, any discount, commission and other item constituting compensation, any discount, commission or concession allowed or reallowed or paid to any dealer, and the proposed selling price to the public.

To the extent required, this prospectus may be amended and/or supplemented from time-to-time to describe a specific plan of distribution. Instead of selling the securities under this prospectus, the Selling Holders may sell the securities in compliance with the provisions of Rule 144 under the Securities Act, if available, or pursuant to other available exemptions from the registration requirements of the Securities Act.

**Section 15(g) of the Exchange Act a/k/a "Penny Stock" Rules**

Our Common Shares is defined as "penny stock" under the Securities Exchange Act of 1934, and its rules. The Securities and Exchange Commission (SEC) has adopted regulations that define "penny stock" to include Common Shares that has a market price of less than $5.00 per share, subject to certain exceptions. These rules include the following requirements:

● broker-dealers must deliver, prior to the transaction, a disclosure schedule prepared by the SEC relating to the penny stock market;

● broker-dealers must disclose the commissions payable to the broker-dealer and its registered representative;

● broker-dealers must disclose current quotations for the securities;

● if a broker-dealer is the sole market-maker, the broker-dealer must disclose this fact and the broker-dealers presumed control over the market; and

● a broker-dealer must furnish its customers with monthly statements disclosing recent price information for all penny stocks held in the customers account and information on the limited market in penny stocks.

Additional sales practice requirements are imposed on broker-dealers who sell penny stocks to persons other than established customers and accredited investors. For these types of transactions, the broker-dealer must make a special suitability determination for the purchaser and must have received the purchasers written consent to the transaction prior to sale. If our Common Shares becomes subject to these penny stock rules these disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for our Common Shares, if such trading market should occur. As a result, fewer broker-dealers are willing to make a market in our stock. You would then be unable to resell your shares.

**Resales Under Canadian Securities Laws**

Any resale of our securities in Canada must comply with applicable securities laws that will vary depending on the relevant jurisdiction, and which may require resales to be made under available statutory exemptions from the prospectus and registration requirements of applicable Canadian securities laws, or under a discretionary exemption from such requirements granted by the applicable Canadian securities regulatory authority. Selling Shareholders are advised to seek legal advice prior to any resale of our securities.

**LEGAL MATTERS**

Certain legal matters relating to the offering will be passed upon for us by Greenberg Traurig, P.A., Fort Lauderdale, Florida with respect to matters of U.S. law and by Bennett Jones LLP with respect to matters of Canadian law.

**EXPERTS**

The consolidated financial statements of International Battery Metals Ltd. as of and for the year ended March 31, 2025, included in this prospectus have been audited by CBIZ CPAs P.C., independent registered public accounting firm, as stated in their report included in this prospectus. Such consolidated financial statements have been so included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

The consolidated financial statements of International Battery Metals Ltd. as of and for the year ended March 31, 2024, included in this prospectus have been audited by Marcum LLP, independent registered public accounting firm, as stated in their report included in this prospectus. Such consolidated financial statements have been so included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

Certain information related to our laboratory demonstration results and our MDLE Plant performance included in this prospectus have been derived from reports prepared by the SLR International Corporation and Greg Mehos & Associates LLP. All such information has been so included on the authority of such firm as an expert regarding the matters contained in its reports.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the SEC a registration statement on Form S-1 to register the resale of the Common Shares offered by this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement, some of which is contained in exhibits to the registration statement as permitted by the rules and regulations of the SEC. For further information with respect to us and our Common Shares, we refer you to the registration statement, including the exhibits filed as a part of the registration statement. Statements contained in this prospectus concerning the contents of any contract or any other document is not necessarily complete. If a contract or document has been filed as an exhibit to the registration statement, please see the copy of the contract or document that has been filed. Each statement in this prospectus relating to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit. The SEC also maintains an internet website that contains reports, proxy statements and other information about issuers, like us, that file electronically with the SEC. The address of that website is www.sec.gov.

Upon effectiveness of the registration statement, we will become subject to the information and reporting requirements of the Exchange Act and, in accordance with these laws, will file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information will be available over the internet at the website of the SEC referred to above. We also maintain the website www.ibatterymetals.com. You may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained on our website is not a part of this prospectus and the inclusion of our website address in this prospectus is an inactive textual reference only. The information contained in, or accessible through, our website does not constitute part of, and is not incorporated into, this prospectus.

**INDEX TO FINANCIAL STATEMENTS**

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| | |
|:---|:---|
|  | PAGE |
| **AUDITED CONSOLIDATED FINANCIAL STATEMENTS** |  |
| [Report of Independent Registered Public Accounting Firm](#Sj_001) (PCAOB ID Number 199) | F-2 |
| [Report of Independent Registered Public Accounting Firm](#Sj_002) (PCAOB ID Number 688) | F-3 |
| [Consolidated Balance Sheets as of March 31, 2025 and 2024](#J_001) | F-4 |
| [Consolidated Statements of Loss and Comprehensive Loss for the years ended March 31, 2025 and 2024](#J_002) | F-5 |
| [Consolidated Statements of Cash Flows for the years ended March 31, 2025 and 2024](#J_003) | F-6 |
| [Consolidated Statements of Changes in Shareholders' Equity for the years ended March 31, 2025 and 2024](#J_004) | F-7 |
| [Notes to the Consolidated Financial Statements for the years ended March 31, 2025 and 2024](#J_005) | F-8 |

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**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors of

International Battery Metals Ltd.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheet of International Battery Metals Ltd. (the "Company") as of March 31, 2025, the related consolidated statements of loss and comprehensive loss, cash flows and changes in shareholders' equity for the year ended March 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2025, and the results of its operations and its cash flows for the year ended March 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ CBIZ CPAs P.C.

We have served as the Company's auditor since 2024 (such date takes into account the acquisition of the attest business of Marcum llp by CBIZ CPAs P.C. effective November 1, 2024).

Houston, Texas<br> July 30, 2025

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareholders and Board of Directors of

International Battery Metals Ltd.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of International Battery Metals Ltd. (the "Company") as of March 31, 2024, the related consolidated statements of loss and comprehensive loss, cash flows, and changes in shareholders' equity for the year ended March 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2024, and the results of its operations and its cash flows for the year ended March 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Marcum LLP

We have served as the Company's auditor since 2024 through 2025.

Houston, Texas

August 1, 2024

**International Battery Metals Ltd.**

Consolidated Balance Sheets

As of March 31, 2025 and 2024

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
|  | **2025** | **2024** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $10737 | $1026 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 459 | 121 |
| &nbsp;&nbsp;&nbsp;Inventory | 1061 |  |
| &nbsp;&nbsp;&nbsp;Other current assets | 273 | 336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 12530 | 1483 |
| Plant and equipment, net | 28450 | 28793 |
| Intangible assets, net | 3266 | 4341 |
| Right of use asset | 232 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**44478** | $**34684** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $1293 | $1263 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 533 | 593 |
| &nbsp;&nbsp;&nbsp;Accounts payable, related party |  | 710 |
| &nbsp;&nbsp;&nbsp; Obligation to issue shares, related party | 679 |  |
| &nbsp;&nbsp;&nbsp;Lease obligation, current | 89 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 2594 | 2633 |
| Warrant liability | 15151 | 4368 |
| Lease obligation, long-term | 143 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 17888  | 7001 |
| Commitments and contingencies |  |  |
| **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;Share capital, no par, 268,993 and 211,381 common shares issued and outstanding, respectively | 66156 | 63733 |
| &nbsp;&nbsp;&nbsp;Retained earnings (deficit) | (39566) | (36050) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity** | 26590 | 27683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $**44478** | $**34684** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**International Battery Metals Ltd.**

Consolidated Statements of Loss and Comprehensive Loss

For the Years Ended March 31, 2025 and 2024

(In thousands, except per share amounts)

---

| | | |
|:---|:---|:---|
|  | **Year Ended March 31,** | **Year Ended March 31,** |
|  | **2025** | **2024** |
| **REVENUE** | $**871** | $**-** |
| **OPERATING COSTS AND EXPENSES** |  |  |
| &nbsp;&nbsp;&nbsp; Operating costs, excluding depreciation | 3533 |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses, excluding depreciation | 9042  | 9513 |
| &nbsp;&nbsp;&nbsp; Reimbursable expense | 871 |  |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 1076  | 1076 |
| &nbsp;&nbsp;&nbsp;Depreciation | 1552  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating loss | (15203 ) | (10592) |
| Bad debt expense | (502) |  |
| Excess fair value of warrants over private placement proceeds | (1040) |  |
| Change in fair value of warrant liability | 13229  | 2082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss before income tax provision | (3516 ) | (8510) |
| Provision for income taxes | -  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net loss and comprehensive loss** | $**(3516**)** | $**(8510)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net loss per share, basic and diluted** | $**(0.01**)** | $**(0.04)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Weighted average shares outstanding, basic and diluted** | **238431**  | **204216** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**International Battery Metals Ltd.**

Consolidated Statements of Cash Flows

For the Years Ended March 31, 2025 and 2024

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **Year Ended March 31,** | **Year Ended March 31,** |
|  | **2025** | **2024** |
| **CASH USED IN OPERATING ACTIVITIES** |  |  |
| Net loss | $**(3516)** | $**(8510)** |
| Adjustments to reconcile net loss to cash used in operating activities |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 1767 | 2894 |
| &nbsp;&nbsp;&nbsp;Shares issued for services |  | 681 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 1076 | 1076 |
| &nbsp;&nbsp;&nbsp;Depreciation | 1552 | 3 |
| &nbsp;&nbsp;&nbsp; Excess of fair value of warrants over proceeds of private Placement | 1040 |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | (13229) | (2082) |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (337) | (76) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory | (1061) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 62 | 143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liability | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade payables and other liabilities | (810) | (36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in operating activities** | **(13455)** | **(5907)** |
| **CASH USED IN INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of equipment | (1328) | (2617) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in investing activities** | **(1328)** | **(2617)** |
| **CASH PROVIDED BY FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from private placement of shares | 24417 | 9256 |
| &nbsp;&nbsp;&nbsp;Share issuance costs | (602) | (300) |
| &nbsp;&nbsp;&nbsp; Subscriptions received for private placement | 679  | -  |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants |  | 181 |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of options | - | 112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by financing activities** | **24494** | **9249** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net change in cash** | 9711 | 725 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Beginning cash balance** | 1026 | 301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ending cash balance** | $**10737** | $**1026** |
| **Supplemental disclosures of non-cash transactions:** |  |  |
| &nbsp;&nbsp;&nbsp;Equipment purchases included in trade payables | (119) | 322 |
| &nbsp;&nbsp;&nbsp;Value of common shares issued as milestone payments |  | 908 |
| &nbsp;&nbsp;&nbsp; Share issuance costs for common shares issued | 188 |  |
| &nbsp;&nbsp;&nbsp; Share issuance costs settled by issuance of shares | 1005 |  |
| &nbsp;&nbsp;&nbsp; Private placement proceeds allocated to warrant liability | 22972 |  |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**International Battery Metals Ltd.**

Consolidated Statements of Changes in Shareholders' Equity

For the Years Ended March 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Common** <br> **Shares** | **Share** <br> **Capital** | **Accumulated** <br> **Deficit** | **Total** <br> **Shareholders** <br> **Equity** |
| **Balance as of March 31, 2023** | **195436** | **57065** | **(27540)** | **29525** |
| &nbsp;&nbsp;&nbsp; Private placements of shares | 13424 | 2603 |  | 2603 |
| &nbsp;&nbsp;&nbsp; Shares issued for exercise of stock options | 800 | 112 |  | 112 |
| &nbsp;&nbsp;&nbsp; Shares issued for exercise of warrants | 422 | 378 |  | 378 |
| &nbsp;&nbsp;&nbsp; Shares issued for employee bonuses | 379 | 246 |  | 246 |
| &nbsp;&nbsp;&nbsp; Shares issued to vendors for services | 908 | 681 |  | 681 |
| &nbsp;&nbsp;&nbsp; Shares issued for restrictive stock unit | 12 | 11 |  | 11 |
| &nbsp;&nbsp;&nbsp; Share-based compensation |  | 2637 |  | 2637 |
| &nbsp;&nbsp;&nbsp; Net loss for the period | - | - | (8510) | (8510) |
| &nbsp;&nbsp;&nbsp; **Balance as of March 31, 2024** | **211381** | $**63733** | $**(36050)** | $**27683** |
| &nbsp;&nbsp;&nbsp;Private placements of shares | 56205 | 1445 |  | 1445 |
| &nbsp;&nbsp;&nbsp; Shares issued for restricted stock units | 313 | 220 |  | 220 |
| &nbsp;&nbsp;&nbsp; Shares issued for bonus | 14 | 16 |  | 16 |
| &nbsp;&nbsp;&nbsp; Share-based compensation |  | 1532 |  | 1532 |
| &nbsp;&nbsp;&nbsp; Share issuance costs | 1079 | (790) |  | (790) |
| &nbsp;&nbsp;&nbsp;Net loss for the period | - | - | (3516) | (3516) |
| **Balance as of March 31, 2025** | **268992** | $**66156** | $**(39566)** | $**26590** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

**1.** **Organization and Description of the Business** 

International Battery Metals Ltd. (the "Company") was incorporated under the Business Corporations Act (British Columbia) on July 29, 2010. The Company trades on the TSX Venture Exchange under the stock symbol "IBAT". The Company also trades on the Over-The-Counter Markets ("OTC") under the stock symbol "IBATF". The Company's registered and records office is located at Royal Centre, Suite 1750 – 1055 W Georgia Street, Vancouver, BC V6E 3P3.

The Company is an advanced technology and manufacturing focused on environmentally responsible methods of extracting lithium compounds from brine. The Company provides its technology and equipment to holders of resource properties such as oilfield brines, subsurface brine aquifers and industrial customers who have lithium rich brine by products from their operations. The Company's proprietary extraction process is environmentally friendly, low cost and able to produce high-quality commercial grade lithium products.

The Company's current operations consist of the development of a modular direct lithium extraction plant ("MDLE Plant") which can be rapidly deployed and assembled onsite at a customers' property. The MDLE Plant is designed to process brine solutions to extract lithium chloride which can be further processed into lithium carbonate and used for industrial purposes or as a battery component. The Company constructed the first MDLE Plant in Lake Charles, Louisiana where it performed feasibility testing and was made available for demonstration to potential customers. The Company is developing a second generation MDLE Plant which will provide customers with the option to greatly increase the scale of the MDLE Plant's capacity to process brine solutions and increase lithium chloride production.

On May 1, 2024, the Company entered into a lease agreement with US Magnesium LLC ("US Magnesium"), a producer of metals and minerals including the production of lithium carbonate (the "US Magnesium Lease"). Pursuant to the US Magnesium Lease, the Company mobilized the first MDLE Plant to US Magnesium's facility in Salt Lake City, Utah for the integration of the MDLE Plant with US Magnesium's facilities. The MDLE Plant was used to process a solution produced from lithium containing waste salts derived from prior magnesium production, generating a lithium chloride eluent. The lithium chloride eluent was further processed in US Magnesium's onsite facilities to produce a high-purity lithium carbonate. On September 25, 2024, due to the low demand and market price of lithium and its impact on their desired profitability, US Magnesium decided to idle the MDLE Plant. The Company was not under any obligation to keep the MDLE Plant at the US Magnesium facilities if they are not operating. Accordingly, the Company is actively marketing the MDLE Plant to potential customers and has relocated the MDLE Plant to an offsite storage facility.

**2.** **Basis of Presentation** 

***Basis of Presentation and Principles of Consolidation***

The Company's consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America ("GAAP") on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. The consolidated financial statements include the results of the Company and its subsidiaries. A subsidiary is consolidated from the date upon which control is acquired by the Company and all intercompany transactions and balances have been eliminated.

***Functional Currency***

The Company has determined that the U.S. dollar is the functional currency for all the Company's operations since the Company conducts the significant majority of its operations through its U.S subsidiary, IBAT USA, Inc., compensates all of it corporate officers and the board of directors in U.S. dollars and historically the majority of its expenditures are also denominated in U.S. dollars. The Company has maintained limited amounts of Canadian dollars to cover administration expenses associated with the Company's registration in Canada. The Company has limited exposure currency to exchange rate fluctuations, and for the years ended March 31, 2025, and 2024, the Company recognized a net loss of approximately $38,000 and $6,000, respectively, related to currency exchange rates.

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

***Liquidity and Capital Resources***

As of March 31, 2025, the Company's had an accumulated deficit of approximately $39.6 million and a working capital of approximately $10.6 million. During the year, the Company raised additional cash in two private placements totaling approximately $16.8 million. The Company raised approximately $7.6 million through a private placement on March 31, 2025 with EV Metals 7 LLC and EV Metals VI LLC.

On July 20, 2025, the Company entered into binding subscription agreements ("**Encompass Subscription Agreements**") with Encompass, acting for certain fund entities and managed accounts for which Encompass exercises investment discretion, for the purchase of up to 25,765,259 units (the "**2025 Encompass Units**") at a price of CAD $0.26625 per unit (USD$0.19406 per unit) for gross proceeds of $5.0 million to the Company (the "**2025 Encompass Offering**"). Each 2025 Encompass Unit consists of one Common Share and one warrant, with each warrant entitling the holder to purchase one additional Common Share for a period of three years from the closing date of the 2025 Encompass Offering at an exercise price of CAD$0.355 per share. In addition, the Company has agreed to grant Encompass the right but not the obligation, to purchase up to $2.0 million of additional units of the Company, at any time on or before December 31, 2025.

The 2025 Encompass Offering is expected to close on or around August 8, 2025, subject to satisfaction of customary closing conditions, including (i) receipt of the requisite regulatory approvals, including the approval of the TSXV and the Warrant Amendments, (ii) the accuracy of the representations and warranties of the other party, (iii) compliance with the terms, covenants, agreements and conditions of the Encompass Subscription Agreements, and (iv) no occurrence of a Material Adverse Effect (as defined in the Encompass Subscription Agreements) or that could reasonably be expected to occur, on the part of the Company.

While the cash from the private placements is anticipated to support the Company's operations, the Company continues to incur operating losses and negative cash flows. The Company has historically relied on raising funds through private placements of the Company's common shares and warrants and there is no assurance that the Company will be able to do so in the future or raise such funds at terms acceptable to the Company. Without additional funds, management believes there would be substantial doubt about the Company's ability to meet its obligations as they come due over the next twelve months from the date of the financial statements. However, with the working capital the Company has on hand and the proceeds from the Encompass Subscription Agreements, which are expected to be received shortly after the date of the financial statements, the Company has sufficient capital to alleviate the substantial doubt and the Company would continue as a going concern for at least twelve months from the date of the financial statements.

**3.** **Summary of Significant Accounting Policies** 

***Cash***

Cash consists of deposits with financial institutions.

***Revenue***

The Company's revenue producing activities during year ended March 31, 2025 consist of reimbursement of expenses pursuant to the US Magnesium Lease. We recognize the revenue for the expense reimbursement as we deliver the goods and services to our customer.

***Inventory***

Inventories are carried at the lower of cost or net realizable value and primarily consist of spare parts for the MDLE Plant. The Company determines the costs for inventory using the weighted average cost method.

***Plant and Equipment***

Equipment is recorded at cost, less accumulated depreciation and impairment losses. The Company provides for depreciation over the expected useful life of the assets. No depreciation is recorded on assets prior to their initial commencement of operations. Costs include expenditures to acquire or construct an asset, including the preparation of an asset to commence operations, installation, commissioning, and certification costs. Subsequent costs are capitalized, either to the asset's carrying amount or recognized as a separate asset when it is probable that the Company will derive future economic benefits, generally from extending the assets life or enhancing its' productive capacity. The estimated useful lives of assets are reviewed by management and adjusted if necessary. Repair and maintenance costs are charged to profit or loss during the period they are incurred.

The Company substantially completed the construction of its first MDLE Plant in November 2021. As the MDLE Plant did not commence commercial operations, the Company did not initiate the recognition of depreciation on the MDLE Plant until June 19, 2024, when it was briefly placed into service at US Magnesium. Prior to commencement of operations, the Company utilized the MDLE Plant to perform feasibility studies and as a demonstration plant for potential customers. During these feasibility studies and demonstrations, based on the results, the Company continued to make enhancements to the MDLE Plant and capitalize the associated costs.

Fixed assets include tangible assets with useful lives that exceed one year and valued at historical cost plus costs incurred to place that asset into service. Subsequent expenditures are only capitalized if it will increase the future economic benefit of the asset. Subsequent expenditures that do not increase the future economic benefit are recognized as profit and loss when incurred. Depreciation is recorded using the straight-line method over the useful life of the estimated useful lives of the assets as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Computer
 equipment and furniture and fixtures 5 years

● Leasehold
 improvements remaining term of lease

● Plant 15 – 20 years

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

***Intangible Assets***

Intangible assets include patented technology acquired by the Company and have finite useful lives measured at cost less accumulated amortization and any accumulated impairment losses. Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures are recognized in profit or loss as incurred. Amortization is recorded using the straight-line method and is intended to amortize the cost of the assets over their estimated useful lives as follow:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Patents 20
 years

● Intellectual
 property 10
 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted, if appropriate.

***Fair Value of Financial Instruments***

The Company has classified fair value measurements of its financial instruments using a fair value hierarchy that reflects the significance of inputs used in making the measurements as follows:

● Level 1 fair value measurements are those derived from quoted prices in active markets for identical assets or liabilities.

● Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1, that are observable either directly or indirectly.

● Level 3 fair value measurements are those derived from valuation techniques that include inputs that are not based on observable market data.

The fair value of financial assets and financial liabilities at amortized cost is determined based on discounted cash flow analysis or using prices from observable current market transactions. The Company considers that the carrying amount of all its financial assets and financial liabilities recognized at amortized cost in the consolidated financial statements approximates their fair value due to the demand nature or short-term maturity of these instruments. Cash is measured using level 1 of the fair value hierarchy. Financial assets do not include amounts due from a government agency as it is a statutory (not contractual) obligation.

***Leases***

The Company assesses at the inception of a contract whether it contains a lease. A contract is classified as a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any indirect costs incurred. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined using the same criteria as those for property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses and adjusted for certain remeasurements of the lease liability, if any.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be determined, the Company's incremental borrowing rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, or changes in assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less and leases of low-value assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

***Research and Development***

Research costs are expensed in the period in which they are incurred. Development costs are expensed in the period in which they are incurred unless certain criteria, including technical feasibility, commercial feasibility, intent and ability to develop and use the technology, are met for capitalization and amortization.

***Earnings (Loss) Per Share***

Basic earnings (loss) per share is computed by dividing the net earnings (loss) attributable to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the weighted average number of common shares outstanding is adjusted for the number of shares that are potentially issuable in connection with stock options and warrants (if dilutive). The Company assumes that outstanding dilutive stock options and warrants were exercised and that the proceeds from such exercises (after adjustment of any unvested portion of stock options) were used to acquire Common Shares at the average market price during the reporting periods.

***Shareholders' Equity***

Share issuance costs are recorded as a reduction of share capital when the related shares are issued. When shares and warrants are issued together as units the proceeds are allocated between common share and share purchase warrants on a pro-rata basis based on relative fair values at the date of issuance. The fair value of common shares is based on the market closing price on the date the units are issued and the fair value of share purchase warrants is determined using the Black-Scholes Option Pricing Model as of the date of issuance. When compensation options are issued to agents who refer investors to the Company, their fair value is determined using the Black-Scholes Option Pricing Model as of the date of issuance. The fair value of compensation options is recorded as a reduction of share capital as share issuance costs. When a warrant is exercised, forfeited or expires, the initial value recorded is reversed from reserves and credited to share capital.

***Share-Based Payments***

Share-based payments to employees are measured at the fair value of the instruments issued and recognized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued if it is determined the fair value of the goods or services cannot be reliably measured and are recorded at the date the goods or services are received. The fair value of options is determined using the Black-Scholes Option Pricing Model which incorporates vesting conditions. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the estimated number of equity instruments that will eventually vest. Over the vesting period, share-based payments are recorded as an operating expense and additional paid-in capital. When options are exercised, the consideration received is recorded as additional paid-in capital.

The Company grants RSUs to eligible directors, officers, employees, and consultants of the Company. The fair value of the estimated number of RSUs that will eventually vest, determined at the date of grant, is recognized as share-based payments expense over the vesting period, with a corresponding amount recorded as equity since the Company expects to settle the RSUs with common shares. The fair value of the RSUs is estimated using the market value of the underlying shares as well as assumptions related to the market and non-market conditions at the grant date.

***Warrants***

The Company determines the accounting classification of warrants it issues as either liability or equity classified by first assessing whether the warrants meet liability classification. Warrants are considered liability classified if the warrants are mandatorily redeemable, obligate the Company to settle the warrants or the underlying shares by paying cash or other assets, or warrants that must or may require settlement by issuing variable number of shares. Warrants that require or may require the settlement in cash are accounted for as liabilities, irrespective of the likelihood of the transaction occurring that triggers the cash settlement feature. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date.

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

***Income Taxes***

Current tax expense is based on the results for the year as adjusted for items that are not taxable or not deductible. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the end of the reporting period, adjusted for amendments if any, to tax payable from previous years. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Provisions are established, where appropriate, on the basis of amounts expected to be paid to tax authorities. Deferred tax is calculated based on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on the tax rates that have been enacted or substantively enacted at the reporting date.

***Impairment of Long-lived Assets***

The Company performs impairment testing on long-lived assets, including property, plant, and equipment, and intangible assets with finite lives, in accordance with ASC 360, "Property, Plant, and Equipment." Impairment testing is conducted whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Such events or changes in circumstances may include a significant decrease in the market price of a long-lived asset, a significant change in the extent or manner in which an asset is used, a significant change in legal factors or in the business climate, a significant deterioration in the amount of revenue or cash flows expected to be generated from a group of assets, a current expectation that, more likely than not a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, or any other significant adverse change that would indicate that the carrying value of an asset or group of assets may not be recoverable. The Company performs impairment testing at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable and the expected undiscounted future cash flows attributable to the asset group are less than the carrying amount of the asset group, an impairment loss equal to the excess of the asset's carrying value over its fair value is recorded. To date, the Company has not recorded any impairment losses on long-lived assets.

***Related Party Transactions***

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company did not have an outstanding payable balance to EVL Holdings, LLC ("EVL"), on March 31, 2025. The Company did however, have an outstanding payable to EVL a greater than 10% shareholder of the Company, for approximately $710,000 on March 31, 2024 related to the construction of the Company's MDLE Plant. The outstanding payable to EVL was paid in cash subsequent to March 31, 2024.

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

***Contingencies***

Contingencies are assessed on an ongoing basis to evaluate the appropriateness of liabilities and disclosures for such contingencies. Liabilities for estimated loss contingencies when management believes a loss is probable and the amount of the probable loss can be reasonably estimated. Once established, the liabilities are adjusted to the carrying amount of a contingent liability upon the occurrence of a recognizable event when facts and circumstances change, altering previous assumptions with respect to the likelihood or amount of loss. Corresponding assets are recognized for those loss contingencies that are probable of being recovered through insurance. Legal costs are expensed as they are incurred, and with a corresponding asset for such legal costs expected to be recovered through insurance.

 ***Segment Reporting***

The Company adopted FASB (as defined below) Accounting Standards Update ("ASU") 2023-07, *Improvements to Reportable Segment Disclosures (Topic 280)*, as of January 1, 2025. This standard enhances segment disclosures by requiring additional information about significant segment expenses and other segment items on an annual and interim basis.

  ****

The Company operates as a single operating and reportable segment because:

● The Chief Operating Decision Maker ("CODM"), the Company's Chief Executive Officer, reviews operating results on a consolidated basis.

● The Company's activities are focused on the development of extracting lithium compounds from brine , with no distinguishable lines of business or revenue streams.

As a prerevenue company, the Company does not currently generate product or service revenues and, therefore, does not have separate segment-level financial information. The adoption of ASU 2023-07 did not have a material impact on the Company's financial statements or related disclosures, other than the inclusion of additional qualitative information related to its single reportable segment.

***New Accounting Standards Issued but Not Yet Effective***

In December 2023, the Financial Accounting Standard Board ("FASB") issued ASU No. 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. This ASU enhances existing income tax disclosures to better assess how an entity's operation and related tax risks, tax planning, and operational opportunities affect its tax rate and prospects for future cash flows. The ASU is effective for annual periods beginning after December 15, 2024. We are currently evaluating the effect the guidance will have on our consolidated financial statements.

**4.** **Significant Accounting Judgments, Estimates and Assumptions** 

The preparation of the Company's consolidated financial statements in conformity GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the consolidated financial statements and reported amounts of income and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates.

Judgement, estimates and assumptions where there is significant risk of material adjustments to assets and liabilities in future accounting periods are outlined below:

● The Company has determined that intangible asset costs incurred which were capitalized have future economic benefits and will be economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits including anticipated cash flows and estimated economic life. The amortization expense related to intangible assets is determined using estimates relating to the useful life of the intangible asset.

● The functional currency for the Company and its subsidiaries is the currency of the primary economic environment in which the entity operates. Determination of the functional currency involves certain judgments to determine the primary economic environment and the Company reconsiders the functional currency of its entities if there is a change in events and conditions which determined the primary economic environment. The Company has determined that its functional currency is the United States dollar.

● The evaluation of the fair value of financial instruments, including the Company's warrants and options to purchase common shares requires judgement in selecting the appropriate methodologies and models, and evaluating the ranges of assumptions and financial inputs to calculate estimates of fair value.

● These consolidated financial statements have been prepared on a basis which assumes the Company will continue to operate for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. In assessing whether this assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, 12 months from the end of the reporting period. This assessment is based upon planned actions that may or may not occur for a number of reasons including the Company's own resources and external market conditions.

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

**5.** **Accounts Receivable** 

The Company's accounts receivables as of March 31, 2025 and 2024 are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
|  | **2025** | **2024** |
| Accounts receivable | $447 | $105 |
| Sales tax refunds | 12 | 16 |
|  | $459 | $121 |

---

**6.** **Other Assets** 

The Company's other assets as of March 31, 2025 and 2024 are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
|  | **2025** | **2024** |
| Prepaid patent services | $- | $174 |
| Prepaid insurance | 107 | 65 |
| Prepaid engineering services |  | 50 |
| Rental deposit | 9 | 16 |
| Technology licenses |  | 11 |
| Other | 157 | 20 |
| &nbsp;&nbsp;&nbsp; Total other assets | $273 | 336 |

---

**7.** **Plant and Equipment** 

The Company's equipment as of March 31, 2025 and 2024 are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
|  | **2025** | **2024** |
| MDLE Plant | $29429 | $28591 |
| Equipment | 544 | 183 |
| Office equipment | 33 | 23 |
|  | 30006 | 28797 |
| Less: accumulated depreciation | 1556 | 4 |
|  | $28450 | $28793 |

---

The MDLE Plant was mobilized to a customer site in June 2024, and depreciation began upon commencement. Since the MDLE Plant was not operational for the year ended March 31, 2024, no depreciation was recorded related to the MDLE Plant.

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

**8.** **Lithium Extraction Technology Asset Purchase and Intangible Assets** 

On April 12, 2018, the Company closed an asset purchase agreement with North American Lithium, Inc. ("NAL") and Selective Adsorption Lithium, Inc. ("SAL"), a company formerly controlled by shareholders of NAL, pursuant to which the Company acquired NAL's data, analysis and reports related to lithium extraction from oilfield brines and all the outstanding shares of SAL, which held certain intellectual property (the "Acquisition"). The consideration for the Acquisition consisted of $875,000 cash, a 5% royalty on future product income, as defined, 4,700,000 common shares at closing and 20,609,488 common shares ("Milestone Shares") based on the Company achieving certain milestones related to the filing of additional patents and raising additional financing. The total value of the Acquisition, including the Milestone Shares, was valued at approximately $9.1 million and recorded as intellectual property (the, "Intellectual Property").

Additionally, the Company has filed additional patents to expand its intellectual property for the development of lithium extraction technologies. The Company's intangible assets as of March 31, 2025, are as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Gross**<br> **Assets** | **Accumulated**<br> **Amortization** | **Net**<br> **Assets** | **Weighted** <br> **Average** <br> **Remaining** <br> **Life (Years)** |
| Intellectual property | $9276 | $(6019) | $3257 | 3.5 |
| Patents | 11 | (2) | 9 | 16.5 |
|  | $9287 | $(6021) | $3266 |  |

---

The Company's intangible assets as of March 31, 2024, are as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Gross**<br> **Assets** | **Accumulated**<br> **Amortization** | **Net**<br> **Assets** | **Weighted** <br> **Average** <br> **Remaining** <br> **Life (Years)** |
| Intellectual property | $9276 | $(4945) | $4331 | 4.5 |
| Patents | 11 | (1) | 10 | 17.5 |
|  | $9287 | $(4946) | $4341 |  |

---

**9.** **Operating Lease** 

The Company entered into a sub-lease agreement for office space in Houston, Texas, commencing July 1, 2022, for a term of twenty-nine months at a monthly lease payment of $8,495. The lease liability is calculated using an incremental borrowing rate of 5.65%. The Houston lease ended on November 30, 2024.

The Company entered into a new sub-lease agreement for office space in Plano, Texas, commencing on November 16, 2024, for a term of thirty-four months at an average lease payment of $8,729. The lease liability is calculated using an incremental borrowing rate of 6.83%. Lease costs for the years ended December 31, 2025 and 2024 are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended March 31,** | **For the Year Ended March 31,** |
|  | **2025** | **2024** |
| Operating lease costs | $99 | $101 |
| Variable lease costs | 53 | 91 |
| Short-term lease costs | 108 | 38 |
|  | $260 | $230 |

---

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

The Company has elected not to recognize a lease liability for leases with an expected term of 12 months or less. Additionally, certain variable lease payments are not permitted to be recognized as lease liabilities and are recognized in profit and loss as incurred. Lease balance sheet information as March 31, 2025 and 2024 is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
|  | **2025** | **2024** |
| Assets: |  |  |
| &nbsp;&nbsp;&nbsp; Operating Lease right-of-use asset | $232 | $67 |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, current | 89 | 67 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, long-term | 143 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating lease liabilities | $232 | $67 |

---

**10.** **Fair Value Measurements** 

The following table summarizes the Company's assets and liabilities that are measured at fair value on a recurring basis, by level, with the fair value hierarchy as of March 31, 2025 and 2024 (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | **Fair Value** | **Fair Value** | **Level 1** | **Level 2** | **Level 2** | **Level 3** |
| Liability |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Warrant liability |  | 15151 |  |  | 15151 |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2024** | **March 31, 2024** | **March 31, 2024** | **March 31, 2024** | **March 31, 2024** | **March 31, 2024** |
|  | **Fair Value** | **Fair Value** | **Level 1** | **Level 2** | **Level 2** | **Level 3** |
| Liability |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Warrant liability |  | 4368 |  |  | 4368 |  |

---

**11.** **Shareholders Equity** 

**Authorized**

Authorized share capital: an unlimited number of common shares with no par value.

**Issued and Outstanding**

On February 28, 2025, the Company entered into a letter agreement (the "**2025 Letter Agreement**") with EV Metals 7 LLC ("**EV Metals**"), a company controlled by Jacob Warnock, a director of the Company, agreeing to the principal terms and conditions upon which EV Metals, directly or through one or more of its subsidiaries or affiliates, could complete one or more transactions to purchase up to $15.0 million of units (the "**2025 Offering**"), which each unit (the "**2025 Units**") consisting of one Common Share of stock and one warrant to purchase a Common Share. On March 2, 2025, two entities controlled by EV Metals, EV Metals 7 LLC and EV Metals VI LLC, entered into binding subscription agreements for the purchase of a portion of the 2025 Offering. The first closing of the 2025 Offering occurred on March 31, 2025 for gross proceeds of $7.55 million and the second closing of the 2025 Offering occurred on April 11, 2025 for gross proceeds of $679,000, which are reflected in Obligation to issue shares as a liability. In connection with the two closings, EV Metals 7 LLC and EV Metals VI LLC acquired a total of 27,739,348 (25,393,475 in the first closing and 2,345,873 in the second closing) and 690,979 2025 Units, respectively. The pricing of the 2025 Units was CAD $0.4168 per share (USD$0.2894 per share), which was based on the five-day trading average of the Common Shares on the TSXV, less a discount of 20% (the maximum allowable discount permitted by the rules of the TSXV).

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

The pricing of the 2025 Units was be based on the five-day trading average of the common shares on the TSXV for the applicable tranche less the maximum allowable discount permitted by the rules of the TSXV. The warrants included in the 2025 Units will have a term of four years from date of issuance and will entitle the holders to purchase a common share at an exercise price equal to the closing price of the common shares on the TSXV as of the date immediately preceding the date of the news release announcing the 2025 Offering or the closing of the applicable tranche of the 2025 Offering. In connection with the first and second closing of the 2025 Offering, the Company paid structuring fees of $411,450 to Mr. Warnock, a director and control person of EV Metals.

On June 19, 2024, the Company completed another further private placement with EV Metals VI and Encompass, issuing 8,478,246 units and 3,000,000 units, respectively, for a total of 11,478,246 units and total proceeds of approximately $6.4 million. Each unit consisted of one common share and one common share purchase warrant with each warrant entitling the holder to purchase on additional common share for a period of two years from the date of issuance at an exercise price of CAD$0.9579. The Company agreed to pay Jacob Warnock, a director of the Company and controlling shareholder of EV Metals VI, a structuring fee of approximately $238,000 which was paid by issuing an additional 423,912 common shares and agreed to cover certain cost incurred in connection with the private placement by the Encompass, which was paid in cash totaling $45,000.

On May 6, 2024, the Company completed a further private placement with EV Metals VI and Encompass Capital Advisors LLC ("Encompass"), issuing 7,924,157 units and 10,717,977 units, respectively, for a total of 18,642,134 units and total proceeds of approximately $10.4 million. Each unit consisted of one common share and one common share purchase warrant, with each warrant entitling the holder to purchase on additional common share for a period of two years from the date of issuance at an exercise price of CAD$0.9579. The Company agreed to pay EV Metals VI a structuring fee of approximately $322,000 which was paid by issuing an additional 574,840 common shares and agreed to cover certain costs incurred in connection with the private placement by Encompass, which was paid by issuing an additional 80,385 common shares.

On February 11, 2024, the Company entered into a letter agreement (the, "Letter Agreement"), as amended, with EV Metals VI LLC ("EV Metals") agreeing the principal terms and conditions upon which EV Metals, directly or through one or more of its subsidiaries or affiliates, could complete one or more transactions to purchase up to $20.0 million of units (the, "Offering"), which each unit consisting of one common shares of stock and one warrant to purchase a common share through June 10, 2024. The pricing established for the first closing (the, "Initial Closing") was CAD $1.00 per unit and the exercise price for the warrants, with a two-year duration, as CAD $1.25 per common share. The Letter Agreement requires the Company to submit a price reservation with the Canadian Stock Exchange ("CSE") to protect the pricing as permitted by CSE and to file for subsequent price reservations as such price reservations expire. Upon the occurrence of the Initial Closing, EV Metals shall have the right to appoint an individual to the Board of Directors of the Company and for as long as EV Metals maintains at least 5% of the issued and outstanding common shares, to nominate a potential director at subsequent shareholder meetings where directors are being considered. In addition to customary terms and conditions of such a private placement, the Letter Agreement provides EV Metals with registration rights upon EV Metals having subscribed an aggregate of $4.0 million pursuant to the Offering and maintaining beneficial ownership or control over 5% or more of all outstanding shares. On February 29, 2024, the Company completed the Initial Closing, issuing 2,704,400 units for proceeds of approximately $2.0 million. EV Metals appointed Jacob Warnock to the Board of Directors.

On December 29, 2023, the Company completed a private placement financing of 2,694,804 units for gross proceeds of approximately $1.4 million. Each unit consisted of one common share and one share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period of two years from the date of issuance at an exercise price of CAD $0.82 per share.

In December 2023, the Company issued 228,708 common shares as a signing bonus to the Co-Chief Executive Officer pursuant to an executive employment agreement, 150,000 for an officer's performance bonus and 123,841 common shares to members of the Board of Directors in lieu of cash board fees. Additionally, the Company issued 307,947 shares to a law firm in lieu of payment for amounts owing for services rendered to the Company. The total value of these shares was approximately $500,000.

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

On December 8, 2023, the Company completed a private placement financing of 1,629,838 units for gross proceeds of approximately $840,000. Each unit consisted of one common share and one share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period of two years from the date of issuance at an exercise price of CAD $0.82 per share.

On September 21, 2023, the Company issued 400,000 common shares valued at approximately $359,000 to a law firm as a retainer for professional services to be provided to the Company. Approximately $210,000 of the retainer was amortized to expense during the year ended March 31, 2024 and approximately $149,000 remains in other current assets as of March 31, 2024.

On April 21, 2023, the Company completed a private placement financing ("April 2023 Placement") with Encompass Capital Advisors LLC ("Encompass") issuing 6,396,999 units for gross proceeds of $5.0 million. Each unit consisted of one common share and one share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period of two years from the date of issuance at an exercise price of CAD $1.21 per share. In connection with the offering, the Company paid an advisory fee of approximately $300,000. In connection with the closing of the April 2023 Placement, the Company agreed to amend the exercise price of 3,333,333 warrants ("Existing Warrants") held by Encompass to $1.21 from the initial exercise price of $3.83. The Existing Warrants were allowed to expire in February 2024. The April 2023 Placement provided the Encompass with customary anti-dilution protection for a period of six months from closing and provided pre-emptive rights on future Company proposed issuances of equity, debt or other securities convertible into equity or with equity attached thereto, for a period of twenty-four months from the date of closing.

**Weighted-average Common Shares Outstanding**

---

| | | |
|:---|:---|:---|
| (in thousands, except per share amounts) | **For the Year Ended March 31,** | **For the Year Ended March 31,** |
|  | **2025** | **2024** |
| Net loss | (3516) | (8510) |
| Weighted average number of shares: |  |  |
| &nbsp;&nbsp;&nbsp; Issued common shares at beginning of period | 211381 | 195436 |
| &nbsp;&nbsp;&nbsp; Effect of common shares issued during period | 27050 | 8780 |
| Weighted average number of shares basic and diluted: | 238431 | 204216 |
| Net loss per share, basic and diluted | $(0.01) | $(0.04) |

---

Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share for the years ended March 31, 2025 and 2024 are as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended March 31,** | **For the Year Ended March 31,** | **For the Year Ended March 31,** | **For the Year Ended March 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Warrants to purchase common shares |  | 69629 |  | 13424 |
| Options to purchase common shares | | 12,283 | | 10,569 |
|  | | 81,912 | | 23,993 |

---

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

**Stock Options**

The Company has a stock option plan (the "Plan") which provides eligible directors, officers, employees and consultants of the Company with the opportunity to acquire an ownership interest in the Company and is the basis for the Company's long-term incentive scheme. The Plan is administered by the Board of Directors (the, "Board"), or if appointed, by a special committee of directors appointed from time to time by the Board. The maximum number of common shares issuable under the Plan shall not exceed 10% of the number of common shares of the Company issued and outstanding as of each award date, inclusive of all common shares reserved for issuance pursuant to previously granted stock options. The exercise price of options granted under the Plan will not be less than the closing market price of the Company's common shares on the exchange. The options have a maximum term of ten years from date of issue and vesting is determined by the Board.

On June 7, 2023, the Company amended the exercise price of 1,800,000 stock options previously granted to officers, directors and employees of the Company with exercise prices ranging from CAD$3.50 to CAD$4.37 per share. To amend the exercise price of the 1,800,000 stock options, the Company cancelled 1,800,000 stock options on June 7, 2023, and issued replacement options on July 7, 2023, following a thirty-day grace period at the amended exercise price of CAD$1.41 per share, which was the trading price of the Company's common shares on the date of grant.

The Company's has historically issued options utilizing Canadian dollars (CAD$) for the strike price as the Company's principle public listing of common shares is reported on the Canadian Securities Exchange utilizing CAD$. The following table summarizes information regarding the options including the historical CAD$ strike prices during the years ended March 31, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **Options**<br> **Outstanding** | **Weighted-** <br> **Average** <br> **Exercise** <br> **Price** | **Weighted-** <br> **Average** <br> **Exercise** <br> **Life (years)** |
|  | **(thousands)** | **(CAD$)** | |
| Balance as of March 31, 2024 | 10569 | 1.28 | 2.9 |
| &nbsp;&nbsp;&nbsp; Granted | 2864 | 1.12 |  |
| &nbsp;&nbsp;&nbsp; Forfeited | (1150) | 0.89 |  |
| Balance as of March 31, 2025 | 12283 | $1.04 | 3.1 |

---

The weighted-average grant date fair value of the options granted during fiscal years 2025 and 2024 was $0.62 (CAD$0.82) and $0.52 (CAD$0.84) per share, respectively. The share-based compensation expense for fiscal years 2025 and 2024 was approximately $1.8 million and $2.6 million, respectively and is included in general and expenses in the consolidated financial statements. There were no proceeds for option exercises during fiscal year 2025. The total proceeds for option exercises during fiscal year 2024 were approximately $112,000 and the intrinsic value per share on date of exercise was approximately $0.73 (CAD$0.99). As of March 31, 2025, unrecognized compensation expense associated with unvested options granted and outstanding was approximately $1,050,000 to be recognized over the remaining period of 2.0 years.

The fair value of the options was estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended March 31,** | **For the Year Ended March 31,** |
|  | **2025** | **2024** |
| Risk-free interest rate | 2.9% | 3.3% |
| Expected volatility | 132% | 126% |
| Expected life (years) | 3.13 | 4.4 |
| Expected dividend yield | 0.0% | 0.0% |

---

The expected volatility assumptions have been developed taking into consideration historical volatility of the Company's share price.

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

**Warrants**

The Company has historically issued warrants utilizing CAD$ for the strike price as the Company's principle public listing of common shares is reported on the Canadian Securities Exchange utilizing CAD$. The following table summarizes information regarding the warrants including the historical CAD$ strike prices during the years ended March 31, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **Warrants**<br> **Outstanding** | **Weighted-** <br> **Average** <br> **Exercise** <br> **Price** | **Weighted-** <br> **Average** <br> **Exercise** <br> **Life (years)** |
|  | **(thousands)** | **(CAD$)** | |
| Balance as of March 31, 2023 | 3756 | $3.46 | 0.8 |
| &nbsp;&nbsp;&nbsp; Granted | 13424 | 1.09 |  |
| &nbsp;&nbsp;&nbsp; Exercised | (423) | 0.58 |  |
| &nbsp;&nbsp;&nbsp; Expired | (3333) | 3.83 | 1.2 |
| &nbsp;&nbsp;&nbsp; Balance as of March 31, 2024 | 13424 | 1.09 |  |
| &nbsp;&nbsp;&nbsp; Granted | 56205 | 0.82 |  |
| Balance as of March 31, 2025 | 69629 | $0.82 | 2.2 |

---

As the strike price of the warrants is stated in a currency, Canadian dollars, which is different than the Company's functional currency, the warrants are treated as a liability in the consolidated balance sheets. The outstanding warrant liability as of March 31, 2025 and 2024 was approximately $15.2 million and $4.4 million, respectively. During the years ended March 31, 2025 and 2024, the Company recognized a gain for the change in fair value of the warrants of approximately $13.2 million and $2.1 million respectively. The fair value of the options was estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended March 31,** | **For the Year Ended March 31,** |
|  | **2025** | **2024** |
| Risk-free interest rate | 2.5% | 3.9% |
| Expected volatility | 143% | 114% |
| Expected life (years) | 2.17 | 2.0 |
| Expected dividend yield | 0.0% | 0.0% |

---

**Restricted Share Unit Plan**

On November 25, 2020, as amended and restated December 15, 2023, the Company adopted a restricted share unit plan (the "RSU Plan") which allows for certain discretionary bonuses and similar awards, related to the achievement of long-term financial and strategic objectives of the Company, to be provided to eligible directors, officers, employees and consultants of the Company. The RSU Plan is administered by the Board, or if appointed, by a special committee of directors appointed from time to time by the Board. The maximum number of common shares issuable under the RSU Plan is 20,477,824.

The Company granted 220,902 RSU's on July 1, 2022, which were subsequently cancelled and replaced with 220,902 stock options on September 29, 2023. On June 30, 2023, the Company granted 12,500 RSU's to an employee and concurrently issued the shares to settle the RSU's. The Company had no RSU's outstanding as of March 31, 2024.

On August 20, 2024, the Company granted 4,227,630 performance-based RSUs of which 300,000 RSUs vested upon issuance. The Company evaluated both the probability of achieving each of the performance targets and the time required to determine the estimated vesting schedule and valuation of the RSUs. During the year ended March 31, 2025, the Company recognized approximately $322,000 of compensation expense for the RSUs which is included in selling, general and administrative expenses in the condensed consolidated financial statements

On November 26, 2024, the Company granted 2,705,630 RSUs to the Board of Directors, with each Director receiving 541,126 RSUs. The closing price on November 26, 2024, was CAD$0.33 and the cumulative value of these RSUs are approximately $633,446. The vesting period for these RSUs is one year and will be expensed over the vesting period.

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

**12.** **Licensing Agreements with Related Parties** 

In November 2018, the Company entered into licensing agreements as amended with Ensorcia Metals Corporation ("Ensorcia") and its wholly-owned subsidiaries, Sorcia and Ensorcia Argentina LLC ("EAL") (collectively, "Ensorcia Group") whereby the Company issued lithium extraction technology licenses to Sorcia and EAL to use extraction systems manufactured by the Company in exchange for a six percent royalty (6%) on the gross sales price of all products produced and sold, less selling costs, using the licensed technology and a ten percent (10%) participation interest in each of Sorcia's and EAL's future resource projects or lithium extraction facilities where the Company's licensed rights are utilized. The definition of participation interest is to be agreed upon and calculated at the time any future resource projects are negotiated. Pursuant to the licensing agreements, as amended, Sorcia and EAL have a priority over construction of the Company's next extraction system on the Company's construction schedule. The Company can terminate the licensing agreements with Sorcia and EAL on or after December 31, 2028. Ensorcia, Sorcia and EAL are related parties of the Company by virtue of significant shareholdings. The controlling shareholder and Chairman of the Ensorcia Group was a director of the Company until October 31, 2024.

On March 30, 2023, the Company and Entec, an affiliate of the Ensorcia Group, entered into the Entec Licensing Agreement. Pursuant to the terms of the Entec Licensing Agreement, the Company will provide Entec with a non-exclusive, limited, world-wide (other than Chile and Argentina) license to access to all patents, trade secrets, and other proprietary rights for use by Entec within the territory solely for the use and operation of equipment and systems manufactured and sold in accordance with the Entec License Agreement for the extraction of lithium salts from lithium bearing raw brine. In consideration for entering the Entec Licensing Agreement, Entec has agreed to provide the Company with a royalty equal to 6% of the net sales with respect to the first resource project or lithium extraction facility utilizing the Company's licensed technology as well as an interest in the project equal to 10% of Entec's interest in the project (the "Entec Participation Interest"). With respect to additional resource projects, Entec has agreed to provide the Company with both royalty payments and the Entec Participation Interest equal to the last lithium production agreement entered into by the Company in the country where the project resides.

For the years ended March 31, 2025 and 2024, the Company has not received any revenue or incurred any expense associated with these licensing agreements with the related parties.

**13.** **Income Taxes** 

**Provision for Income Taxes**

The provision for income tax (benefit) differs from the amount that would have resulted by applying the combined Canadian federal and provincial statutory tax rates. A reconciliation of the statutory versus effective rates are as follows (amounts in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended March 31,** | **For the Year Ended March 31,** | **For the Year Ended March 31,** | **For the Year Ended March 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Income (tax benefit) at statutory rate (Canada) | $(949) | (27)% | $(2298) | (27)% |
| &nbsp;&nbsp;&nbsp; Change in statutory, foreign exchange rates and other |  | -% | 703 | 8% |
| &nbsp;&nbsp;&nbsp; Permanent differences | 338 | 10% | 159 | 2% |
| &nbsp;&nbsp;&nbsp; Share issuance costs |  | -% | (142) | (2)% |
| &nbsp;&nbsp;&nbsp; Adjustments to prior years' provision | (1061) | (30)% | 1578 | 19% |
| &nbsp;&nbsp;&nbsp; Non taxable gain on warrant obligations | (3291) | (94)% |  | -% |
| &nbsp;&nbsp;&nbsp; Increase in valuation allowance (Canada) | 4265 | 121% |  | -% |
| &nbsp;&nbsp;&nbsp; US-Canadian rate differential | 629 | 18% |  | -% |
| &nbsp;&nbsp;&nbsp; Other | 69 | 2% | - | -% |
| Income tax benefit, net | $- | -% | $- | -% |

---

**International Battery Metals Ltd.**

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

The significant components of the Company's unrecorded deferred tax assets are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
|  | **2025** | **2024** |
| Non-capital loss carryforward | $7449 | $3452 |
| Basis differences in fixed assets | (990) | 128 |
| Intangible assets | 766 | 812 |
| Accruals and reserves | 233 |  |
| Share issuance costs | 1163 | 202 |
| Interest limitations | 237  |  |
| Capital losses | 2 | 1 |
|  | 8860 | 4595 |
| Less: valuation allowance | (8860) | (4595) |
| &nbsp;&nbsp;&nbsp; Net deferred tax assets | $- | $- |

---

As of March 31, 2025, the Company had non-capital tax loss carryforwards in Canada of approximately $17.6 million which can be applied to reduce future Canadian taxable income and will expire between 2031 and 2045. Additionally, the Company had net operating tax loss carryforwards in the United States of $13.2 million, which may be carried forward indefinitely to reduce future U.S. taxable income.

As of March 31, 2025, the Company has unrecognized deferred tax liability of approximately $1.5 million due to the timing differences arising on the initial recognition of the acquisition of all the issued and outstanding shares of a subsidiary acquired in 2018.

**14.** **Contingency** 

In April 2021, former Company employees and directors and a company which they control, filed a complaint in the United States District Court for the District of Colorado against the Company for alleged wrongful dismissal and breach of a share exchange agreement. The complaint alleges non-payment of wages and benefits, appropriation of property and interference in outside employment. The Company is objecting to the complaint, has retained counsel to address and filed a countersuit alleging the counterclaim defendants diverted Company work to themselves and interfered with contractual relations. The complaint was settled on July 7, 2025, whereby the Company paid the claimants approximately $78,000.

**15.** **Risk Management** 

**Concentration of Credit risk**

Financial instruments that potentially subject the Company to credit risk consist of cash. The Company manages its credit risk relating to cash by dealing only with high-rated financial institutions as determined by rating agencies. As a result, credit risk is considered insignificant. The Company does not consider any of its financial assets to be impaired.

**Liquidity risk**

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company manages liquidity risk by maintaining sufficient cash balances to enable settlement of transactions on the due date. The Company is exposed to liquidity risk. The Company addresses its liquidity by raising capital through the issuance of equity. While the Company has been successful in securing financings in the past, there is no assurance that it will be able to do so in the future.

**Foreign currency risk**

Foreign currency risk is the risk that a variation in exchange rates between the Canadian dollar and the U.S. dollar will affect the Company's operations and financial results. The operating results and financial position of the Company are reported in U.S. dollars. As of March 31, 2025, the Company held approximately $117,000 of Canadian cash and trade payables and other liabilities of $104,000 denominated in Canadian dollars.

**Other risks**

Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest rate risk and commodity price risk arising from financial instruments.

**16.** **Segment Information** 

The Company operates as a single reportable segment, which reflects the manner in which the CODM manages the business, allocates resources, and evaluates performance. The Company's activities to date have been limited to research and development and pre-commercialization activities and it has not generated any revenue from product sales or services.

 *Significant Expense Categories*

 

As required by *ASU 2023-07**,*** the Company discloses significant segment expense categories that are regularly provided to the CODM. These categories, which represent the major costs incurred in the development of the Company's technology and operations, are as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended March 31,** | **Year Ended March 31,** |
| **Expense Category** | **2025** | **2024** |
| General and administrative | $7290 | $6864 |
| Stock-based compensation | $1752 | $2649 |
| Other operating expenses | $3533 | $- |

---

The CODM reviews these expenses as part of the consolidated financial results. No other measures of segment profit or loss, or assets, are provided to the CODM.

 *Geographic Information*

All operations and assets are located in the United States. As of March 31, 2025, the Company does not have revenue or long-lived assets located outside of the United States.

**17.** **Subsequent Events** 

In accordance with ASC 855, "Subsequent Events," the Company has analyzed it operations subsequent to March 31, 2025 to the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements.

On July 20, 2025, the Company entered into the Encompass Subscription Agreements with Encompass, a beneficial owner of more than 5% of the Company's securities, for the purchase of up to 25,765,259 units at a price of CAD $0.26625 per unit (USD$0.19406 per unit) for gross proceeds of $5.0 million to the Company. Each 2025 Encompass Unit consists of one Common Share and one warrant, with each warrant entitling the holder to purchase one additional Common Share for a period of three years from the closing date of the 2025 Encompass Offering at an exercise price of CAD$0.355 per share. In addition, the Company has agreed to grant Encompass the right but not the obligation to purchase up to $2.0 million additional units of the Company at any time on or before December 31, 2025.

The 2025 Encompass Offering is expected to close on or around August 8, 2025, subject to satisfaction of customary closing conditions, including (i) receipt of the requisite regulatory approvals, including the approval of the TSXV and the Warrant Amendments, (ii) the accuracy of the representations and warranties of the other party, (iii) compliance with the terms, covenants, agreements and conditions of the Encompass Subscription Agreements, and (iv) no Material Adverse Effect (as defined in the Encompass Subscription Agreements) has occurred nor has any event or events occurred that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

On July 20, 2025, the Company entered into amended and restated registration rights agreements ("**A&R Registration Rights Agreements**") which amended the Registration Rights Agreements with each of EV Metals and Encompass. Pursuant to the A&R Registration Rights Agreements, we have agreed to use our reasonable best efforts to cause this Registration Statement to be declared effective as promptly as reasonably practicable but in no event later than July 20, 2026. In addition, pursuant to the Encompass A&R Registration Rights Agreement, upon the closing of the 2025 Encompass Offering we have agreed that, upon request of Encompass, we will use our commercially reasonable efforts to (i) file a registration statement registering the Common Shares to be issued at closing of the 2025 Encompass Offering, including the Common Shares issuable upon exercise of the warrants which form a part of the 2025 Encompass Units within 90 days and (ii) have such registration statement declared effective as promptly as reasonably practicable following the filing thereof but in no event later than 60 days if the registration statement is not reviewed by the SEC or 180 days if subject to review. The A&R Registration Rights Agreements provide that, subject to certain requirements and customary conditions, each of EV Metals and Encompass will have "piggy-back" registration rights with respect to underwritten offerings by us and other shareholders. In addition, upon the request of EV Metals, we have agreed to take necessary steps to facilitate up to two underwritten offerings which must occur prior to the third anniversary of the effective date of this registration statement on Form S-1; provided that the aggregate price of such offering is expected to be $25 million or less.

The A&R Registration Rights Agreements contain customary cross-indemnification provisions, under which we are obligated to indemnify the selling shareholders in the event of material misstatements or omissions in the registration statement and any violation or alleged violation by us of the Securities Act, Exchange Act, or any state securities law, or any rule or regulation thereunder, and the selling shareholders are obligated to indemnify us for material misstatements or omissions attributable to them. We will generally pay all registration expenses in connection with our obligations under the A&R Registration Rights Agreements, regardless of whether any our Common Shares are sold pursuant to a registration statement.

In connection of the foregoing, pursuant to the A&R Registration Rights Agreements, we agreed to to extend the expiration date of the warrants previously issued to Encompass and EV Metals pursuant to the private placements which occurred on April 21, 2023, February 29, 2024, May 3, 2024, and June 19, 2024 to the earlier of (i) five years from the date of such warrants original issuance or (ii) three years from the date of the closing of the 2025 Encompass Offering (the "**Warrant Amendments**") and each of EV Metals and Encompass has agreed to waive their respective rights to any possible claims, including the right to liquidation damages, under the Registration Rights Agreements provided that the Warrant Amendments are approved by the TSXV.

**<u>PART II</u>**

**INFORMATION NOT REQUIRED IN THE PROSPECTUS**

**ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION**

The following table sets forth the costs and expenses payable solely by us in connection with the sale of the securities being registered hereby. All amounts, other than the SEC registration fee, are estimates.

---

| | |
|:---|:---|
|  | **Amount (US$)** |
| SEC registration fee | 10921.30  |
| Accounting fees and expenses\* | [●] |
| Legal fees and expenses\* | [●] |
| Miscellaneous fees and expenses\* | [●] |
| Total | [●] |

---

\* These fees are estimated and accordingly are subject to change

**ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS**

Business Corporations Act (British Columbia)

We are subject to the provisions of Part 5, Division 5 of the BCBCA.

Under Section 160 of the BCBCA, we may, subject to Section 163 of the BCBCA:

(a) Indemnify
 an individual who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 or was a director or officer of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is
 or was a director or officer of another corporation at a time when such corporation is or
 was an affiliate of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) at
 the Company's request, is or was, or holds or held a position equivalent to that of,
 a director or officer of a partnership, trust, joint venture or other unincorporated entity,
 including, subject to certain limited exceptions, the heirs and personal or other legal representatives
 of that individual (collectively, an "**eligible party** "), against all eligible
 penalties, defined below, to which the eligible party is or may be liable; and

(b) after
 final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred
 by an eligible party in respect of that proceeding, where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "eligible
 penalty" means a judgment, penalty or fine awarded or imposed in, or an amount paid
 in settlement of, an eligible proceeding,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "eligible
 proceeding" means a proceeding in which an eligible party or any of the heirs and personal
 or other legal representatives of the eligible party, by reason of the eligible party being
 or having been a director or officer of, or holding or having held a position equivalent
 to that of a director or officer of, we or an associated corporation (A) is or may be joined
 as a party, or (B) is or may be liable for or in respect of a judgment, penalty or fine in,
 or expenses related to, the proceeding,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "expenses"
 includes costs, charges and expenses, including legal and other fees, but does not include
 judgments, penalties, fines or amounts paid in settlement of a proceeding, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "proceeding"
 includes any legal proceeding or investigative action, whether current, threatened, pending
 or completed.

Under Section 161 of the BCBCA, and subject to Section 163 of the BCBCA, we must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by an eligible party in respect of that proceeding if the eligible party (a) has not been reimbursed for those expenses and (b) is wholly successful, on the merits or otherwise, in the outcome of the proceeding or is substantially successful on the merits in the outcome of the proceeding.

Under Section 162 of the BCBCA, and subject to Section 163 of the BCBCA, we may pay, as they are incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an eligible party in respect of the proceeding, provided that we must not make such payments unless it first receives from the eligible party a written undertaking that, if it is ultimately determined that the payment of expenses is prohibited under Section 163 of the BCBCA, the eligible party will repay the amounts advanced.

Under Section 163 of the BCBCA, we must not indemnify an eligible party against eligible penalties to which the eligible party is or may be liable or pay the expenses of an eligible party in respect of that proceeding under Sections 160(b), 161 or 162 of the BCBCA, as the case may be, if any of the following circumstances apply:

(a) if
 the indemnity or payment is made under an earlier agreement to indemnify or pay expenses
 and, at the time that the agreement to indemnify or pay expenses was made, we were prohibited
 from giving the indemnity or paying the expenses by the Company's memorandum or Articles;

(b) if
 the indemnity or payment is made otherwise than under an earlier agreement to indemnify or
 pay expenses and, at the time that the indemnity or payment is made, we are prohibited from
 giving the indemnity or paying the expenses by the Company's memorandum or Articles;

(c) if,
 in relation to the subject matter of the eligible proceeding, the eligible party did not
 act honestly and in good faith with a view to the best interests or the associated corporation,
 as the case may be; or

(d) in
 the case of an eligible proceeding other than a civil proceeding, if the eligible party did
 not have reasonable grounds for believing that the eligible party's conduct in respect
 of which the proceeding was brought was lawful.

If an eligible proceeding is brought against an eligible party by or on behalf or by or on behalf of an associated corporation, we must not either indemnify the eligible party under Section 160(a) of the BCBCA against eligible penalties to which the eligible party is or may be liable, or pay the expenses of the eligible party under Sections 160(b), 161 or 162 of the BCBCA, as the case may be, in respect of the proceeding.

Under Section 164 of the BCBCA, and despite any other provision of Part 5, Division 5 of the BCBCA and whether or not payment of expenses or indemnification has been sought, authorized or declined under Part 5, Division 5 of the BCBCA, on application or an eligible party, the court may do one or more of the following:

(a) order
 us to indemnify an eligible party against any liability incurred by the eligible party in
 respect of an eligible proceeding;

(b) order
 us to pay some or all of the expenses incurred by an eligible party in respect of an eligible
 proceeding;

(c) order
 the enforcement of, or any payment under, an agreement of indemnification entered into by
 us;

(d) order
 us to pay some or all of the expenses actually and reasonably incurred by any person in obtaining
 an order under Section 164 of the BCBCA; or

(e) make
 any other order the court considers appropriate.

Section 165 of the BCBCA provides that we may purchase and maintain insurance for the benefit of an eligible party or the heirs and personal or other legal representatives of the eligible party against any liability that may be incurred by reason of the eligible party being or having been a director or officer of or holding or having held a position equivalent to that of a director or officer of, we or an associated corporation.

Under Article 20.2 of the Company's Articles, and subject to the BCBCA, we must indemnify an eligible party and his or her heirs and legal personal representatives against all eligible penalties to which such person is or may be liable, and it must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by such person in respect of that proceeding. Each eligible party is deemed to have contracted with we on the terms of the indemnity contained in the Company's Articles.

Under Article 20.3 of the Company's Articles, and subject to any restrictions in the BCBCA, we may indemnify any person. We have entered into indemnity agreements or employment agreements containing indemnification provisions with certain of the Company's directors and officers. Under these indemnification provisions, an executive officer is entitled, subject to the terms and conditions thereof, to the right of indemnification by the Company for certain expenses to the fullest extent permitted by applicable law. We believe that these indemnification agreements are necessary to attract and retain qualified individuals to serve as directors and executive officers.

Pursuant to Article 20.4 of the Company's Articles, the failure of an eligible party to comply with the BCBCA or the Company's Articles does not invalidate any indemnity to which he or she is entitled under the Company's Articles.

Under Article 20.5 of the Company's Articles, we may purchase and maintain insurance for the benefit of any person (or his or her heirs or legal personal representatives) who: (1) is or was a director, officer, employee or agent of the Company; (2) at the request of the Company, is or was a director, officer, employee or agent of another corporation at a time when the corporation is or was an affiliate of the Company; (3) at the request of the Company, is or was a director, officer, employee or agent of a corporation or a partnership, trust, joint venture or other unincorporated entity; (4) at the request of the Company, holds or held a position equivalent to that of a director or officer of a partnership, trust, joint venture or other unincorporated entity; (5) against any liability incurred by him or her as such director, officer, employee or agent or person who holds or held such equivalent position.

We have an insurance policy covering our directors and officers, with respect to certain liabilities arising out of claims based on acts or omissions in their capacities as directors or officers.

We have entered into an indemnification agreement with each of our directors and executive officers, pursuant to which we have agreed, to the fullest extent not prohibited by law and promptly upon demand, to indemnify and hold harmless such director or officer, their heirs and legal representatives from and against (i) all costs, charges and expenses incurred by such director or officer in respect of any claim, demand, suit, action, proceeding or investigation in which such director or officer is involved or is subject by reason of being or having been a director or officer (ii) all liabilities, damages, costs, charges and expenses whatsoever that the director or officer may sustain or incur as a result of serving as a director or officer in respect of any act, matter, deed or thing whatsoever made, done, committed, permitted or acquiesced in by such director or officer in his capacity as a director or officer, whether before or after the effective date of such indemnification agreement.

**ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES.**

The following information represents securities sold by us within the past three years, ‎which were not registered under the Securities Act. Included in this section are new issues, securities issued in exchange for ‎property, services or other securities, securities issued upon conversion from the Company's other share classes and new ‎securities resulting from the modification of outstanding securities. We sold all of the securities listed below pursuant ‎to: (a) the exemptions from registration provided by Section 4(a)(2) of the Securities Act and/or Regulation D ("**Regulation D**") under the Securities Act; (b) Rule 701 under the Securities Act, with respect to compensatory securities offered and sold to (i) directors, (ii) officers, (iii) employees, or (iv) consultants who are natural persons providing bona fide services to we and/or its subsidiaries not in connection with the offer or sale of securities in a capital-raising transaction, and which do not directly or indirectly promote or maintain a market for the Company's securities (each, a "**Rule 701 Eligible Person**"); (c) Section 3(a)(9) of the Securities Act; or (d) the exclusion from registration provided by Rule 903 of Regulation S ("**Regulation S**") under the Securities Act for offers and sales of our securities which took place outside the United States.

Common Share transactions during the year ended March 31, 2023:

On May 16, 2022, the Company and each of EVL Holdings and Sorcia Minerals entered into investment agreements based on EVL Holdings and Sorcia Minerals' assumption of third-party fabrication costs of the MDLE Plant (collectively, the "**EVL Sorcia Investment Agreements**") in the amount of US$4,812,850, and US$6,160,485 respectively (collectively the "**Indebtedness**"). Pursuant to the terms of the EVL Sorcia Investment Agreements, it was agreed that the subscription price of the 2021 Private Placement, as previously announced and approved by shareholders of the Company on April 19, 2021, would be satisfied by applying the amounts indebted to EVL Holdings and Sorcia Minerals with any excess thereunder being applied to the exercise of each of the Warrants issued pursuant to the terms of the 2021 Private Placement.

On August 15, 2022, we sold 400,000 Common Shares at a price per Common Share of CAD$0.19 and 100,000 Common Shares at a price per Common Share of CAD$0.38 to a Rule 701 Eligible Person in reliance on Rule 701 under the Securities Act, upon the exercise of Stock Options, for aggregate consideration of CAD$114,000.

On October 7, 2022, we sold 2,550,000 Common Shares at a price per Common Share of CAD$0.38 to Rule 701 Eligible Persons in reliance on Rule 701 under the Securities Act, upon the exercise of Stock Options, for aggregate consideration of CAD$969,000.

On October 20, 2022, we issued 300,000 Common Shares at a price per Common Share of CAD$0.62 to a Rule 701 Eligible Person in reliance on Rule 701 under the Securities, upon the exercise of Stock Options, for aggregate consideration of CAD$186,000.

On January 30, 2023, we issued 3,331,162 Common Shares to Ensorcia Metals, an accredited investor and greater than 5% shareholder, in reliance on Section 4(a)(2) of the Securities Act and Regulation D, and 3,331,162 Common Shares to an accredited investor, in reliance on Rule 903 of Regulation S, pursuant to their exercise of pre-emptive rights granted to them under a non-brokered private placement which closed on August 23, 2019, with each Common Share being priced at CAD$0.305 for aggregate consideration of CAD$2,032,009. The proceeds were used towards further testing and application of the MDLE Plant and to pay accounts payables.

On February 7, 2023, we issued 5,024,331 Common Shares to Dr. Burba, a director and an accreditor investor, in reliance on Section 4(a)(2) of the Securities Act and Regulation D, at the then market price of the Company's Common Shares as traded on the CSE, pursuant to the completion of certain milestone achievements as provided for in the Share Exchange Agreement with SAL. No consideration was received by us for the issuance.‎

On March 10, 2023, the Company held a special meeting of the holders of Common Shares in which it obtain dis-interested shareholder re-approval of a resolution approving the 2021 Private Placement and thus re-affirming the pre-emptive rights granted to each of Sorcia Minerals and EVL Holdings under the terms of the 2021 Private Placement, and on March 21, 2023, the Company completed the 2021 Private Placement and issued 17,250,000 units to EVL Holdings LLC, an accredited investor, in reliance on Section 4(a)(2) of the Securities Act and Regulation D, and 16,827,502 units to Sorcia Minerals LLC, an accredited investor, in reliance on Section 4(a)(2) of the Securities Act and Regulation D, with each unit being priced at CAD$0.58 per unit for aggregate consideration of CAD$19,764,951.66. The proceeds from the 2021 Private Placement were used to offset the Indebtedness owing by the Company to each of EVL Holdings and Sorcia Minerals. On March 22, 2023, we issued 5,024,331 Common Shares to Christina Borgese an accredited investor and former executive officer of the Company, and 5,024,330 Common Shares to Marc Privitera, an accredited investor and former executive officer of the Company, in reliance Section 4(a)(2) of the Securities Act and Regulation D, at the then market price of the Company's Common Shares as traded on the CSE, pursuant to the completion of certain milestone achievements as provided for in the SAL Share Exchange Agreement. No consideration was received by us for the issuance.

Common Share transactions during the year ended March 31, 2024:

On April 20, 2023, we sold 422,498 Common Shares at a price per Common Share of CAD$0.58 for gross proceeds of CAD$245,044 upon the exercise of Warrants by Sorcia Minerals, an accredited investor, in reliance on Section 4(a)(2) of the Securities Act and of Regulation D.

On April 21, 2023, we completed a non-brokered private placement and issued 6,396,999 Units, consisting of 6,396,999 Common Shares and 6,396,999 Warrants to Encompass, an accredited investor, in reliance on Regulation S of the Securities Act, with each Unit being priced at CAD$1.04635 for gross proceeds of CAD$6,693,500.01. Each unit is comprised of one Common Share and one Warrant entitling the holder to purchase one Common Share for a period of two years an exercise a price of CAD$1.21. The proceeds from the private placement were used for working capital needs, to accelerate research and development efforts, product development and technology adoption, and for preplacement orders of MDLE Plants for sitting on customer brine resources.

On July 4, 2023, we sold 12,500 Common Shares to a Rule 701 Eligible Person in reliance on Rule 701 under the Securities Act, upon the vesting of RSUs of the Company, originally issued in reliance on Rule 701 under the Securities Act. No consideration was received by us for this issuance.‎

On August 28, 2023, we sold 800,000 Common Shares at a price per Common Share of CAD$0.19, to a Rule 701 Eligible Person in reliance on Rule 701 under the Securities Act, upon the exercise of Stock Options, for aggregate consideration of CAD$152,000.

On September 21, 2023, we sold 400,000 Common Shares at a price per Common Share of CAD$1.195, to a service provider in reliance on Section 4(a)(2) of the Securities Act and Regulation D.

On December 8, 2023, we completed a non-brokered private placement and sold 1,629,838 units to Garry Flowers, former Chief Executive Officer, Dr. John Burba, Chief Technology Officer and director, and a consultant, each an accredited investor, in reliance Section 4(a)(2) of the Securities Act on Regulation D, with each unit being priced at CAD$0.70 for gross proceeds of CAD$1.1 million/US$840,000. Each unit was comprised of one Common Share and one Warrant entitling the holder to purchase one Common Share for a period of two years at a price of CAD$0.82. The proceeds from the private placement were used towards the Company's ongoing operations and other general corporate expenditures.

On December 11, 2023, we issued 228,708 Common Shares at a price per Common Share of CAD$0.89, to Libor Michel, then co-CEO and an accredited investor, in reliance on Section 4(a)(2) of the Securities Act and Regulation D, pursuant to the terms of his executive employment agreement with the Company. No consideration was received by us for the issuance.‎

On December 12, 2023, we issued 431,788 Common Shares, with 123,841 Common Shares are to having a deemed price of CAD$0.89, and 307,947 Common Shares having a deemed issuance price of CAD$0.70, to certain directors, officers, and consultants of the Company, in reliance on Section 4(a)(2) of the Securities Act and Regulation D, in lieu of cash payment for services rendered in that capacity. No consideration was received by us for the issuance.‎

On December 29, 2023, we issued 150,000 Common Shares with a deemed price of CAD$0.90 to Joshua Hebert, an accredited investor, in reliance on Section 4(a)(2) of the Securities Act and Regulation D, pursuant to certain amendments made to Mr. Hebert's employment agreement with the Company. No consideration was received by us for the issuance.‎

On December 29, 2023, we also completed a non-brokered private placement and issued 2,694,804 units to certain insiders of the Company, and accredited investors, in reliance on Section 4(a)(2) of the Securities Act and Regulation D, with each unit being priced at CAD$0.70 for aggregate consideration of $1.4 million. Each Unit was comprised of one Common Share and one Warrant entitling the holder to purchase one Common Share at a price of CAD$0.82 until December 29, 2025. The proceeds from the private placement were used towards the Company's ongoing operations and general corporate expenditures.

On February 29, 2024, we completed a first closing of a non-brokered private placement and issued 2,702,400 units to EV Metals VI, an accredited investor, in reliance on Section 4(a)(2) of the Securities Act and Regulation D, with each unit being priced at CAD$1.00, for aggregate consideration of CAD$2,702,400. Each unit was comprised of one Common Share and one Warrant entitling the holder to purchase one Common Share at a price of CAD$1.25 until March 1, 2026. The proceeds from the private placement were used towards the costs of mobilization and commission of the MDLE Plant.

On March 27, 2024, we issued 76,005 Common Shares at a deemed price of CAD$1.00, to Mr. Tony Colletti, Mr. William Webster, then directors of the Company, and Roderick Kirkham, then Corporate Secretary to the Company, in reliance on Section 4(a)(2) of the Securities Act and Regulation D, in lieu of cash payment for services rendered in that capacity. No consideration was received by us for the issuance.

Common Share transactions during the year ended March 31, 2025:

On May 6, 2024, we completed a second closing of a non-brokered private placement (first closing occurred on February 29, 2024 as described above) and issued in total 18,642,134 units to Encompass and EV Metals VI, each an accredited investor in reliance on Regulation S of the Securities Act, with each unit being priced at CAD$0.76632, for aggregate consideration of approximately US$10.4 million. Encompass acquired the units as a result of its exercise of the Encompass Pre-Emptive Rights pursuant to the terms of the Encompass Investment Agreement entered into with Encompass in respect of the April 2023 Placement. Each unit was comprised of one Common Share and one Warrant entitling the holder to purchase one Common Share of ours for a period of two years at a price of CAD$0.9579. In addition, we also caused the issuance of 574,840 Common Shares to EV Metals VI, pursuant to certain financing structuring fees as agreed to by us and EV Metals VI under the terms of the investment agreement dated May 3, 2024. The proceeds of the private placement were used towards current obligations for the deployment of its MDLE Plant in the western United States, and for general working capital purposes.

On May 9, 2024, we also issued 80,385 Common Shares to Encompass, an accredited investor, in reliance on Regulation S of the Securities Act, with each Common Share being priced at CAD$0.76632. The Common Shares were issued to Encompass as payment to cover certain expenses incurred by Encompass for the non-brokered private placement, described above. ‎

On May 31, 2024, we issued 14,624 Common Shares a Rule 701 Eligible Person in reliance on Rule 701 under the Securities Act, pursuant to the terms of such person's employment with the Company. No consideration was received by us for the issuance.‎

On June 19, 2024, we completed a non-brokered private placement with EV Metals and Encompass, each an accredited investor, in reliance on Regulation S of the Securities Act, issuing 8,478,246 units and 3,000,000 units, respectively, constituting a total of 11,478,246 units, with each unit being priced at CAD$0.76632, for aggregate consideration of approximately US$6.4 million. Encompass acquired the units as a result of its exercise of the Encompass Pre-Emptive Rights. As part of this private placement, Encompass was issued 3,000,000 units for proceeds of approximately $1.6 million under the same terms and conditions as the May 2024 Placement. Each unit was comprised of one Common Share and one Warrant entitling the holder to purchase one Common Share from us for a period of two years at a price of CAD$0.9579. Included in this private placement, was the third closing with EV Metals, which received 8,478,246 units for proceeds of approximately $4.8 million. In connection with the offering to EV Metals, we also caused the issuance of 423,912 Common Shares to EV Metals VI, pursuant to certain financing structuring fees as agreed to by us and EV Metals VI under the terms of the investment agreement dated May 3, 2024. The proceeds of the private placement were used by us for expenditures to increase the production capacity of its MDLE Plant contracted for operations in the western United States as previously announced on January 11, 2024, and May 6, 2024, and for general working capital purposes.

On August 20, 2024, we issued 4,227,630 performance based RSUs of the Company of which 300,000 units vested upon issuance, to a Rule 701 Eligible Person in reliance on Rule 701 under the Securities Act. No consideration was received by us for this issuance.

On August 20, 2024, we issued 2,113,814 stock options to a Rule 701 Eligible Person in reliance on Rule 701 under the Securities Act and in accordance with the employment agreement, with an exercise price of CAD$0.94 and grant date fair value of US$0.68 (CAD$0.93) per stock option.

On February 28, 2025, we entered into the 2025 Letter Agreement with EV Metals, a company controlled by Jacob Warnock, a director of the Company, agreeing to the principal terms and conditions upon which EV Metals, directly or through one or more of its subsidiaries or affiliates, could complete one or more transactions to purchase up to $15.0 million of 2025 Units. The 2025 Units consist of one Common Share of stock and one warrant to purchase a Common Share. On March 2, 2025, two entities controlled by EV Metals, EV Metals 7 LLC and EV Metals VI LLC, entered into binding subscription agreements for the purchase of a portion of the 2025 Offering. The first closing of the 2025 Offering occurred on March 31, 2025 for gross proceeds of $7.55 million and the second closing of the 2025 Offering occurred on April 11, 2025 for gross proceeds of $679,000. In connection with the two closings, EV Metals 7 LLC and EV Metals VI LLC acquired a total of 27,739,348 and 690,979 2025 Units, respectively. The pricing of the 2025 Units was CAD $0.4168 per share (USD$0.2894 per share), which was based on the five-day trading average of the Common Shares on the TSXV, less a discount of 20% (the maximum allowable discount permitted by the rules of the TSXV). In connection with the first and second closing of the 2025 Offering, the Company paid Mr. Warnock, a director of the Company and control person of EV Metals aggregate structuring fees of $411,450. Proceeds from the offering will be used for general working capital purposes. The 2025 Units were issued by the Company in reliance on Section 4(a)(2) of the Securities Act for each of the two closings.

*Common Share transactions post March 31, 2025:* 

 

During the period from March 31, 2025 through July 22, 2025, we issued an aggregate of 5,550,000 RSUs of to Rule 701 Eligible Persons in reliance on Rule 701 under the Securities Act. No consideration was received by us for these issuances.

 

On July 20, 2025, the Company entered into the Encompass Subscription Agreements with Encompass, a beneficial owner of more than 5% of the Company's securities, for the purchase of up to 25,765,259 units at a price of CAD $0.26625 per unit (USD$0.19406 per unit) for gross proceeds of $5.0 million to the Company. Each 2025 Encompass Unit consists of one Common Share and one warrant, with each warrant entitling the holder to purchase one additional Common Share for a period of three years from the closing date of the 2025 Encompass Offering at an exercise price of CAD$0.355 per share. In addition, the Company has agreed to grant Encompass the right, but not the obligation, to purchase up to $2.0 million additional units of the Company at any time on or before December 31, 2025.

The 2025 Encompass Offering is expected to close on or around August 8, 2025, subject to satisfaction of customary closing conditions, including (i) receipt of the requisite regulatory approvals, including the approval of the TSXV and the Warrant Amendments, (ii) the accuracy of the representations and warranties of the other party, (iii) compliance with the terms, covenants, agreements and conditions of the Encompass Subscription Agreements, and (iv) no Material Adverse Effect (as defined in the Encompass Subscription Agreements) has occurred nor has any event or events occurred that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

**ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES**

---

| | |
|:---|:---|
| **Exhibit Number** | **Description of Exhibit** |
| 3.1\* | [Articles of Incorporation dated August 28, 2017](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex3-1.htm) |
| 4.1\* | [Form of April 2023 Warrants](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex4-1.htm) |
| 4.2#\* | [Notice and Consent to the Amendment of the April 2023 Warrant Terms](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex4-2.htm) |
| 4.3\* | [Form of February 2024 Warrants](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex4-3.htm) |
| 4.4\* | [Form of May 2024 Warrants](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex4-4.htm) |
| 4.5\* | [Form of June 2024 Warrants](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex4-5.htm) |
| 5.1\*\* | Opinion of Bennett Jones LLP |
| 10.1+\* | [Executive Employment Agreement, dated June 26, 2018, by and between Dr. John L. Burba and the Company](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-1.htm) |
| 10.2(a)+\* | [Executive Employment Agreement, dated as of July 1, 2022, by and between Garry Flowers and IBAT USA](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-2a.htm) |
| 10.2(b)+\* | [Amendment to Executive Employment dated as of July 29, 2024, by and between Garry Flowers and IBAT USA](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-2b.htm) |
| 10.2(c)+\* | [Amendment to Executive Employment dated as of July 31, 2024, by and between Garry Flowers and IBAT USA](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-2c.htm) |
| 10.3+\* | [Executive Employment Agreement, dated as of December 11, 2023, by and between Douglas Smith and the Company](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-3.htm) |
| 10.4+\* | [Executive Employment Agreement, dated as of December 11, 2023, by and between Libor Michel and the Company](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-4.htm) |
| 10.5+\* | [Executive Employment Agreement, dated August 6, 2024, by and between Iris Jancik and the Company](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-5.htm) |
| 10.6+\* | [Offer Letter, dated October 8, 2024, by and between the Company and Norma Garcia](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-6.htm) |
| 10.7\* | [Rolling 10% Incentive Share Option Plan dated December 15, 2023](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-7.htm) |
| 10.8+\* | [Amended and Restated Restricted Share Unit Plan dated as of December 15, 2023](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-8.htm) |
| 10.9\* | [Registration Rights Agreement with EV Metals dated May 3, 2024](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-9.htm) |
| 10.10#\* | [Registration Rights Agreement with Encompass Funds dated May 3, 2024](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-10.htm) |
| 10.11#\* | [Investment Agreement with Encompass dated April 26, 2024](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-11.htm) |
| 10.12+\* | [Severance and General Release Agreement dated March 3, 2025, by and between Douglas Smith and the Company](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-12.htm) |
| 10.13+\* | [Severance and General Release Agreement dated April 11, 2025, by and between Iris Jancik and the Company](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-13.htm) |
| 10.14\* | [Letter Agreement, dated February 28, 2025, by and between the Company and EV Metals 7 LLC](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-14.htm) |
| 10.15\* | [Investor Rights Agreement, dated February 23, 2024, by and between the Company and EV Metals](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-15.htm) |
| 10.16^  | [Amendment to the Investor Rights Agreement dated March 31, 2025, between the Company and EV Metals 7 LLC](ex10-16.htm) |
| 10.17#\*  | [Subscription Agreement, dated March 2, 2025, by and between the Company and EV Metals 7 LLC](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-17.htm) |
| 10.18#\* | [Subscription Agreement, dated March 2, 2025, by and between the Company and EV Metals VI LLC](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-18.htm) |
| 10.19\* | [Royalty Agreement, dated March 4, 2018, by and between the Company and North American Lithium, Inc.](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex10-19.htm) |
| 10.20+ | [Executive Employment Agreement, dated April 7, 2025, by and between Joseph Mills and the Company](ex10-20.htm) |
| 10.21+ | [Executive Employment Agreement, dated June 2, 2025, by and between Michael Rutledge and the Company](ex10-21.htm) |
| 10.22+ | [Restricted Share Unit Agreement, dated April 18, 2025, by and between Joseph Mills and the Company](ex10-22.htm) |
| 10.23+ | [Restricted Share Unit Agreement, dated June 2, 2025, by and between Michael Rutledge and the Company](ex10-23.htm) |
| 10.24+ | [Form of Indemnity Agreement, entered into by Company with each of its Directors and Executive Officers](ex10-24.htm) |
| 10.26  | [Form of Subscription Agreement, date July 20, 2025, by and between the Company and each of the Encompass Funds](ex10-26.htm) |
| 10.29 | [Amended and Restated Registration Rights Agreement, dated July 20, 2025, by and between the Company EV Metals VI LLC](ex10-29.htm) |
| 10.30 | [Amended and Restated Registration Rights Agreement, dated July 20, 2025, by and between the Company and Encompass Capital Advisors LLC on behalf of certain fund entities](ex10-30.htm) |
| 10.31 | [Notice and Consent to the Amendments of Warrant Terms, dated July 20, 2025, by and between the Company and EV Metals VI LLC](ex10-31.htm) |
| 10.32 | [Notice and Consent to the Amendments of Warrant Terms, dated July 20, 2025, by and between the Company and Encompass Capital Advisors LLC on behalf of certain fund entities](ex10-32.htm) |
| 21.1 | [List of Subsidiaries of the Company](ex21-1.htm) |
| 23.1 | [Consent of CBIZ CPAs P.C. Independent Registered Public Accounting Firm](ex23-1.htm) |
| 23.2\*\* | Consent of Bennett Jones LLP (included in the opinion filed as Exhibit 5.1 to this registration statement) |
| 23.3\*  | [Consent of SLR International Corporation](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex23-3.htm) |
| 23.4\*  | [Consent of Greg Mehos & Associates LLC](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/ex23-4.htm) |
| 23.5 | [Consent of Marcum LLP, Independent Registered Public Account Firm](ex23-5.htm) |
| 24.1\* | [Powers of Attorney (on signature page to Form S-1).](https://www.sec.gov/Archives/edgar/data/1786318/000164117225005312/forms-1.htm#poa_1) |
| 107 | [Filing Fee Table](ex107.htm) |

---

\* Previously filed

\*\* To be filed by Amendment

# Certain confidential portions (indicated by brackets and asterisks) of this exhibit have been omitted from this exhibit.

+ Indicates management contract or compensatory plan.

**ITEM 17. UNDERTAKINGS.**

(a) The
 undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To
 file, during any period in which offers or sales are being made, a post-effective amendment
 to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To
 include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To
 reflect in the prospectus any facts or events arising after the effective date of the registration
 statement (or the most recent post-effective amendment thereof) which, individually or in
 the aggregate, represent a fundamental change in the information set forth in the registration
 statement. Notwithstanding the foregoing, any increase or decrease in volume of securities
 offered (if the total dollar value of securities offered would not exceed that which was
 registered) and any deviation from the low or high end of the estimated maximum offering
 range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change
 in the maximum aggregate offering price set forth in the "Calculation of Filing Fee
 Tables" or "Calculation of Registration Fee" table, as applicable, in the
 effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To
 include any material information with respect to the plan of distribution not previously
 disclosed in the registration statement or any material change to such information in the
 registration statement;

*Provided*, *however*, that paragraphs (a)(1)(i), (ii), and (iii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That,
 for the purpose of determining any liability under the Securities Act of 1933, each such
 post-effective amendment shall be deemed to be a new registration statement relating to the
 securities offered therein, and the offering of such securities at that time shall be deemed
 to be the initial *bona fide* offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To
 remove from registration by means of a post-effective amendment any of the securities being
 registered which remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) That,
 for the purpose of determining liability under the Securities Act of 1933 to any purchaser,
 each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating
 to an offering, other than registration statements relying on Rule 430B or other than prospectuses
 filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration
 statement as of the date it is first used after effectiveness. *Provided*, *however*,
 that no statement made in a registration statement or prospectus that is part of the registration
 statement or made in a document incorporated or deemed incorporated by reference into the
 registration statement or prospectus that is part of the registration statement will, as
 to a purchaser with a time of contract of sale prior to such first use, supersede or modify
 any statement that was made in the registration statement or prospectus that was part of
 the registration statement or made in any such document immediately prior to such date of
 first use.

(b) Insofar
 as indemnification for liabilities arising under the Securities Act of 1933 may be permitted
 to directors, officers and controlling persons of the registrant pursuant to the foregoing
 provisions, or otherwise, the registrant has been advised that in the opinion of the Securities
 and Exchange Commission such indemnification is against public policy as expressed in the
 Act and is, therefore, unenforceable. In the event that a claim for indemnification against
 such liabilities (other than the payment by the registrant of expenses incurred and paid
 by a director, officer or controlling person of the registrant in the successful defense
 of any action, suit or proceeding) is asserted by such director, officer or controlling person
 in connection with the securities being registered hereby, the registrant will, unless in
 the opinion of its counsel the matter has been settled by controlling precedent, submit to
 a court of appropriate jurisdiction the question whether such indemnification by it is against
 public policy as expressed in the Securities Act and will be governed by the final adjudication
 of such issue.

**SIGNATURES**

Pursuant to the requirements of the Securities Act, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Plano, State of Texas on July 30, 2025.

---

| | |
|:---|:---|
| **INTERNATIONAL BATTERY METALS LTD.** | **INTERNATIONAL BATTERY METALS LTD.** |
| By: | */s/ Joseph A. Mills* |
| Name: | Joseph A. Mills |
| Title: | Chief Executive Officer |

---

**POWER OF ATTORNEY**

Pursuant to the requirements of the Securities Act, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ Joseph A. Mills* | Chief Executive Officer, Director | July 30, 2025 |
| Joseph A. Mills | (principal executive officer) |  |
| */s/ Michael Rutledge* | Chief Financial Officer | July 30, 2025 |
| Michael Rutledge | (principal financial and accounting officer) |  |
| \* | Chief Technology Officer and Director | July 30, 2025 |
| Dr. John Burba |  |  |
| \* | Director | July 30, 2025 |
| James Schultz |  |  |
| \* | Director | July 30, 2025 |
| Keith Solar |  |  |
| \* | Director | July 30, 2025 |
| John Souther |  |  |
| \* | Director | July 30, 2025 |
| Jacob Warnock |  |  |

---

---

| | |
|:---|:---|
| \* | */s/ Joseph A. Mills* |
|  | Attorney-in-Fact |

---

**SIGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES**

Pursuant to the Securities Act of 1933, the undersigned, the duly authorized representative in the United States of International Battery Metals Ltd., has signed this registration statement or amendment thereto in Plano, Texas, on July 30, 2025.

---

| | |
|:---|:---|
| Authorized U.S. Representative | Authorized U.S. Representative |
| By: | */s/ Norma Garcia* |
| Name: | Norma Garcia |
| Title: | General Counsel, Corporate Secretary |

---

## Exhibit 10.16

**Exhibit 10.16**

**AMENDING AGREEMENT**

THIS AMENDING AGREEMENT (this "**Agreement**") is dated as of March 31, 2025 by and among International Battery Metals Ltd. (the "**Company**"), EV Metals I LLC, EV Metals II LLC, EV Metals III LLC, EV Metals IV LLC, EV Metals V LLC, EV Metals VI LLC and EV Metals 7 LLC, Elegante Energy LLC, Perk Salar, LLC and JAW Puerto Rico Trust (collectively, "**EV Metals**").

**WHEREAS:**

A. The
 Company and EV Metals I LLC, EV Metals II LLC, EV Metals III LLC, EV Metals IV LLC, EV Metals V LLC and EV Metals VI LLC entered
 into an investor rights agreement dated February 23, 2024 (the "**Investor Rights Agreement** ").

B. On
 March 2, 2025, EV Metals 7 LLC and EV Metals VI LLC subscribed for an aggregate of 26,084,454 units of the Company (the "**Units** "),
 with each Unit being comprised of one common share of the Company (each, a "**Common Share**") and one Common Share
 purchase warrant (each, a "**Warrant** ").

C. Pursuant
 to Section 4.5 of the Investor Rights Agreement, the parties to the Investor Rights Agreement may amend the Investor Rights Agreement
 by agreement in writing.

D. The
 parties wish to amend the Investor Rights Agreement as set out below.

**NOW THEREFORE** in consideration of the foregoing and the mutual covenants and agreements hereinafter set forth, the parties hereto agree as follows:

**1.** **Defined Terms.** 

Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Investor Rights Agreement.

**2.** **Amendment to the Investor Rights Agreement.** 

The parties to this Agreement hereby acknowledge and agree that the Investor Rights Agreement shall be amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) the
 definition of "**CSE**" shall be deleted in its entirety;

---

| | |
|:---|:---|
| b) | the following definition shall be added: |
|  | "'**TSXV**' means the TSX Venture Exchange; |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) all
 references to "**CSE**" shall be deleted and replaced with references to "**TSXV** ";
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Section
 2.1(1) of the Investor Rights Agreement shall be deleted in its entirety and replaced with
 the following:

---

| | |
|:---|:---|
| "(a) | For so long as the Board of Directors of the Company is comprised of five or less individuals, EV Metals shall have the right, according to the terms and subject to the conditions set forth in this Section 2.1 and applicable Securities Laws, to nominate one individual (an "**EV Metals Nominee**") to form part of the list of nominees to the Board which is included in each proxy circular relating to the election of directors of the Company, provided that the EV Metals Nominee shall: (a) qualify under the BCBCA, the rules of the TSX and the articles of incorporation and policies of the Company in effect from time to time, to act as a director thereof; and (b) meet the qualification requirements of the Corporate Governance, Nominating and Compensation Committee of the Company, acting reasonably and taking into account the profile and expertise required of a director of the Company (the "**Director Eligibility Criteria**"); |
| (b) | in the event the Board of Directors of the Company is proposed to be increased to six or more directors, one such additional proposed director meeting the Director Eligibility Criteria (the "**Additional Independent Director**") will be independent of EV Metals and Jacob Warnock and the Company (within the meaning of Section 1.4 of National Instrument 52-110 - *Audit Committees*) and such Additional Independent Director shall be subject to the approval of EV Metals, in its sole discretion." |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Any
 reference the "**EV Metals Nominee**" shall be read to include any EV Metals
 Nominee nominated by EV Metals pursuant to the terms of the Investor Rights Agreement.

3. Reference to and Effect on the Investor Rights Agreement.

On and after the date of this Agreement, any reference to "this Agreement" in the Investor Rights Agreement and any reference to the Investor Rights Agreement in any other agreements will mean the Investor Rights Agreement as amended by this Agreement. Except as contemplated by this Agreement, the provisions of the Investor Rights Agreement remain in full force and effect.

4. Counterparts.

This Agreement may be executed either directly or by an attorney-in-fact, in any number of counterparts of the signature pages, each of which will be considered an original. Each party may execute this Agreement via a facsimile (or transmission of a PDF file) of a counterpart of this Agreement. In addition, facsimile or PDF signatures of signatories of any party shall be valid and binding and delivery of a facsimile or PDF signature by any party shall constitute due execution and delivery of this Agreement.

5. Governing Law.

All issues and questions concerning the relative rights of the parties to the Investor Rights Agreement shall be governed by the provisions in the Investor Rights Agreement. All other issues and questions concerning the construction, validity, interpretation and enforceability of this Agreement must be construed in accordance with and governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

6. Successors and Assigns.

This Agreement shall bind and inure to the benefit of and be enforceable by the parties to the Investor Rights Agreement and their respective heirs, executors, administrators, successors and permitted assigns.

\* \* \* \* \*

IN **WITNESS WHEREOF,** the parties hereto have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INTERNATIONAL BATTERY METALS LTD.** | **INTERNATIONAL BATTERY METALS LTD.** |
| By: | /s/ Iris Jancik |
| Name: | Iris Jancik |
| Title: | Chief Executive Officer |

---

---

| | |
|:---|:---|
| **EV METALS I LLC** | **EV METALS I LLC** |
| By: | /s/ Jacob Warnock |
| Name: | Jacob Warnock |
| Title: | Manager |

---

---

| | |
|:---|:---|
| **EV METALS II LLC** | **EV METALS II LLC** |
| By: | /s/ Jacob Warnock |
| Name: | Jacob Warnock |
| Title: | Manager |

---

---

| | |
|:---|:---|
| **EV METALS III LLC** | **EV METALS III LLC** |
| By: | /s/ Jacob Warnock |
| Name: | Jacob Warnock |
| Title: | Manager |

---

---

| | |
|:---|:---|
| **EV METALS IV LLC** | **EV METALS IV LLC** |
| By: | /s/ Jacob Warnock |
| Name: | Jacob Warnock |
| Title: | Manager |

---

---

| | |
|:---|:---|
| **EV METALS V LLC** | **EV METALS V LLC** |
| By: | /s/ Jacob Warnock |
| Name: | Jacob Warnock |
| Title: | Manager |

---

---

| | |
|:---|:---|
| **EV METALS VI LLC** | **EV METALS VI LLC** |
| By: | /s/ Jacob Warnock |
| Name: | Jacob Warnock |
| Title: | Manager |

---

---

| | |
|:---|:---|
| **EV METALS 7 LLC** | **EV METALS 7 LLC** |
| By: | /s/ Jacob Warnock |
| Name: | Jacob Warnock |
| Title: | Manager |

---

---

| | |
|:---|:---|
| **ELEGANTE ENERGY LLC** | **ELEGANTE ENERGY LLC** |
| By: | /s/ Jacob Warnock |
| Name: | Jacob Warnock |
| Title: | Manager |

---

---

| | |
|:---|:---|
| **PERK SALAR, LLC** | **PERK SALAR, LLC** |
| By: | /s/ Jacob Warnock |
| Name: | Jacob Warnock |
| Title: | Manager |

---

---

| | |
|:---|:---|
| **JAW PUERTO RICO TRUST** | **JAW PUERTO RICO TRUST** |
| By: | /s/ Peter Cheatham |
| Name: | Peter Cheatham |
| Title: | Trustee |

---

## Exhibit 10.20

**Exhibit 10.20**

**EXECUTIVE EMPLOYMENT AGREEMENT**

This Executive Employment Agreement (the "<u>Agreement</u>") is made and entered into as of April 7, 2025 (the "<u>Effective Date</u>"), by and between Joseph Mills, an individual resident of the State of Texas ("<u>Executive</u>"), and International Battery Metals Ltd., incorporated under the Business Corporation Act of British Columbia (the "<u>Company</u>"). The parties acknowledge that the Company's subsidiaries and controlled affiliates shall be third-party beneficiaries of this Agreement.

WHEREAS, the Company desires to employ the Executive on the terms and conditions set forth herein; and

WHEREAS, the Executive desires to be employed by the Company on such terms and conditions.

NOW, THEREFORE, in consideration of the mutual covenants, promises and obligations set forth herein, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Term</u>. As used herein, the "<u>Term</u>" shall be a period of three (3) years commencing on **April 7, 2025** (the "<u>Start Date</u>") and ending at the close of business on the third anniversary of the Start Date (the "<u>Expiration Date</u>"); provided, however, that this Agreement shall be automatically renewed, and the Term shall be automatically extended for one (1) additional year on the Expiration Date and each anniversary of the Expiration Date thereafter, unless either party gives written notice at least sixty (60) days prior to the expiration of the Term (including any renewal thereof) of such party's desire to terminate the Term (such notice to be delivered in accordance with Section 29 hereof). The "<u>Term</u>" shall include any extension thereof pursuant to the preceding sentence. Provision of notice that the Term shall not be extended or further extended, as the case may be, shall not constitute a breach of this Agreement and, in the case of a provision of such notice by the Company, shall not constitute either a termination of Executive's employment by the Company without "Cause" or grounds for a termination by Executive for "Good Reason" for purposes of this Agreement except as expressly provided for in Section 12(a) below. Notwithstanding the foregoing, the Term is subject to earlier termination as provided below in Section 11 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Position and Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Position</u>. During the Term, Executive will serve as the Chief Executive Officer of the Company, reporting directly to the Company's Board of Directors (the "<u>Board</u>") and/or its Chairman, as appropriate. Executive will have such duties, authority and responsibilities as are customary of a president and chief executive officer of a company similar in size and revenue to the Company or that are otherwise mutually agreeable to the parties, including without limitation managing the day-to-day operations of the Company and its subsidiaries and controlled affiliates, which such duties, authority and responsibility as are consistent with the Executive's position. Effective as of the Start Date (taking into account the requirements of applicable law), Executive shall also be nominated for election, and so elected, as a member of the Board, and the Company shall cause the Executive to continue to remain as a member of the Board during the Term. Notwithstanding the previous sentence, any and all determinations or other actions required or permitted of the Board under this Agreement that relate specifically to the Executive's employment by the Company or the terms and conditions of such employment shall be made Board members other than the Executive and the Executive shall not have any right to vote or decide upon any such matters or to participate in the Board discussions about such matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Duties</u>. During the Term, the Executive shall devote substantially all of the Executive's business time and attention to the performance of the Executive's duties hereunder and will not engage in any other business, profession or occupation for compensation or otherwise which shall conflict or interfere with the performance of such services either directly or indirectly without the prior written consent of the Board; provided, however, that the Company acknowledges that the Executive currently serves on board of directors of the entities listed on <u>Exhibit A</u> hereto and is CEO of Samson Resources II, LLC, and agrees that he may continue such service during the Term without violating any part of this Agreement so long as such entities do not become competitors of the Company and the Executive's time commitments to any such entity (alone or in the aggregate) do not prevent Executive's from faithfully fulfilling the Executive's duties under this Agreement. As long as such service and investments do not substantially interfere with the Executive's ability to faithfully fulfilling his duties, responsibilities, and authorities under this Agreement or directly or indirectly compete with the Company, the Executive may, without violating this Agreement, (i) serve as an officer or director of any civic or charitable organization, (ii) own publicly traded securities, and (iii) passively invest his personal assets in such form or manner as will not require any services by the Executive in the operation of the entities in which such investments are made. Any additional outside boards or other outside business activities shall be subject to approval in advance by the Board, which approval shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Place of Performance</u>. The principal place of Executive's employment shall initially be the Company's principal executive office, currently located in Plano, Texas; provided, however, the Board and Executive shall work collaboratively to consider relocation, at the appropriate time, of the principal executive office to a mutually acceptable location in the Houston, Texas area. Executive may be required to travel on Company business during the Term as reasonably necessary in the performance of Executive's duties or reasonably requested by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Base Salary</u>. During the Term, the Company shall pay the Executive an annual base salary of Six Hundred Thousand United States Dollars (US$600,000) (the "<u>Base Salary</u>") in periodic installments in accordance with the Company's customary payroll practices, subject to all statutory deductions and authorized withholdings. The Executive's Base Salary shall be reviewed at least annually by the Board and the Board may, but shall not be required to, increase the Base Salary during the Term, contingent upon the successful attainment of goals mutually agreed upon by the Board and the Executive at or near the Start Date and the beginning of each calendar year during the Term, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Discretionary Bonus</u>. For 2025 and each subsequent calendar year during the Term, Executive will be eligible to earn a discretionary bonus at the Board's discretion, subject to successful achievement of certain criteria mutually agreed upon by the Board and Executive at or near the Start Date and the beginning of each calendar year during the Term, as applicable (the "<u>Annual Bonus</u>"), which Annual Bonus shall have a target amount equal to 100% of the Base Salary. Executive's actual Annual Bonus shall not be guaranteed and shall be determined by the Board, while acting reasonably and in good faith, and shall depend on the Company's financial performance and the Board's assessment of Executive's individual performance. The Annual Bonus, if any, awarded under this Section 4(b) will be paid on or before March 15 of the calendar year following the calendar year for which any such bonus is awarded; provided, however, that, except as set forth in Section 11(d) below, Executive must remain actively employed by the Company through the date on which the Annual Bonus is paid in order to earn and receive such Annual Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>RSU Awards</u>. Executive acknowledges and agrees that, as consideration for the covenants and promises contained in this Agreement and subject to approval by the Board, the Executive will receive the following awards of restricted share units (the "<u>RSU</u>s") with respect to the Company's common shares (the "<u>Common Shares</u>"), which shall be subject to time-based and performance-based vesting as set forth below and in the Company's standard form of RSU award agreement to be executed on or near the Effective Date (a copy of which is attached to this Agreement as <u>Exhibit B</u>), and shall be subject to such other terms and conditions as set forth therein and in the Company's Restricted Share Unit Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. As soon as practicable following the Start Date, the Executive will be granted an RSU award with respect to 1,000,000 Common Shares, which RSUs will vest in full on the first anniversary of the Start Date, subject to the Executive's continuous employment with the Company through such vesting date, and accelerated vesting in full in connection with a consummation of a "Change in Control" (as defined below) as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Upon the Company's successful listing on the Toronto Stock Exchange, subject to the Executive's continuous employment with the Company through that date, the Executive will be granted an additional RSU award with respect to 500,000 Common Shares, which RSUs will vest in full on the 60th day following of the grant date thereof, subject to the Executive's continuous employment with the Company through such vesting date and accelerated vesting in full in connection with a consummation of a Change in Control as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. As soon as practicable following the Start Date, the Executive will be eligible to receive an additional RSU award with respect to 2,000,000 Common Shares, which RSUs will vest in full on the date that the Company completes the building and deployment (with secured financing) of two additional Direct Lithium Extraction ("<u>DLE</u>") plants (in addition to the existing DLE plant that the Company is currently planning to deploy as of the Effective Date), subject to the Executive's continuous employment with the Company through such vesting date and accelerated vesting in connection with a consummation of a Change in Control as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Executive will be eligible at that time for an additional RSU award with respect to a number of Common Shares equal to 0.5% (one-half of one percent) of the Company's fully diluted outstanding Common Shares at the time of such grant pursuant to this Section 5(d), which RSUs will vest in full on the date the Company achieves 25,000 tons per annum of Lithium Carbonate production, equivalent Lithium Chloride production, or royalties with respect to equivalent production levels through technology licensing agreements, subject to the Executive's continuous employment with the Company through such vesting date and accelerated vesting in connection with a consummation of a Change in Control as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. As soon as practicable following the Start Date, the Executive will be eligible to receive an additional RSU award with respect to 1.0% (one percent) of the Company's fully diluted outstanding Common Shares at the time of such grant pursuant to this Section 5(e), which RSUs will vest with respect to 50% of such RSUs on the date Board certifies, in good faith, that the Company first achieves EBITDA of US $25 million for any fiscal year, and the remaining 50% of such RSUs on the date the Board certifies, in good faith, that the Company first achieves EBITDA of US $50 million for any fiscal year, subject to the Executive's continuous employment with the Company through each applicable vesting date and accelerated vesting in connection with a consummation of a Change in Control as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. As soon as practicable following the Start Date, the Executive will be eligible to receive an additional RSU award with respect to 0.5% (one-half of one percent) of the Company's fully diluted outstanding Common Shares at the time of such grant pursuant to this Section 5(f), which RSUs will vest with respect to 50% of such RSUs on the date the Board certifies, in good faith, that the Company first achieves a market capitalization of US $750 million based upon the Company's 60-day volume weighted average trading price ("<u>VWAP</u>"), and the remaining 50% of such RSUs on the date the Board certifies, in good faith, that the Company first achieves a market capitalization of US $1.5 billion based upon the Company's 60-day VWAP, subject to the Executive's continuous employment with the Company through each applicable vesting date and accelerated vesting in connection with a consummation of a Change in Control as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. As soon as practicable following the Start Date, the Executive will be eligible to receive an additional RSU award with respect to 1.0% (one percent) of the Company's fully diluted outstanding Common Shares at the time of such grant pursuant to this Section 5(g), which RSUs will vest upon the consummation of a Change in Control in which the Company's outstanding equity is valued at least US $1 billion, with 50% of the RSUs vesting if the Company's equity is valued at US $1 billion in such Change in Control and 100% of the RSUs vesting is the Company's equity is valued at least US $1.5 billion in such Change in Control, and the number of RSUs vesting if the Company's equity is valued between US $1 billion and US $1.5 billion determined by linear interpolation (any such RSUs that do not vest upon such Change in Control will be forfeited at that time), subject to the Executive's continuous employment with the Company through the date of such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. For the avoidance of doubt, the vesting of all of the RSUs described above is contingent upon Executive remaining in continuous service with the Company as Chief Executive Officer through the applicable vesting date. In addition, the Common Shares issued to Executive pursuant to the RSUs shall be subject to trading restrictions/limitations as determined by the Board in good faith such that all sales thereof are subject to advance approval by the Board. The Board and Executive shall discuss in good faith any Rule 10b5-1 trading plan proposed by the Executive during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Employee Benefits; Life and Disability Insurance</u>. During the Term, Executive shall be entitled to participate in all employee benefit plans, practices and programs maintained by the Company, as in effect from time to time, including, without limitation, medical, dental and vision health insurance plans, 401(k) plans, deferred compensation plans, life insurance plans, vacation or other employee benefit plans (collectively, "<u>Employee Benefit Plans</u>"), on a basis which is no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent with applicable law and the terms and eligibility requirements of the applicable Employee Benefit Plans. The Company reserves the right to amend or cancel any Employee Benefit Plans at any time in its sole and absolute discretion, provided such amendment or cancelation is on a Company-wide basis similarly affecting all or substantially all senior management employees, and subject to the terms of such Employee Benefit Plan and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Vacation</u>. During the Term, the Executive shall be entitled to five (5) weeks of paid vacation per each calendar year of the Term, prorated for any partial calendar years, to be taken in accordance with the Company's vacation policies, as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Business Expenses</u>. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business and travel expenses incurred by the Executive in connection with the performance of the Executive's duties hereunder in accordance with the Company's expense reimbursement policies and procedures. In furtherance of the foregoing, the Company shall reimburse the Executive for all reasonable travel to and living expenses in Plano, Texas; provided, however, that upon the relocation of the Company's principal place of business to Houston, Texas, the reimbursement contemplated in this sentence shall terminate. If the Company has, or at such time as the Company obtains (if it does not have as of the date of this Agreement) a Company credit card, the Company shall provide such card to Executive for use for business purposes. Use of such Company credit card shall be in accordance with Company policies, but shall not limit the Company's obligation to reimburse Executive for other expenses incurred in accordance with this Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Indemnification; D&O Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Indemnification</u>. To the maximum extent permitted by applicable law and the Company's bylaws, in the event that Executive is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil, criminal, administrative or investigative (a "<u>Proceeding</u>"), other than any Proceeding initiated by Executive related to any dispute between Executive and the Company or any of its affiliates with respect to this Agreement or Executive's employment hereunder or any other written agreement between Executive and/or the Company or any of its affiliates (as the case may be), by reason of the fact that Executive is or was an executive employee, director, or officer of the Company, or any affiliate of the Company, or is or was serving at the request of the Company as a director, officer, member, employee or agent of another corporation or a partnership, joint venture, trust or other enterprise, provided that Executive was acting in the course and scope of the Executive's employment or other responsibilities and in good faith with reasonable grounds for believing that Executive's conduct was lawful, Executive shall be indemnified and held harmless by the Company, without the requirement for an undertaking, from and against any liabilities, costs, claims and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys' fees). In addition, on or promptly following the Effective Date, the Company and Executive shall enter into an indemnification agreement in the same form as applicable to members of the Board and attached to this Agreement as <u>Exhibit C</u>. To the extent there is any conflict between the indemnification coverage and other rights and benefits provided to the Executive under this Agreement and the indemnification agreement attached as <u>Exhibit C</u>, the Executive shall be entitled to the coverage, rights, and benefits which are most favorable to him.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>D&O Insurance</u>. During the Term and for a period of three (3) years thereafter, the Company or any successor to the Company shall purchase and maintain, at its own expense, directors' and officers' liability insurance providing coverage in commercially reasonable amounts to Executive on terms that are no less favorable than the coverage provided to other directors and similarly situated executives of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Clawback Provisions</u>. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to Executive pursuant to this Agreement or any other agreement or arrangement with the Company which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made to comply with such law, government regulation or stock exchange listing requirement (or any policy the Company is required to adopt in order to comply with any such law, government regulation or stock exchange listing requirement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Termination of Employment</u>. Subject to the otherwise applicable terms and conditions of this Agreement, the Term and the Executive's employment hereunder may be terminated by either the Company or the Executive at any time and for any reason; provided that, unless otherwise provided herein, either party shall be required to give the other party at least sixty (60) days advance written notice of any termination of the Executive's employment. Upon termination of the Executive's employment during the Term, the Executive shall be entitled to the compensation and benefits described in the applicable provisions of this Section 11 and shall have no further rights to any other compensation or benefits from the Company or any of its affiliates under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>For Cause or Without Good Reason</u>. Executive's employment hereunder may be terminated by the Company for Cause or by Executive without Good Reason. If the Executive's employment is terminated by the Company for Cause or by Executive without Good Reason, Executive shall be entitled to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any
 accrued but unpaid Base Salary and accrued but unused vacation which shall be paid following
 the Termination Date (as defined below) in accordance with applicable law and the Company's
 customary payroll procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. reimbursement
 for unreimbursed business expenses properly incurred by Executive, which shall be subject
 to and paid in accordance with applicable law and the Company's expense reimbursement
 policy; and

iii. such
 employee benefits (including vested equity compensation), if any, to which Executive may
 be entitled under the Company's employee benefit plans as of the Termination Date;
 provided that, in no event shall Executive be entitled to any payments in the nature of severance
 or termination payments except as specifically provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Items
 11(a)(i) through 11(a)(iii) are referred to herein collectively as the " <u>Accrued Amounts</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For
 purposes of this Agreement, " <u>Cause</u> " shall mean any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Executive's
 insubordination or willful refusal to substantially perform Executive's lawful duties
 (other than any such refusal resulting from incapacity due to physical or mental illness),
 which remains uncured for a period of thirty (30) days after notice thereof from the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Executive's
 theft, embezzlement, misappropriation, fraud, dishonesty, breach of fiduciary duty, falsification
 of any documents of the Company, or other willful misconduct that, in each case or in the
 aggregate, causes, or is reasonably likely to cause, material harm to the Company's
 reputation, business operations, or standing with investors, partners, or regulators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Executive's
 failure to abide by the applicable code(s) of conduct or other policies of the Company which
 remain uncured for a period of thirty (30) days after notice thereof from the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Executive
 becoming the subject of a bar, suspension, or enforcement action by a securities, environmental,
 or trade regulatory authority that prevents Executive from performing Executive's duties
 which, if curable, remains uncured for a period of thirty (30) days after notice thereof
 from the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Executive's
 conviction of or plea of guilty or *nolo contendere* to a crime that constitutes a felony
 (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Executive's
 material breach of any obligation under this Agreement or any other written agreement between
 the Executive and the Company which remains uncured for a period of thirty (30) days after
 notice thereof from the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For purposes of this Agreement, "<u>Good Reason</u>" shall mean the occurrence of any of the following, in each case during the Term without the Executive's written consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. a
 material reduction in Executive's annual Base Salary or Annual Bonus targets (except
 for an across-the-board salary reduction similarly affecting all or substantially all senior
 management employees);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. a
 material reduction in Executive's authority, duties or responsibilities or the assignment
 to Executive of duties that are materially inconsistent with Executive's position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. the
 relocation without Executive's consent of the Company's offices to a location
 that is more than forty-five (45) miles from the Plano, TX or Houston, TX area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. any
 change in Executive's reporting relationship such that Executive no longer reports
 directly to the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. the
 Company's material breach of this Agreement.

Notwithstanding the foregoing, a termination of Executive's employment with the Company will not be considered a termination for Good Reason unless Executive has provided written notice (the "<u>Good Reason Notice</u>") to the Company of the existence of the circumstances providing grounds for termination for Good Reason within one hundred and twenty (120) days of the initial existence of such grounds, and the Company has been provided thirty (30) days from the date of the Good Reason Notice to cure such circumstances; provided, however, that if Executive fails to terminate Executive's employment within thirty (30) days after the end of such cure period, then Executive will be deemed to have waived Executive's right to terminate for Good Reason, but only with respect to such grounds described in the Good Reason Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Without Cause or for Good Reason</u>. Executive's employment hereunder may be terminated by the Company without Cause or by Executive for Good Reason. In the event of such termination, Executive shall be entitled to receive the Accrued Amounts. In addition, but subject to (x) Executive's execution of a release of claims in favor of the Company, the Company's affiliates, and their respective officers and directors in a form provided by the Company and attached as <u>Exhibit D</u> to this Agreement (the "<u>Release</u>") and such Release becoming effective and non-revocable within sixty (60) days following the Termination Date, and (y) Executive's continued compliance in all material respects with the restrictive covenants set forth in Section 18 below, then Executive will receive, in addition to the Accrued Amounts, the following payments and benefits (the "<u>Separation Benefits</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Payment
 of an amount equal to the sum of: (a) twelve (12) months of Executive's Base Salary
 and (b) twelve (12) months of the premium Executive would be required to pay for health continuation
 coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 or similar state
 law (" <u>COBRA</u> ") if Executive had been eligible for such COBRA continuation
 coverage, at the same or reasonably equivalent coverage rate for Executive and Executive's
 eligible dependents as in effect immediately prior to the Termination Date, which sum shall
 be paid in periodic installments over six (6) months in accordance with the Company's
 customary payroll practices, subject to all statutory deductions and authorized withholdings
 (with the first installment payable on (or within ten (10) days following) the date the Release
 becomes effective and irrevocable and to include each such installment that was otherwise
 scheduled to be paid following the Termination Date and prior to the date of such payment);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Any
 unpaid Annual Bonus earned with respect to any calendar year preceding the year in which
 the Termination Date occurs, payable, subject to all statutory deductions and authorized
 withholdings, at the time when such Annual Bonus is paid to other similarly situated executives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. A
 prorated Annual Bonus for the calendar year containing the Termination Date (based upon actual
 Company performance for the entire year), payable, subject to all statutory deductions and
 authorized withholdings, at the time when such Annual Bonus is paid to other similarly situated
 executives; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Accelerated
 vesting as of the Termination Date (and/or the Company's repurchase right at fair market
 value with any dispute between the parties over such value being decided pursuant to Section
 21) of any portion of any time-based RSUs, as well as any other time-based equity awards,
 that have been granted to Executive by the Company before the Termination Date and that are
 outstanding and not vested as of the Termination Date, as well as continued vesting of any
 portion (and/or the Company's repurchase right at fair market value with any dispute
 between the parties over such value being decided pursuant to Section 21) of any performance-based
 RSUs, as well as any other performance-based equity awards, that have been granted to Executive
 by the Company before the Termination Date and that are outstanding and not vested on the
 Termination Date and would have vested during the longer of: (a) the Term as then in effect
 or (b) the twelve (12) month period following the Termination Date, had the Executive's
 employment with the Company continued during such period (subject to the actual achievement
 of the performance-based vesting conditions applicable to such awards).

Notwithstanding the forgoing, in the event of a termination of Executive's employment hereunder may be terminated by the Company without Cause or by Executive for Good Reason, Executive shall have no duty to find new employment following the Termination Date. Any compensation or benefits received by the Executive from any third party for providing personal services or otherwise following the Termination Date shall not reduce the Company's obligation to make any payments or provide any benefits contemplated by this Agreement to the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Death or Disability</u>. Executive's employment hereunder shall terminate automatically upon Executive's death during the Term, and the Company may terminate the Executive's employment on account of the Executive's Disability. If the Executive is terminated during the Term on account of Executive's death or Disability, Executive (or Executive's estate and/or beneficiaries, as the case may be) shall be entitled to receive the Accrued Amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. For purposes of this Agreement, "<u>Disability</u>" shall mean a mutually agreeable qualified medical physician has determined that Executive is unable, due to physical or mental incapacity, to substantially perform the Executive's duties and responsibilities under this Agreement, with or without reasonable accommodation, at any time after Executive has been absent for one hundred eighty (180) days out of any three hundred sixty-five (365) day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Change in Control Transactions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Notwithstanding any other provision contained herein, in the event of a Change in Control and a termination of Executive's employment either by the Company without Cause, by the Company non-renewing the Term of this Agreement, or by Executive for Good Reason, in each case either within two and one-half (2 1/2) months before the consummation of such Change in Control or within twelve (12) months following the consummation of such Change in Control, Executive shall be entitled to the Accrued Amounts and the Separation Benefits, except that the Separation Benefits in Section 11(d)(i) shall be paid in a single lump sum within thirty

(30) days after the Release becomes effective and irrevocable. Notwithstanding the foregoing, in the event the Separation Benefits in Section 11(d)(i) cannot be paid in full in a single lump sum within thirty (30) days after the Release becomes effective and irrevocable in accordance with this Section without the imposition of an excise tax under Section 409A (as defined below), then any portion of the Separation Benefits that is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A will instead be paid at the same time as provided in Section 11(d)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For purposes of this Section 12, a "<u>Change in Control</u>" shall mean: (i) the date of the consummation of a merger or consolidation of the Company with any other corporation that has been approved by the stockholders of the Company, other than a merger or consolidation that results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (ii) the date of the consummation of the sale or disposition by the Company of all or substantially all (i.e., at fifty percent (50%)) of the Company's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Deemed Resignations; Notice of Termination</u>. Unless otherwise agreed to in writing by the Company and the Executive prior to any such termination, any termination of Employee's employment shall constitute an automatic resignation of the Executive as an officer or director of the Company and each of its affiliates, and an automatic resignation of Employee from the Board and from the board of directors or similar governing body of any affiliate of the Company and from the board of directors or similar governing body of any corporation, limited liability company or other entity in which the Company or any Affiliate holds an equity interest and with respect to which board or similar governing body the Executive serves as a designee or other representative of the Company or such affiliate. Any termination of the Executive's employment hereunder by the Company or by the Executive during the Term (other than termination on account of the Executive's death) shall be communicated by written notice of termination ("<u>Notice of Termination</u>") to the other party provided, however, that the failure by the Company or the Executive to issue a Notice of Termination shall not waive any right of the Company or the Executive under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The Notice of Termination shall specify:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The termination provision of this Agreement relied upon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. To the extent applicable, a reasonable summary of the facts and circumstances claimed to provide a basis for termination of Executive's employment under the provision so indicated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The applicable Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Termination Date</u>. Executive's "<u>Termination Date</u>" shall be the date upon which Executive's employment and this Agreement is terminated in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Section 280G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. If any of the payments or benefits received or to be received by Executive (including, without limitation, any payment or benefits received in connection with a Change in Control or the Executive's termination of employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively referred to herein as the "<u>280G Payments</u>") constitute "parachute payments" within the meaning of Section 280G of the Internal Revenue Code (the "<u>Code</u>") and shall, but for this Section 16(a), be subject to the excise tax imposed under Section 4999 of the Code (the "<u>Excise Tax</u>"), then prior to making the 280G Payments, a calculation shall be made comparing (i) the Net Benefit (as defined below) to the Executive of the 280G Payments after payment of the Excise Tax to (ii) the Net Benefit to the Executive if the 280G Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (i) above is less than the amount under (ii) above will the 280G Payments be reduced to the minimum extent necessary to ensure that no portion of the 280G Payments is subject to the Excise Tax. For purposes of this Agreement, "<u>Net Benefit</u>" means the present value of the 280G Payments net of all federal, state, local, foreign income, employment and excise taxes. Any reduction made pursuant to this section will be made in a manner determined by the Company that is consistent with the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. All calculations and determinations under this section will be made by an independent accounting firm or independent tax counsel appointed by the Company ("<u>Tax Counsel</u>") whose determinations shall be conclusive and binding on the Company and the Executive for all purposes. For purposes of making the calculations and determinations required by this section, Tax Counsel may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. The Company and Executive shall furnish the Tax Counsel with such information and documents as Tax Counsel may reasonably request in order to make its determinations under this Section, and the costs of such determination shall be borne solely by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Good Faith Actions</u>. The Company and Executive shall work together in good faith to consider taking any actions or making any amendments to this Agreement necessary or appropriate to avoid imposition of any reduction in payments required under Section 280G of the Code. Such actions or amendments may include, without limitation, restructuring payments required under this Agreement, redesigning Executive's compensation package, or seeking shareholder approval under any available "shareholder exemption."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Cooperation</u>. The parties agree that certain matters in which the Executive will be involved during the Term may necessitate Executive's cooperation in the future. Accordingly, following the termination of Executive's employment for any reason, to the extent reasonably requested by the Board, Executive shall cooperate, at the Company's sole cost or expense, with the Company in connection with matters arising out of Executive's service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of Executive's other activities and the Executive shall not be required to provide any cooperation which unreasonably interferes with his professional and personal endeavors. The Company shall reimburse Executive for all expenses reasonably incurred in connection with such cooperation and, to the extent that Executive is required to spend more than ten (10) hours per week on such matters, the Company shall compensate the Executive at a reasonable hourly rate to be determined between Executive and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Restrictive Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Acknowledgment</u>. Executive acknowledges and agrees that the services to be rendered by the Executive's to the Company are of a special and unique character; that Executive will obtain knowledge and skill relevant to the Company's DLE business, methods of doing business, marketing strategies, and other Confidential Information by virtue of Executive's employment; and that the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably necessary to protect the legitimate business interest of the Company, including the Company's Confidential Information, customer relationships and goodwill, and the Company's relationships with its employees and independent contractors. Executive understands and acknowledges that the Company has invested, and continues to invest, substantial time, money, and specialized knowledge into developing its resources, creating a customer base, generating customer and potential customer lists, training its employees, and improving its offerings in the field of lithium extraction. The Executive understands and acknowledges that as a result of these efforts, the Company has created, and continues to use and create Confidential Information. This Confidential Information provides the Company with a competitive advantage over others in the marketplace. Executive further acknowledges he will not be subject to undue hardship by reason of the Executive's full compliance with the terms and conditions of this section or the Company's enforcement of any of the provisions of this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Confidential Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The
 Executive understands and acknowledges that during the Term, the Executive will have access
 to and will receive Confidential Information (as defined below). Executive agrees and covenants
 that Executive will not, during Executive's employment, divulge to any person, directly
 or indirectly, except to the Company or its officers and agents or as reasonably required
 in connection with Executive's duties on behalf of the Company, or use, except on behalf
 of the Company, any Confidential Information. Executive further agrees and covenants that
 Executive will not, at any time after Executive's employment has ended (for whatever
 reason), use or divulge to any person or entity, directly or indirectly, any Confidential
 Information, or use any Confidential Information in subsequent employment, work, or business
 of any nature. The obligations in this Section 18(b) apply regardless of when Executive had
 access to or acquired the Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. " <u>Confidential Information</u> " means any information not generally known or readily ascertainable
 by the Company's competitors or the general public. Confidential Information includes,
 but is not limited to, trade secrets; information about processes, testing results, research
 and development; products and services of the Company; pricing information; marketing and
 development plans; proprietary information; methods, procedures, or techniques pertaining
 to the business of the Company; sales or service analyses; financial information; customer
 information, including names, contact information, order history, order preferences, chain
 of command, decision-makers, pricing information, and other information identifying facts
 and circumstances specific to the customer; formulas; algorithms; computer programs, software
 and software documentation; and notes, memoranda, notebooks, and records or documents that
 are created, handled, seen, or used by Executive in the course of employment including similar
 such information received from third parties. Confidential Information does not include information
 that is or has become generally available to the public through no act or failure to act
 by Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. In
 the event that Executive is requested in any legal proceeding to disclose any Confidential
 Information, Executive agrees to give the Company prompt written notice of such request and
 the documents requested thereby so that the Company (or its affiliates, as the case may be)
 has the opportunity to seek an appropriate protective order. It is further agreed that if,
 in the absence of a sufficient protective order, Executive is nonetheless compelled to disclose
 Confidential Information to any tribunal or else stand liable for contempt or suffer other
 censure or penalty, Executive may disclose such information to such tribunal without liability
 hereunder; provided, however, that Executive must give the Company written notice of the
 information to be disclosed (including copies of the relevant portions of the relevant documents)
 as far in advance of its disclosure as is reasonably practicable, use all reasonable efforts
 to limit any such disclosure to the precise terms of such requirement, and use all reasonable
 efforts to obtain an order or other reliable assurance that confidential treatment will be
 accorded to such Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Executive
 shall not be held criminally or civilly liable under any Federal or State trade secret law
 for the disclosure of a trade secret that is made in confidence to a Federal, State, or local
 government official or to an attorney solely for the purpose of reporting or investigating
 a suspected violation of law. Executive shall not be held criminally or civilly liable under
 any Federal or State trade secret law for the disclosure of a trade secret that is made in
 a complaint or other document filed in a lawsuit or other proceeding, if such filing is made
 under seal. If Executive files a lawsuit for retaliation by the Company for reporting a suspected
 violation of law, Executive may disclose the trade secret to Executive's attorney and
 use the trade secret information in the court proceeding, if Employee files any document
 containing the trade secret under seal and does not disclose the trade secret, except pursuant
 to court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Non-Competition</u>. Because of the Company's legitimate business interest as described herein and the good and valuable consideration offered to the Executive, during the Executive's employment with the Company and for a period of 12 months thereafter, regardless of the reason for the termination (the "<u>Restricted Period</u>"), the Executive agrees and covenants that he shall not engage, whether as an employee, employer, owner, operator, manager, advisor, consultant, agent, employee, partner, director, stockholder, officer, investor, or any other capacity similar to the capacity in which he provided services to the Company in a Competitive Business (as defined below) within the United States and any other country in which the Company operates through license of its intellectual property or otherwise, or has taken substantial and material steps to operate, during the Term and within the twelve (12) months prior to Executive's termination, as applicable (the "<u>Restricted Territory</u>"). For purposes of this Section 18, "<u>Competitive Business</u>" is any business engaged in developing, marketing, supplying, or selling DLE technology. Notwithstanding the foregoing, the passive ownership by Executive of less than 2% of any class of equity securities of any corporation, if such equity securities are listed on a national securities exchange or are quoted on NASDAQ, will not be deemed to be a breach of this Section 18(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Non-Solicitation of Employees and Customers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. During
 the Restricted Period, Executive agrees and covenants not to directly or indirectly solicit,
 recruit, or attempt to solicit or recruit, or otherwise induce, or attempt to induce, the
 termination of employment or engagement of any employee or independent contractor of the
 Company, during the Restricted Period; provided, however, that there shall be no violation
 of this Section 18(d) if Executive hires an employee or independent contractor of the Company,
 during the Restricted Period, who unsolicited, answers an ad or is referred by a recruiting
 agency but who is not otherwise solicited by Executive and provided further that such ad
 or referral is general in nature and not directed towards any Company employee or independent
 contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. During
 the Restricted Period, Executive agrees and covenants not to directly or indirectly solicit,
 contact (including but not limited to email, regular mail, express mail, telephone, fax instant
 message, or social media), attempt to contact, or meet with the Company's current,
 former or prospective customers for purposes of offering or accepting goods or services from
 or to a Competitive Business. This restriction shall apply to (a) customers or prospective
 customers with whom the Executive worked or had contact during the Executive's employment
 with the Company, and (b) customers or prospective customers about whom the Executive has
 Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Non-Interference</u>. During the Restricted Period, Executive, whether on behalf of himself or any other third party, shall not, directly or indirectly, interfere with, disrupt or attempt to disrupt the relationship, contractual or otherwise, between the Company and any customer, manufacturer, supplier, vendor, contractor, partner or investor of the Company, or in any way encourage such persons or entities to terminate or otherwise negatively alter his, her or its relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Non-Disparagement</u>. The Executive agrees and covenants that, subject to Section 18, the Executive will not at any time make, publish, or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Company or its businesses, or any of its employees, officers, and existing and prospective customers, suppliers, investors, and other associated third parties. The preceding sentence shall not prohibit the Executive from making any statements required to comply with applicable law or legal process or from making truthful statements in the good faith and proper performance of his duties for the Company or its affiliates, including when providing formal or informal feedback to employees or the Board. The Company agrees and covenants that the Company will not, other than as required by law or legal process, at any time make, publish, or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. <u>No Conflicting Obligations</u>. The Executive is not party to any agreement, commitment or obligation that conflicts with the Executive's obligations under this Agreement or would be violated by the Executive's employment with the Company or preclude the Executive from performing the Executive's duties for the Company. By signing below, the Executive agrees that he is not to use or misappropriate any intellectual property, trade secrets or confidential information belonging to former employers or others in connection with the performance of any services on behalf of the Company, and represents to the Company that Executive has not done so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. <u>Remedies; Tolling of Restricted Period</u>. In the event of any breach by Executive of this Section 18 which causes, or is reasonably likely to cause, material harm to the Company and remains uncured after Executive (a) receives written notice of the grounds for such breach from the Company within thirty (30) days of the Company's knowledge of such breach, (b) has an opportunity to be heard in good faith by Board along with his legal counsel to discuss such breach, and (c) receives at least thirty (30) days to cure such breach, the Company shall be entitled after the end of the cure period to immediately terminate compensation and terminate vesting of unvested equity awards and the Executive shall forfeit grants of unvested restricted stock or RSUs. In addition, in the event of any breach or threatened breach by Executive of this Section 18, the Company shall be entitled to seek equitable relief by temporary restraining order, temporary injunction, or permanent injunction or otherwise. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief. In addition, if, during any period within the Restricted Period, a court of competent jurisdiction determines in a final, non-appealable order that Executive is not in compliance with the terms of this Section 18, Executive agrees that the Company shall be entitled to, among other remedies, require compliance by Employee with the terms of this Section 18 for an additional period equal to the period of such noncompliance. For purposes of this Agreement, the term "Restricted Period" shall also include this additional period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Survival</u>. Section 18 shall survive the termination of Executive's employment for any reason, whether voluntary or involuntary, and can only be revoked or modified by a writing signed by the Company which specifically states an intent to revoke or modify these provisions. Executive agrees that during the Restricted Period, Executive shall promptly notify the Company in writing of any employment, work, or business Executive undertakes with or on behalf of any person (including himself) or entity (other than the Company), for compensation to the extent that such work was not known by the Board before the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Protected Disclosures</u>. Notwithstanding any other provision of this Agreement, Employee is not in any way: (i) prohibited from reporting information to, or participating in any investigation or proceeding conducted by, the U.S. Securities and Exchange Commission ("SEC") or any federal, state, or local government agency or entity; (ii) precluded from providing truthful testimony in response to a valid subpoena, court order, or regulatory request; (iii) limited in Employee's right to receive any award for information provided to the SEC; (iv) prohibited in engaging in protected activity under Section 7 of the National Labor Relations Act, as applicable; or (v) exercising any other protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation, provided that such compliance does not exceed that required by the law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Proprietary Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Work Product</u>. Executive acknowledges and agrees that all right, title and interest in and to all writings, works of authorship, technology, inventions, discoveries, processes, techniques, methods, ideas, concepts, research, proposals, materials and all other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, amended, conceived or reduced to practice by the Executive individually or jointly with others during the period of the Executive's employment by the Company and relate in any way to the business or contemplated business, products, activities, research or development of the Company or result from any work performed by Executive for the Company or in which Executive was directly or indirectly involved on the Company's behalf (in each case, regardless of when or where prepared or whose equipment or other resources is used in preparing the same) all rights and claims related to the foregoing, and all printed, physical and electronic copies, and other tangible embodiments thereof (collectively, "<u>Work Product</u>"), as well as any and all rights in and to U.S. and foreign (a) patents, patent disclosures and inventions (whether patentable or not), (b) trademarks, service marks, trade dress, trade names, logos, corporate names and domain names, and other similar designations of source or origin, together with the goodwill symbolized by any of the foregoing, (c) copyrights and copyrightable works (including computer programs), and rights in data and databases, (d) trade secrets, know-how and other confidential information, and (e) all other intellectual property rights, in each case whether registered or unregistered and including all registrations and applications for, and renewals and extensions of, such rights, all improvements thereto and all similar or equivalent rights or forms of protection in any part of the world (collectively, "<u>Intellectual Property Rights</u>"), shall be the sole and exclusive property of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For purposes of this Agreement, Work Product includes, without limitation, Company information, including data plans, publications, research, processes, formulas, assays, strategies, techniques, agreements, documents, contracts, terms of agreements, negotiations, know-how, computer programs, computer applications, software design, work or research in process, findings and conclusions, databases, manuals, results, developments, improvements, reports, graphics, diagrams, drawings, sketches, market studies, formulae, notes, communications, algorithms, product plans, product designs, inventions, drugs, unpublished patent applications, original works of authorship discoveries, experimental processes, experimental results, specifications, customer information, client information, customer lists client lists, manufacturing information, specifications, marketing information, marketing plans, marketing data, marketing strategies, advertising information and sales information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Work Made for Hire; Assignment</u>. Executive acknowledges that, by reason of being employed by the Company at the relevant times, to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is "work made for hire" as defined in 17 U.S.C. § 101 and such copyrights are therefore owned by the Company. To the extent that the foregoing does not apply, Executive hereby irrevocably assigns to the Company, for no additional consideration, Executive's entire right, title and interest in and to all Work Product and Intellectual Property Rights therein, including the right to sue, counterclaim and recover for all past, present and future infringement, misappropriation or dilution thereof, and all rights corresponding thereto throughout the world. Nothing contained in this Agreement shall be construed to reduce or limit the Company's rights, title or interest in any Work Product or Intellectual Property Rights so as to be less in any respect than that the Company would have had in the absence of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Further Assurances</u>. During and after Executive's employment, the Executive agrees to reasonably cooperate with the Company to (a) apply for, obtain, perfect and transfer to the Company the Work Product as well as any and all Intellectual Property Rights in the Work Product in any jurisdiction in the world; and (b) maintain, protect and enforce the same, including, without limitation, giving testimony and executing and delivering to the Company any and all applications, oaths, declarations, affidavits, waivers, assignments and other documents and instruments as shall be requested by the Company. The Executive shall execute all papers, including applications, invention assignments, and copyright assignments, and shall otherwise assist the Company as reasonably required to memorialize, confirm, and perfect in them the rights, title, and other interests granted to the Company in Work Product and Intellectual Property Rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>No License</u>. The Executive understands that this Agreement does not, and shall not be construed to, grant Executive any license or right of any nature with respect to any Work Product or Intellectual Property Rights or any Confidential Information, materials, software or other tools made available to Executive by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Arbitration</u>. Except for any claim for equitable or injunctive relief under Section 18 of this Agreement (to which Section 21 shall apply), any dispute, controversy or claim arising out of or related to this Agreement, or to the construction, interpretation or alleged breach of this Agreement, or to Executive's employment with the Company shall be submitted to and decided by binding arbitration. Arbitration shall be administered exclusively by the Houston, Texas offices of JAMS before one (1) arbitrator mutually selected by the parties, or the parties cannot so agree, by JAMS pursuant to its applicable rules and regulations (the "<u>Rules</u>"). The arbitral language shall be English, limited discovery shall be permitted as the arbitrator shall determine, and the arbitration and shall be conducted consistent with the Rules of JAMS, in addition to any requirements imposed by state law. Any arbitral award determination shall be final and binding upon the parties. In rendering his or her award, the arbitrator shall award the prevailing party, in addition to such other relief as may be granted, all such attorneys' fees and costs reasonably incurred and any reasonable attorneys' fees and costs incurred in enforcing any judgment or order entered. The prevailing party shall be determined by the arbitrator in the initial or any subsequent proceeding. Notwithstanding anything in this Section 20 to the contrary, neither the Company nor Executive shall be prohibited from commencing litigation before the any appropriate judicial tribunal or court of law or equity to obtain injunctive relief to compel compliance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Governing Law: Jurisdiction and Venue for Injunctive Relief</u>. This Agreement, for all purposes, shall be construed in accordance with the laws of Texas without regard to conflicts of law principles. Subject to the provisions of Section 20 above, any proceeding by either of the parties to obtain injunctive relief under Section 18 of this Agreement shall be brought only in a state or federal court located in the County of Harris, State of Texas. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such proceeding in such venue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Entire Agreement</u>. Unless specifically provided herein, this Agreement and the ancillary agreements referenced in it contain all of the understandings and representations between Executive and the Company pertaining to their subject matters and supersede all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matters. The parties mutually agree that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement. Each party agrees that the other party has not made any promise or representation to it or him concerning this Agreement not expressed in this Agreement, and that, in signing this Agreement, each party is not relying on any prior oral or written statement or representation by the other party but is instead relying solely on its or his own judgment and legal and tax advisors, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Amendment and Waiver</u>. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the Executive and by a duly and expressly authorized representative of the Board. Any waiver by either of the parties of any breach of this Agreement shall be in writing. No waiver by either of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege. The failure of any party to insist upon strict adherence to any term of this Agreement on one or more occasions shall not be considered a waiver of any provision or any breach of any provision of this Agreement or deprive that party of the right thereafter to insist upon strict adherence to that provision or any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Severability</u>. Should any provision of this Agreement be held by an arbitrator (selected in accordance with Section 20) or a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement. The parties further agree that any such arbitrator or court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending provision, adding additional language to this Agreement or by making such other modifications as the arbitrator or court deems warranted; provided, however, that such rewriting, deletions or additions shall be made solely to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>Counterparts</u>. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon, provided such signature page is attached to any other counterpart identical thereto except for having an additional signature page executed by the other party. Further, the parties hereto consent and agree that this Agreement may be signed and/or transmitted by facsimile, e-mail of a .PDF document or using electronic signature technology (e.g., via DocuSign or similar electronic signature technology) (collectively, a "<u>Non- Ink Electronic Signature</u>"). Each party agrees that Non-Ink Electronic Signatures are valid and effective to bind the party supplying a signature by that means, and the other party may rely upon receipt of a Non-Ink Electronic Signature on this Agreement as constituting a duly authorized, irrevocable, actual, current delivery of a signature on this Agreement that, for purposes of validity, enforceability and admissibility, shall be treated as fully as if this Agreement contained the original, ink handwritten signature of the party supplying a Non-Ink Electronic Signature. Each of the parties further agrees that it will not raise receipt of a Non-Ink Electronic Signature as a defense in any proceeding or action in which the validity of such consent or document is at issue and hereby forever waives such defense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. <u>Section 409A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>General Compliance</u>. This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury Regulation issued thereunder ("Section 409A") or an exemption thereunder and shall be construed and administered in accordance with Section 409A so as to avoid the imposition of any tax, penalty or interest thereunder. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be made upon a "separation from service" as such term is defined under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Executive on account of non-compliance with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Specified Employees</u>. Notwithstanding any other provision of this Agreement, if any payment or benefit provided to Executive in connection with Executive's termination of employment is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A and Executive is determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the Termination Date or, if earlier, on the Executive's death (the "<u>Specified Employee Payment Date</u>"). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date and interest on such amounts calculated based on the applicable federal rate published by the Internal Revenue Service for the month in which Executive's separation from service occurs shall be paid to Executive in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Reimbursements</u>. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the
 amount of expenses eligible for reimbursement, or in-kind benefits provided, during each
 calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits
 to be provided, in any other calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any
 reimbursement of an eligible expense shall be paid to the Executive on or before the last
 day of the calendar year following the calendar year in which the expense was incurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. any
 right to reimbursements or in-kind benefits under this Agreement shall not be subject to
 liquidation or exchange for another benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Good Faith Actions</u>. The Company and Executive shall work together in good faith to consider amendments to this Agreement necessary or appropriate to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A of the Code or any temporary or final Treasury Regulations and Internal Revenue Service guidance thereunder. The parties intend that any amounts payable to Executive shall either be exempt from or comply with Section 409A so as not to subject Executive to payment of any additional tax, penalty or interest imposed under Section 409A, and the provisions hereof shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Section 409A to preserve (to the nearest extent reasonably possible) the intended benefit payable to Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. <u>Notification to Subsequent Employer</u>. If Executive's employment with the Company terminates, Executive agrees to notify any subsequent employer of the restrictive covenants sections contained in Section 18 of this Agreement. In addition, the Executive authorizes the Company to provide a copy of the restrictive covenants sections of this Agreement to third parties, including but not limited to, Executive's subsequent, anticipated or possible future employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. <u>Successors and Assigns</u>. This Agreement is personal to Executive and may not be assigned by Executive. Any purported assignment by Executive shall be null and void *ab initio*. Subject to Section 12, the Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company. In the event of the Executive's death, this Agreement shall be enforceable by his estate, executors, or legal representatives. This Agreement shall inure to the benefit of the Company and its affiliates, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. <u>Notice</u>. All notices or other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (a) upon personal delivery made by hand to the person, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next business day, (c) upon the date of execution (or refusal to execute) the return receipt, if such notice or communication is sent by United States Mail, registered or certified, return receipt requested, with proper postage affixed thereto, or (d) the next business day after deposit with a nationally recognized overnight courier or package delivery service guaranteeing next business day delivery, such as Federal Express or UPS, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on the signature page to this Agreement, or to such e-mail address, facsimile number or address as subsequently modified by written notice given in accordance with this Section 29:

If to the Company:

International Battery Metals, Ltd.

If to the Executive, to the address set forth on the signature page of this Agreement or at the current address listed in the Company's records at the time such notice is sent.

*[Signature page to Agreement follows]*

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

---

| | |
|:---|:---|
| **EXECUTIVE** | **EXECUTIVE** |
| /s/ Joseph Mills | /s/ Joseph Mills |
| Joseph Mills | Joseph Mills |
| Address: [\*\*\*] | Address: [\*\*\*] |
| **COMPANY** | **COMPANY** |
| International Battery Metals Ltd | International Battery Metals Ltd |
| /s/ John Burba | /s/ John Burba |
| By: | John Burba |
| Its: | Chairman of the Board |

---

*[Signature page to Employment Agreement]*

 

 

EXHIBIT A

Attached to and made a part of the certain Executive Employment Agreement dated April 7, 2025 by and between Mr. Joseph Mills ("Executive") and International Battery Metals, Ltd ("Company").

Companies that Executive currently serves as an Officer or on the Board of Directors: as of the Effective Date of the Executive Employment Agreement:

● Samson Resources II, LLC

○ Mr. Mills serves as the Chief Executive Officer and as a member of the Board of Directors

● Liberty Resources Company

○ Mr. Mills serves as a member of the Board of Directors

● Caliber Midstream Company

○ Mr. Mills serves as Chairman of the Board of Directors

● Melange Secondaries Fund, LP

○ Mr. Mills serves as a Senior Advisor the Fund

EXHIBIT B

**Severance and General Release Agreement**

**[*To be completed when employment terminates*.]**

This Severance and General Release Agreement ("Agreement") dated as of [DATE], sets forth the agreement by and between [EMPLOYEE NAME] (the "Employee") and International Battery Metals Ltd. (the "Company") concerning the termination of the Employee's employment with the Company. Unless otherwise indicated, capitalized terms used but not defined herein will have the meaning as indicated in the Executive Employment Agreement previously executed by and between the Parties.

<u>Termination of Employment</u>: Employee's employment is terminated effective [DATE] (the "Termination Date") whereas all benefits and privileges of employment cease, except as set forth herein. For good and valuable consideration herein, Company and Employee (the "Parties") agree as follows:

1. <u>Termination Benefits</u>: Company will pay or provide Employee with all of the payments and benefits
 due under Sections 11(d) and 12, as applicable. [TERMS OF THE SEVERANCE BENEFITS AND PAYMENT
 AMOUNTS] (together, the

"Termination Benefits").

2. <u>General Release</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) In
 exchange for and in consideration of the Termination Benefits described in this Agreement,
 and as a condition of their receipt, Employee, on behalf of himself/herself and his/her heirs,
 executors, administrators, successors and assigns, irrevocably and unconditionally releases,
 waives and forever discharges the Released Parties (as defined below) from all claims, demands,
 actions, causes of action (including breach of contract), charges, complaints, liabilities,
 obligations, promises, sums of money, forms of compensation, agreements, representations,
 controversies, disputes, damages, suits, rights, sanctions, costs (including attorneys'
 fees), losses, debts and expenses (collectively "Claims") of any nature whatsoever,
 whether known or unknown, fixed or contingent, which Employee now has or ever had against
 any of the Released Parties, including but not limited to any Claims arising out of, concerning
 or related to Employee's employment with and/or separation from the Company and/or
 its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) This
 General Release includes, without limitation, (i) law or equity Claims; (ii) express or implied
 contract Claims or tort Claims; (iii) Claims arising under any federal, state or local laws
 of any jurisdiction that prohibit age, sex, race, national origin, color, disability, religion,
 veteran, military status, sexual orientation or any other form of discrimination, harassment,
 hostile work environment or retaliation (including, without limitation, the Age Discrimination
 in Employment Act (ADEA), the Older Workers Benefit Protection Act (OWBPA), the Americans
 with Disabilities Act of 1990, Title VII of the Civil Rights Act of 1964, the Civil Rights
 Act of 1991, the Civil Rights Acts of 1866 and/or 1871, 42 U.S.C. Section 1981, the Rehabilitation
 Act, the Family and Medical Leave Act, the Sarbanes-Oxley Act, the Employee Polygraph Protection
 Act, the Worker Adjustment and Retraining Notification Act, the Equal Pay Act of 1963, the
 Lilly Ledbetter Fair Pay Act, the Uniformed Services Employment and Reemployment Rights Act
 of 1994, Section 1558 of the Patient Protection and Affordable Care Act of 2010, the Texas
 Human Rights Act or the Texas Labor Code, or any other federal, state or local laws of any
 jurisdiction, if and to the extent applicable and as any of the foregoing may be amended
 from time to time; (iv) Claims under any other federal, state, local, municipal or common
 law whistleblower protection, discrimination, wrongful discharge, anti-harassment or anti-retaliation
 statute or ordinance; (v) Claims arising under the Employee Retirement Income Security Act
 of 1974 (ERISA); or (vi) any other statutory or common law Claims related to Employee's
 employment with the Company and its affiliates and the termination thereof.

**Severance and General Release Agreement**

**Page 2**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Notwithstanding
 the foregoing, this Agreement specifically does not release any Claim or cause of action
 by or on behalf of Employee (or his or her beneficiaries) with respect to Employee's
 right to indemnification or to be held harmless pursuant to the Executive Employment Agreement,
 any applicable corporate governance documents, director and officer indemnification agreements
 and/or applicable laws, or any Claim for vested benefits pursuant to a tax-qualified retirement
 plan. In no event shall the Claims waived and released by this General Release include **[(i) any claim under the ADEA which arises after the date this Agreement is signed by Employee** ],
 (b) any Claim for breach or enforcement of this Agreement or for payment of the Accrued Amounts
 under the Executive Employment Agreement, (c) any other Claims for [ **describe any indemnification rights that survive termination under any applicable agreements or at law]**, or (d) any
 Claim relating to Employee's status as **[a director (other than claims for unpaid director compensation, claims for indemnification, and claims for coverage under D&O insurance) if Employee remains a director following the termination of his or her employment or]** a stockholder of the Company or any other Released Party. Further, the parties expressly
 acknowledge that Employee retains the following equity interests, which are not waived by
 this Agreement, and which continue to be governed by the agreement and/or plan through which
 they were awarded: **[summary of equity ownership and agreement(s)/plan(s) that is/are source(s) of entitlement (including any applicable restricted unit agreements and the rights therein that survive such termination)]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) The
 term "Released Parties" or "Released Party" as used herein shall
 mean and included: (i) the Company; (ii) the Company's former, current and future parents,
 subsidiaries, affiliates and lenders; (iii) each predecessor, successor or affiliate of any
 entity listed in clauses (i) and (ii); (iv) each former, current and future officer, director,
 agent, representative, employee, owner, shareholder, partner, attorney, employee benefit
 plan, employee benefit plan administrator, insurer, administrator and fiduciary of any of
 the entities or persons listed in clauses (i) through (iii); and (v) any other person acting
 by, through, under or in concert with any of the persons or entities listed herein.

**Severance and General Release Agreement**

**Page 3**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Nothing
 in this Agreement shall be construed to prohibit Employee from responding to any inquiry,
 or otherwise communicating with, any federal state or local administrative or regulatory
 agency or authority, including, but not limited to the Canadian Stock Exchange, Securities
 and Exchange Commission, the Toronto Stock Exchange and Venture Exchange, the Equal Employment
 Opportunity Commission ("EEOC") or the National Labor Relations Board, if applicable
 to his or her employment, about this Agreement or its underlying facts and circumstances
 or filing a charge with or participating in an investigation conducted by any governmental
 agency or authority; however, this Agreement does prevent Employee, to the maximum extent
 permitted by law, from obtaining any monetary or other personal relief for any of the Claims
 he or she has released in this Agreement. Pursuant to the OWBPA, Employee understands and
 acknowledges that by executing this Agreement and releasing all Claims against each and all
 of the Released Parties, he or she has waived any and all rights or Claims that he or she
 has against any Released Party under the ADEA, which includes, but is not limited to, any
 Claim that any Released Party discriminated against Employee on account of his or her age.
 This Agreement, however, shall not affect Employee's rights under the OWBPA to have
 a judicial determination of the validity of this Agreement and does not purport to limit
 any right Employee may have to file a charge under the ADEA or other civil rights statute
 or to participate in an investigation or proceeding conducted by the EEOC or other investigative
 agency. This Agreement does, however, waive and release any right to recover damages under
 the ADEA or other civil rights statute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) Employee
 confirms that no Claim, charge or complaint against any of the Released Parties has been
 brought by him or her before any federal, state or local court or administrative agency.
 Employee represents and warrants that, to Employee's knowledge, he or she has no knowledge
 of any improper or illegal actions or omissions by any of the Released Parties. Employee
 further represents that, as of the date of his or her execution of this Agreement, he or
 she has not been the victim of any illegal or wrongful acts by any of the Released Parties,
 including, without limitation, discrimination, retaliation, harassment or any other wrongful
 act based on sex, age, or any other legally protected characteristic.

3. <u>Consideration Period</u>: By signing this Agreement in the space below, Employee is confirming acceptance
 of the terms and conditions set forth herein and is acknowledging the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The
 obligations as set out in this Agreement represent a complete waiver and release of all Claims
 that Employee has against the Released Parties except as provided for above. Accordingly,
 Employee understands his or her obligation to review this Agreement carefully before signing
 it.

**Severance and General Release Agreement**

**Page 4**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Employee
 understands that he/she can take up to twenty-one (21) days from receipt of this Agreement
 or longer if provided in the Executive Employment Agreement (the "Consideration Period")
 to consider its meaning and effect and to determine whether or not he or she wishes to enter
 into it. Employee further understands that he/she can voluntarily waive this Consideration
 Period. Before signing this Agreement, Employee is advised to consult with an attorney. If
 Employee chooses to sign this Agreement before the end of the Consideration Period, he/she
 is doing so voluntarily and by doing so, is waiving the Consideration Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) In
 addition, Employee may revoke his/her signature within seven (7) days after signing this
 Agreement (such period, the "Revocation Period"). Any revocation of this Agreement
 must be in writing and received by the Company on or before the end of the Revocation Period.

4. <u>Expiration Period</u>: This offer will expire at the end of the last day of the Consideration Period,
 or [DATE] if not accepted by Employee by fully executing this Agreement and delivering the
 signed Agreement to:

Norma L Garcia

General Counsel, Corporate Secretary

IBAT USA, Inc. and International Battery Metals Ltd.

6100 Tennyson Parkway, Suite 240

Plano, Texas

Email: [\*\*\*]

To revoke this Agreement, Employee must deliver a written notice of revocation within the Revocation Period to Norma L Garcia at the address listed above. This Agreement will become effective on the eighth day after Employee signs this Agreement provided Employee has not timely revoked this Agreement.

5. <u>Confirmations</u>:
 Employee confirms that Employee has returned to the Company any and all documents, materials
 and information related to the Company, or its subsidiaries, affiliates or businesses, and
 all other property of the Company including without limitation, any Company laptop, cell
 phone or smart phone other equipment and files in Employee's possession, custody or
 control. The Parties acknowledge, however, that Employee shall be permitted to retain personnel
 records related only to him and all documents related to his Executive Employment Agreement
 and continued equity ownership interests in the Company. Additionally, Employee confirms,
 as provided in Section 18 of the Executive Employment Agreement, that the restrictive covenants
 set forth therein will continue in full force as per the time periods set forth in that section,
 and that the obligations to ensure and protect the confidentiality of the Confidential Information
 imposed on the Employee in the Employment Agreement and any obligations to provide notice
 under the Executive Employment Agreement will survive in perpetuity.

**Severance and General Release Agreement**

**Page 5**

6. <u>Non-Defamatory</u>:
 The Parties acknowledge and agree that their respective non- disparagement obligations under
 Section 18(f) of the Executive Employment Agreement shall continue in full force and effect
 notwithstanding the termination of the Employee's employment with the Company and the
 execution of this Agreement.

7. <u>Intellectual Property Protection</u>: Employee agrees to fully abide by his obligations under Section
 20 (Property Rights) of the Executive Employment Agreement notwithstanding the termination
 of his employment with the Company and the execution of this Agreement.

8. <u>Confidentiality:</u> Employee agrees that the terms of this Agreement shall be maintained as confidential by Employee
 and anyone else acting by, through, under or in concert with Employee, and shall not be disclosed
 to any other third party (other than to Employee's attorneys, financial advisors or
 spouse) except to the extent required by law.

9. <u>Liquidated Damages, Clawback Remedy, and Intellectual Property Protection</u>: Employee agrees that
 the Company shall continue to have the rights and remedies afforded to it under Sections
 10 (Clawback Provisions) and 18(h) (Remedies; Tolling of Restricted Period) of the Executive
 Employment Agreement notwithstanding the termination of his employment with the Company and
 the execution of this Agreement.

10. <u>Cooperation</u>:
 Employee agrees to fully abide by his obligations under Section 17 (Cooperation) of the Executive
 Employment Agreement notwithstanding the termination of his employment with the Company and
 the execution of this Agreement.

11. <u>Covenants</u>.
 Employee specifically represents, warrants, and confirms that Employee: (a) has not filed
 any Claims, complaints, or actions of any kind against the Company with any federal, state,
 or local court or government or administrative agency; (b) has not made any Claims or allegations
 to the Company related to sexual harassment, sex discrimination, sexual abuse or age discrimination,
 and that none of the payments set forth in this Agreement are related to sexual harassment,
 sex discrimination, sexual abuse or age discrimination; (c) has been properly paid for all
 hours worked for the Company and; (d) has not engaged in any unlawful conduct relating to
 the business of the Company.

12. <u>Arbitration</u>.
 Each Party agree that any Claim against any other Party or its or his affiliates arising
 out of or relating to this Agreement shall be resolved pursuant to the dispute- resolution
 provisions contained in Section 21 (Arbitration) of the Executive Employment Agreement which
 are incorporated here by reference.

13. <u>Entire Agreement</u>: This Agreement merges and supersedes all prior and contemporaneous agreements,
 promises or representations, whether written or oral, express or implied, relating to the
 subject matter of this Agreement, with the exception that the trade secrets section, the
 non-competition and non-solicitation of employees and customers section of the Executive
 Employment Agreement shall survive in accordance with this Agreement.

**Severance and General Release Agreement**

**Page 6**

14. <u>Governing Law</u>. This Agreement will be governed by and interpreted in accordance with the laws of
 the State of Texas without giving effect to any conflicts-of-law or choice-of- law rules
 or principles that would result in the application of any other law.

15. <u>Severability</u>:
 If any provision of this Agreement is held to be unenforceable under applicable law, such
 provision shall be excluded from this Agreement and replaced with a provision which is enforceable
 and comes closest to the intent of the parties underlying the unenforceable provision.

16. <u>Successors and Assigns</u>: The Company may assign this Agreement without Employee's Consent to
 any successor or assign (whether direct or indirect, by purchase, merger, consolidation or
 otherwise) to all or substantially all of the business or assets of the Company and in such
 event, this Agreement shall be binding upon and inure to the benefit of the Company's
 successors and assigns, including corporations with which, or into which, the Company may
 be merged or which may succeed to its respective assets or business. Employee's obligations
 are personal and may not be assigned.

17. <u>Third Party Beneficiaries</u>: This Agreement does not create, and shall not be construed as creating,
 any rights enforceable by any person not a party to this Agreement.

18. <u>Waiver</u>:
 The failure of either party hereto at any time to enforce any provision of this Agreement
 shall in no way affect such party's rights thereafter to enforce the same, nor shall
 the waiver by either party of any breach of any provision hereof be deemed to be a waiver
 by such party of any other breach of the same or any other provision hereof.

19. <u>Counterparts</u>:
 The Parties may execute this Agreement in counterparts, each of which shall be deemed an
 original, and all of which, when taken together, shall constitute one and the same instrument.
 Delivery of an executed counterpart signature page of this Agreement by facsimile, email
 in portable document format (.pdf), DocuSign, or by any other electronic means intended to
 preserve the original graphic and pictorial appearance of a document, has the same effect
 as delivery of an executed original of this Agreement.

20. <u>Voluntary Agreement</u>: If the terms of this Agreement are acceptable to Employee, please sign and
 return it to the undersigned. At the time Employee signs and returns this Agreement, it will
 take effect as a legally binding agreement between Employee and the Company on the basis
 set forth herein following the expiration of the above-referenced Revocation Period. In signing
 this Agreement, Employee acknowledges that Employee: (a) has signed it knowingly, freely
 and voluntarily, with a full understanding of its terms; (b) assents to all or the Agreement's
 terms and conditions, including without limitation the General Release; and (c) is signing
 this Agreement, including the General Release, in exchange for good and valuable consideration
 in addition to anything of value to which Employee is otherwise entitled. EMPLOYEE ACKNOWLEDGES
 THAT EMPLOYEE HAS THE RIGHT, AND IS ENCOURAGED, TO CONSULT WITH COUNSEL OF EMPLOYEE'S
 CHOICE AND BY EMPLOYEE'S SIGNATURE

BELOW, EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE EITHER HAS CONSULTED, OR HAS ELECTED NOT TO CONSULT, WITH COUNSEL OF EMPLOYEE'S CHOICE CONCERNING THIS AGREEMENT.

21. <u>Effective Date</u>: The
 Effective Date of this Agreement is the eighth day after Employee signs this Agreement, provided
 Employee has not revoked this Agreement prior to the expiration of the Revocation Period.

////End of Agreement, only Signatures Follow///////

**Severance and General Release Agreement**

**Page 7**

---

| | |
|:---|:---|
| AGREED TO: |  |
| By: |  |
| (Employee) | Date:__________________ |
| International Battery Metals Ltd. |  |
| By: | Date:__________________ |
| Name: |  |
| Title: |  |

---

## Exhibit 10.21

**Exhibit 10.21**

**EXECUTIVE EMPLOYMENT AGREEMENT**

This Executive Employment Agreement (the "<u>Agreement</u>") is made and entered into as of June 2, 2025 (the "<u>Effective Date</u>"), by and between Michael Rutledge, an individual resident of the State of Texas ("<u>Executive</u>"), and International Battery Metals Ltd., incorporated under the Business Corporation Act of British Columbia (the "<u>Company</u>"). The parties acknowledge that the Company's subsidiaries and controlled affiliates shall be third-party beneficiaries of this Agreement.

WHEREAS, the Company desires to employ the Executive on the terms and conditions set forth herein; and

WHEREAS, the Executive desires to be employed by the Company on such terms and conditions.

NOW, THEREFORE, in consideration of the mutual covenants, promises and obligations set forth herein, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Term</u>. As used herein, the "<u>Term</u>" shall be a period of two (2) years commencing on **June 2, 2025** (the "<u>Start Date</u>") and ending at the close of business on the second anniversary of the Start Date (the "<u>Expiration Date</u>"); provided, however, that this Agreement shall be automatically renewed, and the Term shall be automatically extended for one (1) additional year on the Expiration Date and each anniversary of the Expiration Date thereafter, unless either party gives written notice at least sixty (60) days prior to the expiration of the Term (including any renewal thereof) of such party's desire to terminate the Term (such notice to be delivered in accordance with Section 29 hereof). The "<u>Term</u>" shall include any extension thereof pursuant to the preceding sentence. Provision of notice that the Term shall not be extended or further extended, as the case may be, shall not constitute a breach of this Agreement and, in the case of a provision of such notice by the Company, shall not constitute either a termination of Executive's employment by the Company without "Cause" or grounds for a termination by Executive for "Good Reason" for purposes of this Agreement except as expressly provided for in Section 12(a) below. Notwithstanding the foregoing, the Term is subject to earlier termination as provided below in Section 11 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Position and Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Position</u>. During the Term, Executive will serve as the Chief Financial Officer of the Company, reporting directly to the Company's Chief Executive Officer (the "CEO"). Executive will have such duties, authority and responsibilities as are customary of a Chief Financial Officer of a company similar in size and revenue to the Company or that are otherwise mutually agreeable to the parties, including without limitation managing the day-to-day corporate development activities of the Company and its subsidiaries and controlled affiliates, which such duties, authority and responsibility as are consistent with the Executive's position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Duties</u>. During the Term, the Executive shall devote all of the Executive's business time and attention to the performance of the Executive's duties hereunder and will not engage in any other business, profession or occupation for compensation or otherwise which shall conflict or interfere with the performance of such services either directly or indirectly without the prior written consent of the CEO or the Board of Directors (the "Board") as applicable. As long as such service and investments do not interfere with the Executive's ability to faithfully fulfilling his duties, responsibilities, and authorities under this Agreement or directly or indirectly compete with the Company, the Executive may, without violating this Agreement, (i) serve as an officer or director of any civic or charitable organization, (ii) own publicly traded securities, and (iii) passively invest his personal assets in such form or manner as will not require any services by the Executive in the operation of the entities in which such investments are made. Any additional outside boards or other outside business activities shall be subject to approval in advance by the CEO or the Board, which approval shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Place of Performance</u>. The principal place of Executive's employment shall initially be the Company's principal executive office, currently located in Plano, Texas; provided, however, the Board and CEO are working collaboratively to consider relocation, at the appropriate time, of the principal executive office to a mutually acceptable location in the Houston, Texas area, and upon such relocation, Executive's principal place of employment shall be at such office in the Houston, Texas area. Executive may be required to travel on Company business during the Term as reasonably necessary in the performance of Executive's duties or reasonably requested by the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Base Salary</u>. During the Term, the Company shall pay the Executive an annual base salary of Three Hundred Fifty Thousand United States Dollars (US$350,000) (the "<u>Base Salary</u>") in periodic installments in accordance with the Company's customary payroll practices, subject to all statutory deductions and authorized withholdings. The Executive's Base Salary shall be reviewed at least annually by the CEO and the Board and the Board may, but shall not be required to, increase the Base Salary during the Term, contingent upon the successful attainment of goals mutually agreed upon by the CEO and Board and the Executive at or near the Start Date and the beginning of each calendar year during the Term, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Discretionary Bonus</u>. For 2025 and each subsequent calendar year during the Term, Executive will be eligible to earn a discretionary bonus at the Board's discretion, subject to successful achievement of certain criteria mutually agreed upon by the Board and Executive at or near the Start Date and the beginning of each calendar year during the Term, as applicable (the "<u>Annual Bonus</u>"), which Annual Bonus shall have a target amount equal to 60% of the Base Salary. Executive's actual Annual Bonus shall not be guaranteed and shall be determined by the Board, while acting reasonably and in good faith, and shall depend on the Company's financial performance and the Board's assessment of Executive's individual performance. The Annual Bonus, if any, awarded under this Section 4(b) will be paid on or before March 15 of the calendar year following the calendar year for which any such bonus is awarded; provided, however, that, except as set forth in Section 11(d) below, Executive must remain actively employed by the Company through the date on which the Annual Bonus is paid in order to earn and receive such Annual Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>RSU Awards</u>. Executive acknowledges and agrees that, as consideration for the covenants and promises contained in this Agreement and subject to approval by the Board, the Executive will receive the following awards of restricted share units (the "<u>RSU</u>s") with respect to the Company's common shares (the "<u>Common Shares</u>"), which shall be subject to time-based and performance-based vesting as set forth below and in the Company's standard form of RSU award agreement to be executed on or near the Effective Date (a copy of which is attached to this Agreement as <u>Exhibit A</u>), and shall be subject to such other terms and conditions as set forth therein and in the Company's Restricted Share Unit Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. As soon as practicable following the Start Date, the Executive will be granted an RSU award with respect to 450,000 Common Shares, which RSUs will vest in full on the first anniversary of the Start Date, subject to the Executive's continuous employment with the Company through such vesting date, and accelerated vesting in full in connection with a consummation of a "Change in Control" (as defined below) as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Upon the Company's successful listing on the Toronto Stock Exchange, subject to the Executive's continuous employment with the Company through that date, the Executive will be granted an additional RSU award with respect to 300,000 Common Shares, which RSUs will vest in full on the 60th day following of the grant date thereof, subject to the Executive's continuous employment with the Company through such vesting date and accelerated vesting in full in connection with a consummation of a Change in Control as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. As soon as practicable following the Start Date, the Executive will be eligible to receive an additional RSU award with respect to 900,000 Common Shares, which RSUs will vest in full on the date that the Company completes the building and deployment (with secured financing) of two additional Direct Lithium Extraction ("<u>DLE</u>") plants (in addition to the existing DLE plant that the Company is currently planning to deploy as of the Effective Date), subject to the Executive's continuous employment with the Company through such vesting date and accelerated vesting in connection with a consummation of a Change in Control as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Within one year of the Executive's Start Date, Executive will be eligible at that time for an additional RSU award with respect to a number of Common Shares equal to one quarter of one percent (0.25%) of the Company's fully diluted outstanding Common Shares at the time of such grant pursuant to this Section 5(d), which RSUs will vest in full on the date the Company achieves 25,000 tons per annum of Lithium Carbonate production, equivalent Lithium Chloride production, or royalties with respect to equivalent production levels through technology licensing agreements, subject to the Executive's continuous employment with the Company through such vesting date and accelerated vesting in connection with a consummation of a Change in Control as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Within one year of the Executive's Start Date, the Executive will be eligible to receive an additional RSU award with respect to forty-five one-hundredths of one percent (0.45%) of the Company's fully diluted outstanding Common Shares at the time of such grant pursuant to this Section 5(e), which RSUs will vest with respect to 50% of such RSUs on the date Board certifies, in good faith, that the Company first achieves EBITDA of US $25 million for any fiscal year, and the remaining 50% of such RSUs on the date the Board certifies, in good faith, that the Company first achieves EBITDA of US $50 million for any fiscal year, subject to the Executive's continuous employment with the Company through each applicable vesting date and accelerated vesting in connection with a consummation of a Change in Control as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Within one year of the Executive's Start Date, the Executive will be eligible to receive an additional RSU award with respect to one quarter of one percent (0.25%) of the Company's fully diluted outstanding Common Shares at the time of such grant pursuant to this Section 5(f), which RSUs will vest with respect to 50% of such RSUs on the date the Board certifies, in good faith, that the Company first achieves a market capitalization of US $750 million based upon the Company's 60-day volume weighted average trading price ("<u>VWAP</u>"), and the remaining 50% of such RSUs on the date the Board certifies, in good faith, that the Company first achieves a market capitalization of US $1.5 billion based upon the Company's 60-day VWAP, subject to the Executive's continuous employment with the Company through each applicable vesting date and accelerated vesting in connection with a consummation of a Change in Control as outlined in Section 12 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Within one year of the Executive's Start Date, the Executive will be eligible to receive an additional RSU award with respect to forty-five one hundredths of one percent (0.45%) of the Company's fully diluted outstanding Common Shares at the time of such grant pursuant to this Section 5(g), which RSUs will vest upon the consummation of a Change in Control in which the Company's outstanding equity is valued at least US $1 billion, with 50% of the RSUs vesting if the Company's equity is valued at US $1 billion in such Change in Control and 100% of the RSUs vesting is the Company's equity is valued at least US $1.5 billion in such Change in Control, and the number of RSUs vesting if the Company's equity is valued between US $1 billion and US $1.5 billion determined by linear interpolation (any such RSUs that do not vest upon such Change in Control will be forfeited at that time), subject to the Executive's continuous employment with the Company through the date of such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. For the avoidance of doubt, the vesting of all of the RSUs described above is contingent upon Executive remaining in continuous service with the Company as Chief Financial Officer through the applicable vesting date. In addition, the Common Shares issued to Executive pursuant to the RSUs shall be subject to trading restrictions/limitations as determined by the Board in good faith such that all sales thereof are subject to advance approval by the Board. The Board and Executive shall discuss in good faith any Rule 10b5-1 trading plan proposed by the Executive during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Employee Benefits; Life and Disability Insurance</u>. During the Term, Executive shall be entitled to participate in all employee benefit plans, practices and programs maintained by the Company, as in effect from time to time, including, without limitation, medical, dental and vision health insurance plans, 401(k) plans, deferred compensation plans, life insurance plans, vacation or other employee benefit plans (collectively, "<u>Employee Benefit Plans</u>"), on a basis which is no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent with applicable law and the terms and eligibility requirements of the applicable Employee Benefit Plans. The Company reserves the right to amend or cancel any Employee Benefit Plans at any time in its sole and absolute discretion, provided such amendment or cancelation is on a Company-wide basis similarly affecting all or substantially all senior management employees, and subject to the terms of such Employee Benefit Plan and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Vacation</u>. During the Term, the Executive shall be entitled to four (4) weeks of paid vacation per each calendar year of the Term, prorated for any partial calendar year, to be taken in accordance with the Company's vacation policies, as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Business Expenses</u>. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business and travel expenses incurred by the Executive in connection with the performance of the Executive's duties hereunder in accordance with the Company's expense reimbursement policies and procedures. If the Company has, or at such time as the Company obtains (if it does not have as of the date of this Agreement) a Company credit card, the Company shall provide such card to Executive for use for business purposes. Use of such Company credit card shall be in accordance with Company policies, but shall not limit the Company's obligation to reimburse Executive for other expenses incurred in accordance with this Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Indemnification; D&O Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Indemnification</u>. To the maximum extent permitted by applicable law and the Company's bylaws, in the event that Executive is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil, criminal, administrative or investigative (a "<u>Proceeding</u>"), other than any Proceeding initiated by Executive related to any dispute between Executive and the Company or any of its affiliates with respect to this Agreement or Executive's employment hereunder or any other written agreement between Executive and/or the Company or any of its affiliates (as the case may be), by reason of the fact that Executive is or was an executive employee, director, or officer of the Company, or any affiliate of the Company, or is or was serving at the request of the Company as a director, officer, member, employee or agent of another corporation or a partnership, joint venture, trust or other enterprise, provided that Executive was acting in the course and scope of the Executive's employment or other responsibilities and in good faith with reasonable grounds for believing that Executive's conduct was lawful, Executive shall be indemnified and held harmless by the Company, without the requirement for an undertaking, from and against any liabilities, costs, claims and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys' fees). In addition, on or promptly following the Effective Date, the Company and Executive shall enter into an indemnification agreement in the same form as applicable to members of the Board and attached to this Agreement as <u>Exhibit B</u>. To the extent there is any conflict between the indemnification coverage and other rights and benefits provided to the Executive under this Agreement and the indemnification agreement attached as <u>Exhibit B</u>, the Executive shall be entitled to the coverage, rights, and benefits which are most favorable to him.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>D&O Insurance</u>. During the Term and for a period of three (3) years thereafter, the Company or any successor to the Company shall purchase and maintain, at its own expense, directors' and officers' liability insurance providing coverage in commercially reasonable amounts to Executive on terms that are no less favorable than the coverage provided to other directors and similarly situated executives of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Clawback Provisions</u>. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to Executive pursuant to this Agreement or any other agreement or arrangement with the Company which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made to comply with such law, government regulation or stock exchange listing requirement (or any policy the Company is required to adopt in order to comply with any such law, government regulation or stock exchange listing requirement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Termination of Employment</u>. Subject to the otherwise applicable terms and conditions of this Agreement, the Term and the Executive's employment hereunder may be terminated by either the Company or the Executive at any time and for any reason; provided that, unless otherwise provided herein, either party shall be required to give the other party at least sixty (60) days advance written notice of any termination of the Executive's employment. Upon termination of the Executive's employment during the Term, the Executive shall be entitled to the compensation and benefits described in the applicable provisions of this Section 11 and shall have no further rights to any other compensation or benefits from the Company or any of its affiliates under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>For Cause or Without Good Reason</u>. Executive's employment hereunder may be terminated by the Company for Cause or by Executive without Good Reason. If the Executive's employment is terminated by the Company for Cause or by Executive without Good Reason, Executive shall be entitled to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any
 accrued but unpaid Base Salary and accrued but unused vacation which shall be paid following the Termination Date (as defined below)
 in accordance with applicable law and the Company's customary payroll procedures;

ii. reimbursement
 for unreimbursed business expenses properly incurred by Executive, which shall be subject to and paid in accordance with applicable
 law and the Company's expense reimbursement policy; and

iii. such
 employee benefits (including vested equity compensation), if any, to which Executive may be entitled under the Company's employee
 benefit plans as of the Termination Date; provided that, in no event shall Executive be entitled to any payments in the nature of
 severance or termination payments except as specifically provided herein.

iv. Items
 11(a)(i) through 11(a)(iii) are referred to herein collectively as the " <u>Accrued Amounts</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For purposes of this Agreement, "<u>Cause</u>" shall mean any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Executive's
 insubordination or willful refusal to substantially perform Executive's lawful duties (other than any such refusal resulting
 from incapacity due to physical or mental illness), which remains uncured for a period of thirty (30) days after notice thereof from
 the Board;

ii. Executive's
 theft, embezzlement, misappropriation, fraud, dishonesty, breach of fiduciary duty, falsification of any documents of the Company,
 or other willful misconduct that, in each case or in the aggregate, causes, or is reasonably likely to cause, material harm to the
 Company's reputation, business operations, or standing with investors, partners, or regulators;

iii. Executive's
 failure to abide by the applicable code(s) of conduct or other policies of the Company which remain uncured for a period of thirty
 (30) days after notice thereof from the Board;

iv. Executive
 becoming the subject of a bar, suspension, or enforcement action by a securities, environmental, or trade regulatory authority that
 prevents Executive from performing Executive's duties which, if curable, remains uncured for a period of thirty (30) days after
 notice thereof from the Board;

v. Executive's
 conviction of or plea of guilty or *nolo contendere* to a crime that constitutes a felony (or state law equivalent) or a crime
 that constitutes a misdemeanor involving moral turpitude; or

vi. Executive's
 material breach of any obligation under this Agreement or any other written agreement between the Executive and the Company which
 remains uncured for a period of thirty (30) days after notice thereof from the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For purposes of this Agreement, "<u>Good Reason</u>" shall mean the occurrence of any of the following, in each case during the Term without the Executive's written consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. a
 material reduction in Executive's annual Base Salary or Annual Bonus targets (except for an across-the-board salary reduction
 similarly affecting all or substantially all senior management employees);

ii. a
 material reduction in Executive's authority, duties or responsibilities or the assignment to Executive of duties that are materially
 inconsistent with Executive's position;

iii. the
 relocation without Executive's consent of the Company's offices to a location that is more than forty-five (45) miles
 from the Plano, TX or Houston, TX area;

iv. any
 change in Executive's reporting relationship such that Executive no longer reports directly to the CEO; or

v. the
 Company's material breach of this Agreement.

Notwithstanding the foregoing, a termination of Executive's employment with the Company will not be considered a termination for Good Reason unless Executive has provided written notice (the "<u>Good Reason Notice</u>") to the Company of the existence of the circumstances providing grounds for termination for Good Reason within one hundred and twenty (120) days of the initial existence of such grounds, and the Company has been provided thirty (30) days from the date of the Good Reason Notice to cure such circumstances; provided, however, that if Executive fails to terminate Executive's employment within thirty (30) days after the end of such cure period, then Executive will be deemed to have waived Executive's right to terminate for Good Reason, but only with respect to such grounds described in the Good Reason Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Without Cause or for Good Reason</u>. Executive's employment hereunder may be terminated by the Company without Cause or by Executive for Good Reason. In the event of such termination, Executive shall be entitled to receive the Accrued Amounts. In addition, but subject to (x) Executive's execution of a release of claims in favor of the Company, the Company's affiliates, and their respective officers and directors in a form provided by the Company and attached as <u>Exhibit C</u> to this Agreement (the "<u>Release</u>") and such Release becoming effective and non-revocable within sixty (60) days following the Termination Date, and (y) Executive's continued compliance in all material respects with the restrictive covenants set forth in Section 18 below, then Executive will receive, in addition to the Accrued Amounts, the following payments and benefits (the "<u>Separation Benefits</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Payment
 of an amount equal to the sum of: (a) ten (10) months of Executive's Base Salary and (b) ten (10) months of the premium Executive
 would be required to pay for health continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 or similar
 state law (" <u>COBRA</u> ") if Executive had been eligible for such COBRA continuation coverage, at the same or reasonably
 equivalent coverage rate for Executive and Executive's eligible dependents as in effect immediately prior to the Termination
 Date, which sum shall be paid in periodic installments over six (6) months in accordance with the Company's customary payroll
 practices, subject to all statutory deductions and authorized withholdings (with the first installment payable on (or within ten
 (10) days following) the date the Release becomes effective and irrevocable and to include each such installment that was otherwise
 scheduled to be paid following the Termination Date and prior to the date of such payment);

ii. Any
 unpaid Annual Bonus earned with respect to any calendar year preceding the year in which the Termination Date occurs, payable, subject
 to all statutory deductions and authorized withholdings, at the time when such Annual Bonus is paid to other similarly situated executives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. A
 prorated Annual Bonus for the calendar year containing the Termination Date (based upon actual Company performance for the entire
 year), payable, subject to all statutory deductions and authorized withholdings, at the time when such Annual Bonus is paid to other
 similarly situated executives; and

iv. Upon
 the Termination Date, Executive shall forfeit any and all unvested time-based and performance-based RSU's .

Notwithstanding the forgoing, in the event of a termination of Executive's employment hereunder may be terminated by the Company without Cause or by Executive for Good Reason, Executive shall have no duty to find new employment following the Termination Date. Any compensation or benefits received by the Executive from any third party for providing personal services or otherwise following the Termination Date shall not reduce the Company's obligation to make any payments or provide any benefits contemplated by this Agreement to the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Death or Disability</u>. Executive's employment hereunder shall terminate automatically upon Executive's death during the Term, and the Company may terminate the Executive's employment on account of the Executive's Disability. If the Executive is terminated during the Term on account of Executive's death or Disability, Executive (or Executive's estate and/or beneficiaries, as the case may be) shall be entitled to receive the Accrued Amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. For purposes of this Agreement, "<u>Disability</u>" shall mean a mutually agreeable qualified medical physician has determined that Executive is unable, due to physical or mental incapacity, to substantially perform the Executive's duties and responsibilities under this Agreement, with or without reasonable accommodation, at any time after Executive has been absent for one hundred eighty (180) days out of any three hundred sixty-five (365) day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Change in Control Transactions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Notwithstanding any other provision contained herein, in the event of a Change in Control and a termination of Executive's employment either by the Company without Cause, by the Company non-renewing the Term of this Agreement, or by Executive for Good Reason, Executive shall be entitled to the Accrued Amounts and the Separation Benefits, except that the Separation Benefits in Section 11(d)(i) shall be paid in a single lump sum within thirty (30) days after the Release becomes effective and irrevocable. Notwithstanding the foregoing, in the event the Separation Benefits in Section 11(d)(i) cannot be paid in full in a single lump sum within thirty (30) days after the Release becomes effective and irrevocable in accordance with this Section without the imposition of an excise tax under Section 409A (as defined below), then any portion of the Separation Benefits that is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A will instead be paid at the same time as provided in Section 11(d)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For purposes of this Section 12, a "<u>Change in Control</u>" shall mean: (i) the date of the consummation of a merger or consolidation of the Company with any other corporation that has been approved by the stockholders of the Company, other than a merger or consolidation that results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (ii) the date of the consummation of the sale or disposition by the Company of all or substantially all (i.e., at fifty percent (50%)) of the Company's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Deemed Resignations; Notice of Termination</u>. Unless otherwise agreed to in writing by the Company and the Executive prior to any such termination, any termination of Employee's employment shall constitute an automatic resignation of the Executive as an officer or director of the Company and each of its affiliates, and an automatic resignation of Employee from the Board and from the board of directors or similar governing body of any affiliate of the Company and from the board of directors or similar governing body of any corporation, limited liability company or other entity in which the Company or any Affiliate holds an equity interest and with respect to which board or similar governing body the Executive serves as a designee or other representative of the Company or such affiliate. Any termination of the Executive's employment hereunder by the Company or by the Executive during the Term (other than termination on account of the Executive's death) shall be communicated by written notice of termination ("<u>Notice of Termination</u>") to the other party provided, however, that the failure by the Company or the Executive to issue a Notice of Termination shall not waive any right of the Company or the Executive under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The Notice of Termination shall specify:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The termination provision of this Agreement relied upon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. To the extent applicable, a reasonable summary of the facts and circumstances claimed to provide a basis for termination of Executive's employment under the provision so indicated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The applicable Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Termination Date</u>. Executive's "<u>Termination Date</u>" shall be the date upon which Executive's employment and this Agreement is terminated in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Section 280G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. If any of the payments or benefits received or to be received by Executive (including, without limitation, any payment or benefits received in connection with a Change in Control or the Executive's termination of employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively referred to herein as the "<u>280G Payments</u>") constitute "parachute payments" within the meaning of Section 280G of the Internal Revenue Code (the "<u>Code</u>") and shall, but for this Section 16(a), be subject to the excise tax imposed under Section 4999 of the Code (the "<u>Excise Tax</u>"), then prior to making the 280G Payments, a calculation shall be made comparing (i) the Net Benefit (as defined below) to the Executive of the 280G Payments after payment of the Excise Tax to (ii) the Net Benefit to the Executive if the 280G Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (i) above is less than the amount under (ii) above will the 280G Payments be reduced to the minimum extent necessary to ensure that no portion of the 280G Payments is subject to the Excise Tax. For purposes of this Agreement, "<u>Net Benefit</u>" means the present value of the 280G Payments net of all federal, state, local, foreign income, employment and excise taxes. Any reduction made pursuant to this section will be made in a manner determined by the Company that is consistent with the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. All calculations and determinations under this section will be made by an independent accounting firm or independent tax counsel appointed by the Company ("<u>Tax Counsel</u>") whose determinations shall be conclusive and binding on the Company and the Executive for all purposes. For purposes of making the calculations and determinations required by this section, Tax Counsel may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. The Company and Executive shall furnish the Tax Counsel with such information and documents as Tax Counsel may reasonably request in order to make its determinations under this Section, and the costs of such determination shall be borne solely by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Good Faith Actions</u>. The Company and Executive shall work together in good faith to consider taking any actions or making any amendments to this Agreement necessary or appropriate to avoid imposition of any reduction in payments required under Section 280G of the Code. Such actions or amendments may include, without limitation, restructuring payments required under this Agreement, redesigning Executive's compensation package, or seeking shareholder approval under any available "shareholder exemption."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Cooperation</u>. The parties agree that certain matters in which the Executive will be involved during the Term may necessitate Executive's cooperation in the future. Accordingly, following the termination of Executive's employment for any reason, to the extent reasonably requested by the Board, Executive shall cooperate, at the Company's sole cost or expense, with the Company in connection with matters arising out of Executive's service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of Executive's other activities and the Executive shall not be required to provide any cooperation which unreasonably interferes with his professional and personal endeavors. The Company shall reimburse Executive for all expenses reasonably incurred in connection with such cooperation and, to the extent that Executive is required to spend more than ten (10) hours per week on such matters, the Company shall compensate the Executive at a reasonable hourly rate to be determined between Executive and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Restrictive Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Acknowledgment</u>. Executive acknowledges and agrees that the services to be rendered by the Executive's to the Company are of a special and unique character; that Executive will obtain knowledge and skill relevant to the Company's DLE business, methods of doing business, marketing strategies, and other Confidential Information by virtue of Executive's employment; and that the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably necessary to protect the legitimate business interest of the Company, including the Company's Confidential Information, customer relationships and goodwill, and the Company's relationships with its employees and independent contractors. Executive understands and acknowledges that the Company has invested, and continues to invest, substantial time, money, and specialized knowledge into developing its resources, creating a customer base, generating customer and potential customer lists, training its employees, and improving its offerings in the field of lithium extraction. The Executive understands and acknowledges that as a result of these efforts, the Company has created, and continues to use and create Confidential Information. This Confidential Information provides the Company with a competitive advantage over others in the marketplace. Executive further acknowledges he will not be subject to undue hardship by reason of the Executive's full compliance with the terms and conditions of this section or the Company's enforcement of any of the provisions of this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Confidential Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The
 Executive understands and acknowledges that during the Term, the Executive will have access to and will receive Confidential Information
 (as defined below). Executive agrees and covenants that Executive will not, during Executive's employment, divulge to any person,
 directly or indirectly, except to the Company or its officers and agents or as reasonably required in connection with Executive's
 duties on behalf of the Company, or use, except on behalf of the Company, any Confidential Information. Executive further agrees
 and covenants that Executive will not, at any time after Executive's employment has ended (for whatever reason), use or divulge
 to any person or entity, directly or indirectly, any Confidential Information, or use any Confidential Information in subsequent
 employment, work, or business of any nature. The obligations in this Section 18(b) apply regardless of when Executive had access
 to or acquired the Confidential Information.

ii. " <u>Confidential Information</u> " means any information not generally known or readily ascertainable by the Company's competitors or the
 general public. Confidential Information includes, but is not limited to, trade secrets; information about processes, testing results,
 research and development; products and services of the Company; pricing information; marketing and development plans; proprietary
 information; methods, procedures, or techniques pertaining to the business of the Company; sales or service analyses; financial information;
 customer information, including names, contact information, order history, order preferences, chain of command, decision-makers,
 pricing information, and other information identifying facts and circumstances specific to the customer; formulas; algorithms; computer
 programs, software and software documentation; and notes, memoranda, notebooks, and records or documents that are created, handled,
 seen, or used by Executive in the course of employment including similar such information received from third parties. Confidential
 Information does not include information that is or has become generally available to the public through no act or failure to act
 by Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. In
 the event that Executive is requested in any legal proceeding to disclose any Confidential Information, Executive agrees to give
 the Company prompt written notice of such request and the documents requested thereby so that the Company (or its affiliates, as
 the case may be) has the opportunity to seek an appropriate protective order. It is further agreed that if, in the absence of a sufficient
 protective order, Executive is nonetheless compelled to disclose Confidential Information to any tribunal or else stand liable for
 contempt or suffer other censure or penalty, Executive may disclose such information to such tribunal without liability hereunder;
 provided, however, that Executive must give the Company written notice of the information to be disclosed (including copies of the
 relevant portions of the relevant documents) as far in advance of its disclosure as is reasonably practicable, use all reasonable
 efforts to limit any such disclosure to the precise terms of such requirement, and use all reasonable efforts to obtain an order
 or other reliable assurance that confidential treatment will be accorded to such Confidential Information.

iv. Executive
 shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that
 is made in confidence to a Federal, State, or local government official or to an attorney solely for the purpose of reporting or
 investigating a suspected violation of law. Executive shall not be held criminally or civilly liable under any Federal or State trade
 secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding,
 if such filing is made under seal. If Executive files a lawsuit for retaliation by the Company for reporting a suspected violation
 of law, Executive may disclose the trade secret to Executive's attorney and use the trade secret information in the court proceeding,
 if Employee files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to
 court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Non-Competition</u>. Because of the Company's legitimate business interest as described herein and the good and valuable consideration offered to the Executive, during the Executive's employment with the Company and for a period of 12 months thereafter, regardless of the reason for the termination (the "<u>Restricted Period</u>"), the Executive agrees and covenants that he shall not engage, whether as an employee, employer, owner, operator, manager, advisor, consultant, agent, employee, partner, director, stockholder, officer, investor, or any other capacity similar to the capacity in which he provided services to the Company in a Competitive Business (as defined below) within the United States and any other country in which the Company operates through license of its intellectual property or otherwise, or has taken substantial and material steps to operate, during the Term and within the twelve (12) months prior to Executive's termination, as applicable (the "<u>Restricted Territory</u>"). For purposes of this Section 18, "<u>Competitive Business</u>" is any business engaged in developing, marketing, supplying, or selling DLE technology. Notwithstanding the foregoing, the passive ownership by Executive of less than 2% of any class of equity securities of any corporation, if such equity securities are listed on a national securities exchange or are quoted on NASDAQ, will not be deemed to be a breach of this Section 18(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Non-Solicitation of Employees and Customers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. During
 the Restricted Period, Executive agrees and covenants not to directly or indirectly solicit, recruit, or attempt to solicit or recruit,
 or otherwise induce, or attempt to induce, the termination of employment or engagement of any employee or independent contractor
 of the Company, during the Restricted Period; provided, however, that there shall be no violation of this Section 18(d) if Executive
 hires an employee or independent contractor of the Company, during the Restricted Period, who unsolicited, answers an ad or is referred
 by a recruiting agency but who is not otherwise solicited by Executive and provided further that such ad or referral is general in
 nature and not directed towards any Company employee or independent contractor.

ii. During
 the Restricted Period, Executive agrees and covenants not to directly or indirectly solicit, contact (including but not limited to
 email, regular mail, express mail, telephone, fax instant message, or social media), attempt to contact, or meet with the Company's
 current, former or prospective customers for purposes of offering or accepting goods or services from or to a Competitive Business.
 This restriction shall apply to (a) customers or prospective customers with whom the Executive worked or had contact during the Executive's
 employment with the Company, and (b) customers or prospective customers about whom the Executive has Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Non-Interference</u>. During the Restricted Period, Executive, whether on behalf of himself or any other third party, shall not, directly or indirectly, interfere with, disrupt or attempt to disrupt the relationship, contractual or otherwise, between the Company and any customer, manufacturer, supplier, vendor, contractor, partner or investor of the Company, or in any way encourage such persons or entities to terminate or otherwise negatively alter his, her or its relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Non-Disparagement</u>. The Executive agrees and covenants that, subject to Section 18, the Executive will not at any time make, publish, or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Company or its businesses, or any of its employees, officers, and existing and prospective customers, suppliers, investors, and other associated third parties. The preceding sentence shall not prohibit the Executive from making any statements required to comply with applicable law or legal process or from making truthful statements in the good faith and proper performance of his duties for the Company or its affiliates, including when providing formal or informal feedback to employees or the Board. The Company agrees and covenants that the Company will not, other than as required by law or legal process, at any time make, publish, or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. <u>No Conflicting Obligations</u>. The Executive is not party to any agreement, commitment or obligation that conflicts with the Executive's obligations under this Agreement or would be violated by the Executive's employment with the Company or preclude the Executive from performing the Executive's duties for the Company. By signing below, the Executive agrees that he is not to use or misappropriate any intellectual property, trade secrets or confidential information belonging to former employers or others in connection with the performance of any services on behalf of the Company, and represents to the Company that Executive has not done so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. <u>Remedies; Tolling of Restricted Period</u>. In the event of any breach by Executive of this Section 18 which causes, or is reasonably likely to cause, material harm to the Company and remains uncured after Executive (a) receives written notice of the grounds for such breach from the Company within thirty (30) days of the Company's knowledge of such breach, (b) has an opportunity to be heard in good faith by Board along with his legal counsel to discuss such breach, and (c) receives at least thirty (30) days to cure such breach, the Company shall be entitled after the end of the cure period to immediately terminate compensation and terminate vesting of unvested equity awards and the Executive shall forfeit grants of unvested restricted stock or RSUs. In addition, in the event of any breach or threatened breach by Executive of this Section 18, the Company shall be entitled to seek equitable relief by temporary restraining order, temporary injunction, or permanent injunction or otherwise. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief. In addition, if, during any period within the Restricted Period, a court of competent jurisdiction determines in a final, non-appealable order that Executive is not in compliance with the terms of this Section 18, Executive agrees that the Company shall be entitled to, among other remedies, require compliance by Employee with the terms of this Section 18 for an additional period equal to the period of such noncompliance. For purposes of this Agreement, the term "Restricted Period" shall also include this additional period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Survival</u>. Section 18 shall survive the termination of Executive's employment for any reason, whether voluntary or involuntary, and can only be revoked or modified by a writing signed by the Company which specifically states an intent to revoke or modify these provisions. Executive agrees that during the Restricted Period, Executive shall promptly notify the Company in writing of any employment, work, or business Executive undertakes with or on behalf of any person (including himself) or entity (other than the Company), for compensation to the extent that such work was not known by the Board before the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Protected Disclosures</u>. Notwithstanding any other provision of this Agreement, Employee is not in any way: (i) prohibited from reporting information to, or participating in any investigation or proceeding conducted by, the U.S. Securities and Exchange Commission ("SEC") or any federal, state, or local government agency or entity; (ii) precluded from providing truthful testimony in response to a valid subpoena, court order, or regulatory request; (iii) limited in Employee's right to receive any award for information provided to the SEC; (iv) prohibited in engaging in protected activity under Section 7 of the National Labor Relations Act, as applicable; or (v) exercising any other protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation, provided that such compliance does not exceed that required by the law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Proprietary Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Work Product</u>. Executive acknowledges and agrees that all right, title and interest in and to all writings, works of authorship, technology, inventions, discoveries, processes, techniques, methods, ideas, concepts, research, proposals, materials and all other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, amended, conceived or reduced to practice by the Executive individually or jointly with others during the period of the Executive's employment by the Company and relate in any way to the business or contemplated business, products, activities, research or development of the Company or result from any work performed by Executive for the Company or in which Executive was directly or indirectly involved on the Company's behalf (in each case, regardless of when or where prepared or whose equipment or other resources is used in preparing the same) all rights and claims related to the foregoing, and all printed, physical and electronic copies, and other tangible embodiments thereof (collectively, "<u>Work Product</u>"), as well as any and all rights in and to U.S. and foreign (a) patents, patent disclosures and inventions (whether patentable or not), (b) trademarks, service marks, trade dress, trade names, logos, corporate names and domain names, and other similar designations of source or origin, together with the goodwill symbolized by any of the foregoing, (c) copyrights and copyrightable works (including computer programs), and rights in data and databases, (d) trade secrets, know-how and other confidential information, and (e) all other intellectual property rights, in each case whether registered or unregistered and including all registrations and applications for, and renewals and extensions of, such rights, all improvements thereto and all similar or equivalent rights or forms of protection in any part of the world (collectively, "<u>Intellectual Property Rights</u>"), shall be the sole and exclusive property of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For purposes of this Agreement, Work Product includes, without limitation, Company information, including data plans, publications, research, processes, formulas, assays, strategies, techniques, agreements, documents, contracts, terms of agreements, negotiations, know-how, computer programs, computer applications, software design, work or research in process, findings and conclusions, databases, manuals, results, developments, improvements, reports, graphics, diagrams, drawings, sketches, market studies, formulae, notes, communications, algorithms, product plans, product designs, inventions, drugs, unpublished patent applications, original works of authorship discoveries, experimental processes, experimental results, specifications, customer information, client information, customer lists client lists, manufacturing information, specifications, marketing information, marketing plans, marketing data, marketing strategies, advertising information and sales information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Work Made for Hire; Assignment</u>. Executive acknowledges that, by reason of being employed by the Company at the relevant times, to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is "work made for hire" as defined in 17 U.S.C. § 101 and such copyrights are therefore owned by the Company. To the extent that the foregoing does not apply, Executive hereby irrevocably assigns to the Company, for no additional consideration, Executive's entire right, title and interest in and to all Work Product and Intellectual Property Rights therein, including the right to sue, counterclaim and recover for all past, present and future infringement, misappropriation or dilution thereof, and all rights corresponding thereto throughout the world. Nothing contained in this Agreement shall be construed to reduce or limit the Company's rights, title or interest in any Work Product or Intellectual Property Rights so as to be less in any respect than that the Company would have had in the absence of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Further Assurances</u>. During and after Executive's employment, the Executive agrees to reasonably cooperate with the Company to (a) apply for, obtain, perfect and transfer to the Company the Work Product as well as any and all Intellectual Property Rights in the Work Product in any jurisdiction in the world; and (b) maintain, protect and enforce the same, including, without limitation, giving testimony and executing and delivering to the Company any and all applications, oaths, declarations, affidavits, waivers, assignments and other documents and instruments as shall be requested by the Company. The Executive shall execute all papers, including applications, invention assignments, and copyright assignments, and shall otherwise assist the Company as reasonably required to memorialize, confirm, and perfect in them the rights, title, and other interests granted to the Company in Work Product and Intellectual Property Rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>No License</u>. The Executive understands that this Agreement does not, and shall not be construed to, grant Executive any license or right of any nature with respect to any Work Product or Intellectual Property Rights or any Confidential Information, materials, software or other tools made available to Executive by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Arbitration</u>. Except for any claim for equitable or injunctive relief under Section 18 of this Agreement (to which Section 21 shall apply), any dispute, controversy or claim arising out of or related to this Agreement, or to the construction, interpretation or alleged breach of this Agreement, or to Executive's employment with the Company shall be submitted to and decided by binding arbitration. Arbitration shall be administered exclusively by the Houston, Texas offices of JAMS before one (1) arbitrator mutually selected by the parties, or the parties cannot so agree, by JAMS pursuant to its applicable rules and regulations (the "<u>Rules</u>"). The arbitral language shall be English, limited discovery shall be permitted as the arbitrator shall determine, and the arbitration and shall be conducted consistent with the Rules of JAMS, in addition to any requirements imposed by state law. Any arbitral award determination shall be final and binding upon the parties. In rendering his or her award, the arbitrator shall award the prevailing party, in addition to such other relief as may be granted, all such attorneys' fees and costs reasonably incurred and any reasonable attorneys' fees and costs incurred in enforcing any judgment or order entered. The prevailing party shall be determined by the arbitrator in the initial or any subsequent proceeding. Notwithstanding anything in this Section 20 to the contrary, neither the Company nor Executive shall be prohibited from commencing litigation before the any appropriate judicial tribunal or court of law or equity to obtain injunctive relief to compel compliance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Governing Law: Jurisdiction and Venue for Injunctive Relief</u>. This Agreement, for all purposes, shall be construed in accordance with the laws of Texas without regard to conflicts of law principles. Subject to the provisions of Section 20 above, any proceeding by either of the parties to obtain injunctive relief under Section 18 of this Agreement shall be brought only in a state or federal court located in the County of Harris, State of Texas. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such proceeding in such venue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Entire Agreement</u>. Unless specifically provided herein, this Agreement and the ancillary agreements referenced in it contain all of the understandings and representations between Executive and the Company pertaining to their subject matters and supersede all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matters. The parties mutually agree that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement. Each party agrees that the other party has not made any promise or representation to it or him concerning this Agreement not expressed in this Agreement, and that, in signing this Agreement, each party is not relying on any prior oral or written statement or representation by the other party but is instead relying solely on its or his own judgment and legal and tax advisors, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Amendment and Waiver</u>. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the Executive and by a duly and expressly authorized representative of the Board. Any waiver by either of the parties of any breach of this Agreement shall be in writing. No waiver by either of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege. The failure of any party to insist upon strict adherence to any term of this Agreement on one or more occasions shall not be considered a waiver of any provision or any breach of any provision of this Agreement or deprive that party of the right thereafter to insist upon strict adherence to that provision or any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Severability</u>. Should any provision of this Agreement be held by an arbitrator (selected in accordance with Section 20) or a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement. The parties further agree that any such arbitrator or court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending provision, adding additional language to this Agreement or by making such other modifications as the arbitrator or court deems warranted; provided, however, that such rewriting, deletions or additions shall be made solely to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>Counterparts</u>. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon, provided such signature page is attached to any other counterpart identical thereto except for having an additional signature page executed by the other party. Further, the parties hereto consent and agree that this Agreement may be signed and/or transmitted by facsimile, e-mail of a .PDF document or using electronic signature technology (e.g., via DocuSign or similar electronic signature technology) (collectively, a "<u>Non-Ink Electronic Signature</u>"). Each party agrees that Non-Ink Electronic Signatures are valid and effective to bind the party supplying a signature by that means, and the other party may rely upon receipt of a Non-Ink Electronic Signature on this Agreement as constituting a duly authorized, irrevocable, actual, current delivery of a signature on this Agreement that, for purposes of validity, enforceability and admissibility, shall be treated as fully as if this Agreement contained the original, ink handwritten signature of the party supplying a Non-Ink Electronic Signature. Each of the parties further agrees that it will not raise receipt of a Non-Ink Electronic Signature as a defense in any proceeding or action in which the validity of such consent or document is at issue and hereby forever waives such defense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. <u>Section 409A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>General Compliance</u>. This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury Regulation issued thereunder ("Section 409A") or an exemption thereunder and shall be construed and administered in accordance with Section 409A so as to avoid the imposition of any tax, penalty or interest thereunder. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be made upon a "separation from service" as such term is defined under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Executive on account of non-compliance with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Specified Employees</u>. Notwithstanding any other provision of this Agreement, if any payment or benefit provided to Executive in connection with Executive's termination of employment is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A and Executive is determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the Termination Date or, if earlier, on the Executive's death (the "<u>Specified Employee Payment Date</u>"). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date and interest on such amounts calculated based on the applicable federal rate published by the Internal Revenue Service for the month in which Executive's separation from service occurs shall be paid to Executive in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Reimbursements</u>. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the
 amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses
 eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year;

ii. any
 reimbursement of an eligible expense shall be paid to the Executive on or before the last day of the calendar year following the
 calendar year in which the expense was incurred; and

iii. any
 right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Good Faith Actions</u>. The Company and Executive shall work together in good faith to consider amendments to this Agreement necessary or appropriate to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A of the Code or any temporary or final Treasury Regulations and Internal Revenue Service guidance thereunder. The parties intend that any amounts payable to Executive shall either be exempt from or comply with Section 409A so as not to subject Executive to payment of any additional tax, penalty or interest imposed under Section 409A, and the provisions hereof shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Section 409A to preserve (to the nearest extent reasonably possible) the intended benefit payable to Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. <u>Notification to Subsequent Employer</u>. If Executive's employment with the Company terminates, Executive agrees to notify any subsequent employer of the restrictive covenants sections contained in Section 18 of this Agreement. In addition, the Executive authorizes the Company to provide a copy of the restrictive covenants sections of this Agreement to third parties, including but not limited to, Executive's subsequent, anticipated or possible future employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. <u>Successors and Assigns</u>. This Agreement is personal to Executive and may not be assigned by Executive. Any purported assignment by Executive shall be null and void *ab initio*. Subject to Section 12, the Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company. In the event of the Executive's death, this Agreement shall be enforceable by his estate, executors, or legal representatives. This Agreement shall inure to the benefit of the Company and its affiliates, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. <u>Notice</u>. All notices or other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (a) upon personal delivery made by hand to the person, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next business day, (c) upon the date of execution (or refusal to execute) the return receipt, if such notice or communication is sent by United States Mail, registered or certified, return receipt requested, with proper postage affixed thereto, or (d) the next business day after deposit with a nationally recognized overnight courier or package delivery service guaranteeing next business day delivery, such as Federal Express or UPS, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on the signature page to this Agreement, or to such e-mail address, facsimile number or address as subsequently modified by written notice given in accordance with this Section 29:

If to the Company:

International Battery Metals, Ltd.

6100 Tennyson Parkway, Suite 240

Plano, Texas 75024

Attn: Joseph Mills, CEO

Email: [\*\*\*]

If to the Executive, to the address set forth on the signature page of this Agreement or at the current address listed in the Company's records at the time such notice is sent.

*[Signature page to Agreement follows]*

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

---

| |
|:---|
| **EXECUTIVE** |
| /s/ Michael Rutledge |
| Michael Rutledge |
| Address: [\*\*\*] |
| **COMPANY** |
| International Battery Metals Ltd |
| /s/ Joseph A. Mills |
| By: Joseph A. Mills |
| Its: Chief Executive Officer |

---

*[Signature page to Employment Agreement]*

 

EXHIBIT A

**Severance and General Release Agreement**

[***To be completed when employment terminates.***]

This Severance and General Release Agreement ("Agreement") dated as of [DATE], sets forth the agreement by and between [EMPLOYEE NAME] (the "Employee") and International Battery Metals Ltd. (the "Company") concerning the termination of the Employee's employment with the Company. Unless otherwise indicated, capitalized terms used but not defined herein will have the meaning as indicated in the Executive Employment Agreement previously executed by and between the Parties.

<u>Termination of Employment:</u> Employee's employment is terminated effective [DATE] (the "Termination Date") whereas all benefits and privileges of employment cease, except as set forth herein. For good and valuable consideration herein, Company and Employee (the "Parties") agree as follows:

1. <u>Termination Benefits:</u> Company will pay or provide Employee with all of the payments and benefits due under Sections 11(d) and 12, as applicable.
 [TERMS OF THE SEVERANCE BENEFITS AND PAYMENT AMOUNTS] (together, the "Termination Benefits").

2. <u>General Release:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) In
 exchange for and in consideration of the Termination Benefits described in this Agreement, and as a condition of their receipt, Employee,
 on behalf of himself/herself and his/her heirs, executors, administrators, successors and assigns, irrevocably and unconditionally
 releases, waives and forever discharges the Released Parties (as defined below) from all claims, demands, actions, causes of action
 (including breach of contract), charges, complaints, liabilities, obligations, promises, sums of money, forms of compensation, agreements,
 representations, controversies, disputes, damages, suits, rights, sanctions, costs (including attorneys' fees), losses, debts
 and expenses (collectively "Claims") of any nature whatsoever, whether known or unknown, fixed or contingent, which Employee
 now has or ever had against any of the Released Parties, including but not limited to any Claims arising out of, concerning or related
 to Employee's employment with and/or separation from the Company and/or its affiliates.

b) This
 General Release includes, without limitation, (i) law or equity Claims; (ii) express or implied contract Claims or tort Claims; (iii)
 Claims arising under any federal, state or local laws of any jurisdiction that prohibit age, sex, race, national origin, color, disability,
 religion, veteran, military status, sexual orientation or any other form of discrimination, harassment, hostile work environment
 or retaliation (including, without limitation, the Age Discrimination in Employment Act (ADEA), the Older Workers Benefit Protection
 Act (OWBPA), the Americans with Disabilities Act of 1990, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991,
 the Civil Rights Acts of 1866 and/or 1871, 42 U.S.C. Section 1981, the Rehabilitation Act, the Family and Medical Leave Act, the
 Sarbanes-Oxley Act, the Employee Polygraph Protection Act, the Worker Adjustment and Retraining Notification Act, the Equal Pay Act
 of 1963, the Lilly Ledbetter Fair Pay Act, the Uniformed Services Employment and Reemployment Rights Act of 1994, Section 1558 of
 the Patient Protection and Affordable Care Act of 2010, the Texas Human Rights Act or the Texas Labor Code, or any other federal,
 state or local laws of any jurisdiction, if and to the extent applicable and as any of the foregoing may be amended from time to
 time; (iv) Claims under any other federal, state, local, municipal or common law whistleblower protection, discrimination, wrongful
 discharge, anti-harassment or anti-retaliation statute or ordinance; (v) Claims arising under the Employee Retirement Income Security
 Act of 1974 (ERISA); or (vi) any other statutory or common law Claims related to Employee's employment with the Company and
 its affiliates and the termination thereof.

**Severance and General Release Agreement Page 2**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Notwithstanding
 the foregoing, this Agreement specifically does not release any Claim or cause of action by or on behalf of Employee (or his or her
 beneficiaries) with respect to Employee's right to indemnification or to be held harmless pursuant to the Executive Employment
 Agreement, any applicable corporate governance documents, director and officer indemnification agreements and/or applicable laws,
 or any Claim for vested benefits pursuant to a tax-qualified retirement plan. In no event shall the Claims waived and released by
 this General Release include **[(i) any claim under the ADEA which arises after the date this Agreement is signed by Employee],** (b) any Claim for breach or enforcement of this Agreement or for payment of the Accrued Amounts under the Executive Employment Agreement,
 (c) any other Claims for **[describe any indemnification rights that survive termination under any applicable agreements or at law]**,
 or (d) any Claim relating to Employee's status as **[a director (other than claims for unpaid director compensation, claims for indemnification, and claims for coverage under D&O insurance) if Employee remains a director following the termination of his or her employment or]** a stockholder of the Company or any other Released Party. Further, the parties expressly acknowledge
 that Employee retains the following equity interests, which are not waived by this Agreement, and which continue to be governed by
 the agreement and/or plan through which they were awarded: **[summary of equity ownership and agreement(s)/plan(s) that is/are source(s) of entitlement (including any applicable restricted unit agreements and the rights therein that survive such termination)]**.

d) The
 term "Released Parties" or "Released Party" as used herein shall mean and included: (i) the Company; (ii)
 the Company's former, current and future parents, subsidiaries, affiliates and lenders; (iii) each predecessor, successor or
 affiliate of any entity listed in clauses (i) and (ii); (iv) each former, current and future officer, director, agent, representative,
 employee, owner, shareholder, partner, attorney, employee benefit plan, employee benefit plan administrator, insurer, administrator
 and fiduciary of any of the entities or persons listed in clauses (i) through (iii); and (v) any other person acting by, through,
 under or in concert with any of the persons or entities listed herein.

**Severance and General Release Agreement Page 3**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Nothing
 in this Agreement shall be construed to prohibit Employee from responding to any inquiry, or otherwise communicating with, any federal
 state or local administrative or regulatory agency or authority, including, but not limited to the Canadian Stock Exchange, Securities
 and Exchange Commission, the Toronto Stock Exchange and Venture Exchange, the Equal Employment Opportunity Commission ("EEOC")
 or the National Labor Relations Board, if applicable to his or her employment, about this Agreement or its underlying facts and circumstances
 or filing a charge with or participating in an investigation conducted by any governmental agency or authority; however, this Agreement
 does prevent Employee, to the maximum extent permitted by law, from obtaining any monetary or other personal relief for any of the
 Claims he or she has released in this Agreement. Pursuant to the OWBPA, Employee understands and acknowledges that by executing this
 Agreement and releasing all Claims against each and all of the Released Parties, he or she has waived any and all rights or Claims
 that he or she has against any Released Party under the ADEA, which includes, but is not limited to, any Claim that any Released
 Party discriminated against Employee on account of his or her age. This Agreement, however, shall not affect Employee's rights
 under the OWBPA to have a judicial determination of the validity of this Agreement and does not purport to limit any right Employee
 may have to file a charge under the ADEA or other civil rights statute or to participate in an investigation or proceeding conducted
 by the EEOC or other investigative agency. This Agreement does, however, waive and release any right to recover damages under the
 ADEA or other civil rights statute.

f) Employee
 confirms that no Claim, charge or complaint against any of the Released Parties has been brought by him or her before any federal,
 state or local court or administrative agency. Employee represents and warrants that, to Employee's knowledge, he or she has
 no knowledge of any improper or illegal actions or omissions by any of the Released Parties. Employee further represents that, as
 of the date of his or her execution of this Agreement, he or she has not been the victim of any illegal or wrongful acts by any of
 the Released Parties, including, without limitation, discrimination, retaliation, harassment or any other wrongful act based on sex,
 age, or any other legally protected characteristic.

3. <u>Consideration Period:</u> By signing this Agreement in the space below, Employee is confirming acceptance of the terms and conditions set forth
 herein and is acknowledging the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The
 obligations as set out in this Agreement represent a complete waiver and release of all Claims that Employee has against the Released
 Parties except as provided for above. Accordingly, Employee understands his or her obligation to review this Agreement carefully
 before signing it.

**Severance and General Release Agreement Page 4**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Employee
 understands that he/she can take up to twenty-one (21) days from receipt of this Agreement or longer if provided in the Executive
 Employment Agreement (the "Consideration Period") to consider its meaning and effect and to determine whether or not
 he or she wishes to enter into it. Employee further understands that he/she can voluntarily waive this Consideration Period. Before
 signing this Agreement, Employee is advised to consult with an attorney. If Employee chooses to sign this Agreement before the end
 of the Consideration Period, he/she is doing so voluntarily and by doing so, is waiving the Consideration Period.

c) In
 addition, Employee may revoke his/her signature within seven (7) days after signing this Agreement (such period, the "Revocation
 Period"). Any revocation of this Agreement must be in writing and received by the Company on or before the end of the Revocation
 Period.

4. <u>Expiration Period:</u> This offer will expire at the end of the last day of the Consideration Period, or [DATE] if not accepted by Employee
 by fully executing this Agreement and delivering the signed Agreement to:

Norma L Garcia

General Counsel, Corporate Secretary

IBAT USA, Inc. and International Battery Metals Ltd.

6100 Tennyson Parkway, Suite 240

Plano, Texas

Email: [\*\*\*]

To revoke this Agreement, Employee must deliver a written notice of revocation within the Revocation Period to Norma L Garcia at the address listed above. This Agreement will become effective on the eighth day after Employee signs this Agreement provided Employee has not timely revoked this Agreement.

5. <u>Confirmations:</u> Employee confirms that Employee has returned to the Company any and all documents, materials and information related to the Company,
 or its subsidiaries, affiliates or businesses, and all other property of the Company including without limitation, any Company laptop,
 cell phone or smart phone other equipment and files in Employee's possession, custody or control. The Parties acknowledge,
 however, that Employee shall be permitted to retain personnel records related only to him and all documents related to his Executive
 Employment Agreement and continued equity ownership interests in the Company. Additionally, Employee confirms, as provided in Section
 18 of the Executive Employment Agreement, that the restrictive covenants set forth therein will continue in full force as per the
 time periods set forth in that section, and that the obligations to ensure and protect the confidentiality of the Confidential Information
 imposed on the Employee in the Employment Agreement and any obligations to provide notice under the Executive Employment Agreement
 will survive in perpetuity.

**Severance and General Release Agreement Page 5**

6. <u>Non-Defamatory:</u> The Parties acknowledge and agree that their respective non- disparagement obligations under Section 18(f) of the Executive Employment
 Agreement shall continue in full force and effect notwithstanding the termination of the Employee's employment with the Company
 and the execution of this Agreement.

7. <u>Intellectual Property Protection:</u> Employee agrees to fully abide by his obligations under Section 20 (Property Rights) of the Executive Employment
 Agreement notwithstanding the termination of his employment with the Company and the execution of this Agreement.

8. <u>Confidentiality:</u> Employee agrees that the terms of this Agreement shall be maintained as confidential by Employee and anyone else acting by, through,
 under or in concert with Employee, and shall not be disclosed to any other third party (other than to Employee's attorneys,
 financial advisors or spouse) except to the extent required by law.

9. <u>Liquidated Damages, Clawback Remedy, and Intellectual Property Protection:</u> Employee agrees that the Company shall continue to have the rights
 and remedies afforded to it under Sections 10 (Clawback Provisions) and 18(h) (Remedies; Tolling of Restricted Period) of the Executive
 Employment Agreement notwithstanding the termination of his employment with the Company and the execution of this Agreement.

10. <u>Cooperation:</u> Employee agrees to fully abide by his obligations under Section 17 (Cooperation) of the Executive Employment Agreement notwithstanding
 the termination of his employment with the Company and the execution of this Agreement.

11. <u>Covenants.</u> Employee specifically represents, warrants, and confirms that Employee: (a) has not filed any Claims, complaints, or actions of any
 kind against the Company with any federal, state, or local court or government or administrative agency; (b) has not made any Claims
 or allegations to the Company related to sexual harassment, sex discrimination, sexual abuse or age discrimination, and that none
 of the payments set forth in this Agreement are related to sexual harassment, sex discrimination, sexual abuse or age discrimination;
 (c) has been properly paid for all hours worked for the Company and; (d) has not engaged in any unlawful conduct relating to the
 business of the Company.

12. <u>Arbitration</u>.
 Each Party agree that any Claim against any other Party or its or his affiliates arising out of or relating to this Agreement shall
 be resolved pursuant to the dispute- resolution provisions contained in Section 21 (Arbitration) of the Executive Employment Agreement
 which are incorporated here by reference.

13. <u>Entire Agreement:</u> This Agreement merges and supersedes all prior and contemporaneous agreements, promises or representations, whether
 written or oral, express or implied, relating to the subject matter of this Agreement, with the exception that the trade secrets
 section, the non-competition and non-solicitation of employees and customers section of the Executive Employment Agreement shall
 survive in accordance with this Agreement.

**Severance and General Release Agreement Page 6**

14. Governing
 Law. This Agreement will be governed by and interpreted in accordance with the laws of the State of Texas without giving effect to
 any conflicts-of-law or choice-of- law rules or principles that would result in the application of any other law.

15. <u>Severability:</u> If any provision of this Agreement is held to be unenforceable under applicable law, such provision shall be excluded from this Agreement
 and replaced with a provision which is enforceable and comes closest to the intent of the parties underlying the unenforceable provision.

16. <u>Successors and Assigns:</u> The Company may assign this Agreement without Employee's Consent to any successor or assign (whether direct
 or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company
 and in such event, this Agreement shall be binding upon and inure to the benefit of the Company's successors and assigns, including
 corporations with which, or into which, the Company may be merged or which may succeed to its respective assets or business. Employee's
 obligations are personal and may not be assigned.

17. <u>Third Party Beneficiaries:</u> This Agreement does not create, and shall not be construed as creating, any rights enforceable by any person
 not a party to this Agreement.

18. <u>Waiver:</u> The failure of either party hereto at any time to enforce any provision of this Agreement shall in no way affect such party's
 rights thereafter to enforce the same, nor shall the waiver by either party of any breach of any provision hereof be deemed to be
 a waiver by such party of any other breach of the same or any other provision hereof.

19. <u>Counterparts:</u> The Parties may execute this Agreement in counterparts, each of which shall be deemed an original, and all of which, when taken together,
 shall constitute one and the same instrument. Delivery of an executed counterpart signature page of this Agreement by facsimile,
 email in portable document format (.pdf), DocuSign, or by any other electronic means intended to preserve the original graphic and
 pictorial appearance of a document, has the same effect as delivery of an executed original of this Agreement.

20. <u>Voluntary Agreement:</u> If the terms of this Agreement are acceptable to Employee, please sign and return it to the undersigned. At the time
 Employee signs and returns this Agreement, it will take effect as a legally binding agreement between Employee and the Company on
 the basis set forth herein following the expiration of the above-referenced Revocation Period. In signing this Agreement, Employee
 acknowledges that Employee: (a) has signed it knowingly, freely and voluntarily, with a full understanding of its terms; (b) assents
 to all or the Agreement's terms and conditions, including without limitation the General Release; and (c) is signing this Agreement,
 including the General Release, in exchange for good and valuable consideration in addition to anything of value to which Employee
 is otherwise entitled. EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE HAS THE RIGHT, AND IS ENCOURAGED, TO CONSULT WITH COUNSEL OF EMPLOYEE'S
 CHOICE AND BY EMPLOYEE'S SIGNATURE BELOW, EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE EITHER HAS CONSULTED, OR HAS ELECTED NOT TO CONSULT,
 WITH COUNSEL OF EMPLOYEE'S CHOICE CONCERNING THIS AGREEMENT.

21. <u>Effective Date:</u> The Effective Date of this Agreement is the eighth day after Employee signs this Agreement, provided Employee has not revoked
 this Agreement prior to the expiration of the Revocation Period.

////End of Agreement, only Signatures Follow///////

**Severance and General Release Agreement Page 7**

---

| | |
|:---|:---|
| AGREED TO: |  |
| By: |  |
| (Employee) | Date:<br>|
| International Battery Metals Ltd. |  |
| By: | Date: |
| Name: |  |
| Title: |  |

---

## Exhibit 10.22

**Exhibit 10.22**

**INTERNATIONAL BATTERY METALS LTD<br> RESTRICTED SHARE UNIT AGREEMENT**

This **RESTRICTED SHARE UNIT AGREEMENT** (this "Agreement") is made by and between International Battery Metals Ltd. (the "Company"), a corporation existing under the *Business Corporations Act* (British Columbia), and JOSEPH A MILLS (the "Participant"), effective as of April 18, 2025 (the "Award Date").

**WHEREAS**, the Board of Directors (the "Board") and shareholders of the Company previously adopted and approved the International Battery Metals Ltd. Amended and Restated Restricted Share Unit Plan, (the "Plan") (the terms of which are hereby incorporated by reference and made part of this Agreement).

**WHEREAS**, Section 2.2 of the Plan provides that the Board, acting as the Committee (as defined in the Plan) (the "Committee") shall have the authority and discretion to award Restricted Share Units to any eligible Employee, Consultant or Director (as such terms are defined in the Plan), subject to the terms and conditions of the Plan and any additional terms provided by the Committee.

**WHEREAS**, the Participant has entered into an Employment Agreement dated April 7, 2025 (the "Employment Agreement"), with IBAT USA, Inc., a wholly-owned subsidiary of the Company ("IBAT USA"), whereby the Participant has agreed to provide services to the Company and IBAT USA as the Chief Executive Officer of both the Company and IBAT USA;

**WHEREAS**, the Committee has determined that it would be to the advantage and best interest of the Company and its shareholders to award Restricted Share Units as provided for herein to the Participant for compensation and retention purposes and to further align the Participant's interests with those of the shareholders and has advised the Company thereof and instructed the appropriate officer of the Company to issue said Restricted Share Units.

**WHEREAS**, the Participant desires to accept the award of Restricted Share Units and agrees to be bound by the terms and conditions of the Plan and this Agreement.

**NOW, THEREFORE**, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt and adequacy of which are hereby acknowledged, the parties hereto do hereby agree as follows:

**Article I.** **<br>** 

<br> **DEFINITIONS**

Whenever the following terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the contrary. The masculine pronoun shall include the feminine and neuter, and the singular shall include the plural, where the context so indicates. All capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Plan.

**Section 1.1 <u>Award Agreement</u>**

"Award Agreement" means any agreement pursuant to which an eligible Director, Employee or Consultant has been granted a Restricted Share Unit Award and which shall provide the terms of such award.

**Section 1.2 <u>Change in Control</u>**

Unless otherwise defined in the Employment Agreement which such definition shall be used for the purposes of this Agreement, "Change of Control" means the occurrence of (i) any transaction or series of related transactions, whether or not the Company is a party thereto, after giving effect to which in excess of fifty percent (50%) of the Company's voting power is owned directly, or indirectly through one or more entities, by any Person and its affiliates, or (ii) a sale, lease or other disposition of all or substantially all of the assets of the Company other than in connection with an internal reorganization. The term "Change in Control" shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company.

Notwithstanding the foregoing, if and to the extent necessary to comply with Section 409A of the Code, if the Participant is US Grantee then a "Change in Control" shall only be deemed to occur on the date of a "change in the ownership or effective control, or in the ownership of a substantial portion of the assets" of the Company, as determined under Treasury Regulation section 1.409A-3(i)(5).

**Section 1.3 <u>Code</u>**

"Code" means the US Internal Revenue Code of 1986, as it may be amended from time to time, and the rules and regulations promulgated thereunder.

**Section 1.4 <u>Common Shares</u>**

"Common Shares" means common shares in the capital of the Company and any shares or securities of the Company into which such common shares are changed, converted, subdivided, consolidated, or reclassified.

**Section 1.5 <u>Disability</u>**

If the Participant is a US Grantee, "Disability" shall mean "permanent and total disability" within the meaning of Section 22(e)(3) of the Code.

**Section 1.6 <u>Exchange Act</u>**

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

**Section 1.7 <u>Section 409A</u>**

"Section 409A" shall mean the Section 409A of the Code and the Treasury Regulations and other guidance promulgated or issued thereunder.

**Section 1.8 <u>Securities Act</u>**

"Securities Act" shall mean the Securities Act of 1933, as amended.

**Section 1.9 <u>Settlement</u>**

"Settlement" or "Settled" shall mean the delivery to the Participant of either (i) a certificate evidencing the number of Common Shares underlying the designated Restricted Share Units or (ii) an electronic issuance evidencing such Shares, which shall occur on the Settlement Date(s) calculated in accordance with Section 3.1.

**Section 1.10 <u>US Grantee</u>**

"US Grantee" shall mean a Person who is subject to the regulations of Section 409A of the Code.

**Article II.** **<u><br></u>**

<br> **AWARD OF RESTRICTED SHARE UNITS**

**Section 2.1 <u>Award of Restricted Share Units</u>**

Subject to the terms and conditions provided in this Agreement and the Plan, the Company hereby awards to the Participant 3,000,000 Restricted Share Units as of the Award Date. Each Restricted Share Unit represents the right to receive one Common Share if the Restricted Share Unit becomes vested and non-forfeitable in accordance with Sections 2.2 or 2.3 of this Agreement.

**Section 2.2 <u>Vesting</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as may be otherwise provided in Section 2.3 of this Agreement and the Employment Agreement, the vesting of the Participant's rights and interest in the Restricted Share Units shall be determined in accordance with this Section 2.2. The Participant's rights and interest in the Restricted Share Units shall become vested in accordance with Schedule A to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as may be otherwise provided in Section 2.3 of this Agreement and the Employment Agreement, in the event of the Participant's termination or resignation of employment for any reason, any portion of the Restricted Share Units that is not yet vested at the time of termination or resignation shall be forfeited immediately.

**Section 2.3 <u>Acceleration of Vesting</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms of the Employment Agreement, in the event of a Change in Control, notwithstanding any vesting schedule provided for hereunder, any time-based portion of the Restricted Share Units that is not yet vested on the date of the Participant's termination or resignation in connection with such Change in Control shall become immediately vested; provided, however, that this acceleration of vesting shall not take place if the time-based Restricted Share Units were forfeited prior to such termination date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of a Change in Control, any performance-based portion of the Restricted Share Units that is not yet vested on the date of the Participant's termination or resignation in connection with such Change in Control shall vest in accordance with the terms of the Employment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event the Participant's employment is terminated due to his or her death or Disability, then, notwithstanding any vesting schedule provided for hereunder, any portion of the Restricted Share Units that is not yet vested shall be forfeited immediately.

**Article III.**

**SETTLEMENT OF RESTRICTED SHARE UNITS**

**Section 3.1 <u>Timing and Manner of Settlement of Restricted Share Units</u>**

Unless and until the Restricted Share Units become vested and nonforfeitable in accordance with Section 2.2 or 2.3 of this Agreement, the Participant will have no right to Settlement of any such Restricted Share Units. Reasonably promptly after the date any of the Restricted Share Units become vested and non-forfeitable in accordance with Section 2.2 or 2.3 of this Agreement (and in all events not later than two and one-half (2-1/2) months after such vesting date) (the "Settlement Date"), such vested and non-forfeitable Restricted Share Units shall be Settled by the Company delivering to the Participant (or his or her beneficiary in the event of death) either (i) a certificate evidencing a number of Shares equal to the number of Restricted Share Units that become vested and non-forfeitable upon that Settlement Date or (ii) an electronic issuance evidencing such Shares; provided, however, that unless the issuance of the Common Shares have been registered under the Securities Act, the Common Shares will be issued with the following legend, along with such other legends that the Board or the Committee shall deem necessary and appropriate or which are otherwise required or indicated pursuant to any applicable stockholders agreement:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR STATE SECURITIES LAWS OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

**Section 3.2 <u>Tax Withholding</u>**

Upon the occurrence of a vesting event specified in Sections 2.2 or 2.3 above, the Participant is responsible for all federal, state, local or foreign income and social insurance withholding taxes imposed by reason of the vesting of the Restricted Share Units. To the extent permitted by the Company's insider trading policy, the Exchange Policies and the U.S. federal securities laws, the Participant may elect to pay the amount of withholding due by either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) on or prior to the vesting date of the Restricted Share Units, delivering, by cash or a check, funds equal to the amount of withholding due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to the extent permissible under Section 409A of the Code, instructing the Company to withhold a number of Common Shares deliverable upon the Settlement Date, which have a Market Value on the date of vesting equal to the amount of withholding due (a "net-settlement" arrangement) provided, however, the Company has been subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act for a period of no less than 90 days prior to the Settlement Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) instructing the Company to execute a broker-assisted sale and remittance program, or "cashless" exercise/sale procedure, acceptable to the Committee where the amount of withholding due is remitted to the Company provided, however, the Company has been subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act for a period of no less than 90 days prior to the Settlement Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) on or prior to the vesting date of the Restricted Share Units, delivering other Common Shares which have a Market Value on the date of vesting equal to the amount of withholding due provided, however, the Company has been subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act for a period of no less than 90 days prior to the Settlement Date;

subject, in each case, to any limitations imposed by the Company's Insider Trading Policy and the Canadian federal and provincial and U.S. federal and state securities laws.

Unless the Participant makes a tax withholding election (i) in the case of a vesting pursuant to Section 2.2(a), prior to the fifth (5<sup>th</sup>) business day preceding the vesting date, (ii) in the case of a vesting pursuant to Section 2.3(b), prior to the tenth (10<sup>th</sup>) day after Company has notified Participant that the Restricted Share Units shall vest pursuant to Section 2.3(b) (including the date of such vesting), or (iii) in the case of a vesting pursuant to Section 2.3(a), prior to the earlier of (A) the fifth (5<sup>th</sup>) business day preceding the vesting date or (B) the tenth (10<sup>th</sup>) day after the Company has notified Participant that the Restricted Share Units shall vest pursuant to Section 2.3(a), the Company will automatically satisfy the tax withholding obligation, if any, through a "net-settlement" arrangement as set forth in option (2) above. Additionally, if the Participant does not deliver the cash, check or shares set forth in options (1) or (4), or such cash, check or shares are in an amount less than the full amount of the withholding due, the Company is authorized to deduct from any amounts payable to the Participant, either compensation, proceeds from the sale, or otherwise, any taxes required to be withheld with respect to the Restricted Share Units. It is intended that the terms of this award of Restricted Share Units will not result in the imposition of any tax liability pursuant to Section 409A of the Code, and this Agreement shall be construed, interpreted, operated, and administered consistent with that intent.

**Section 3.3 Consideration to the Company**

In consideration of the awarding of the Restricted Share Units by the Company, the Participant agrees to render faithful and efficient services to the Company, with such duties and responsibilities as the Company or the Board shall from time to time prescribe, and to comply with the policies and procedures of the Company to which the Participant is subject. Nothing in this Agreement or in the Plan shall confer upon the Participant any right to continued employment with the Company or shall interfere with or restrict in any way the rights of the Company to terminate the Participant's employment at any time, with or without cause, subject to the terms of the Employment Agreement.

**Section 3.3 <u>Adjustments in Restricted Share Units</u>**

Notwithstanding any other provision of this Agreement, the Committee may make adjustments with respect to the Restricted Share Units in accordance with the provisions of Section 5.9 of the Plan.

**Section 3.4 <u>Conditions to Issuance of Common Shares</u>**

The Common Shares deliverable upon the Settlement of the Restricted Share Units, or any portion thereof, shall be authorized but unissued Common Shares. Such Common Shares shall be fully paid and nonassessable. The Company shall not be required to issue or deliver any shares upon the vesting of the Restricted Share Units or portion thereof prior to fulfillment of all of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The listing of such Common Shares on all stock exchanges on which such Common Shares are then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The completion of any registration or other qualification of such Common Shares under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or of any other governmental regulatory body, which the Committee shall, in its absolute discretion, deem necessary or advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Compliance with all applicable Canadian securities laws and Exchange Policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The obtaining of any approval or other clearance from any state or federal governmental agency which the Committee shall, in its absolute discretion, determine to be necessary or advisable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The lapse of such reasonable period of time following the vesting of the Restricted Share Units as the Committee may from time to time establish for reasons of administrative convenience.

**Section 3.5 <u>Rights as Shareholder</u>**

The Participant shall have no right to vote or receive dividends or any other rights as a shareholder of the Company with respect to the Restricted Share Units or the Common Shares underlying the Restricted Share Units unless and until the Restricted Share Units become vested and non-forfeitable and such Shares are delivered to the Participant in accordance with Section 3.1 of this Agreement.

**Section 3.6 <u>Compliance with Section 409A</u>**

In accepting the Restricted Share Units, the Participant acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *General*. Notwithstanding any provision of the Plan to the contrary, it is intended that with respect to any US Grantee, such US Grantee's participation in the Plan shall be in a manner which does not subject the US Grantee's interests in the Plan to accelerated or additional tax under Section 409A because such benefits and rights should qualify for the "short-term deferral" exemption to Section 409A set forth in Treasury Regulation 1.409A-1(b)(4), and the provisions of this Agreement shall be construed in a manner consistent with that intention. If the Company believes, at any time, that any such benefit or right is subject to Section 409A but does not so comply, the Company may, without the Participant's consent, amend the terms of such benefits and rights such that they are exempt from or comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *No Ability to Designation Taxable Year*. Notwithstanding anything to the contrary, the US Grantees shall not have a right to designate the taxable year of any payment under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *No Guaranty of 409A Compliance*. Notwithstanding the foregoing, the Company does not make any representation to the Participant that the payments or benefits provided under this Agreement are exempt from, or satisfy, the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless the Participant or any beneficiary of the Participant for any tax, additional tax, interest or penalties that the Participant or any beneficiary of the Participant may incur in the event that any provision of this Agreement, or any amendment or modification thereof, or any other action taken with respect thereto, is deemed to violate any of the requirements of Section 409A.

**Article IV.**

**OTHER PROVISIONS**

**Section 4.1 <u>Administration</u>**

The Committee shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee in good faith shall be final and binding upon the Participant, the Company and all other interested persons. No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or the Restricted Share Unit. In its absolute discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan and this Agreement except with respect to matters which, under Rule 16b-3 or Section 162(m) of the Code, or any regulations or rules issued thereunder, are required to be determined in the sole discretion of the Committee.

**Section 4.2 <u>Limitations on Transferability</u>**

The Restricted Share Units shall not be assignable or transferable by the Participant, other than an assignment or transfer without the payment of any consideration (i) by will or the laws of descent and distribution, (ii) to a Participant's family member, whether directly or by means of a trust or otherwise or (iii) subject to the prior approval of the Board or Committee and, if necessary, the Exchange, to a company of which all of the voting securities are beneficially owned by the Participant. For purposes of this Agreement, "family member" has the meaning given to such term in the General Instructions to the Form S-8 registration statement under the Securities Act. Any Restricted Share Units assigned or transferred pursuant to this Section 4.2 shall continue to be subject to the same terms and conditions as were applicable to the Restricted Share Units immediately before the transfer. Notwithstanding the foregoing, in no event shall any rights pursuant to this Agreement be assignable or transferable by the Participant if and to the extent the Committee determines that the Restricted Share Units are subject to Section 409A and that such assignment or transfer would result in a violation of Section 409A.

**Section 4.3 <u>Shares to Be Reserved</u>**

The Company shall at all times prior to the Settlement Date of the Restricted Share Units reserve and keep available such number of Common Shares as will be sufficient to satisfy the requirements of this Agreement.

**Section 4.4 <u>Notices</u>**

Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the officer designated as the Administrator from time to time, and any notice to be given to the Participant shall be communicated to him or her (i) by e-mail to the Participant at the Participant's e-mail address on file with the Company, or (ii) by mail to the Participant at the Participant's mailing address on file with the Company. By a notice given pursuant to this Section 4.4, either party may hereafter designate a different address for notices to be given to him. Any notice which is required to be given to the Participant shall, if the Participant is then deceased, be given to the Participant's personal representative if such representative has previously informed the Company of his or her status and address by written notice under this Section 4.4. Any notice delivered by mail shall be deemed duly given when enclosed in a properly sealed envelope or wrapper addressed as aforesaid and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

**Section 4.5 <u>Representations of Participant</u>**

In consideration of (i) the grant of the Restricted Share Units and (ii) upon vesting, the issuance of the Common Shares, the Participant represents to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) I am aware of the Company's business affairs and financial condition and have acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. I am receiving these Securities for my own account for investment purposes only and not with a view to, or for the resale in connection with, any "distribution" thereof for purposes of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) I acknowledge that I have read and understand the Plan, that I will abide by its terms and conditions, and that the Award is subject to the terms of the Plan and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) I understand that the Company's issuance of the Securities has not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of my investment intent as expressed herein. In this connection, I understand that, in the view of the Securities and Exchange Commission (the "SEC"), the statutory basis for such exemption may be unavailable if my representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) I further understand that the Securities must be held indefinitely unless the transfer is subsequently registered under the Securities Act or unless an exemption from registration is otherwise available; and moreover, I understand that the Company is under no obligation to register any transfer of the Securities; and in addition, I understand that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless registered or such registration is not required in the opinion of counsel for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) I am familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of "restricted securities" acquired, directly or indirectly, from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions specified in such rules as they may be in effect at the time of any resale by me; and that notwithstanding this paragraph (e), I acknowledge and agree to the restrictions set forth in paragraph (f) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) I further understand that in the event the Company's Common Shares are publicly listed for trade on a U.S. exchange, (i.e., the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act), under Rule 701, I will not be able to resell the Common Shares issued upon Settlement until 90 days after such public listing and that more restrictive conditions apply to affiliates of the Company under Rule 144;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) I further understand that in the event all of the applicable requirements of Rule 144 or Rule 701 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rule 144 and Rule 701 are not exclusive, the Staff of the SEC has expressed its opinion that Persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rule 144 or Rule 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such Persons and their respective brokers who participate in such transactions do so at their own risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) I recognize that (A) during the period between granting of a Restricted Share Unit Award and the Vesting Date of the Restricted Share Unit Award (or settlement thereof), the value of a Restricted Share Unit Award may be subject to a number of factors and the Corporation accepts no responsibility for any fluctuations in the value of the Award, and (B) there is no assurance as to when, if at all, a Change of Control will occur and therefore if or when the Restricted Share Unit Award will vest due to Change of Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) I recognize that, at the sole discretion of the Company, the Plan can be administered by the Board of Directors of the Company or a Committee of the Board of Directors and any communication from or to the Board or such Committee shall be deemed to be from or to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) I acknowledge that the Company assumes no responsibility as regards to the tax consequences that participation in the Plan will have for the Participant and the Participant is urged to consult his or her own tax advisor in such regard; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) I acknowledge and agree that the Company has determined and confirmed that the I am a bona fide Employee, Consultant or Director, as the case may be; and acknowledge that I am solely liable for any taxes or penalties which may be payable to Canada Revenue Agency under the Income Tax Act (Canada) or any other taxing authority in respect of the grant of a Restricted Share Unit Award and that the delivery of common shares pursuant to an Award is contingent upon satisfaction of applicable withholding requirements and applicable taxes may be withheld from any such payment in settlement of a Restricted Share Unit Award.

**Section 4.6 <u>Titles</u>**

Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

**Section 4.7 <u>Governing Law; Venue</u>**

This Plan shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable in the Province of British Columbia. Any suit, action or proceeding with respect to the Plan or any Award Agreement, or any judgment entered by any court of competent jurisdiction in respect of any thereof, shall be resolved only in the courts of the State of Texas in the United States. In that context, and without limiting the generality of the foregoing, the Company and each Participant shall irrevocably and unconditionally (a) submit in any proceeding relating to the Plan or any Award Agreement, or for the recognition and enforcement of any judgment in respect thereof (a "Proceeding"), to the exclusive jurisdiction of the courts of the State of Texas in the City of Dallas, and agree that all claims in respect of any such Proceeding shall be heard and determined in such Texas court, (b) consent that any such Proceeding may and shall be brought in such courts and waives any objection that the Company and each Participant may now or thereafter have to the venue or jurisdiction of any such Proceeding in any such court or that such Proceeding was brought in an inconvenient court and agree not to plead or claim the same, (c) waive all right to trial by jury in any Proceeding (whether based on contract, tort or otherwise) arising out of or relating to the Plan or any Award Agreement, (d) agree that service of process in any such Proceeding may be effected by mailing a copy of such process by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such party, in the case of a Participant, at the Participant's address shown in the books and records of the Company or, in the case of the Company, at the Company's principal offices, attention General Counsel, and (e) agree that nothing in the Plan shall affect the right to effect service of process in any other manner permitted by the laws of the Province of British Columbia.

**Section 4.8 <u>Conformity to Securities Laws</u>**

The Participant acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, including, without limitation, the applicable exemptive conditions of Rule 16b-3. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Restricted Share Units are awarded and may be Settled, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

**Section 4.9 <u>Amendments</u>**

This Agreement and the Plan may be amended without the consent of the Participant provided that such amendment would not affect in any materially adverse manner any rights of the Participant under this Agreement. No amendment of this Agreement shall, without the consent of the Participant, affect in any materially adverse manner any rights of the Participant under this Agreement.

**Section 4.10 <u>Conflicts</u>**

In the event of any conflict between the terms and conditions of this Agreement and the terms and conditions of the Employment Agreement, the terms and conditions of the Employment Agreement shall prevail.

[*Signature page follows*]

**IN WITNESS WHEREOF**, **IN WITNESS WHEREOF**, the parties hereto have executed this Agreement as of the day and year first above written.

---

| | |
|:---|:---|
| **INTERNATIONAL BATTERY METALS LTD.** | **INTERNATIONAL BATTERY METALS LTD.** |
| By: | /s/ John Burba |
| Name: | John Burba |
| Title: | Chairman of the Board |
| **PARTICIPANT** | **PARTICIPANT** |
| By: | Joseph A. Mills |
| Name: | Joseph A. Mills |
| Title: | Chief Executive Officer |

---

**<u>SCHEDULE A</u>**

---

| | |
|:---|:---|
| **Grant of RSUs** | **Vesting Schedule** |
| 1000000 | Vest in full on the first anniversary of the date of the Employment Agreement (April 7, 2026) |
| 2000000 | Vest in full on the date that the Company completes the building and deployment (with secured financing) of two additional Direct Lithium Extraction ("DLE") plants in addition to the existing DLE plant subject to the Participant's continuous employment through such vesting date. |

---

## Exhibit 10.23

**Exhibit 10.23**

**INTERNATIONAL BATTERY METALS LTD**

**RESTRICTED SHARE UNIT AGREEMENT**

This **RESTRICTED SHARE UNIT AGREEMENT** (this "Agreement") is made by and between International Battery Metals Ltd. (the "Company"), a corporation existing under the *Business Corporations Act* (British Columbia), and MICHAEL RUTLEDGE (the "Participant"), effective as of June 2, 2025 (the "Award Date").

**WHEREAS**, the Board of Directors (the "Board") and shareholders of the Company previously adopted and approved the International Battery Metals Ltd. Amended and Restated Restricted Share Unit Plan, (the "Plan") (the terms of which are hereby incorporated by reference and made part of this Agreement).

**WHEREAS**, Section 2.2 of the Plan provides that the Board, acting as the Committee (as defined in the Plan) (the "Committee") shall have the authority and discretion to award Restricted Share Units to any eligible Employee, Consultant or Director (as such terms are defined in the Plan), subject to the terms and conditions of the Plan and any additional terms provided by the Committee.

**WHEREAS**, the Participant has entered into an Employment Agreement dated June 2, 2025 (the "Employment Agreement"), with IBAT USA, Inc., a wholly-owned subsidiary of the Company ("IBAT USA"), whereby the Participant has agreed to provide services to the Company and IBAT USA as the Chief Financial Officer of both the Company and IBAT USA;

**WHEREAS**, the Committee has determined that it would be to the advantage and best interest of the Company and its shareholders to award Restricted Share Units as provided for herein to the Participant for compensation and retention purposes and to further align the Participant's interests with those of the shareholders and has advised the Company thereof and instructed the appropriate officer of the Company to issue said Restricted Share Units.

**WHEREAS**, the Participant desires to accept the award of Restricted Share Units and agrees to be bound by the terms and conditions of the Plan and this Agreement.

**NOW, THEREFORE**, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt and adequacy of which are hereby acknowledged, the parties hereto do hereby agree as follows:

**Article I.**

**DEFINITIONS**

Whenever the following terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the contrary. The masculine pronoun shall include the feminine and neuter, and the singular shall include the plural, where the context so indicates. All capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Plan.

**Section 1.1 <u>Award Agreement</u>**

"Award Agreement" means any agreement pursuant to which an eligible Director, Employee or Consultant has been granted a Restricted Share Unit Award and which shall provide the terms of such award.

**Section 1.2 <u>Change in Control</u>**

Unless otherwise defined in the Employment Agreement which such definition shall be used for the purposes of this Agreement, "Change of Control" means the occurrence of (i) any transaction or series of related transactions, whether or not the Company is a party thereto, after giving effect to which in excess of fifty percent (50%) of the Company's voting power is owned directly, or indirectly through one or more entities, by any Person and its affiliates, or (ii) a sale, lease or other disposition of all or substantially all of the assets of the Company other than in connection with an internal reorganization. The term "Change in Control" shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company.

Notwithstanding the foregoing, if and to the extent necessary to comply with Section 409A of the Code, if the Participant is US Grantee then a "Change in Control" shall only be deemed to occur on the date of a "change in the ownership or effective control, or in the ownership of a substantial portion of the assets" of the Company, as determined under Treasury Regulation section 1.409A-3(i)(5).

**Section 1.3 <u>Code</u>**

"Code" means the US Internal Revenue Code of 1986, as it may be amended from time to time, and the rules and regulations promulgated thereunder.

**Section 1.4 <u>Common Shares</u>**

"Common Shares" means common shares in the capital of the Company and any shares or securities of the Company into which such common shares are changed, converted, subdivided, consolidated, or reclassified.

**Section 1.5 <u>Disability</u>**

If the Participant is a US Grantee, "Disability" shall mean "permanent and total disability" within the meaning of Section 22(e)(3) of the Code.

**Section 1.6 <u>Exchange Act</u>**

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

**Section 1.7 <u>Section 409A</u>**

"Section 409A" shall mean the Section 409A of the Code and the Treasury Regulations and other guidance promulgated or issued thereunder.

**Section 1.8 <u>Securities Act</u>**

"Securities Act" shall mean the Securities Act of 1933, as amended.

**Section 1.9 <u>Settlement</u>**

"Settlement" or "Settled" shall mean the delivery to the Participant of either (i) a certificate evidencing the number of Common Shares underlying the designated Restricted Share Units or (ii) an electronic issuance evidencing such Shares, which shall occur on the Settlement Date(s) calculated in accordance with Section 3.1.

**Section 1.10 <u>US Grantee</u>**

"US Grantee" shall mean a Person who is subject to the regulations of Section 409A of the Code.

**Article II.**

**AWARD OF RESTRICTED SHARE UNITS**

**Section 2.1 <u>Award of Restricted Share Units</u>**

Subject to the terms and conditions provided in this Agreement and the Plan, the Company hereby awards to the Participant 1,350,000 Restricted Share Units as of the Award Date. Each Restricted Share Unit represents the right to receive one Common Share if the Restricted Share Unit becomes vested and non-forfeitable in accordance with Sections 2.2 or 2.3 of this Agreement.

**Section 2.2 <u>Vesting</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as may be otherwise provided in Section 2.3 of this Agreement, the vesting of the Participant's rights and interest in the Restricted Share Units shall be determined in accordance with this Section 2.2. The Participant's rights and interest in the Restricted Share Units shall become vested in accordance with Schedule A to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as may be otherwise provided in Section 2.3 of this Agreement, in the event of the Participant's termination or resignation of employment for any reason, any portion of the Restricted Share Units that is not yet vested at the time of termination or resignation shall be forfeited immediately.

**Section 2.3 <u>Acceleration of Vesting</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of a Change in Control, notwithstanding any vesting schedule provided for hereunder, any time-based portion of the Restricted Share Units that is not yet vested on the date of the Participant's termination or resignation in connection with such Change in Control shall become immediately vested; provided, however, that this acceleration of vesting shall not take place if the time-based Restricted Share Units were forfeited prior to such termination date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of a Change in Control, any performance-based portion of the Restricted Share Units that is not yet vested on the date of the Participant's termination or resignation in connection with such Change in Control shall continue to vest as if the Participant's employment had continued during the longer of: (a) the current term of the Employment Agreement as then in effect or (b) the 12 month period following the termination date, provided, however, that the actual vesting of any time-based Restricted Share Units during such period shall remain subject to the actual achievement of the performance-based vesting conditions applicable to the Restricted Share Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event the Participant's employment is terminated due to his or her death or Disability, then, notwithstanding any vesting schedule provided for hereunder, any portion of the Restricted Share Units that is not yet vested shall be forfeited immediately.

**Article III.**

**SETTLEMENT OF RESTRICTED SHARE UNITS**

**Section 3.1 <u>Timing and Manner of Settlement of Restricted Share Units</u>**

Unless and until the Restricted Share Units become vested and nonforfeitable in accordance with Section 2.2 or 2.3 of this Agreement, the Participant will have no right to Settlement of any such Restricted Share Units. Reasonably promptly after the date any of the Restricted Share Units become vested and non-forfeitable in accordance with Section 2.2 or 2.3 of this Agreement (and in all events not later than two and one-half (2-1/2) months after such vesting date) (the "Settlement Date"), such vested and non-forfeitable Restricted Share Units shall be Settled by the Company delivering to the Participant (or his or her beneficiary in the event of death) either (i) a certificate evidencing a number of Shares equal to the number of Restricted Share Units that become vested and non-forfeitable upon that Settlement Date or (ii) an electronic issuance evidencing such Shares; provided, however, that unless the issuance of the Common Shares have been registered under the Securities Act, the Common Shares will be issued with the following legend, along with such other legends that the Board or the Committee shall deem necessary and appropriate or which are otherwise required or indicated pursuant to any applicable stockholders agreement:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR STATE SECURITIES LAWS OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

**Section 3.2 <u>Tax Withholding</u>**

Upon the occurrence of a vesting event specified in Sections 2.2 or 2.3 above, the Participant is responsible for all federal, state, local or foreign income and social insurance withholding taxes imposed by reason of the vesting of the Restricted Share Units. To the extent permitted by the Company's insider trading policy, the Exchange Policies and the U.S. federal securities laws, the Participant may elect to pay the amount of withholding due by either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) on or prior to the vesting date of the Restricted Share Units, delivering, by cash or a check, funds equal to the amount of withholding due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to the extent permissible under Section 409A of the Code, instructing the Company to withhold a number of Common Shares deliverable upon the Settlement Date, which have a Market Value on the date of vesting equal to the amount of withholding due (a "net-settlement" arrangement) provided, however, the Company has been subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act for a period of no less than 90 days prior to the Settlement Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) instructing the Company to execute a broker-assisted sale and remittance program, or "cashless" exercise/sale procedure, acceptable to the Committee where the amount of withholding due is remitted to the Company provided, however, the Company has been subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act for a period of no less than 90 days prior to the Settlement Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) on or prior to the vesting date of the Restricted Share Units, delivering other Common Shares which have a Market Value on the date of vesting equal to the amount of withholding due provided, however, the Company has been subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act for a period of no less than 90 days prior to the Settlement Date;

subject, in each case, to any limitations imposed by the Company's Insider Trading Policy and the Canadian federal and provincial and U.S. federal and state securities laws.

Unless the Participant makes a tax withholding election (i) in the case of a vesting pursuant to Section 2.2(a), prior to the fifth (5<sup>th</sup>) business day preceding the vesting date, (ii) in the case of a vesting pursuant to Section 2.3(b), prior to the tenth (10<sup>th</sup>) day after Company has notified Participant that the Restricted Share Units shall vest pursuant to Section 2.3(b) (including the date of such vesting), or (iii) in the case of a vesting pursuant to Section 2.3(a), prior to the earlier of (A) the fifth (5<sup>th</sup>) business day preceding the vesting date or (B) the tenth (10<sup>th</sup>) day after the Company has notified Participant that the Restricted Share Units shall vest pursuant to Section 2.3(a), the Company will automatically satisfy the tax withholding obligation, if any, through a "net-settlement" arrangement as set forth in option (2) above. Additionally, if the Participant does not deliver the cash, check or shares set forth in options (1) or (4), or such cash, check or shares are in an amount less than the full amount of the withholding due, the Company is authorized to deduct from any amounts payable to the Participant, either compensation, proceeds from the sale, or otherwise, any taxes required to be withheld with respect to the Restricted Share Units. It is intended that the terms of this award of Restricted Share Units will not result in the imposition of any tax liability pursuant to Section 409A of the Code, and this Agreement shall be construed, interpreted, operated, and administered consistent with that intent.

**Section 3.3 Consideration to the Company**

In consideration of the awarding of the Restricted Share Units by the Company, the Participant agrees to render faithful and efficient services to the Company, with such duties and responsibilities as the Company or the Board shall from time to time prescribe, and to comply with the policies and procedures of the Company to which the Participant is subject. Nothing in this Agreement or in the Plan shall confer upon the Participant any right to continued employment with the Company or shall interfere with or restrict in any way the rights of the Company to terminate the Participant's employment at any time, with or without cause, subject to the terms of the Employment Agreement.

**Section 3.3 <u>Adjustments in Restricted Share Units</u>**

Notwithstanding any other provision of this Agreement, the Committee may make adjustments with respect to the Restricted Share Units in accordance with the provisions of Section 5.9 of the Plan.

**Section 3.4 <u>Conditions to Issuance of Common Shares</u>**

The Common Shares deliverable upon the Settlement of the Restricted Share Units, or any portion thereof, shall be authorized but unissued Common Shares. Such Common Shares shall be fully paid and nonassessable. The Company shall not be required to issue or deliver any shares upon the vesting of the Restricted Share Units or portion thereof prior to fulfillment of all of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The listing of such Common Shares on all stock exchanges on which such Common Shares are then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The completion of any registration or other qualification of such Common Shares under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or of any other governmental regulatory body, which the Committee shall, in its absolute discretion, deem necessary or advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Compliance with all applicable Canadian securities laws and Exchange Policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The obtaining of any approval or other clearance from any state or federal governmental agency which the Committee shall, in its absolute discretion, determine to be necessary or advisable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The lapse of such reasonable period of time following the vesting of the Restricted Share Units as the Committee may from time to time establish for reasons of administrative convenience.

**Section 3.5 <u>Rights as Shareholder</u>**

The Participant shall have no right to vote or receive dividends or any other rights as a shareholder of the Company with respect to the Restricted Share Units or the Common Shares underlying the Restricted Share Units unless and until the Restricted Share Units become vested and non-forfeitable and such Shares are delivered to the Participant in accordance with Section 3.1 of this Agreement.

**Section 3.6 <u>Compliance with Section 409A</u>**

In accepting the Restricted Share Units, the Participant acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *General*. Notwithstanding any provision of the Plan to the contrary, it is intended that with respect to any US Grantee, such US Grantee's participation in the Plan shall be in a manner which does not subject the US Grantee's interests in the Plan to accelerated or additional tax under Section 409A because such benefits and rights should qualify for the "short-term deferral" exemption to Section 409A set forth in Treasury Regulation 1.409A-1(b)(4), and the provisions of this Agreement shall be construed in a manner consistent with that intention. If the Company believes, at any time, that any such benefit or right is subject to Section 409A but does not so comply, the Company may, without the Participant's consent, amend the terms of such benefits and rights such that they are exempt from or comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *No Ability to Designation Taxable Year*. Notwithstanding anything to the contrary, the US Grantees shall not have a right to designate the taxable year of any payment under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *No Guaranty of 409A Compliance*. Notwithstanding the foregoing, the Company does not make any representation to the Participant that the payments or benefits provided under this Agreement are exempt from, or satisfy, the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless the Participant or any beneficiary of the Participant for any tax, additional tax, interest or penalties that the Participant or any beneficiary of the Participant may incur in the event that any provision of this Agreement, or any amendment or modification thereof, or any other action taken with respect thereto, is deemed to violate any of the requirements of Section 409A.

**Article IV.**

**OTHER PROVISIONS**

**Section 4.1 <u>Administration</u>**

The Committee shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee in good faith shall be final and binding upon the Participant, the Company and all other interested persons. No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or the Restricted Share Unit. In its absolute discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan and this Agreement except with respect to matters which, under Rule 16b-3 or Section 162(m) of the Code, or any regulations or rules issued thereunder, are required to be determined in the sole discretion of the Committee.

**Section 4.2 <u>Limitations on Transferability</u>**

The Restricted Share Units shall not be assignable or transferable by the Participant, other than an assignment or transfer without the payment of any consideration (i) by will or the laws of descent and distribution, (ii) to a Participant's family member, whether directly or by means of a trust or otherwise or (iii) subject to the prior approval of the Board or Committee and, if necessary, the Exchange, to a company of which all of the voting securities are beneficially owned by the Participant. For purposes of this Agreement, "family member" has the meaning given to such term in the General Instructions to the Form S-8 registration statement under the Securities Act. Any Restricted Share Units assigned or transferred pursuant to this Section 4.2 shall continue to be subject to the same terms and conditions as were applicable to the Restricted Share Units immediately before the transfer. Notwithstanding the foregoing, in no event shall any rights pursuant to this Agreement be assignable or transferable by the Participant if and to the extent the Committee determines that the Restricted Share Units are subject to Section 409A and that such assignment or transfer would result in a violation of Section 409A.

**Section 4.3 <u>Shares to Be Reserved</u>**

The Company shall at all times prior to the Settlement Date of the Restricted Share Units reserve and keep available such number of Common Shares as will be sufficient to satisfy the requirements of this Agreement.

**Section 4.4 <u>Notices</u>**

Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the officer designated as the Administrator from time to time, and any notice to be given to the Participant shall be communicated to him or her (i) by e-mail to the Participant at the Participant's e-mail address on file with the Company, or (ii) by mail to the Participant at the Participant's mailing address on file with the Company. By a notice given pursuant to this Section 4.4, either party may hereafter designate a different address for notices to be given to him. Any notice which is required to be given to the Participant shall, if the Participant is then deceased, be given to the Participant's personal representative if such representative has previously informed the Company of his or her status and address by written notice under this Section 4.4. Any notice delivered by mail shall be deemed duly given when enclosed in a properly sealed envelope or wrapper addressed as aforesaid and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

**Section 4.5 <u>Representations of Participant</u>**

In consideration of (i) the grant of the Restricted Share Units and (ii) upon vesting, the issuance of the Common Shares, the Participant represents to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) I am aware of the Company's business affairs and financial condition and have acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. I am receiving these Securities for my own account for investment purposes only and not with a view to, or for the resale in connection with, any "distribution" thereof for purposes of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) I acknowledge that I have read and understand the Plan, that I will abide by its terms and conditions, and that the Award is subject to the terms of the Plan and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) I understand that the Company's issuance of the Securities has not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of my investment intent as expressed herein. In this connection, I understand that, in the view of the Securities and Exchange Commission (the "SEC"), the statutory basis for such exemption may be unavailable if my representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) I further understand that the Securities must be held indefinitely unless the transfer is subsequently registered under the Securities Act or unless an exemption from registration is otherwise available; and moreover, I understand that the Company is under no obligation to register any transfer of the Securities; and in addition, I understand that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless registered or such registration is not required in the opinion of counsel for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) I am familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of "restricted securities" acquired, directly or indirectly, from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions specified in such rules as they may be in effect at the time of any resale by me; and that notwithstanding this paragraph (e), I acknowledge and agree to the restrictions set forth in paragraph (f) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) I further understand that in the event the Company's Common Shares are publicly listed for trade on a U.S. exchange, (i.e., the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act), under Rule 701, I will not be able to resell the Common Shares issued upon Settlement until 90 days after such public listing and that more restrictive conditions apply to affiliates of the Company under Rule 144;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) I further understand that in the event all of the applicable requirements of Rule 144 or Rule 701 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rule 144 and Rule 701 are not exclusive, the Staff of the SEC has expressed its opinion that Persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rule 144 or Rule 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such Persons and their respective brokers who participate in such transactions do so at their own risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) I recognize that (A) during the period between granting of a Restricted Share Unit Award and the Vesting Date of the Restricted Share Unit Award (or settlement thereof), the value of a Restricted Share Unit Award may be subject to a number of factors and the Corporation accepts no responsibility for any fluctuations in the value of the Award, and (B) there is no assurance as to when, if at all, a Change of Control will occur and therefore if or when the Restricted Share Unit Award will vest due to Change of Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) I recognize that, at the sole discretion of the Company, the Plan can be administered by the Board of Directors of the Company or a Committee of the Board of Directors and any communication from or to the Board or such Committee shall be deemed to be from or to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) I acknowledge that the Company assumes no responsibility as regards to the tax consequences that participation in the Plan will have for the Participant and the Participant is urged to consult his or her own tax advisor in such regard; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) I acknowledge and agree that the Company has determined and confirmed that the I am a bona fide Employee, Consultant or Director, as the case may be; and acknowledge that I am solely liable for any taxes or penalties which may be payable to Canada Revenue Agency under the Income Tax Act (Canada) or any other taxing authority in respect of the grant of a Restricted Share Unit Award and that the delivery of common shares pursuant to an Award is contingent upon satisfaction of applicable withholding requirements and applicable taxes may be withheld from any such payment in settlement of a Restricted Share Unit Award.

**Section 4.6 <u>Titles</u>**

Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

**Section 4.7 <u>Governing Law; Venue</u>**

This Plan shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable in the Province of British Columbia. Any suit, action or proceeding with respect to the Plan or any Award Agreement, or any judgment entered by any court of competent jurisdiction in respect of any thereof, shall be resolved only in the courts of the State of Texas in the United States. In that context, and without limiting the generality of the foregoing, the Company and each Participant shall irrevocably and unconditionally (a) submit in any proceeding relating to the Plan or any Award Agreement, or for the recognition and enforcement of any judgment in respect thereof (a "Proceeding"), to the exclusive jurisdiction of the courts of the State of Texas in the City of Dallas, and agree that all claims in respect of any such Proceeding shall be heard and determined in such Texas court, (b) consent that any such Proceeding may and shall be brought in such courts and waives any objection that the Company and each Participant may now or thereafter have to the venue or jurisdiction of any such Proceeding in any such court or that such Proceeding was brought in an inconvenient court and agree not to plead or claim the same, (c) waive all right to trial by jury in any Proceeding (whether based on contract, tort or otherwise) arising out of or relating to the Plan or any Award Agreement, (d) agree that service of process in any such Proceeding may be effected by mailing a copy of such process by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such party, in the case of a Participant, at the Participant's address shown in the books and records of the Company or, in the case of the Company, at the Company's principal offices, attention General Counsel, and (e) agree that nothing in the Plan shall affect the right to effect service of process in any other manner permitted by the laws of the Province of British Columbia.

**Section 4.8 <u>Conformity to Securities Laws</u>**

The Participant acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, including, without limitation, the applicable exemptive conditions of Rule 16b-3. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Restricted Share Units are awarded and may be Settled, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

**Section 4.9 <u>Amendments</u>**

This Agreement and the Plan may be amended without the consent of the Participant provided that such amendment would not affect in any materially adverse manner any rights of the Participant under this Agreement. No amendment of this Agreement shall, without the consent of the Participant, affect in any materially adverse manner any rights of the Participant under this Agreement.

**Section 4.10 <u>Conflicts</u>**

Except as provided in Sections 2.1, 2.2 and 2.3 of Article II of this Agreement, in the event of any conflict between the terms and conditions of this Agreement and the terms and conditions of the Employment Agreement, the terms and conditions of the Employment Agreement shall prevail.

[*Signature page follows*]

**IN WITNESS WHEREOF**, **IN WITNESS WHEREOF**, the parties hereto have executed this Agreement as of the day and year first above written.

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| | |
|:---|:---|
| **INTERNATIONAL BATTERY METALS LTD.** | **INTERNATIONAL BATTERY METALS LTD.** |
| By: |  |
| Name: | Joseph A. Mills |
| Title: | Chief Executive Officer |

---

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| | |
|:---|:---|
| **PARTICIPANT** | **PARTICIPANT** |
| By: |  |
| Name: | Michael Rutledge |
| Title: | Chief Financial Officer |

---

**<u>SCHEDULE A</u>**

---

| | |
|:---|:---|
| **Grant of RSUs** | **Vesting Schedule** |
| 450000 | Vest in full on the first anniversary of the date of the Employment Agreement (June 2, 2026) |
| 900000 | Vest in full on the date that the Company completes the building and deployment (with secured financing) of two additional Direct Lithium Extraction ("DLE") plants in addition to the existing DLE plant subject to the Participant's continuous employment through such vesting date. |

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## Exhibit 10.24

**Exhibit 10.24**

 **FORM OF INDEMNITY AGREEMENT**

**THIS AGREEMENT** made effective as of the [ ] day of [ ], [ ].

**BETWEEN:**

**INTERNATIONAL BATTERY METALS LTD.**, a corporation incorporated under the laws of the Province of British Columbia (the "**Corporation**")

- and -

**[Name of Director/Executive Officer]**, an individual residing in [ ] (the "**Indemnified Party**")

**WHEREAS:**

A. Pursuant
 to section 160 of the *Business Corporations Act* (British Columbia) (the "**Act** "),
 the Corporation may indemnify an individual, including their heirs and personal or other
 legal representative, who is or was a director and/or officer of the Corporation, or in a
 similar capacity, of another entity from time to time (each such other entity in respect
 of which the Indemnified Party serves as a director and/or officer, or in a similar capacity,
 at the Corporation's request is herein referred to as an "**Affiliate** "
 and together an "**eligible party**") against all eligible penalties to which
 the eligible party is or may be liable, and/or pay the expenses actually and reasonably incurred
 by an eligible party in respect of that proceeding;

B. Pursuant
 to section 165 of the Act, the Corporation may purchase and maintain insurance for the benefit
 of the eligible party against any liability that may be incurred by reason of the eligible
 party being or having been a director and/or officer the Corporation and/or an Affiliate;

C. Section
 15.1 of the articles of the Corporation, provides that the Corporation must indemnify its
 directors and former directors to the greatest extent permitted under the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. It
 is in the best interest of the Corporation to retain the Indemnified Party to act or continue
 to act as a director and/or officer of the Corporation and/or an Affiliate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. The
 Indemnified Party is willing to act or continue to act as a director and/or officer of the
 Corporation and/or an Affiliate on the condition that the Corporation enter into this Agreement.

Page 1 of 8

**NOW THEREFORE** in consideration of the Indemnified Party consenting to act or continue acting as a director and/or officer of the Corporation, and other good and valuable consideration, the receipt and sufficiency of which each party acknowledges, the parties agree as follows:

**1. General Indemnity.** Subject to paragraphs 2 and 3 hereof, the Corporation will, to the fullest extent possible under applicable law, indemnify and hold harmless the Indemnified Party and the heirs, executors, administrators and other legal representatives of the Indemnified Party (each of which is included in any reference in this Agreement to the Indemnified Party) against any and all costs, charges and expenses, regardless of when or how they arose including, without limiting the generality of the foregoing, all liabilities, awards, settlements, statutory obligations, fines, penalties, fees, including charges and disbursements for the services of any experts, all legal fees, charges and disbursements on a solicitor and client basis and any amount paid to settle any actions or proceedings or to satisfy any judgments and including "expenses" and "eligible penalties", each as defined in the Act (any and all of the foregoing being referred to herein as "**Liabilities**") reasonably incurred by the Indemnified Party for, or in connection with, any civil, criminal, administrative, or investigative or other action or proceeding (including, without limitation, any claim, demand, suit, inquiry, hearing, discovery, investigation or other proceeding of whatever nature), whether threatened, commenced, pending, continuing or completed, and any appeal thereof (any and all of the foregoing being hereinafter referred to as an "**Action**"), to which the Indemnified Party may be involved (whether as a party, witness or otherwise) because of (i) acting or having acted in the capacity of a director and/or officer of the Corporation and/or an Affiliate, (ii) acting or having acted in the capacity of a director and/or officer of another corporation at a time when the corporation either is or was an Affiliate of the Corporation, or at the request of the Corporation, or (iii) acting or having acted, or holding or having held a position equivalent to that of, a director and/or officer of a partnership, trust, joint venture or other unincorporated entity at the request of the Corporation.

**2. Limitations on Indemnity.** The obligation of the Corporation to indemnify the Indemnified Party in accordance with paragraph 1 hereof will only apply if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Indemnified Party acted honestly and in good faith with a view to the best interests of the
 Corporation, or, as the case may be, to the best interests of such Affiliate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the case of a criminal or administrative action or other non-civil proceeding that is enforced
 by a monetary penalty, the Indemnified Party had reasonable grounds for believing that their
 conduct was lawful.

This indemnity will not apply to (a) claims initiated by the Indemnified Party against the Corporation, an Affiliate, or any subsidiary except for claims relating to the enforcement of this Agreement; and (b) claims initiated by the Indemnified Party against any other person or entity unless the Corporation or other entity described in paragraph 1(ii) or (iii) has joined with the Indemnified Party in or consented to the initiation of that Action.

For the purposes of this Agreement, the termination of any civil, criminal, administrative, investigative or other proceeding by judgement, order, settlement, conviction or similar or other result will not, of itself, create a presumption either that the Indemnified Party did not act honestly or in good faith with a view to the best interests of the Corporation and/or an Affiliate or that, in the case of a criminal or administrative action or other non-civil proceeding that is enforced by a monetary penalty, the Indemnified Party did not have reasonable grounds for believing that the conduct of the Indemnified Party was lawful, unless any judgment or order of a court of competent jurisdiction specifically finds otherwise.

**3. Payment of Expenses.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any
 amounts to be paid by the Corporation pursuant to paragraph 1 shall be advanced by the Corporation
 promptly as and when such Liabilities arise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 clause (a) of this paragraph 3, at the request of the Indemnified Party, all expenses reasonably
 incurred or to be reasonably incurred by the Indemnified Party in connection with an Action
 described in paragraph 1 hereof will be paid by the Corporation in advance of the determination
 of any Action to enable the Indemnified Party to properly investigate, defend or appeal the
 Action; provided that, to the extent it is determined in a final judgment of a court of competent
 jurisdiction that the Corporation is not liable to indemnify the Indemnified Party by virtue
 of paragraph 2 of this Agreement, the Indemnified Party will repay forthwith upon demand
 all amounts paid by the Corporation on behalf of the Indemnified Party under this paragraph

Page 2 of 8

**4. Notice of Proceedings.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Indemnified Party will give written notice to the Corporation upon the Indemnified Party
 being served with any statement of claim, writ, notice of motion, indictment, subpoena, investigation
 order or other document commencing, threatening or continuing any Action involving the Corporation,
 an Affiliate or the Indemnified Party which may result in a claim for indemnification under
 this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Corporation will give written notice to the Indemnified Party upon the Corporation or an
 Affiliate being served with any statement of claim, writ, notice of motion, indictment, subpoena,
 investigation order or other document commencing, threatening or continuing any Action involving
 the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Failure
 by either party to notify the other of any Action or threatened Action will not relieve the
 Corporation from liability under this Agreement except to the extent that such failure materially
 prejudices the Corporation.

**5. Investigation by Corporation.** The Corporation may conduct any investigation it considers appropriate of any Action of which it receives notice under Section 4, and will pay all costs of that investigation. Upon receipt of reasonable notice from the Corporation, the Indemnified Party will, acting reasonably, cooperate fully with the investigation provided that the Indemnified Party will not be required to provide assistance that would prejudice: (a) his or her defence; (b) his or her ability to fulfill his or her business obligations; or (c) his or her business and/or personal affairs.

**6. Settlement of Claim.** No admission of liability and no settlement of any Action or threatened Action in a manner adverse to the Indemnified Party will be made without the written consent of the Indemnified Party, such consent not to be unreasonably withheld. No admission of liability will be made by the Indemnified Party without the consent of the Corporation and the Corporation will not be liable for any settlement of any Action or threatened Action made without its consent, such consent not to be unreasonably withheld.

**7. Right to Independent Legal Counsel.** If the Indemnified Party is named as a party or a witness to any Action, or the Indemnified Party is questioned or any of his or her actions, omissions or activities are in any way investigated, reviewed or examined in connection with or in anticipation of any actual or potential Action, the Indemnified Party will be entitled to retain independent legal counsel at the Corporation's expense to act on the Indemnified Party's behalf to provide an initial assessment to the Indemnified Party of the appropriate course of action for the Indemnified Party. The Indemnified Party will be entitled to continued representation by independent counsel at the Corporation's expense beyond the initial assessment unless the parties agree that there is no conflict of interest between the Corporation and the Indemnified Party that necessitates independent representation.

**8. Determination of Right to Indemnification.** If any payment under this Agreement requires the approval of a court under the provisions of any legislation binding upon the Corporation, the Corporation agrees to apply to the court for and use reasonable commercial efforts to obtain such approval or, if the Corporation does not do so, the Indemnified Party may apply to the court for such approval. The Corporation shall indemnify the Indemnified Party for the amount of all Liabilities incurred in obtaining such approval.

Page 3 of 8

**9. Tax Matters.** If the Indemnified Party is required to include in income or in the income of the Indemnified Party's estate, any payment made under this Agreement for the purpose of determining income tax payable by the Indemnified Party, the Corporation will pay such amount as will fully indemnify for the amount of Liabilities and all income tax payable as a result of the receipt of the indemnity payment.

**10. Representations and Warranties.** The Corporation represents and warrants that it has the corporate power, authority and capacity to execute and deliver this Agreement and to perform its other obligations hereunder, that this Agreement constitutes a legally enforceable and binding obligation of the Corporation and that none of the provisions of this Agreement conflict with any provisions of the constating documents of the Corporation.

**11. Scope of Indemnity.** The intention of this Agreement is to provide the Indemnified Party with indemnification to the fullest extent permitted by law and, without limiting the generality of the foregoing and notwithstanding anything contained herein nothing in this Agreement will be interpreted, by implication or otherwise, to limit the scope of the indemnification provided in paragraph 1 hereof except as specifically provided herein. For greater certainty, it is acknowledged and agreed that the indemnities provided herein shall apply notwithstanding any deductible amounts or policy limits contained in any policy of insurance purchased or arranged by the Corporation for the benefits of the directors and officers of the Corporation or an Affiliate, and the indemnification shall be made promptly as provided herein regardless of insurance coverage or receipt of any proceeds thereunder.

**12. No Duplication of Payments.** The Corporation shall not be liable under this Agreement to make any payment in connection with any claim made against the Indemnified Party to the extent the Indemnified Party has otherwise actually received payment (under any insurance policy or otherwise) of the amounts otherwise indemnifiable hereunder.

**13. Set-off.** The Corporation grants to the Indemnified Party the right to set-off any amount owing by the Corporation hereunder to the Indemnified Party against any amount that the Indemnified Party may owe to the Corporation at that time.

**14. Unconditional.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This
 Agreement is absolute and unconditional and the obligations of the Corporation will not be
 affected, discharged, impaired, mitigated or released by (a) any extension of time, indulgence
 or modification that the Indemnified Party may extend or make with any person threatening
 or commencing an Action, or (b) the discharge or release of the Indemnified Party in any
 bankruptcy, insolvency, receivership or other proceedings of creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No
 action or proceeding brought or instituted under this Agreement and no recovery pursuant
 thereto will be a bar or defence to any further action or proceeding which may be brought
 under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 rights of the Indemnified Party hereunder will be in addition to any other rights the Indemnified
 Party may have under the constating documents of the Corporation or otherwise. To the extent
 that a change in the Act (whether by statute or judicial decision) permits greater indemnification
 by agreement than would be afforded currently under the constating documents of the Corporation
 or this Agreement, it is the intent of the Corporation and the Indemnified Party that the
 Indemnified Party be entitled to the greater benefits afforded by that change. The rights
 of the Indemnified Party under this Agreement will not be diminished by any amendment to
 the constating documents of the Corporation or of any other agreement or instrument to which
 the Indemnified Party is not a party, and will not diminish any other rights that the Indemnified
 Party now has, or in the future may have, against the Corporation.

Page 4 of 8

**15. Notices. In this Agreement:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 notice, determination or other communication required or permitted to be given under this
 Agreement (a "**Notice**") must be in writing and sent in one of the following
 ways to the applicable address set out below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) delivered
 personally to the applicable party during normal business hours at the address set out below
 (a personally delivered Notice will be deemed to be received by the addressee when actually
 delivered);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 sent by electronic transmission to the email address for the applicable party set out below
 (any Notice so given will be deemed to have been received on the day of transmission if it
 is a business day and the Notice was transmitted prior to 5:00 p.m. (local time in place
 of receipt) on such day. Otherwise, such Notice will be deemed to have been given and received
 on the following business day);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) delivered
 by a prepaid courier service at the address set out below (such a Notice will be deemed to
 be received by the addressee when actually delivered); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) sent
 by registered mail, postage prepaid, to the applicable party (Notices so sent will be deemed
 to have been received by the addressee on the third business day following the date of mailing),
 except that in the event of an actual or threatened postal strike or other labour disruption
 that may affect the mail service, Notices will not be mailed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 addresses of the parties are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 to the Corporation:

International Battery Metals Ltd.

6100 Tennyson Parkway, Suite 240

Plano, Texas 75024

USA

Attention: Norma Garcia <br> Email: <u>ngarcia@ibatterymetals.com</u>

and with a copy, which shall not constitute notice, to:

Bennett Jones LLP

4500, 855 2<sup>nd</sup> Street SW

Calgary, Alberta T2P 4K7

Attention: Harinder Basra <br> Email: <u>basrah@bennettjones.com</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 to the Indemnified Party:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 party may from time to time change its address under this Section by giving Notice to the
 other party in the manner provided by this Section.

Page 5 of 8

**16. Commencement of Term and Survival.** Notwithstanding the actual date of execution and delivery of this Agreement, this Agreement and the indemnity provided herein (the "**Indemnity**") will be conclusively deemed to commence on the day upon which the Indemnified Party first became a director of the Corporation and/or an Affiliate. This Agreement and the Indemnity shall survive for the period of time during which the Indemnified Party served in such capacity as a director and/or officer of the Corporation and/or an Affiliate and shall continue in full force and effect for six years following the date on which the Indemnified Party ceases to serve in such capacity as a director and/or officer of the Corporation and/or an Affiliate.

**17. Resignation or Removal.** Nothing in this Indemnity will prevent an Indemnified Party from resigning as a director of the Corporation and/or an Affiliate. The obligations of the Corporation hereunder shall continue after and are not affected in any way by the Indemnified Party ceasing to be a a director of the Corporation and/or an Affiliate, whether by resignation, removal, death, incapacity, disqualification under applicable law, or otherwise.

**18. Insolvency.** The liability of the Corporation under this Agreement will not be affected, discharged, impaired, mitigated or released by the discharge or release of the Indemnified Party in any bankruptcy, insolvency, receivership or other similar proceeding of creditors.

**19. Time for Payment.** The Corporation will pay all amounts due to the Indemnified Party under this Agreement forthwith upon demand by the Indemnified Party.

**20. Severability.** If any term of this Agreement is determined to be invalid or unenforceable, in whole or in part, the invalidity or unenforceability will attach only to that term or part term, and the remaining part of that term and all other terms of this Agreement will continue in full force and effect. The parties will negotiate in good faith to agree to a substitute term that will be as close as possible to the intention of any invalid or unenforceable term while being valid and enforceable. The invalidity or unenforceability of any term in any particular jurisdiction will not affect its validity or enforceability in any other jurisdiction where it is valid or enforceable.

**21. Further Acts.** Each party agrees to do all such things and take all such actions as may be necessary or desirable to give full force and effect to the matters contemplated by this Agreement. No amendment to this Agreement will be valid or binding unless set forth in writing and executed by both the Corporation and the Indemnified Party.

Page 6 of 8

**22. Independent Legal Advice**. The Indemnified Party acknowledges that the Indemnified Party has been advised to obtain independent legal advice with respect to entering into this Agreement, that the Indemnified Party has had sufficient opportunity to obtain independent legal advice, and that the Indemnified Party is entering into this Agreement with full knowledge of the contents hereof, of the Indemnified Party's own free will and with full capacity and authority to do so.

**23. Enurement.** This Agreement enures to the benefit of the Indemnified Party and is binding upon the parties and their respective heirs, executors, administrators, legal representatives, successors and permitted assigns. This Agreement may not be assigned by the Corporation without the prior written consent of the Indemnified Party. For greater certainty, this Indemnity will be binding upon any successor to the Corporation resulting from any amalgamation, plan of arrangement or purchase or assignment of all or substantially all of the assets of the Corporation.

**24. Capacity.** The Indemnified Party is entering into this Agreement with full knowledge of the contents of it, of the Indemnified Party's own free will and with full capacity to do so.

**25. Time.** Time is of the essence of this Agreement.

**26. Arbitration.** Except as otherwise required by applicable law or expressly provided herein, all disputes, disagreements, controversies or claims arising out of or relating to this Agreement, including, without limitation, with respect to its formation, execution, validity, application, interpretation, performance, breach, termination or enforcement will be determined by arbitration before a single arbitrator under Chapter 171 of Title 7 of the Civil Practice and Remedies Code (Texas). The arbitrator will be selected by the audit partner of the auditor of the Corporation having regard to the nature of the dispute (legal, financial or other). The arbitrator will determine the rules for the arbitration, including, based on the outcome of the arbitration, the breakdown between the Corporation and the Indemnified Party of the costs for conducting the arbitration.

**27. Governing Law and Jurisdiction.** This Agreement will be governed by and construed in accordance with the laws of the Province of British Columbia and will be treated in all respects as a British Columbia contract.

**28. Previous Indemnities.** This Agreement is in addition to and not in substitution for any previous indemnity or indemnities which may have been given by the Corporation to the Indemnified Party and such previous indemnity or indemnities are unaffected hereby and will continue in full force and effect in accordance with their respective terms.

**29. Counterparts.** This Agreement may be executed in any number of counterparts (including counterparts by facsimile, email or other form of electronic transmission), each of which when so executed will be deemed to be an original and will have the same force and effect as an original but such counterparts together will constitute but one and the same agreement.

***[Signature page follows]***

 ****

Page 7 of 8

 ****

**IN WITNESS WHEREOF** this Agreement has been executed by the Corporation and the Indemnified Party on the date first written above.

**INTERNATIONAL BATTERY METALS LTD.**

---

| | |
|:---|:---|
| **Per:**<br>| |
|  | Name: |
|  | Title: |

---

 <br> Name: <br> Title:

*[Signature Page to the Indemnity Agreement]*

## Exhibit 10.26

**Exhibit 10.26**

 **FORM OF SUBSCRIPTION AGREEMENT FOR UNITS**

---

| | |
|:---|:---|
| **TO:** | **INTERNATIONAL BATTERY METALS LTD. (the "Corporation")** |

---

The undersigned (the "**Subscriber**") hereby irrevocably subscribes for and agrees to acquire the number of Units (as defined herein) set forth below for the aggregate subscription price set forth below (the "**Aggregate Subscription Price**"), representing a subscription price of C$0.26625 per Unit, upon and subject to the terms and conditions set forth in the "Terms and Conditions of Subscription for Units" attached hereto (the "**Terms and Conditions of Subscription**"). This agreement (this "**Subscription Agreement**") is comprised of this face page, the Corporation's signature page (page 2 hereof), the Terms and Conditions of Subscription and the Exhibits hereto.

---

| | |
|:---|:---|
| **Number of Units:** | [ ] (Aggregate of 25,765,258) |

---

---

| | |
|:---|:---|
| **Aggregate Subscription Price:** | C$(Aggregate of C$6,860,000) |

---

<u> [Name of Encompass Entity] </u> <br> (Name of Subscriber - please print)

---

| | |
|:---|:---|
| By: | /s/ Syed Kazmi |
|  | (Authorized Signature) |

---

---

| |
|:---|
| CFO & COO of Encompass Capital Advisors LLC, its Investment Manager |
| (Official Capacity or Title - please print) |
| 200 Park Avenue, Suite 1604 |
| (Subscriber's Residential Address) |
| New York, NY 10166 |
| (Subscriber's Residential Address) |
| [\*\*\*] |
| (Telephone Number) |
| [\*\*\*] |
| (E-Mail Address) |

---

**By executing this Subscription Agreement, you are consenting to the collection, use and disclosure of information in the manner described in the privacy notices in Section 11 of this Subscription Agreement.**

**The Subscriber is ☒ or is not ☐ an "Insider" of the Corporation.**

**The Subscriber is ☐ or is not ☒ a "Registrant".**

**The Subscriber is ☐ or is not ☒ a member of the "Pro Group".**

**(as such terms are defined herein)**

---

| |
|:---|
| **<u>Deliver the Units as set forth below:</u>** |
| [Name of Encompass Entity]. |
| (Name of Recipient) |
| (Account reference, if applicable) |

---

<u>Syed Kazmi</u> <u><u>[\*\*\*]</u></u> <br> (Contact Name) (Telephone)

---

| |
|:---|
| 200 Park Avenue, Suite 1604 |
| (Address) |
| New York, NY 10166 |
| (Address continued, including postal code) |

---

---

| |
|:---|
| **<u>Register the Units as set forth below:</u>** |
| Encompass Capital E L Master Fund L.P. |
| (Registration Name) |
| (Registration Name continued) |

---

---

| |
|:---|
| 200 Park Avenue, Suite 1604 |
| (Address) |
| New York, NY 10166 |
| (Address continued, including postal code) |

---

**The Subscriber owns, directly or indirectly, the following number and type of securities of the Corporation: [ ] Common Shares; [ ] Common Share purchase warrants_______________** 

**[*Remainder of page intentionally left blank. The Corporation's signature page follows.*]**

**ACCEPTANCE:** The Corporation hereby accepts the subscription set forth above on the terms and conditions contained in this Subscription Agreement.

**ACCEPTED AS OF** July 20 , 2025.

---

| | |
|:---|:---|
| **INTERNATIONAL BATTERY METALS LTD.** | **INTERNATIONAL BATTERY METALS LTD.** |
| By: | /s/ Joseph Mills |
|  | Authorized Signatory |

---

**INVESTOR INSTRUCTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Please
 make sure you properly complete and duly execute the **face page** of the Subscription Agreement.

2. One
 properly completed and duly executed copy of an Accredited Investor Certificate (US) in the form attached to this Subscription Agreement
 as **Exhibit 1**.

3. A
 fully executed and completed Representation Letter in the form attached hereto as **Exhibit 2** including **Appendix A** indicating
 that the Subscriber satisfies one of the categories therein.

4. if
 the Subscriber is an "accredited investor" and a person purchasing under paragraph (m) of the definition of "accredited
 investor" as set forth in **Appendix A to Exhibit 2**, a fully executed and completed *Statement of Accredited Investor - Person* in the form attached hereto as **Exhibit 3**.

5. Return
 this executed Subscription Agreement and all applicable Exhibits attached hereto, together with payment, to the Corporation.

**TERMS AND CONDITIONS OF SUBSCRIPTION FOR UNITS**

**Terms of the Subscription for Units**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Subscriber, on its own behalf and on behalf of any disclosed principal for whom the Subscriber is contracting under this Subscription
 Agreement (a "**Disclosed Beneficial Purchaser** "), hereby tenders to the Corporation this Subscription Agreement
 which confirms the Subscriber's irrevocable subscription for and its agreement to purchase from the Corporation the number
 of Units set out on the face page hereof, all on the terms and subject to the conditions set out in this Subscription Agreement.

2. The
 Subscriber acknowledges and agrees (on its own behalf and, if applicable, on behalf of each person on whose behalf the Subscriber
 is contracting) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 purchased Units form part of a non-brokered offering (the "**Offering**") of Units for aggregate proceeds of US$5,000,000
 at a price per Unit equal to C$0.26625 per Unit. Each Unit is comprised of one Unit Share (as defined below) and one Unit Warrant
 (as defined below), with each Unit Warrant entitling the holder to purchase one Warrant Share at an exercise price of C$$0.355 per
 Warrant Share for a period of three years from the date of issuance upon payment of the applicable exercise price under such Warrants.
 The Warrants will be created and issued pursuant to a warrant certificate (the "**Warrant Certificate**") to be issued
 by the Corporation to the Subscriber on the Closing Date. The specific attributes of the Warrants will be set forth in the Warrant
 Certificate;

(b) for
 the purposes of determining the number of Units to be issued at Closing, the Offering amount will be deemed to be converted into
 Canadian dollars at the US$ to C$ exchange rate set by the Corporation's principal bank as of the date immediately preceding
 the date this Subscription Agreement is fully executed;

(c) this
 subscription is subject to rejection or allotment by the Corporation in whole or in part. If this subscription is rejected in whole,
 any cheques or other forms of payment delivered to the Corporation representing the Aggregate Subscription Price will be promptly
 returned to the Subscriber without interest or deduction; and

(d) the
 business, operations and affairs of the Corporation are subject to a number of risk factors, which are described in publicly available
 documents prepared by the Corporation and filed with applicable securities regulatory authorities in Canada.

**Definitions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. In
 this Subscription Agreement, the following words have the following meanings unless otherwise indicated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Aggregate Subscription Price**" has the meaning ascribed thereto on the face page hereof;

(b) "**Amended and Restated Registration Rights Agreement**" has the meaning ascribed thereto in Section 8(a)6(vi);

(c) "**Applicable Securities Laws**" means, as applicable, any and all securities laws including, statutes, rules, regulations, by-laws, policies,
 guidelines, orders, decisions, rulings and awards of the securities regulators in each of the jurisdictions where the Units are sold,
 and the policies of the TSXV;

(d) "**Closing Date**" has the meaning ascribed thereto in Section 7;

(e) "**Closing Time**" has the meaning ascribed thereto in Section 7;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Common Shares**" means common shares in the capital of the Corporation;

(g) "**Control Person**" has the meaning given to such term under the *Securities Act* (Ontario).

(h) "**Corporation IP**" means the Intellectual Property that is necessary and material to the business of the Corporation and its subsidiaries
 as presently conducted or as proposed to be conducted (and as described in the Public Record) and that is owned by and has been developed
 by or for, or is being developed by or for, the Corporation or its subsidiaries, as the case may be, other than Licensed IP;

(i) "**DRS Statement**" means an ownership statement representing Unit Shares;

(j) "**Encompass** "
 has the meaning ascribed thereto in Section 8(a);

(k) "**Environmental Laws**" means all applicable federal, provincial, state, local, municipal or foreign statute, law, rule, regulation, ordinance,
 code, legally binding policy or rule of common law or civil law or any judicial or administrative interpretation thereof, including
 any judicial or administrative order, consent, decree or judgment, relating to pollution or protection of human health, the environment
 (including, without limitation, occupational health and safety, product safety or liability, ambient air, surface water, groundwater,
 land surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened
 release of Hazardous Materials or to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling
 of Hazardous Materials;

(l) "**Environmental Permits**" includes all orders, permits, certificates, approvals, consents, registrations and licences issued by any authority
 of competent jurisdiction under any Environmental Law;

(m) "**Governmental Body**" means any federal, provincial, state, municipal, county or regional governmental or quasi-Governmental Body, domestic
 or foreign, and includes any ministry, department, court, tribunal, arbitral body, commission, bureau, board, administrative or other
 agency or regulatory body or instrumentality thereof, any quasi-governmental body or private body exercising regulatory, expropriation
 or taxing authority under or for the account, if any, of the foregoing and any self-regulatory authority and, for greater certainty,
 includes the TSXV and any securities commissions or other securities regulatory authorities in Alberta, British Columbia or Ontario;

(n) "**Hazardous Materials**" means chemicals, pollutants, contaminants, asbestos, wastes, toxic substances, hazardous substances, petroleum
 or petroleum products;

(o) "**individual** "
 means a natural person, but does not include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 partnership, unincorporated association, unincorporated syndicate, unincorporated organization or a trust, or

(ii) a
 natural person in the person's capacity as trustee, executor, administrator or other legal representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Insider** "
 means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 director or an officer of an issuer;

(ii) a
 director or an officer of a company that is itself an insider or a subsidiary of an issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a
 person that has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) beneficial
 ownership of, or control or direction over, directly or indirectly; or

(B) a
 combination of beneficial ownership of, and control or direction over, directly or indirectly,

securities of an issuer carrying more than 10% of the voting rights attached to all the issuer's outstanding voting securities, excluding, for the purpose of the calculation of the percentage held, any securities held by the person as underwriter in the course of distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an
 issuer that has purchased, redeemed or otherwise acquired a security of its own issue, for so long as it continues to hold that security;

(v) a
 person designated as an insider in an order made under Applicable Securities Laws; or

(vi) a
 person that is in a prescribed class of persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Intellectual Property**" means any of the following, as they exist anywhere in the world, whether registered or unregistered: all trade
 or brand names, business names, trademarks, service marks, copyrights, patents, patent rights, licenses, industrial designs, know-how
 (including trade secrets and other unpatented or unpatentable proprietary or confidential information, systems or procedures), software,
 inventions, designs and other industrial or intellectual property of any nature whatsoever;

(r) "**knowledge of the Corporation**" (or similar phrases) means actual knowledge, after due enquiry, of the Chief Executive Officer and
 Chief Financial Officer of the Corporation;

(s) "**Licensed IP**" means the Intellectual Property that is necessary and material to the business of the Corporation as presently conducted
 or as proposed to be conducted (and as described in the Public Record) and that is owned by any person other than the Corporation,
 and for which the Corporation is licensed to practice or use;

(t) "**Material Adverse Effect**" means any event, occurrence, fact, condition, change or effect that is, or would reasonably be expected
 to become, individually or in the aggregate, materially adverse to the business, properties, assets, liabilities, results of operations,
 or condition (financial or otherwise) of the Corporation or to the ability of the Corporation to consummate timely the transactions
 contemplated hereby; provided, however, that "Material Adverse Effect" shall not include any event, occurrence, fact,
 condition, change or effect, arising out of: (i) changes in GAAP or applicable law, (ii) changes resulting from acts of terrorism
 or war (whether or not declared) or from the engagement in hostilities (or the worsening thereof), (iii) changes resulting from earthquakes,
 hurricanes, drought, weather, epidemics, pandemics, wildfires or other natural disasters or acts of God, (iv) general changes in
 political or economic conditions, (v) general changes in financial, banking or securities markets, (vi) changes resulting from the
 public announcement or pendency of the transactions contemplated by this Agreement, including the impact thereof on relationships,
 contractual or otherwise, with customers, suppliers, vendors or employees, (vii) any failure by the Corporation to meet any internal
 or external projections, forecasts or estimates of revenues or earnings (it being understood that this clause (vii) shall not prevent
 a determination that any change, in and of itself, underlying such failure to meet projections, forecasts or estimates has resulted
 in a Material Adverse Effect), and (viii) changes resulting from compliance with the terms of this Agreement; provided, however that
 any event, occurrence, fact, condition, change or effect referred to in clauses (i) through (v) above shall be taken into account
 in determining whether a Material Adverse Effect has occurred or would reasonably be expected to occur to the extent such event,
 occurrence, fact, condition, change or effect has a disproportionate or negative effect on the Corporation compared to other persons
 or businesses that operate in the industry in which the Corporation operates or conducts its business (it being understood that any
 such event, occurrence, fact, condition, change or effect that adversely impacts a material portion of the Corporation's properties
 or assets shall be deemed to be a Material Adverse Effect);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**NI 45-106**" means National Instrument 45-106 - Prospectus Exemptions;

(v) "**Offering** "
 has the meaning ascribed thereto in Section 2(a);

(w) "**person** "
 includes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an
 individual,

(ii) a
 corporation,

(iii) a
 partnership, trust, fund and an association, syndicate, organization or other organized group of persons, whether incorporated or
 not, and

(iv) an
 individual or other person in that person's capacity as a trustee, executor, administrator or personal or other legal representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Pro Group**" has the meaning ascribed thereto in the policies of the TSXV;

(y) "**Public Record**" means all information filed by or on behalf of the Corporation with a securities regulatory authority in Canada
 that is accessible to the public on the Corporation's profile at www.sedarplus.ca;

(z) "**Registrant** "
 means a person registered or required to be registered under Applicable Securities Laws;

(aa) "**Securities** "
 means, collectively, the Units, the Unit Shares, the Unit Warrants and the Warrant Shares;

(bb) "**Securities Act**" means the U.S. Securities Act of 1933, as amended.

(cc) "**Subscriber** "
 has the meaning ascribed thereto on the face page hereof;

(dd) "**Subsidiary** "
 and "**Subsidiaries**" have the meanings ascribed thereto in Section 5(i);

(ee) "**Subscription Agreement**" has the meaning ascribed thereto on the face page hereof;

(ff) "**Terms and Conditions of Subscription**" has the meaning ascribed thereto on the face page hereof;

(gg) "**Transaction Documents**" means, collectively, this Subscription Agreement, the Amended and Restated Registration Rights Agreement, the
 Warrant Amendment and the Warrant Certificate;

(hh) "**TSXV** "
 means TSX Venture Exchange;

(ii) "**Unit Shares**" means the Common Shares comprising the Units;

(jj) "**Unit Warrants**" means the Common Share purchase warrants of the Corporation comprising the Units, exercisable for a period of
 three years from the date of issuance at a price of C$0.355 per Warrant Share, the terms and conditions of which will be set out
 in the Warrant Certificates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "**Units** "
 means units of the Corporation, each comprised of one Unit Share and one Unit Warrant;

(ll) "**United States**" means the United States of America, its territories and possessions, any state of the United States, and the District
 of Columbia;

(mm) "**U.S. GAAP**" means United States Generally Accepted Accounting Principles;

(nn) "**U.S. Person**" means a "U.S. person" as such term is defined in Rule 902(k) of Regulation S under the U.S. Securities
 Act;

(oo) "**U.S. Securities Act**" means the United States Securities Act of 1933, as amended;

(pp) "**Warrant Amendment**" has the meaning
 ascribed thereto in Section 8(b);

(qq) "**Warrant Certificate**" has the meaning ascribed thereto in Section 2(a); and

(rr) "**Warrant Shares**" means the Common Shares issuable upon exercise of the Unit Warrants.

**Representations, Warranties and Covenants by Subscriber**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The
 Subscriber represents, warrants to and covenants to the Corporation (and acknowledges that the Corporation is relying thereon), both
 at the date hereof and at the Closing Time, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subscriber
 is organized under the laws of Cayman Islands and the Subscriber certifies that it is not a U.S. Person;

(b) it
 is resident in the jurisdiction indicated on the face page of this Subscription Agreement as the "**Subscriber's Residential Address**" and the purchase by and sale to the Subscriber of the Units and any act, solicitation, conduct or negotiation
 directly or indirectly in furtherance of such purchase and sale has occurred only in such jurisdiction;

(c) Subscriber
 is purchasing the Units as an "accredited investor", as defined in Rule 501(a) under the Securities Act and NI 45-106,
 and is relying on an exemption from any prospectus or securities registration or similar requirements under the applicable securities
 laws of the jurisdiction it is resident in or any other securities laws to which the Subscriber is otherwise subject;

(d) it
 is not a Control Person of the Corporation, will not become a Control Person of the Corporation by acquiring the number of Units
 acquired pursuant to this Subscription Agreement and does not intend to act jointly or in concert with any other person to form a
 control group in respect of the Corporation;

(e) Subscriber
 is knowledgeable of, and has been independently advised as to, the securities laws of the jurisdiction it is resident in or any other
 securities laws to which the Subscriber is acting hereunder are otherwise subject, and has had the opportunity to ask questions and
 receive answers concerning the offering and terms and conditions of the offering and it has had access to such information concerning
 the Corporation as it has considered necessary or appropriate in connection with its investment decision to acquire the Units;

(f) Subscriber
 (i) has knowledge and experience in financial and business matters and is capable of evaluating the merits and risks of an investment
 in the Corporation and of making an informed investment decision with respect thereto and (ii) further understands that its investment
 in the Corporation involves a high degree of risk and is able to bear the economic risk of such investment for an indefinite period
 of time, including the risk of a complete loss of the Subscriber's investment in such Units. Subscriber (i) has been provided
 with access to all information concerning the Securities, the Corporation and its Subsidiaries, as it has requested and has had an
 opportunity to ask questions of management of the Corporation and its Subsidiaries, (ii) understands that information with respect
 to the existing business and historical operating results of the Corporation and its Subsidiaries and estimates and projections as
 to future operations involve significant subjective judgment and analysis, which may or may not be correct, (iii) has not relied
 on any Person in connection with its investigation of the accuracy or sufficiency of such information or its investment decision,
 and (iv) acknowledges that, on the date hereof, the Corporation cannot, and does not, make any representation or warranty as to the
 accuracy of the information concerning the future results of the Corporation or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) it
 is subscribing for the Units as principal for its own account and not for the benefit of any other person (within the meaning of
 Applicable Securities Laws), for investment purposes, and not with a view to the resale or distribution of all or any of the Securities
 in violation of United States federal or state securities laws, and this Subscription Agreement has been duly authorized, executed
 and delivered by or on behalf of the Subscriber;

(h) Subscriber
 acknowledges that the Securities are "restricted securities" as defined in Rule 144 promulgated under the Securities
 Act and that the certificates, or book entries if the held via DRS, representing the Unit Shares and Unit Warrants shall bear the
 following legends pursuant to applicable Canadian and United States securities laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE [THE DATE WHICH IS FOUR MONTHS AND ONE DAY FOLLOWING CLOSING].** 

(ii) **THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY: (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) IN ACCORDANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY (1) RULE 144 THEREUNDER, IF AVAILABLE, OR (2) RULE 144A THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY STATE SECURITIES LAWS, (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS OR (E) AS IT RELATES TO THE SECURITIES ISSUABLE UPON EXERCISE HEREOF, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS.** 

 

*provided, that* if such Securities are being sold in accordance with the requirements of Rule 904 of Regulation S ("**Regulation S**") promulgated under the U.S. Securities Act, as referred to above, and in compliance with local laws and regulations, the legend may be removed by providing a declaration to the Corporation and its transfer agent for such Securities, in the form attached hereto as **Exhibit 4** (or such other form as the Corporation may prescribe from time to time);

*notwithstanding the foregoing*, the Corporation's transfer agent may impose additional requirements for the removal of legends from Securities sold in accordance with Rule 904 of Regulation S in the future;

*provided further*, that, if any such Securities are being sold pursuant to Rule 144 under the U.S. Securities Act, the legend may be removed by delivery to the Corporation and its transfer agent for such Securities of an opinion of counsel of recognized standing reasonably satisfactory to the Corporation to the effect that such legend is no longer required under applicable requirements of the U.S. Securities Act or applicable state securities laws, it being understood that the Corporation shall in all events comply with the terms of the Amended and Restated Registration Rights Agreement and cause its legal counsel to provide any legal opinion in accordance with the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) it
 confirms that neither the Corporation nor any of its directors, officers, employees or representatives have made any representations
 (oral or written) to the Subscriber:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) that
 any person will resell or repurchase the Units;

(ii) that
 any person will refund any portion of the purchase price of the Units; or

(iii) as
 to the future price or value of the Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) if
 required by Applicable Securities Laws, regulations, rules, policies or orders or by any securities commission, stock exchange (including
 the TSXV) or other regulatory authority, the Subscriber will execute, deliver, file and otherwise assist the Corporation in filing
 such reports, undertakings and other documents with respect to the issue of the Units; and

(k) none
 of the funds the Subscriber is using to purchase the Units are proceeds obtained or derived, directly or indirectly, as a result
 of illegal activities and the Aggregate Subscription Price which will be advanced by the Subscriber to the Corporation hereunder
 will not represent proceeds of crime for the purposes of the *Proceeds of Crime (Money Laundering) and Terrorist Financing Act* (Canada) (the "**PCMLA**") and the Subscriber acknowledges that the Corporation may in the future be required
 by law to disclose the Subscriber's name and other information relating to this Subscription Agreement and the Subscriber's
 subscription hereunder, on a confidential basis, pursuant to the PCMLA. To the best of its knowledge, none of the subscription funds
 to be provided by the Subscriber: have been or will be derived from or related to any activity that is deemed criminal under the
 law of Canada or the United States; or are being tendered on behalf of a person or entity who has not been identified to the Subscriber.

**Representations, Warranties, Covenants and Acknowledgements by the Corporation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The
 Corporation represents, warrants to and covenants with the Subscriber (and acknowledges that the Subscriber is relying thereon),
 both at the date hereof and at the Closing Time, except as otherwise disclosed in the Public Record, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Corporation and each Subsidiary is a corporation duly incorporated and validly existing under the laws of the respective jurisdiction
 of incorporation for such entity, and has all necessary corporate power and authority to own, lease and operate its properties and
 assets, to carry on its business as it is currently conducted and proposed to be conducted as disclosed in the Public Record, to
 enter into and perform its obligations under this Subscription Agreement, and any other material agreement to which it is a party,
 to undertake the Offering and all other transactions contemplated herein and is not in default of its corporate filings, and, to
 the knowledge of the Corporation, no steps or proceedings have been taken by any person, voluntary or otherwise, requiring or authorizing
 its dissolution or winding-up;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Corporation has all requisite corporate power, authority and capacity to enter into this Subscription Agreement and to perform the
 transactions contemplated herein, including, without limitation, the issuance of the Common Shares, the Warrants, and the Warrant
 Shares issuable upon exercise of the Warrants;

(c) at
 the Closing Time, all consents, approvals, permits, authorizations or filings as may be required to be made or obtained by the Corporation
 under applicable securities laws and the rules and regulations of the TSXV necessary for the execution and delivery of this Subscription
 Agreement and the creation, issuance and sale, as applicable, of the Common Shares, the Warrants and the Warrant Shares, as applicable,
 and the consummation of the transactions contemplated hereby, will have been made or obtained, as applicable (other than the filing
 of reports required under Applicable Securities Laws within the prescribed time periods and the filing of standard documents with
 the TSXV, which documents shall be filed as soon as practicable after the applicable Closing Date and, in any event, within 10 calendar
 days of the applicable Closing Date or within such other deadline imposed by Applicable Securities Laws or the TSXV);

(d) the
 Common Shares, the Warrants and the Warrant Shares issuable upon the conversion or exercise of the Warrants, as applicable, have
 been authorized and reserved and allotted for issuance;

(e) at
 the Closing, the Common Shares and the Warrants will be duly and validly issued and created;

(f) upon
 the due exercise of the Warrants in accordance with the respective provisions thereof, the Warrant Shares will be duly and validly
 issued as fully paid and non-assessable Common Shares on payment of the exercise price therefor;

(g) at
 the Closing, each of the Transaction Documents shall have been duly authorized and executed and delivered by the Corporation and
 upon such execution and delivery, and assuming the Transaction Documents are valid, legal and binding obligations of the other parties
 hereto or thereto, each shall constitute a valid and binding obligation of the Corporation, enforceable against the Corporation in
 accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and
 other laws relating to or affecting the rights of creditors generally and except as limited by the application of equitable principles,
 and by the fact that rights to indemnity, contribution and waiver, and the ability to sever unenforceable terms, may be limited by
 applicable law;

(h) the
 execution and delivery of the Transaction Documents, the performance by the Corporation of its obligations thereunder (including,
 without limitation, the issuance of the Common Shares and Warrants comprising the Units, and the Warrant Shares issuable upon exercise
 of the Warrants) does not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or
 constitute a default under, (whether after notice or lapse of time or both), (i) any law applicable to the Corporation or the Subsidiaries
 (as defined below), including, without limitation, the securities laws and the policies, rules and regulations of the TSXV; (ii)
 the constating documents or resolutions of the directors or shareholders of the Corporation or the Subsidiaries which are in effect
 at the date hereof; (iii) any material mortgage, note, indenture, contract, agreement, joint venture, partnership, instrument, lease
 or other document to which the Corporation or the Subsidiaries are a party or by which they are bound; or (iv) any judgment, decree
 or order binding the Corporation, or the Subsidiaries, or its property, or assets;

(i) the
 Corporation has two subsidiaries, IBAT USA Inc., and Selective Adsorption Lithium, Inc. (the "**Subsidiaries** ", and
 each, a "**Subsidiary** ");

(j) the
 Corporation directly or indirectly controls all of the issued and outstanding shares of the Subsidiaries, such shares are free and
 clear of all encumbrances, claims or demands whatsoever and no person has any agreement, option, right or privilege (whether pre-emptive
 or contractual) capable of becoming an agreement, for the purchase from the Corporation or the Subsidiaries of any interest in any
 of the shares in the capital of the Subsidiaries other than Permitted Liens. All of the issued and outstanding shares of the Subsidiaries
 are outstanding as fully paid and non-assessable shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the
 corporate records and minute books of the Corporation are complete and accurate in all material respects and contain the minutes
 of all meetings and all resolutions of directors and shareholders of the Corporation (subject to ordinary course updating to be completed
 both before and after the Closing);

(l) the
 authorized capital of the Corporation consists of an unlimited number of common shares, of which 271,038,418 Common Shares are issued
 and outstanding as fully paid and non-assessable shares in the capital of the Corporation as at the date hereof (prior to giving
 effect to any securities issued pursuant to the Offering);

(m) other
 than pursuant to the provisions of this Subscription Agreement or as disclosed in the Public Record, as of the date hereof, no person,
 firm, corporation or other entity holds any securities convertible or exchangeable into securities of the Corporation or now has
 any agreement, warrant, option, right or privilege (whether pre-emptive or contractual) being or capable of becoming an agreement,
 option or right for the purchase, subscription or issuance of any unissued shares, securities (including convertible securities)
 or warrants of the Corporation other than (i) outstanding stock options issued to directors, officers, employees and key consultants
 of the Corporation under the Corporation's stock option plan exercisable into an aggregate of 10,069,402 Common Shares as at
 the date hereof, subject to adjustments in accordance with their terms; (ii) Common Share purchase warrants exercisable into an aggregate
 of 71,974,748 Common Shares as at the date hereof, subject to adjustments in accordance with their terms; and (iii) 5,805,630 restricted
 shares issued to directors, officers, employees and key consultants of the Corporation under the Corporation's stock option
 plan as at the date hereof;

(n) to
 the knowledge of the Corporation, there are no shareholders' agreements, voting trusts, proxy or other agreements governing
 the rights of shareholders of the Corporation other than the Investor Rights Agreement dated May 3, 2024 between the Corporation
 and EV Metals I LLC, EV Metals II LLC, EV Metals III LLC, EV Metals IV LLC, EV Metals V LLC, EV Metals VI LLC and EV Metals 7 LLC,
 Elegante Energy LLC, Perk Salar, LLC and JAW Puerto Rico Trust, as amended, an Amended and Restated Registration Rights Agreement
 dated July 20, 2025 between the Corporation and EV Metals VI LLC and the Amended and Restated Registration Rights Agreements dated
 July 20, 2025 between the Corporation and the Subscriber, on its own behalf and with respect to funds managed by it. Other than EV
 Metals 7 LLC and its subsidiaries or affiliates, holders of the outstanding Common Shares of the Corporation are not entitled to
 pre-emptive or other rights to subscribe for the Common Shares, including after exercise or conversion of any security or right to
 acquire any security;

(o) the
 Corporation and the Subsidiaries have conducted and are conducting their business in compliance in all material respects with all
 applicable laws of each jurisdiction in which their business is carried on and each is duly licensed, registered or qualified in
 all jurisdictions in which it owns, leases or operates its property or carries on business to enable its business to be carried on
 as it is now conducted and its property and assets to be owned, leased or operated, and all such licenses, registrations or qualifications
 are valid and existing and in good standing;

(p) all
 material agreements to which the Corporation and the Subsidiaries are a party are in good standing and in full force and effect and
 no material default or breach exists in respect of any of them on the part of the Corporation or the Subsidiaries, as applicable
 and, to the knowledge of the Corporation, no event has occurred which, after the giving of notice or the lapse of time or both would
 constitute such a default or breach and which would have a Material Adverse Effect;

(q) there
 has not been any material change in the consolidated assets, liabilities or obligations (absolute, contingent or otherwise) of the
 Corporation from the position set forth in the Public Record and there has not been any adverse material change in the business,
 operations, capital or condition (financial or otherwise) or results of the operations of the Corporation or the Subsidiaries since
 March 31, 2024, and since that date, except as publicly disclosed, there have been no material facts, transactions, events or occurrences
 relating directly to the Corporation or the Subsidiaries which could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) the
 Corporation and the Subsidiaries have not approved, are not contemplating, have not entered into, and have no knowledge of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 change of control (by sale or transfer of shares or sale of all or substantially all of the assets or otherwise) of the Corporation
 or the Subsidiaries;

(ii) a
 proposed or planned disposition of any securities by any Insider or any shareholder who owns, directly or indirectly, 5% or more
 of the issued and outstanding securities of the Corporation or the Subsidiaries; or

(iii) any
 written or oral agreement, option, understanding or commitment or any right or privilege capable of becoming such, for the purchase,
 sale, transfer or other disposition of any material property or assets or any interest therein owned directly or indirectly by the
 Corporation or the Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) no
 acquisitions or dispositions have been made by the Corporation in the three most recently completed fiscal years that are "significant
 acquisitions" or "significant dispositions", and the Corporation and the Subsidiaries are not a party to and have
 not approved the entering into of any contract or agreement with respect to any acquisition or disposition of material property or
 assets which would require disclosure under Applicable Securities Laws;

(t) as
 at the date hereof, the Corporation has no reason to believe that any person intends to cease dealing with the Corporation or the
 Subsidiaries on substantially the same terms as such person presently deals with the Corporation or the Subsidiaries, which may have
 or result in a Material Adverse Effect;

(u) the
 Corporation and each Subsidiary has good title to all real, immovable, personal and movable properties owned by it, free and clear
 of all liens of any kind;

(v) other
 than as disclosed in the Public Record, there are no actions, suits, judgements, proceedings, investigations or inquiries of any
 kind whatsoever outstanding, pending or to the knowledge of the Corporation or the Subsidiaries, threatened against or affecting
 the Corporation or the Subsidiaries at law or in equity or before or by any federal, provincial, municipal or other governmental
 department, commission, board, bureau, agency or instrumentality, which could have a Material Adverse Effect, and the Corporation
 has no knowledge of any basis on which any such matter might be commenced with any reasonable likelihood of success;

(w) the
 Corporation has not, directly or indirectly, declared or paid any dividend or declared or made any other distribution on any of its
 securities of any class, and have not directly or indirectly, redeemed, purchased or otherwise acquired any of its Common Shares
 or securities or agreed to do so. Other than restrictions under Applicable Securities Laws, other than the Transaction Documents,
 there is no restriction on or impediment to the declaration or payment of any dividend or other distribution on the Common Shares
 in the constating documents of the Corporation or in any agreement, mortgage, note, debenture, indenture or other instrument or document
 to which the Corporation is party;

(x) other
 than as disclosed in the Public Record, the Corporation and the Subsidiaries do not owe any material amount to, nor has the Corporation
 or the Subsidiaries made any present loans to, or borrowed any amount from or is otherwise indebted to, any officer, director, employee
 or security holder of the Corporation or the Subsidiaries or any of its affiliates or any person not dealing at "arm's-length"
 (as such term is defined in the *Income Tax Act* (Canada)) with any of them except for usual employee reimbursements and compensation
 paid in the ordinary and normal course of its business. Except for usual arrangements made in the ordinary and normal course of the
 business and other than as disclosed in the Public Record, the Corporation and the Subsidiaries are not a party to any material contract,
 agreement or understanding with any officer, director, employee or security holder of the Corporation or the Subsidiaries or any
 of its affiliates or any other person not dealing at arm's-length with the Corporation or the Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) policies
 of insurance issued by insurers of recognized financial responsibility are maintained in respect of the operations, properties and
 assets, employees, directors and officers of the Corporation and the Subsidiaries in such amounts and covering such risks as are
 prudent and customary in the Corporation's or the Subsidiaries' business. All such policies of insurance are in full
 force and effect and no material default exists under such policies of insurance as to the payment of premiums or otherwise under
 the terms of any such policy, there are no material claims by the Corporation or the Subsidiaries under any such policy or instrument
 as to which any insurance company is denying liability or defending under a reservation of rights clause; to the knowledge of the
 Corporation and the Subsidiaries, the Corporation and the Subsidiaries will be able to renew its existing insurance coverage as and
 when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business. The
 Corporation and the Subsidiaries have not been denied any insurance coverage which it has sought or for which it has applied;

(z) the
 Corporation is in compliance in all respects with its timely and continuous disclosure obligations under Applicable Securities Laws;

(aa) the
 audited consolidated financial statements of the Corporation as at and for the financial years ended March 31, 2024 and 2023, and
 the unaudited condensed consolidated interim financial statements of the Corporation for the three and nine months ended December
 31, 2024 and 2023 (collectively, the "**Financial Statements** "): (i) are, in all material respects, consistent with
 the books and records of the Corporation; (ii) have been prepared in accordance with U.S. GAAP consistently applied throughout the
 periods referred to therein; and (iii) present fairly, in all material respects, the financial position (including the assets and
 liabilities, whether absolute, contingent or otherwise as required by U.S. GAAP) of the Corporation as at such dates and the results
 of its operations and its cash flows for the periods then ended and contain and reflect adequate provisions or allowance for all
 reasonably anticipated liabilities, expenses and losses of the Corporation in accordance with U.S. GAAP and, there has been no change
 in accounting policies or practices of the Corporation since March 31, 2024, other than as required by U.S. GAAP and as disclosed
 in the Financial Statements. The Corporation is not aware of any fact or circumstance presently existing that would render such Financial
 Statements and financial information materially incorrect;

(bb) the
 Corporation maintains a system of internal accounting controls sufficient to provide reasonable assurances that transactions are
 executed in accordance with management's general or specific authorization, and transactions are recorded as necessary to permit
 preparation of financial statements in conformity with U.S. GAAP;

(cc) the
 auditors of the Corporation are, and were during the period covered by their report, independent public accountants as required under
 Applicable Securities Laws and there has never been a reportable disagreement (within the meaning of National Instrument 51-102 – *Continuous Disclosure Obligations*) between the Corporation and its auditors;

(dd) all
 taxes (including income tax, capital tax, payroll taxes, employer health tax, workers' compensation payments, property taxes
 and land transfer taxes), duties, royalties, levies, imposts, assessments, deductions, charges or withholdings and all liabilities
 with respect thereto including any penalty and interest payable with respect thereto (collectively, "**Taxes**") due
 and payable or required to be collected or withheld and remitted, by the Corporation and the Subsidiaries have been paid, collected
 or withheld and remitted as applicable, except for where the failure to pay such Taxes would not have a Material Adverse Effect.
 The Corporation has established on its books and records reserves that are adequate for the payment of all material Taxes not yet
 due and payable and there are no liens for Taxes on the assets of the Corporation or any Subsidiary that are material, and there
 are no audits pending of the tax returns of the Corporation or the Subsidiaries (whether federal, state, provincial, local or foreign).
 Except to the extent that failure to do so would not have a Material Adverse Effect, all tax returns, declarations, remittances and
 filings required to be filed by the Corporation and the Subsidiaries have been filed with all appropriate Governmental Bodies and
 all such returns, declarations, remittances and filings are complete and accurate and, no material fact or facts have been omitted
 therefrom which would make any of them misleading. To the knowledge of the Corporation, no examination of any tax return of the Corporation
 or the Subsidiaries is currently in progress and there are no issues or disputes outstanding with any Governmental Body respecting
 any taxes that have been paid, or may be payable, by the Corporation or the Subsidiaries. There are no agreements, waivers or other
 arrangements with any taxation authority providing for an extension of time for any assessment or reassessment of Taxes with respect
 to the Corporation or the Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) there
 are no off-balance sheet transactions, arrangements, obligations (including contingent obligations) or other relationships of the
 Corporation or the Subsidiaries with unconsolidated entities or other persons;

(ff) the
 Corporation does not have any liabilities, obligations, indebtedness or commitments, whether accrued, absolute, contingent or otherwise,
 which are not disclosed or referred to in the Public Record, including in the Financial Statements and the notes thereto;

(gg) the
 Corporation directly or indirectly holds the entire right, title and interest in and to all of the Corporation IP free and clear
 of all Liens other than Permitted Liens;

(hh) (i)
 the Corporation and its Subsidiaries have the exclusive and unfettered right to use the Corporation IP; (ii) all patents pending
 and registered trademarks included in the Corporation IP have been duly registered or applications to register the same have been
 filed in all appropriate offices and any such applications or registrations are in good standing; (iii) the Corporation holds three
 granted patents, eight published patents and two patent applications pending; (iv) the Corporation has the exclusive right to use
 the Licensed IP (other than commercial off-the-shelf software licensed to the Corporation); (v) all licenses to third parties of
 Corporation IP provide non-exclusive rights to use the relevant Intellectual Property; (vi) the Corporation is not a party to any
 agreement or commitment to pay any royalty or other fee to use the Licensed IP; (vii) the Corporation IP is valid and the rights
 of the Corporation in the Corporation IP are enforceable; (viii) all applications for registration of any Corporation IP are in good
 standing, stand in the name of the Corporation and have been filed in a materially timely manner in the appropriate offices to preserve
 the rights thereto and, in the case of a provisional application, the Corporation confirms that all right, title and interest in
 and to the invention(s) disclosed in such application have been assigned in writing (without any express right to revoke such assignment)
 to the Corporation, and the Corporation has prosecuted, and is prosecuting, such applications diligently; and (ix) all registrations
 of the Corporation IP are in good standing and are recorded in the name of the Corporation in the appropriate offices to preserve
 the rights thereto, and all such registrations have been filed, prosecuted and obtained in accordance with all applicable legal requirements
 and are currently in effect and in material compliance with all applicable legal requirements. No registration of the Corporation
 IP has expired, become abandoned, been cancelled or expunged, or has lapsed for failure to be renewed or maintained, except where
 such expiration, abandonment, cancellation, expungement or lapse would not materially impact the Corporation or its property or assets.
 The Corporation IP and the Licensed IP is all of the Intellectual Property used in or required for the proper carrying on of the
 business of the Corporation and the Corporation has not received any notice or claim (whether written, oral or otherwise) challenging
 its ownership or right to use of any Corporation IP or suggesting that any other person has any claim of legal or beneficial ownership
 or other claim or interest with respect thereto, nor, to the knowledge of the Corporation, is there a reasonable basis for any claim
 that any person other than the Corporation has any claim of legal or beneficial ownership or other claim or interest in any Corporation
 IP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 the Corporation's knowledge, neither the use of the Corporation IP nor the conduct of the business of the Corporation infringes
 or otherwise violates the Intellectual Property rights of any other person. To the best of the Corporation's knowledge, no
 infringement, misuse or misappropriation of the Corporation IP has occurred or is occurring, and to the Corporation's knowledge,
 there is no basis for any such claims;

(jj) all
 testing, product research and development activities, including quality assurance, quality control, testing, and research and analysis
 activities, conducted by the Corporation or the Subsidiaries in connection with its business is being conducted in compliance, in
 all respects, with all industry, laboratory safety, management and training standards applicable to its current and proposed business
 (as disclosed in the Public Record) and all such processes, procedures and practices, required in connection with such activities
 are in place as necessary and are being complied with, in all respects;

(kk) no
 union has been accredited or otherwise designated to represent any employees of the Corporation or the Subsidiaries and, to the knowledge
 of the Corporation and the Subsidiaries, no accreditation request or other representation question is pending with respect to the
 employees of the Corporation or the Subsidiaries and no collective agreement or collective bargaining agreement or modification thereof
 has expired or is in effect in any of the Corporation's or any Subsidiary's facilities and none is currently being negotiated
 by the Corporation or the Subsidiaries;

(ll) the
 Corporation and the Subsidiaries have satisfied all obligations under, and there are no outstanding defaults or violations with respect
 to, and no taxes, penalties, or fees are owing or eligible under or in respect of, any employee benefit, incentive, pension, retirement,
 stock option, stock purchase, stock appreciation, health, welfare, medical, dental, disability, life insurance and similar plans,
 arrangements or practices relating to the current or former employees, officers or directors of the Corporation or the Subsidiaries
 maintained, sponsored or funded by it, whether written or oral, funded or unfunded, insured or self-insured, registered or unregistered
 and all contributions or premiums required to be paid thereunder have been made in a timely fashion and any such plan or arrangement
 which is a funded plan or arrangement is fully funded on an ongoing and termination basis, except for any default, violation, tax,
 penalty or fee which, whether individually or in the aggregate, has not resulted in and would not reasonably be expected to result
 in a Material Adverse Effect;

(mm) there
 has not been and there is not currently any pending labour disruption, grievance, arbitration proceeding or other conflict by any
 current or former employee, consultant or agent of the Corporation or the Subsidiaries which could reasonably be expected to have
 a Material Adverse Effect and the Corporation and the Subsidiaries are in compliance with all provisions of all laws and regulations
 respecting employment and employment practices, terms and conditions of employment and wages and hours, except for noncompliance
 with any such provisions that would not have a Material Adverse Effect;

(nn) (i)
 the Corporation and each Subsidiary, its assets and properties and the operation of its business, have been and are, to the knowledge
 of the Corporation, in compliance in all material respects with all Environmental Laws; (ii) the Corporation and the Subsidiaries
 have complied in all material respects with all reporting and monitoring requirements under all Environmental Laws; and (iii) the
 Corporation and the Subsidiaries have never received any notice of any material non-compliance in respect of any Environmental Laws
 and there are no material Environmental Permits necessary to conduct the Business;

(oo) without
 limiting the generality of the subparagraph immediately above, the Corporation and the Subsidiaries are not aware of, nor have they
 received any notice of, any material claim, judicial or administrative proceeding, pending, threatened against or contemplated, or
 which may affect the Corporation or the Subsidiaries or any of its properties, assets or operations, relating to, or alleging any
 violation of any Environmental Laws, the Corporation and the Subsidiaries are not aware of any facts which could give rise to any
 such claim or judicial or administrative proceeding and the Corporation is not aware of any investigation, evaluation, audit or review
 by any Governmental Body of the Corporation or the Subsidiaries or any of its properties, assets or operations thereof to determine
 whether any violation of any Environmental Laws has occurred or is occurring or whether any remedial action is needed in connection
 with a release of any contaminant into the environment, except for compliance investigations conducted in the normal course by any
 Governmental Body, in each case which could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) there
 are no orders, rulings or directives issued, pending or, to the knowledge of the Corporation, threatened against the Corporation
 or the Subsidiaries under or pursuant to any Environmental Laws requiring any work, repairs, construction or capital expenditures
 with respect to the property or assets of the Corporation and the Subsidiaries;

(qq) the
 Corporation and the Subsidiaries are not subject to any contingent or other liability relating to the restoration or rehabilitation
 of land, water or any other part of the environment (except for those derived from normal production and exploration activities)
 or non-compliance with Environmental Laws;

(rr) the
 Corporation and the Subsidiaries have never been in violation of, in connection with the ownership, use, maintenance or operation
 of its property or assets, any applicable federal, provincial, state, municipal or local laws, by-laws, regulations, orders, policies,
 permits having the force of law, domestic or foreign, relating to environmental, health or safety matters which could reasonably
 be expected to have a Material Adverse Effect;

(ss) the
 Corporation and the Subsidiaries do not own any real property and the Corporation and the Subsidiaries have used any leased real
 property, or any facility which it previously owned or leased, to generate, manufacture, process, distribute, use, treat, store,
 dispose of, transport or handle any Hazardous Materials other than in compliance with Environmental Laws;

(tt) the
 Corporation is a reporting issuer in good standing in each of the Provinces of British Columbia, Alberta, and Ontario and (i) has
 no reasonable grounds to believe that it will not continue to be a reporting issuer in good standing in each such jurisdiction for
 at least 12 months following the Closing; (ii) is in compliance, including with respect to its Public Record, with all Applicable
 Securities Laws in all respects, except where any such non-compliance, whether individually or in the aggregate, would not constitute
 a Material Adverse Effect; (iii) the Corporation is not included on a list of defaulting reporting issuers maintained by the securities
 commissions of each such jurisdiction; (iv) the Public Record, as of each document's respective filing date, does not contain
 any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
 therein, in light of the circumstances under which they were made, not misleading as of the date made; and (v) has no current confidential
 material change reports;

(uu) no
 order ceasing or suspending trading in securities of the Corporation or prohibiting the sale of securities by the Corporation has
 been issued that remains outstanding, and, to its knowledge, no proceedings for this purpose have been instituted, are pending, contemplated
 or threatened by any securities commission or self-regulatory organization; the Corporation and the Subsidiaries are not in default
 of any material requirement of any Applicable Securities Laws, and the Corporation is entitled to avail itself of the applicable
 prospectus exemptions available under such Applicable Securities Laws in respect of the trades in its securities to the Subscriber
 as contemplated in this Subscription Agreement;

(vv) the
 outstanding Common Shares are listed and posted for trading on the TSXV, and all necessary notices and filings have been made with,
 and all necessary consents, approvals and authorizations have been obtained by the Corporation from, the TSXV to ensure that the
 Warrant Shares issuable upon exercise of the Warrants will be listed and posted for trading on the TSXV upon their issuance;

(ww) the
 Common Shares and Warrants comprising the Units and the Warrant Shares issuable upon exercise of the Warrants will not be subject
 to a restricted period or to a statutory hold period under Applicable Securities Laws or to any resale restriction under the policies
 of the TSXV which extends beyond four months and one day after the Closing Date, provided that any Common Shares and Warrants comprising
 the Units and the Warrant Shares issuable upon exercise of the Warrants issued to residents in the United States will be subject
 to a 12 month hold period under the applicable securities laws of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) the
 Corporation has not withheld, and will not withhold from the Subscriber prior to the Closing Time, any material facts relating to
 the Corporation, the Subsidiaries, or the Offering;

(yy) Computershare
 Trust Company of Canada, at its offices in Vancouver, British Columbia, has been duly appointed as registrar and transfer agent for
 the Common Shares;

(zz) the
 Corporation has not and will not provide to prospective purchasers any document or other material that would constitute an offering
 memorandum or future oriented financial information within the meaning of Applicable Securities Laws. The Corporation has not engaged
 in any form of general solicitation or general advertising in connection with the offer and sale of the Units, including but not
 limited to, causing the sale of the Units to be advertised in any newspaper, magazine, printed public media, printed media or similar
 medium of general and regular paid circulation, broadcast over radio, television or telecommunications, including electronic display,
 or conduct any seminar or meeting relating to the offer and sale of the Units whose attendees have been invited by general solicitation
 or advertising;

(aaa) there
 is no material fact known to the Corporation that has not been disclosed herein, or to the Subscriber, or in any other agreement,
 document or written instrument furnished by the Corporation to the Subscriber in connection with the transactions contemplated hereby
 and thereby and which has resulted in or would reasonably be expected to result in a Material Adverse Effect;

(bbb) all
 information which has been prepared by the Corporation relating to the Corporation, the Subsidiaries, and the business, properties
 and liabilities of the Corporation and the Subsidiaries that has been made available to the Subscriber, including all financial,
 marketing, sales and operational information provided to the Subscriber, as applicable, was, as of the date of such information,
 true and correct in all material respects, taken as a whole, and no fact or facts have been omitted therefrom which would make such
 information materially misleading and did not contain a misrepresentation;

(ccc) the
 forms and terms of the certificates representing the Common Shares and the Warrants have been approved and adopted by the board of
 directors of the Corporation and do not and will not conflict with any applicable laws, including Applicable Securities Laws; and

(ddd) The
 aggregate proceeds raised under the Offering shall be used by the Corporation for the deployment of the Corporation's modular
 direct lithium extraction plant and for general corporate purposes.

**Closing Conditions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. (a) The
 obligation of the Corporation to issue and sell to the Subscriber the Units subscribed for by the Subscriber hereunder, notwithstanding
 anything to the contrary contained in this Subscription Agreement, is subject to, among other things, the following conditions being
 fulfilled or performed on or before the Closing Time, which conditions are for the exclusive benefit of the Corporation and may be
 waived, in whole or in part, by the Corporation in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all
 of the terms, covenants, agreements and conditions of this Subscription Agreement for the benefit of the Corporation to be complied
 with or performed by the Subscriber on or before the Closing Time shall have been complied with or performed to the reasonable satisfaction
 of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 representations and warranties of the Subscriber in this Subscription Agreement having been true and correct in all material respects
 as of the date of this Subscription Agreement and being true and correct in all material respects at the Closing Time;

(iii) the
 Corporation accepting the Subscriber's subscription, in whole or in part;

(iv) the
 offer, sale and issuance of the Units being exempt from the prospectus requirements of Applicable Securities Laws;

(v) the
 Subscriber executing and delivering to the Corporation all reports, undertakings or other documents required under Applicable Securities
 Laws in connection with the offer, sale and issuance of the Units to the Subscriber;

(vi) the
 Transaction Documents and all other documentation relating to the offer, sale and issuance of the Units being in form and substance
 satisfactory to the Corporation; and

(vii) the
 Subscriber shall have delivered each of the closing deliverables set forth in Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 obligation of the Subscriber to consummate the transactions contemplated by this Subscription Agreement shall be subject to the fulfillment
 or Subscriber's waiver, at the Subscriber's sole discretion, on or before the Closing Time, of each of the following
 conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all
 of the terms, covenants, agreements and conditions of this Subscription Agreement for the benefit of the Subscriber to be complied
 with or performed by the Corporation on or before the Closing Time shall have been complied with or performed to the reasonable satisfaction
 of the Subscriber;

(ii) the
 representations and warranties of the Corporation in this Subscription Agreement having been true and correct in all material respects
 (other than those representations and warranties that are qualified by materiality or Material Adverse Effect, which representations
 and warranties shall be true and correct in all respects) as of the date of this Subscription Agreement and being true and correct
 in all material respects (other than those representations and warranties that are qualified by materiality or Material Adverse Effect,
 which representations and warranties shall be true and correct in all respects) at the Closing Time;

(iii) the
 Corporation executing and delivering to the Subscriber all reports, undertakings or other documents required under Applicable Securities
 Laws in connection with the offer, sale and issuance of the Units to the Subscriber;

(iv) the
 Corporation having obtained all required regulatory approvals (including any approvals that may be required under Applicable Securities
 Laws or by the TSXV) and third-party consents necessary to permit the completion of the transactions contemplated hereby;

(v) the
 Transaction Documents and all other documentation relating to the offer, sale and issuance of the Units being in form and substance
 satisfactory to the Subscriber;

(vi) the
 Corporation shall have delivered each of the closing deliverables set forth in Section 9; and

(vii) from
 the date of this Subscription Agreement, there shall not have occurred any Material Adverse Effect, nor shall any event or events
 have occurred that, individually or in the aggregate, with or without the lapse of time, could reasonably be expected to result in
 a Material Adverse Effect.

**Closing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The
 completion of the offer, sale and issuance of the Units as contemplated by this Subscription Agreement is expected to occur on or
 before August 8, 2025 and shall occur no later than two business days following the date on which all of the conditions set forth
 in Section 6 (other than those conditions that by their nature can only be satisfied on the Closing Date) have been satisfied or
 waived or on such other dates and at such time or times as the Corporation and the Subscriber may mutually agree in writing (the
 "**Closing Date**" and "**Closing Time** ", respectively), provided such date or dates are not later
 than the day mandated by the TSXV for the closing of the Offering.

8. The
 Subscriber agrees to deliver to the Corporation, or as the Corporation may direct, not later than the Closing Time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 copy of the Amended and Restated Registration Rights Agreement (the "**Amended and Restated Registration Rights Agreement** "),
 amending and restating the Registration Rights Agreement, dated May 3, 2024, by and among the Corporation and the Subscriber and
 certain of its affiliates ()"**Encompass** "), duly executed by the Subscriber;

(b) a
 copy of amendments to all of the warrants issued by the Corporation and currently held by Encompass extending the expiration of such
 warrants to the earlier of (i) the expiry date of the Unit Warrants or (ii) five years from the original date of issuance (the "**Warrant Amendment** "), duly executed by the Subscriber; and

(c) payment
 for the subscription price of the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. At
 the Closing Time, the Corporation shall deliver or cause to be delivered to the Subscriber:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 copy of the Amended and Restated Registration Rights Agreement, duly executed by the Corporation;

(b) a
 copy of the Warrant Certificate, duly executed by the Corporation;

(c) a
 copy of the Warrant Amendment, duly executed by the Corporation;

(d) customary
 legal opinions from the Corporation's counsel and ancillary closing documentation; and

(e) certificates
 (or copies thereof) and/or DRS Statements representing the Unit Shares and the Warrant Certificate representing the Unit Warrants
 acquired pursuant to this Subscription Agreement and registered as set out on the face page hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The
 Corporation shall be entitled to rely on delivery of a facsimile or portable document format ()"**PDF**") copy of executed
 subscriptions, and acceptance by the Corporation of such facsimile or PDF subscriptions shall be legally effective to create a valid
 and binding agreement between the Subscriber and the Corporation in accordance with the terms hereof. In addition, this Subscription
 Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which shall constitute one
 and the same document.

**Privacy**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The
 Subscriber acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) this
 Subscription Agreement requires the Subscriber to provide certain information to the Corporation, which may include personal information.
 Such information is being collected by the Corporation for the purposes of completing the Offering, which includes, without limitation,
 determining the Subscriber's eligibility to acquire the Units under Applicable Securities Laws, preparing and registering certificates
 and/or DRS Statements representing the Unit Shares and Unit Warrants to be issued to the Subscriber, if applicable, and completing
 filings required by any stock exchange or securities regulatory authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Subscriber's information may be disclosed by the Corporation, as required by applicable law, to: (i) stock exchanges or securities
 regulatory authorities; (ii) the Corporation's registrar and transfer agent; (iii) Canada Revenue Agency; and (iv) any of the
 other parties involved in the Offering, including legal counsel, and may be included in record books in connection with the Offering,
 and by executing this Subscription Agreement; provided, that in all cases where the Corporation proposes to make any release, disclosure,
 announcement, filing or application regarding the completion, nature or terms of this Offering and the transactions contemplated
 herein or any other agreement executed by the Subscriber or an affiliate of the Subscriber concurrently with this Offering, the Corporation
 will first advise the Subscriber of its intention to do so and the Corporation will use reasonable best efforts to enable the Subscriber
 to review and comment on such disclosure prior to the release thereof; and

(c) subject
 to the provisions of Section 11(b), the Subscriber acknowledges and agrees that it has been notified by the Corporation (i) of the
 delivery to the securities regulatory authority or regulator of the full legal name, full residential address, email address and
 telephone number of the Subscriber, the number and type of securities purchased, the total purchase price, the exemption relied upon,
 the date of distribution, whether the Subscriber is an Insider of the Corporation or a Registrant and the full legal name of the
 person compensated for distribution to the Subscriber (if any); (ii) that this information is being collected by the securities regulatory
 authority or regulator under the authority granted in securities legislation; (iii) that this information is being collected for
 the purposes of the administration and enforcement of the securities legislation of the local jurisdiction; and (iv) the title, business
 address and business telephone number of the public official who can answer questions about the security regulatory authority's
 or regulator's indirect collection of the information is as set out in **Exhibit 7**.

The Subscriber represents and warrants that it has the authority to provide the consents and acknowledgements set out in this Section 11.

**Right to Make Additional Investment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The
 Corporation hereby grants Encompass the right but not the obligation, exercisable by Encompass in its sole discretion, to purchase
 up to US$2,000,000 of additional Units of the Corporation (the "**Additional Investment** "). Such right shall be exercisable
 by Encompass at any time on or before December 31, 2025. The terms of the Additional Investment, including pricing, shall be at least
 as favorable for the Subscriber as such terms set forth in this Subscription Agreement and the other applicable Transaction Documents
 and terms offered by the Corporation to any other existing or future investors of the Corporation in respect of a private placement
 entered into or completed by the Corporation by December 31, 2025.

**General**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. The
 Subscriber agrees that the representations, warranties, covenants and acknowledgements made in this Subscription Agreement are made
 with the intent that they may be relied upon by the Corporation in determining the suitability of the Subscriber as an acquirer of
 Units and will be true and correct both as of the execution of this Subscription Agreement, as of the time this subscription is accepted
 and as of the Closing Date, and will survive the completion of the issuance of the Units. The Corporation agrees to indemnify and
 hold the Subscriber and each of its directors, officers, employees, advisors, affiliates, shareholders, members, partners, employees
 and agents harmless from any and all claims, demands, actions, causes of action or other liability, damages, or losses arising out
 of or incurred as a result of any breach of any of the representations, warranties, covenants or agreements made by the Corporation
 in this Subscription Agreement, or by reason of the Corporation's failure to fulfill any conditions of this Subscription Agreement,
 including the payment of reasonable legal fees and costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. This
 Subscription Agreement shall be terminated if the Offering is not consummated by November 15, 2025.

15. The
 Corporation will pay the reasonable incurred fees of legal counsel of Encompass, up to a maximum of C$60,000, plus applicable taxes
 and disbursements in connection with the Offering, Warrant Amendments and the Amended and Restated Registration Rights Agreement.
 Such expenses will be paid by the Corporation even if the Offering is not completed or this Subscription Agreement is terminated,
 and shall be payable within 10 days following the Closing Date or the termination of the Offering, as applicable.

16. The
 Subscriber acknowledges and agrees that, other than as set out in Section 13 above, all costs incurred by the Subscriber (including
 any fees and disbursements of any counsel retained by the Subscriber) relating to the issuance of the Units to the Subscriber, the
 Warrant Amendments or the Amended and Restated Registration Rights Agreement shall be borne by the Subscriber.

17. This
 Agreement shall be governed by and construed in accordance with the laws of the State of New York. Each party agrees that any legal
 action relating to its obligations under or arising out of this Agreement shall be brought in the Courts of the State of New York
 sitting in the County of New York and the Courts of the United States of America for the Southern District of New York, and each
 party hereby accepts and submits to the exclusive jurisdiction of these courts.

18. In
 this Subscription Agreement, references to "$" or "C$" are to Canadian dollars and references to US$ are
 to United States dollars.

19. This
 Subscription Agreement represents the entire agreement of the parties hereto relating to the subject matter hereof and there are
 no representations, covenants or other agreements relating to the subject matter hereof except as stated or referred to herein. Time
 shall be of the essence hereof.

20. The
 representations and warranties made by the Subscriber in this Subscription Agreement shall survive the closing of the transactions
 contemplated hereby for the benefit of the Corporation. The representations and warranties made by the Corporation in this Subscription
 Agreement shall survive the closing of the transactions contemplated hereby for the benefit of the Subscriber. The terms and provisions
 of this Subscription Agreement shall be binding upon and enure to the benefit of the Subscriber and the Corporation and their respective
 heirs, executors, administrators, successors and assigns; provided that, except as otherwise herein provided, this Subscription Agreement
 shall not be assignable by any party without prior written consent of the other party, except that the Corporation agrees that the
 Subscriber can assign this Subscription Agreement, its rights hereunder and its obligation to acquire all or any portion of the Units
 to be purchased hereunder to one or more fund entities and managed accounts for which Encompass Capital Advisors LLC exercises investment
 discretion upon written notice (which may be by email) to the Corporation and, upon any such assignment, the assignee and the Corporation
 will enter into a subscription agreement on the same terms as this Subscription Agreement in respect of such assigned Units to be
 purchased hereunder and the Subscriber's obligation to purchase such Units hereunder will be reduced accordingly. For the avoidance
 of doubt, in no event will the total number of Units to be purchased under this Subscription Agreement and under all other subscription
 agreements having the same terms as this Subscription Agreement exceed 25,765,259 Units.

21. Except
 as otherwise provided herein, this Subscription Agreement may only be amended by the parties hereto in writing.

22. The
 invalidity, illegality or unenforceability of any provision of this Subscription Agreement shall not affect the validity, legality
 or enforceability of any other provision hereof.

23. Nothing
 herein shall constitute or be construed to constitute a partnership of any kind whatsoever between the Subscriber and the Corporation.

24. The
 headings used in this Subscription Agreement have been inserted for convenience of reference only and shall not affect the meaning
 or interpretation of this Subscription Agreement or any provision hereof.

## Exhibit 10.29

**Exhibit 10.29**

**Execution Version**

**(EV Metals)**

**AMENDED AND RESTATED**

**REGISTRATION RIGHTS AGREEMENT**

THIS AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this **"Agreement")** is made as of the July 20, 2025, by and among International Battery Metals Ltd., a corporation existing under the laws of the Province of British Columbia (the **"Company"**), and each of the investors listed on the signature page hereto, each of which is referred to in this Agreement as an **"Investor."**

**<u>RECITALS</u>**

**WHEREAS,** the Investors and the Company previously entered into a Registration Rights Agreement, dated as of May 3, 2024 (the **"Original Agreement"**), with respect to the registration of securities issued in the 2024 Private Placement Transactions (including Common Stock, the 2024 Private Placement Warrants and Common Stock issuable pursuant to such warrants);

**WHEREAS**, concurrently with the execution of the Original Agreement, the Company executed a Registration Rights Agreement, dated as of May 3, 2024, with Encompass affiliated entities ("**Encompass**" and together with the funds and entities controlled by, or under common control with Encompass, that hold Registrable Securities, the "**Encompass Holders**") with respect to the registration of securities issued in the 2024 Private Placement Transactions (including Common Stock, the 2024 Private Placement Warrants and Common Stock issuable pursuant to such warrants), the April 2023 Warrants and all other Common Stock held by the Investors (the "**Original Encompass Agreement**");

**WHEREAS**, on April 17, 2025 the Company filed with the Securities and Exchange Commission (the "**SEC"**) a shelf Registration Statement on Form S-1 (No. 333-286616) (the "**Initial Form S-1**") registering for resale all the securities required to be registered by the Original Agreement and the Original Encompass Agreement;

**WHEREAS**, the Initial Form S-1 has not yet been declared effective by the SEC;

**WHEREAS,** the Investors and the Company have agreed to amend and modify the Original Agreement and, as consideration for entering into this Agreement and the waiver of any possible claims that the Investors may have pursuant to the Original Agreement, to extend the term of the 2024 Private Placement Warrants as set forth in the Notice and Consent to the Amendments of Warrant Terms executed concurrently herewith ("**Waiver Extension**"); and

**WHEREAS**, concurrently with the execution of this Agreement, the Company is entering into with the Encompass Holders an Amended and Restated Registration Rights Agreement (the "**Encompass A&R Registration Agreement**") with respect to the registration of (A) all shares of Common Stock (i) acquired by the Encompass Holders as part of the Units sold by the Company in the 2025 Private Placement Transaction and the 2024 Private Placement Transactions, (ii) underlying the 2025 Private Placement Warrants, (iii) underlying the 2024 Private Placement Warrants, (iv) underlying the April 2023 Warrants, and (B) the 2024 Private Placement Warrants and the April 2023 Private Placement Warrants .

**NOW, THEREFORE,** the parties hereby agree as follows:

1. <u>Definitions.</u> For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 **"2024 Private Placement Transactions"** means the sale of units by the Company to the Investors which were completed in February, May and June of 2024.

*Registration Rights Agreement – EV Metals*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 **"2024 Private Placement Warrants"** means those warrants which formed a part of the units sold by the Company in the 2024 Private Placement Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 **"Affiliate"** means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including without limitation any general partner, managing member, officer, director or trustee of such Person, or any venture capital fund or registered investment company now or hereafter existing that is controlled by one or more general partners, managing members or investment adviser of, or shares the same management company or investment adviser with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 **"Board of Directors"** means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 "**Business Day**" means any day, other than a Saturday or Sunday, when banks located in New York City, New York are open for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 **"Common Stock"** means the Company's common shares, without par value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 **"Exchange Act"** means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "**FINRA**" means the Financial Industry Regulatory Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 **"Holder"** means any holder of Registrable Securities who is a party to this Agreement (including a Permitted Transferee who has executed a joinder hereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 **"Immediate Family Member"** means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of a natural person referred to herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 "**Other RR Holders**" means any other holders of Common Stock who have entered into registration rights agreements with the Company, including the Encompass Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 **"Original Prospectus"** means the prospectus included in the Initial Form S-1 or any other Shelf Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 "**IPO**" means an initial public offering by the Company of the Common Stock or any other common equity securities of the Company pursuant to an effective registration statement filed under the Securities Act (other than a registration (i) pursuant to a registration statement on Form S-8 (or other registration solely relating to an offering or sale to employees or directors of the Company pursuant to any employee stock plan or other employee benefit arrangement), (ii) pursuant to a registration statement on Form S-4 (or similar form that relates to a transaction subject to Rule 145 under the Securities Act or any successor rule thereto), or (iii) in connection with any dividend or distribution reinvestment or similar plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 **"Permitted Transferee"** means any Affiliate of an Investor who executes a joinder to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 **"Person"** means any individual, corporation, partnership, trust, limited liability company, association or other entity.

*Registration Rights Agreement – EV Metals*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "**Proceeding**" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 **"Registrable Securities"** means (A) all shares of Common Stock (i) acquired by the Investors as part of the Units sold by the Company in the 2024 Private Placement Transactions, (ii) underlying the 2024 Private Placement Warrants, (iii) underlying the April 2023 Warrants, and (iv) any other shares of Common Stock or other securities issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for, or in replacement generally of, such Common Stock and any securities issued in exchange for such Common Stock in any merger, reorganization, consolidation, share exchange, recapitalization, restructuring or other comparable transaction of the Company and (B) the 2024 Private Placement Warrants. .

As to any particular Registrable Securities, such shares of Common Stock or warrants shall cease to be Registrable Securities on the earliest to occur of the following: (i) they are sold pursuant to an effective registration statement under the Securities Act; (ii) they are sold in accordance with Rule 144; (iii) such Registrable Securities held by such Holder can be sold pursuant to Rule 144 without volume or manner of sale limitation and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144(c)(1); (iv) they shall have ceased to be outstanding; or (v) they have been sold in a private transaction in which the transferor's rights under this Agreement as to the transferred securities are not assigned to the transferee of the securities. No Registrable Securities may be registered under more than one registration statement at any one time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 **"Rule 144"** means Rule 144 promulgated by the SEC under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 **"Securities Act"** means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 **"Selling Expenses"** means all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel (as defined herein) borne and paid by the Company as provided in <u>Section 2.4.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 **"Suspension Event"** shall be deemed to have occurred when, in the reasonable good faith judgment of the Board of Directors of the Company, such registration and offering would reasonably be expected to (i) materially interfere with a material acquisition, corporate reorganization, or other similar transaction involving the Company, which at the time is not, in the reasonable good faith opinion of the Company, in the best interests of the Company; (ii) materially interfere with a material financing or capital raising transaction involving the Company, which at the time is not, in the reasonable good faith opinion of the Company, in the best interests of the Company; (iii) require premature disclosure of material non-public information concerning the Company, the disclosure of which at the time is not, in the reasonable good faith opinion of the Company, in the best interests of the Company; or (iv) render the Company unable to comply with requirements under the Securities Act or Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 "**Trading Day**" means a Business Day during which trading in the Common Stock generally occurs on the Company's principal trading market which at the time of the writing of this Agreement is the TSX Venture Exchange.

*Registration Rights Agreement – EV Metals*

2.  **<u>Registration Rights</u>** <u>.</u> The Company covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Shelf Registration.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Effectiveness of Initial Form S-1</u>. The Company shall use its reasonable best efforts to cause the Initial Form S-1 to be declared effective under the Securities Act as promptly as reasonably practicable but in no event later than one year after the date of this Agreement, and to keep the Initial Form S-1 continuously effective until the date that all Registrable Securities have been sold pursuant to the Initial Form S-1 or no longer constitute Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>New Shelf Registration Statement</u>. If at any time during the Term of this Agreement, any portion of the Registrable Securities cease to be registered for resale under an effective registration statement or are not included for registration under the Initial Form S-1, the Company, upon receipt of a written request from a Holder, shall file a "shelf" registration statement (a "**Shelf Registration Statement**") with the SEC on an appropriate form providing for the registration and sale, on a delayed or continuous basis, pursuant to Rule 415 (or any similar provision that may be adopted by the SEC) under the Securities Act by the Holders of any Registrable Securities not covered by an effective registration statement or not included for registration under the Initial Form S-1. The Shelf Registration Statement shall be filed (i) within ninety (90) days following the Company's receipt of such Holder's written request if the Company is eligible to use Form S-3 or if the Company is eligible to incorporate by reference pursuant to Instruction VII of Form S-1 or (ii) in all other cases, within one hundred and twenty (120) days following the Company's receipt of such Holder's written request. The Company shall use its commercially reasonable efforts to cause the Shelf Registration Statement to be declared effective under the Securities Act as promptly as reasonably practicable following the filing thereof with the SEC but in any event (x) no later than sixty (60) days following the filing of a Shelf Registration Statement, to the extent that the Shelf Registration Statement is subject to a "No Review" by the SEC or (y) one hundred and eighty (180) days following the filing of a Shelf Registration Statement if the Shelf Registration Statement is subject to review by the SEC, and to keep the Shelf Registration Statement continuously effective until the date that all Registrable Securities have been sold, transferred (other than to Permitted Transferees) or no longer constitute Registrable Securities. The Shelf Registration Statement filed pursuant to this <u>Section 2.1(b)</u>, may include other securities being sold for the benefit of the Company or for the benefit of other stockholders to whom registration rights have been or may be granted (collectively, "**Other Shares**"). The Company in its reasonable discretion may condition the inclusion of Registrable Securities in a registration statement under this <u>Section 2.1(b)</u> upon the timely provision by such Holder of such information as the Company may reasonably request relating to the disclosure requirements of Item 507 of Regulation S-K (or any similar disclosure requirement applicable to such registration statement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Takedown; Prospectus Supplements</u>. Upon a written request from a Holder to effect a takedown under the Initial Form S-1 or a Shelf Registration Statement or any other sale not provided for under the Plan of Distribution section of the Initial Form S-1 (a "**Takedown**"), the Company will, (x) within five (5) days after the date such request is given, give notice thereof (a "**Takedown Notice**") to all other Holders, and any Other RR Holders with piggy-back rights that would be applicable to such registration statement, and (y) as soon as practicable (and in any event not later than twenty (20) days after receiving such Holder's request) supplement the prospectus included in the Shelf Registration Statement or Initial Form S-1, as applicable, as would permit or facilitate the sale and distribution of all or such portion of such Holder's Registrable Securities as are specified in such request together with the Registrable Securities requested to be included in such Takedown by any Other RR Holders who notify the Company in writing within five (5) days after receipt of such Takedown Notice from the Company; except that the Registrable Securities requested to be offered pursuant to such Takedown must have an anticipated aggregate price to the public (before any underwriting discounts and commissions) of not less than the greater of (i) $25,000,000 or (ii) ten percent (10%) of the Company's then market capitalization. If the Company and/or the holders of any Other Shares request inclusion of Other Shares in a Takedown, such Other Shares shall be included in the Takedown if, and only if, inclusion of such Other Shares would not be reasonably likely to delay in any material respect the timely effectuation of the Takedown or the sale of Registrable Securities pursuant to the Takedown. In the case of a request for or effectuation of a Takedown, all references in this Agreement to the effective date of a registration statement shall be deemed to refer to the date of pricing of such Takedown and all references to Registration shall be deemed to refer to the Takedown. For clarity, in no event shall the foregoing provisions of this <u>Section 2.1(c)</u> restrict or limit any Holder's ability, or require any notice, to offer and sell Registrable Securities in accordance with the "Plan of Distribution" section of the Initial Form S-1 or any Shelf Registration Statement. Upon written notice from a Holder that a prospectus supplement to the Original Prospectus pursuant to the Securities Act is necessary to change the names of the Holders that will be selling stockholders, the Company will as soon as practicable (and in any event not later than twenty (20) days after receiving such written notice) supplement the applicable Original Prospectus as would permit or facilitate the sale and distribution of such Holder's Registrable Securities.

*Registration Rights Agreement – EV Metals*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Underwritten Offerings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Underwritten Takedown</u>. If Holders intend to distribute the Registrable Securities covered by the Initial Form S-1 Shelf or any other Shelf Registration Statement by means an underwriting (a "**Holder Underwritten Offering**"), they shall so advise the Company as a part of their request made pursuant to <u>Section 2.1(c).</u> The Company will (x) include such information within the Takedown Notice which shall be delivered to all other Holders, and any other holders of Common Stock who executed a registration rights agreement with the Company which provides for piggyback rights (and any of their permitted transferees, as defined in such registration rights agreement) and (y) selling Holder's request) supplement the prospectus included in the Shelf Registration Statement all or such portion of such selling Holder's Registrable Securities as are specified in such request together with the Registrable Securities requested to be included in such Holder Underwritten Offering by any other Holders who notify the Company in writing within five (5) days after receipt of such Takedown Notice from the Company; except that the Registrable Securities requested to be offered pursuant to such Holder Underwritten Offering must have an anticipated aggregate price to the public (before any underwriting discounts and commissions) of not less than the greater of (i) $25,000,000 or (ii) ten percent (10%) of the Company's then current market capitalization. The underwriter(s) will be selected by the Company and shall be reasonably acceptable to a majority in interest of the selling Holders. In such event, the right of any Holder to include such Holder's Registrable Securities in such registration shall be conditioned upon such Holder's participation in such underwriting and the inclusion of such Holder's Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in <u>Section 2.4(g))</u> enter into a commercially reasonable underwriting agreement in customary form with the underwriter(s) selected for such underwriting. Notwithstanding any other provision of this <u>Section 2.3,</u> if the managing underwriter(s) advise(s) the selling Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, then the selling Holders shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the selling Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder or in such other proportion as shall mutually be agreed to by all such selling Holders; <u>provided, however,</u> that the number of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other securities of the Company are first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares. The Company shall not be required to facilitate more than two (2) Holder Underwritten Offerings during the Term of this Agreement and in no event shall be required to facilitate mor than one (1) Underwritten Offering during any twelve month period.

*Registration Rights Agreement – EV Metals*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Piggyback Rights.</u> If (i) the Company intends to effect a distribution of stock by means of an underwritten offering (a "**Company Underwritten Offering**") or (ii) any Other RR Holder intends to distribute the Common Stock by means of an underwriting (a "**Stockholder Underwritten Offering**" and together with a Company Underwritten Offering, an "**Underwritten Offering**"), then the Company shall include such information in a notice to the Holders and shall offer the Holders the ability to participate in such Underwritten Offering, which offer must be accepted within five (5) Business Days. The underwriter(s) will be selected by the Company and, in the case of a Stockholder Underwritten Offering, shall be reasonably acceptable to a majority in interest of the Other RR Holders who initiated the request for a Stockholder Underwritten Offering. All Holders proposing to distribute their securities through such underwriting (together with the Company as provided in <u>Section 2.4(g))</u> shall accept the terms of the underwriting as agreed upon between the Company, the Other RR Holders and the underwriters and shall enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Cutback in a Stockholder Underwritten Offering</u>. If the total number of securities, including <u>Registrable</u> Securities, requested by stockholders (including the Holders and the Other RR Holders) to be included in a Stockholder Underwritten Offering exceeds the number of securities that the underwriters, in their reasonable discretion, determine is compatible with the success of the offering, then the Other RR Holders and the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their reasonable discretion determine will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then (i) first, the number of securities included by the Company shall be reduced and (ii) second, if necessary, the Registrable Securities that are included in such offering shall be allocated among the selling holders in proportion (as nearly as practicable) to the number of Registrable Securities owned by each selling holder (including the Holders and the Other RR Holders) or in such other proportions as shall mutually be agreed to by all such selling holders. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Cutback in a Company Underwritten Offering</u>. If the total number of securities, including Registrable Securities, requested by stockholders (including the Holders and the Other RR Holders) to be included in a Company Underwritten Offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be sold by the Holders and the Other RR Holders can be included in such offering, then the Registrable Securities, above the amount to be distributed by the Company, that are included in such offering shall be allocated among the selling holders in proportion (as nearly as practicable) to the number of Registrable Securities owned by each selling holder (including the Holders and the Other RR Holders) or in such other proportions as shall mutually be agreed to by all such selling Holders. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.

For purposes of the provisions in this Section 2.3 concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single "selling Holder," and any pro rata reduction with respect to such "selling Holder" shall be based upon the aggregate number of Registrable Securities owned by all Persons included in such "selling Holder," as defined in this sentence.

*Registration Rights Agreement – EV Metals*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Postponement.</u> Notwithstanding the obligations set forth above, on no more than two occasions and for not more than ninety (90) consecutive calendar days or for a total of not more than ninety (90) calendar days in any 12-month period, the Company may (i) delay the effectiveness of the Initial Form S-1, (ii) delay the filing of any Shelf Registration Statement, or (iii) suspend the use of any prospectus included in any registration statement required to be filed pursuant to <u>Section 2</u>, in the event that the Board of Directors determines in good faith that such delay or suspension is necessary due to a Suspension Event; provided, that the Company shall promptly (x) notify each Investor in writing of the commencement of an Suspension Event, but shall not (without the prior written consent of an Investor) disclose to such Investor any material non-public information giving rise to a Suspension Event, (y) advise the Investors in writing to cease all sales under the Registration Statement until the end of the Suspension Event and (z) use commercially reasonable efforts to terminate a Suspension Event as promptly as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Obligations of the Company.</u> Whenever required under <u>Section 2</u> to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible, subject to Section 2.3:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective and keep such registration statement continuously effective until the date that all Registrable Securities have been sold, transferred (other than to Permitted Transferees) or no longer constitute Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at least five (5) Trading Days prior to the filing of any Shelf Registration Statement, provide counsel to Holders registering shares in a Shelf Registration Statement an opportunity to review (i) any description of the Holders or any transaction with the Holders or any other specific mention of or reference to the Holders, including those disclosures relating to the Holders set forth in the section entitled "Selling Stockholders" or "Selling Securityholders" and (ii) the "Plan of Distribution" section included in such Shelf Registration Statement, and in each case to use its reasonable best efforts to incorporate any reasonable changes requested by such Holders, or their representatives, with respect to the disclosure regarding such Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) at least three (3) Trading Days prior to the filing of any amendment or supplement to the Initial Form S-1 or any Shelf Registration Statement filed with the SEC, provide counsel to Holders an opportunity to review (i) any description of the Holders or any transaction with the Holders or any other specific mention of or reference to the Holders, including those disclosures relating to the Holders set forth in the section entitled "Selling Stockholders" or "Selling Securityholders" and (ii) the "Plan of Distribution" section included in any such amendment or supplement to the extent that either (i) any description or mention of or reference to the Holders has been modified or (ii) the "Plan of Distribution" section has been modified in a manner that would adversely affect the Holders, and in each case to use its reasonable best efforts to incorporate any reasonable changes requested by such Holders, or their representatives, with respect to disclosure regarding such Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement;

*Registration Rights Agreement – EV Metals*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided that the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) use its commercially reasonable efforts to cause all the shares of Common Stock covered by such registration statement to be listed on the principle U.S. national securities exchange or U.S. trading system on which the same securities issued by the Company are then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provide a transfer agent and registrar for all Common Stock registered pursuant to this Agreement and provide a CUSIP number for all such Common Stock, in each case not later than the effective date of such registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement such registration statement or prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) in connection with any Underwritten Offering in which the Holders elect to participate, enter into such agreements (including an underwriting agreement in form, scope and substance as is customary in underwritten offerings) and take all such other actions reasonably requested by the managing underwriters to expedite or facilitate the disposition of such Registrable Securities, and in such connection, (i) make such representations and warranties to the underwriters with respect to the business of the Company and its subsidiaries, and the registration statement, prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers in underwritten offerings, and, if true, confirm the same if and when requested, (ii) furnish to the underwriters and selling Holders opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) will be reasonably satisfactory to the managing underwriters), addressed to each of the underwriters and selling Holders covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such underwriters, (iii) use commercially reasonable efforts to obtain comfort letters and updates thereof from the independent registered public accounting firm of the Company (and, if necessary, any other independent registered public accounting firms of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the registration statement) who have certified the financial statements included in such registration statement, addressed to each of the underwriters and selling Holders, such letters to be in customary form and covering matters of the type customarily covered in comfort letters in connection with underwritten offerings, (iv) deliver such documents and certificates as may be reasonably requested by the managing underwriters to evidence the continued validity of the representations and warranties made pursuant in the underwriting agreement and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company;

*Registration Rights Agreement – EV Metals*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) make available for inspection by a representative of the selling Holders, any underwriter participating in any such disposition of Registrable Securities, if any, and any attorneys, accountants or other professionals retained by such selling Holders or underwriter, at the offices where normally kept, during reasonable business hours, all financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries, and cause the officers, directors and employees of the Company and its subsidiaries to supply all information in each case reasonably requested by any such representative, underwriter, attorney, accountant or other professionals in connection with such registration statement. If so requested in writing by the Company, the Company's obligation to disclose information pursuant to the preceding sentence is conditioned upon the execution and delivery by each Person receiving such disclosure of an agreement satisfactory to the Company as to form relating to such Person's obligation to refrain from disclosing the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) in connection with any Underwritten Offering in which the Holders elect to participate, cause its officers to use commercially reasonable efforts to support the marketing of the Registrable Securities covered by the registration statement (including, without limitation, participation in "road shows" and appearing before analysts and rating agencies) taking into account the Company's business needs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) in connection with any Underwritten Offering in which the Holders elect to participate, cooperate with each selling Holder and each underwriter or agent participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with FINRA.

The Holders acknowledge that the none of the Company's warrants are listed and none are currently eligible to be listed on any U.S. stock exchange or any U.S. national trading system.

In addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities of the Company under the Securities Act shall have become effective, its insider trading policy shall provide that the Company's executive officers and directors may implement a trading program under Rule 10b5-1 under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Expenses of Registration.</u> All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to <u>Section 2,</u> including all registration, filing and qualification fees, printers' and accounting fees, and fees and disbursements of counsel for the Company shall be borne and paid by the Company. All Selling Expenses relating to Registrable Securities registered pursuant to <u>Section 2</u> shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf; provided, however, in the case of an Underwritten Offering the Company shall pay the reasonable fees and disbursements, not to exceed $50,000.00, of one counsel collectively representing the Holders and Other RR Holders participating in the Underwritten Offering (the **"Selling Holder Counsel"**),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Delay of Registration.</u> No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this <u>Section 2.</u>

*Registration Rights Agreement – EV Metals*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Reports Under Exchange Act.</u> With a view to making available to the Holders the benefits of Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) make and keep available adequate current public information, as those terms are understood and defined in Rule 144, at all times after the effective date of the Initial Form S-1 or, if earlier, the registration statement filed by the Company for the IPO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request: (i) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of Rule 144 (at any time after ninety (90) days after the effective date of the Initial Form S-1 or, if earlier, the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company; and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>'Market Stand-off' Agreement.</u> In connection with any Underwritten Offering by the Company, including the Company's IPO, or by participating Holders (which, for purposes of this <u>Section 2.9</u> shall include an underwritten Takedown but shall not include the effectiveness of the Shelf Registration Statement in the absence of an underwritten Takedown) with respect to which the Company has complied with its obligations hereunder, each Holder agrees, if and to the extent (i) requested by the managing underwriter of such underwritten offering and (ii) all of the Company's directors execute agreements identical to those referred to in this <u>Section 2.9</u>, that it shall not during the period beginning on, and ending one hundred eighty (180) days (subject to one extension of no more than 17 days if required by the underwriters in connection with FINRA Rule 2711(f)(4) or any similar or successor provision) (or such shorter period as may be permitted by such managing underwriter) after, the effective date of the registration statement filed in connection with such Registration or the date of the prospectus supplement relating to an underwritten Takedown (the "**Holdback Period**"), except for Registrable Securities included in such registration statement, directly or indirectly, (i) offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, warrant to purchase or otherwise transfer or dispose of any of its Common Stock or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of its ownership of any of its Common Stock, whether any such transaction described in clauses (i) or (ii) above is to be settled by delivery of any shares of Common Stock, in cash or otherwise; provided, however, that such restrictions shall not apply to any such sales, purchases, grants, transfers, dispositions or arrangements to settle or otherwise close any hedging instruments that were outstanding prior to the beginning of the Holdback Period. No Holder subject to this <u>Section 2.9</u>(or any officer and/or director of the Company bound by these restrictions as required by this <u>Section 2.9</u>) shall be released from any obligation under any agreement, arrangement or understanding entered into pursuant to or contemplated by this <u>Section 2.9</u> unless all Holders are also released from their obligations under <u>Section 2.9.</u> If requested by the managing underwriter, each Holder shall enter and shall use commercially reasonable efforts to ensure that each Affiliate of such Holder holding Registrable Securities enters, into a lock-up agreement with the applicable underwriters that is consistent with the agreement in the preceding sentence. The underwriters in connection with the IPO are intended third party beneficiaries of this <u>Section 2.9</u> and shall have the right, power, and authority to enforce the provisions hereof as though they were a party hereto. Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with the IPO that are consistent with this <u>Section 2.9</u> or that are necessary to give further effect thereto. Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Company stockholders that are subject to such agreements, based on the number of shares subject to such agreements.

*Registration Rights Agreement – EV Metals*

3.  **<u>Termination of Registration Rights</u>** <u>.</u> The right of any Holder to request registration or
 inclusion of Registrable Securities in any registration statement or in any Underwritten
 Offering shall terminate upon the earlier of (a) such date that the Holders cease to hold
 Registrable Securities or (b) the three (3) year anniversary of the effective date of the
 Initial Form S-1 (the "**Term** ").

4.  **<u>Indemnification and Contribution</u>** . If any Registrable Securities are included in a registration statement
 under <u>Section 2</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Indemnification by the Company</u>. To the extent permitted by law, the Company will indemnify, defend and hold harmless each selling Holder, and each Holder's partners, managers, members, officers, directors, stockholders, legal counsel, accountants, underwriter (as defined in the Securities Act), and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys' fees) and expenses (collectively, **"Losses"**), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement of a material fact contained in the Initial Form S-1, any Shelf Registration Statement and any other registration statement registering any Registrable Securities, any prospectus contained therein or relating thereto or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, any underwriter of such Holder, any controlling Person of such Holder, or other aforementioned Person expressly for use in connection with such registration of such Holder's Registrable Securities, or (ii) the use by such Holder of an outdated, defective or otherwise unavailable prospectus after the Company has notified such Holder in writing that the prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the notice from the Company that the use of the applicable prospectus included within the registration statement (as may have been supplemented or amended) may be resumed. The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company is aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified person and shall survive the transfer of any Registrable Securities by any of the Holders in accordance with <u>Section 6.2</u>.

*Registration Rights Agreement – EV Metals*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Indemnification by Holders</u>. To the extent permitted by law, each selling Holder shall, severally and not jointly, indemnify, defend and hold harmless the Company, its directors and officers, and each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), to the fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon any untrue or alleged untrue statement of a material fact contained in any registration statement, any prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading to the extent, but only to the extent, that such untrue statement or omission are based solely upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder expressly for use in connection with such registration. In no event shall the liability of a selling Holder be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this <u>Section 4.2</u> and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement or omission) received by such Holder upon the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Conduct of Indemnification Proceedings</u>. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an "**Indemnified Party**"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the "**Indemnifying Party**") in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof, provided that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have materially and adversely prejudiced the Indemnifying Party. An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding on terms reasonably satisfactory to such Indemnified Party. Subject to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten (10) Trading Days of written notice thereof to the Indemnifying Party, provided that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such Proceedings for which such Indemnified Party is finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) not to be entitled to indemnification hereunder.

*Registration Rights Agreement – EV Metals*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Contribution</u>. If the indemnification under <u>Sections 4.1</u> or <u>4.2</u> is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys' or other fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms. The parties hereto agree that it would not be just and equitable if contribution pursuant to this <u>Section 4.4</u> were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. In no event shall the contribution obligation of a Holder of Registrable Securities be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this <u>Section 4</u> and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation. The indemnity and contribution agreements contained in this <u>Section 4</u> are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.

5.  **<u>Waiver and Release of Rights</u>.** In consideration of the Warrant Term Extension and the execution
 of this Agreement by the Company, upon the effectiveness of the Warrant Amendments, the Investors,
 individually and on behalf of their Affiliates, release and forever discharge the Company
 and its agents, managers, officers, executives, as well as the Company's subsidiaries,
 affiliates, and parent, and their agents, managers, officers and executives (collectively,
 the "Released Parties"), from any and all actions, causes of action, obligations,
 costs, expenses, damages, losses, claims, liabilities, suits, debts, demands, and benefits
 (including attorneys' fees and costs), of whatever character, in law or in equity,
 known or unknown, suspected or unsuspected, matured or not matured, of any kind or nature
 whatsoever, now existing or arising in the future, based on any act, omission, event, occurrence,
 or nonoccurrence from the beginning of time to the date of execution hereof, arising under
 or related to the obligations of the Company under the Original Agreement, including but
 not limited any claims for damages or liquidated damages arising from the failure of the
 Company to comply with certain notification, filing or effective dates in the Original Agreement.
 For the avoidance of doubt, obligations of the Company and any Released Parties arising under
 this Agreement are not affected by the foregoing release.

6.  **<u>Miscellaneous.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Springing Effectiveness</u>. Section 5 of this Agreement shall become effective only upon the effectiveness of the Warrant Amendments after the Company has obtained all required regulatory approvals (including any approvals that may be required under applicable securities law or by the TSX Venture Exchange) of the Warrant Amendments. If the Warrant Amendments do not become effective on or before November 15, 2025, Section 5 of this Agreement, including the waiver and release contained in Section 5 hereof, shall automatically terminate and any claims for damages or liquidated damages arising under the Original Agreement shall be reinstated and survive pursuant to its terms and Section 2(d) of the Original Agreement shall be incorporated by reference herein and shall apply to this Agreement *mutatis mutandis*.

*Registration Rights Agreement – EV Metals*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Successors and Assigns.</u> This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Notwithstanding the foregoing, an Investor may assign all or any portion of its rights hereunder to one or more Permitted Transferees of such Investor and any Permitted Transferee will be entitled to the rights granted hereunder, provided that (i) the Company is given written notice at the time of said transfer or assignment identifying the name and address of the Permitted Transferee and (ii) that the Permitted Transferee assumes in writing the obligations of such Investor under this Agreement by executing a joinder agreement in a form reasonably acceptable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction). Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the Southern District of New York United States or the courts of the State of New York in each case located in New York City, New York, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of process, summons, notice or other document by mail to such party's address set forth herein shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Counterparts.</u> This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g. www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Titles and Subtitles.</u> The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Currency.</u> All amounts designated as "$" or "US$" or "USD" are references to United States Dollars, while any reference to Canadian Dollars are identified by "CAD$".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Notices.</u> All communications provided for hereunder will be personally delivered or sent by registered or certified mail, nationally recognized overnight courier or facsimile and (a) if addressed to a Holder, addressed to the Holder at the postal mail address or email address set forth beside such Holder's signature, or at such other postal address or email address as such Holder furnishes to the Company in writing or (b) if addressed to the Company, to the postal address or email address set forth beside the Company's signature or at such other address or email address, or to the attention of such other officer, as the Company furnishes to Holder in writing. All notices and other communications required or permitted under this Agreement will be in writing and will be deemed effectively given: (w) when personally delivered to the party to be notified; (x) when sent by confirmed email if sent during normal business hours of the recipient or, if not, then on the next Business Day, as long as a copy of the notice is also sent via nationally recognized overnight courier, specifying next day delivery, with written verification of receipt; (y) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (z) one (1) Business Day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.

*Registration Rights Agreement – EV Metals*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Amendments and Waivers.</u> The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of a majority of the then outstanding Registrable Securities, provided that, if any amendment, modification or waiver disproportionately and adversely impacts a Holder (or group of Holders), the consent of such disproportionately impacted Holder (or group of Holders) shall be required. If a registration statement does not register all of the Registrable Securities pursuant to a waiver or amendment done in compliance with the previous sentence, then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to designate which of its Registrable Securities shall be omitted from such registration statement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of a Holder or some Holders and that does not directly or indirectly affect the rights of other Holders may be given only by such Holder or Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the first sentence of this <u>Section</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>6.8</u>. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Severability.</u> In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>Entire Agreement.</u> This Agreement constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>Delays or Omissions.</u> No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>Further Assurances.</u> At any time or from time to time after the date hereof, the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <u>Cumulative Remedies</u>. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 <u>Independent Nature of Holders' Obligations and Rights</u>. The obligations of each Holder hereunder are several and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters, and the Company acknowledges that the Holders are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or transactions. Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect to the obligations of the Company contained was solely in the control of the Company, not the action or decision of any Holder, and was done solely for the convenience of the Company and not because it was required or requested to do so by any Holder. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Holder, solely, and not between the Company and the Holders collectively and not between and among Holders.

**[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]**

*Registration Rights Agreement – EV Metals*

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

---

| | | |
|:---|:---|:---|
| Address | **COMPANY** | **COMPANY** |
|  | INTERNATIONAL BATTERY METALS LTD. | INTERNATIONAL BATTERY METALS LTD. |
| 6100 Tennyson Parkway, Suite 240 |  |  |
| Plano, Texas 75024 |  |  |
|  |  | /s/ Joseph A. Mills |
|  | Name: | Joseph A. Mills |
|  | Title: | Chief Executive Officer |

---

*[Signature Page to Registration Rights Agreement]*

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTORS:** | **INVESTORS:** |
| **EV METALS VI LLC** | **EV METALS VI LLC** |
| By: | /s/ Jacob Warnock |
| Name: | Jacob Warnock |
| Title: | Director |

---

*[Signature Page to Amended and Restated Registration Rights Agreement]*

## Exhibit 10.30

**Exhibit 10.30**

**Execution Version**

**(Encompass)**

**AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT**

THIS AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this **"Agreement")** is made as of the July 20, 2025, by and among International Battery Metals Ltd., a corporation existing under the laws of the Province of British Columbia (the **"Company"**), and each of the investors listed on the signature page hereto, each of which is referred to in this Agreement as an **"Investor"** and collectively, the "**Investors**."

**<u>RECITALS</u>**

**WHEREAS,** the Investors and the Company previously entered into a Registration Rights Agreement, dated as of May 3, 2024 (the **"Original Agreement"**), with respect to the registration of securities issued in the 2024 Private Placement Transactions (including Common Stock, the 2024 Private Placement Warrants and Common Stock issuable pursuant to such warrants), the April 2023 Warrants and all other Common Stock held by the Investors;

**WHEREAS**, concurrently with the execution of the Original Agreement, the Company executed a Registration Rights Agreement, dated as of May 3, 2024, with EV Metals, Inc. ("**EV Metals**" and together with the funds and entities controlled by, or under common control with EV Metals, that hold Registrable Securities, the "**EV Metals Holders**") with respect to the registration of securities issued in the 2024 Private Placement Transactions (including Common Stock, the 2024 Private Placement Warrants and Common Stock issuable pursuant to such warrants) (the "**Original EV Metals Agreement**");

**WHEREAS**, on April 17, 2025 the Company filed with the Securities and Exchange Commission (the "**SEC"**) a shelf Registration Statement on Form S-1 (No. 333-286616) (the "**Initial Form S-1**") registering for resale all the securities required to be registered by the Original Agreement and the Original EV Metals Agreement;

**WHEREAS**, the Initial Form S-1 has not yet been declared effective by the SEC;

**WHEREAS,** subject to the conditions to effectiveness contained herein, the Investors and the Company have agreed to amend and modify the Original Agreement and, as consideration for entering into this Agreement and the waiver of any possible claims that the Investors may have pursuant to the Original Agreement, to register the shares of Common Stock issued to the Investors in the 2025 Private Placement Transaction and to extend the term of the April 2023 Warrants and 2024 Private Placement Warrants as set forth in the Notice and Consent to the Amendments of Warrant Terms executed concurrently herewith ("**Waiver Extension**"); and

**WHEREAS**, concurrently with the execution of this Agreement, the Company is entering into with EV Metals an Amended and Restated Registration Rights Agreement (the "**EV Metals A&R Registration Agreement**") with respect to the registration of shares of Common Stock and the 2024 Private Placement Warrants owned by EV Metals Holders.

**NOW, THEREFORE,** the parties hereby agree as follows:

1. <u>Definitions.</u> For purposes
 of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 **"2024 Private Placement Transactions"** means the sale of Units by the Company to the Investors which were completed in May and June of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 **"2024 Private Placement Warrants"** means those warrants which formed a part of the Units sold by the Company in the 2024 Private Placement Transactions.

1 *Registration Rights Agreement - Encompass*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 **"2025 Private Placement Transaction"** means the sale of Units by the Company to the Investors which was the subject of Subscription Agreements entered into on July 20, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 **"2025 Private Placement Warrants"** means those warrants which formed a part of the Units sold by the Company in the 2025 Private Placement Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 **"Affiliate"** means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including without limitation any general partner, managing member, officer, director or trustee of such Person, or any venture capital fund or registered investment company now or hereafter existing that is controlled by one or more general partners, managing members or investment adviser of, or shares the same management company or investment adviser with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 **"April 2023 Warrants"** means the 6,396,999 warrants issued to the Investors that were originally issued on April 21, 2023 and amended on May 3, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 **"Board of Directors"** means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "**Business Day**" means any day, other than a Saturday or Sunday, when banks located in New York City, New York are open for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 **"Common Stock"** means the Company's common shares, without par value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 **"Exchange Act"** means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 "**FINRA**" means the Financial Industry Regulatory Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 **"Holder"** means any holder of Registrable Securities who is a party to this Agreement (including a Permitted Transferee who has executed a joinder hereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 **"Immediate Family Member"** means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of a natural person referred to herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 "**Other RR Holders**" means any other holders of Common Stock who have entered into registration rights agreements with the Company, including the EV Metals Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 **"Original Prospectus"** means the prospectus included in the Initial Form S-1 or any other Shelf Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "**IPO**" means an initial public offering by the Company of the Common Stock or any other common equity securities of the Company pursuant to an effective registration statement filed under the Securities Act (other than a registration (i) pursuant to a registration statement on Form S-8 (or other registration solely relating to an offering or sale to employees or directors of the Company pursuant to any employee stock plan or other employee benefit arrangement), (ii) pursuant to a registration statement on Form S-4 (or similar form that relates to a transaction subject to Rule 145 under the Securities Act or any successor rule thereto), or (iii) in connection with any dividend or distribution reinvestment or similar plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 **"Permitted Transferee"** means any Affiliate of an Investor who executes a joinder to this Agreement.

2 *Registration Rights Agreement - Encompass*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 **"Person"** means any individual, corporation, partnership, trust, limited liability company, association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 "**Proceeding**" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 **"Registrable Securities"** means (A) all shares of Common Stock (i) acquired by the Investors as part of the Units sold by the Company in the 2025 Private Placement Transaction and the 2024 Private Placement Transactions, (ii) underlying the 2025 Private Placement Warrants, (iii) underlying the 2024 Private Placement Warrants, (iv) underlying the April 2023 Warrants, and (v) any other shares of Common Stock or other securities issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for, or in replacement generally of, such Common Stock and any securities issued in exchange for such Common Stock in any merger, reorganization, consolidation, share exchange, recapitalization, restructuring or other comparable transaction of the Company and (B) the 2024 Private Placement Warrants and the April 2023 Private Placement Warrants.

As to any particular Registrable Securities, such shares of Common Stock or Warrants shall cease to be Registrable Securities on the earliest to occur of the following: (i) they are sold pursuant to an effective registration statement under the Securities Act; (ii) they are sold in accordance with Rule 144; (iii) such Registrable Securities held by such Holder can be sold pursuant to Rule 144 without volume or manner of sale limitation and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144(c)(1); (iv) they shall have ceased to be outstanding; or (v) they have been sold in a private transaction in which the transferor's rights under this Agreement as to the transferred securities are not assigned to the transferee of the securities. No Registrable Securities may be registered under more than one registration statement at any one time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 **"Rule 144"** means Rule 144 promulgated by the SEC under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 **"Securities Act"** means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 **"Selling Expenses"** means all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel (as defined herein) borne and paid by the Company as provided in <u>Section 2.5.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 **"Shelf Registration Statement"** shall have the meaning as provided in <u>Section 2.1(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25 **"Suspension Event"** shall be deemed to have occurred when, in the reasonable good faith judgment of the Board of Directors of the Company, such registration and offering would reasonably be expected to (i) materially interfere with a material acquisition, corporate reorganization, or other similar transaction involving the Company, which at the time is not, in the reasonable good faith opinion of the Company, in the best interests of the Company; (ii) materially interfere with a material financing or capital raising transaction involving the Company, which at the time is not, in the reasonable good faith opinion of the Company, in the best interests of the Company; (iii) require premature disclosure of material non-public information concerning the Company, the disclosure of which at the time is not, in the reasonable good faith opinion of the Company, in the best interests of the Company; or (iv) render the Company unable to comply with requirements under the Securities Act or Exchange Act.

3 *Registration Rights Agreement - Encompass*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26 "**Trading Day**" means a Business Day during which trading in the Common Stock generally occurs on the Company's principal trading market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27 "**Transfer Agent**" means Computershare Trust Company of Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28 "**Warrant Amendment**" means the amendments to the April 2023 Warrants and 2024 Private Placement Warrants extending the expiration of such warrants to the earlier of (i) the expiry date of the 2025 Private Placement Warrants or (ii) five years from the original date of issuance thereof.

2.  **<u>Registration Rights</u>** <u>.</u> The Company covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Shelf Registration.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Effectiveness of Initial Form S-1</u>. The Company shall use its reasonable best efforts to cause the Initial Form S-1 to be declared effective under the Securities Act as promptly as reasonably practicable but in no event later than one year after the date of this Agreement, and to keep the Initial Form S-1 continuously effective until the date that all Registrable Securities have been sold pursuant to the Initial Form S-1 or no longer constitute Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>New Shelf Registration Statement</u>. If at any time during the Term of this Agreement, any portion of the Registrable Securities cease to be registered for resale under an effective registration statement or are not included for registration under the Initial Form S-1, the Company, upon receipt of a written request from a Holder, shall file a "shelf" registration statement (a "**Shelf Registration Statement**") with the SEC on an appropriate form providing for the registration and sale, on a delayed or continuous basis, pursuant to Rule 415 (or any similar provision that may be adopted by the SEC) under the Securities Act by the Holders of any Registrable Securities not covered by an effective registration statement or not included for registration under the Initial Form S-1. The Shelf Registration Statement shall be filed (i) within ninety (90) days following the Company's receipt of such Holder's written request if the Company is eligible to use Form S-3 or if the Company is eligible to incorporate by reference pursuant to Instruction VII of Form S-1 or (ii) in all other cases, within one hundred and twenty (120) days following the Company's receipt of such Holder's written request. The Company shall use its commercially reasonable efforts to cause the Shelf Registration Statement to be declared effective under the Securities Act as promptly as reasonably practicable following the filing thereof with the SEC but in any event (x) no later than sixty (60) days following the filing of a Shelf Registration Statement, to the extent that the Shelf Registration Statement is subject to a "No Review" by the SEC or (y) one hundred and eighty (180) days following the filing of a Shelf Registration Statement if the Shelf Registration Statement is subject to review by the SEC, and to keep the Shelf Registration Statement continuously effective until the date that all Registrable Securities have been sold, transferred (other than to Permitted Transferees) or no longer constitute Registrable Securities. The Shelf Registration Statement filed pursuant to this <u>Section 2.1(b)</u>, may include other securities being sold for the benefit of the Company or for the benefit of other stockholders to whom registration rights have been or may be granted (collectively, "**Other Shares**"). The Company in its reasonable discretion may condition the inclusion of Registrable Securities in a registration statement under this <u>Section 2.1(b)</u> upon the timely provision by such Holder of such information as the Company may reasonably request relating to the disclosure requirements of Item 507 of Regulation S-K (or any similar disclosure requirement applicable to such registration statement).

4 *Registration Rights Agreement - Encompass*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Takedown; Prospectus Supplements</u>. Upon a written request from a Holder to effect a takedown under the Initial Form S-1 or a Shelf Registration Statement or any other sale not provided for under the Plan of Distribution section of the Initial Form S-1 (a "**Takedown**"), the Company will, (x) within five (5) days after the date such request is given, give notice thereof (a "**Takedown Notice**") to all other Holders, and any Other RR Holders with piggy-back rights that would be applicable to such registration statement, and (y) as soon as practicable (and in any event not later than twenty (20) days after receiving such Holder's request) supplement the prospectus included in the Shelf Registration Statement or Initial Form S-1, as applicable, as would permit or facilitate the sale and distribution of all or such portion of such Holder's Registrable Securities as are specified in such request together with the Registrable Securities requested to be included in such Takedown by any Other RR Holders who notify the Company in writing within five (5) days after receipt of such Takedown Notice from the Company; except that the Registrable Securities requested to be offered pursuant to such Takedown must have an anticipated aggregate price to the public (before any underwriting discounts and commissions) of not less than the greater of (i) $25,000,000 or (ii) ten percent (10%) of the Company's then market capitalization. If the Company and/or the holders of any Other Shares request inclusion of Other Shares in a Takedown, such Other Shares shall be included in the Takedown if, and only if, inclusion of such Other Shares would not be reasonably likely to delay in any material respect the timely effectuation of the Takedown or the sale of Registrable Securities pursuant to the Takedown. In the case of a request for or effectuation of a Takedown, all references in this Agreement to the effective date of a registration statement shall be deemed to refer to the date of pricing of such Takedown and all references to Registration shall be deemed to refer to the Takedown. For clarity, in no event shall the foregoing provisions of this <u>Section 2.1(c)</u> restrict or limit any Holder's ability, or require any notice, to offer and sell Registrable Securities in accordance with the "Plan of Distribution" section of the Initial Form S-1 or any Shelf Registration Statement. Upon written notice from a Holder that a prospectus supplement to the Original Prospectus pursuant to the Securities Act is necessary to change the names of the Holders that will be selling stockholders, the Company will as soon as practicable (and in any event not later than twenty (20) days after receiving such written notice) supplement the applicable Original Prospectus as would permit or facilitate the sale and distribution of such Holder's Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Underwritten Offerings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Piggyback Rights.</u> If (i) the Company intends to effect a distribution of stock by means of an underwritten offering (a "**Company Underwritten Offering**") or (ii) any Other RR Holder intends to distribute the Common Stock by means of an underwriting (a "**Stockholder Underwritten Offering**" and together with a Company Underwritten Offering, an "**Underwritten Offering**"), then the Company shall include such information in a notice to the Holders and shall offer the Holders the ability to participate in such Underwritten Offering, which offer must be accepted within five (5) Business Days. The underwriter(s) will be selected by the Company and, in the case of a Stockholder Underwritten Offering, shall be reasonably acceptable to a majority in interest of the Other RR Holders who initiated the request for a Stockholder Underwritten Offering. All Holders proposing to distribute their securities through such underwriting (together with the Company as provided in <u>Section 2.4(g))</u> shall accept the terms of the underwriting as agreed upon between the Company, the Other RR Holders and the underwriters and shall enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Cutback in a Stockholder Underwritten Offering</u>. If the total number of securities, including Registrable Securities, requested by stockholders (including the Holders and the Other RR Holders) to be included in a Stockholder Underwritten Offering exceeds the number of securities that the underwriters, in their reasonable discretion, determine is compatible with the success of the offering, then the Other RR Holders and the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their reasonable discretion determine will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then (i) first, the number of securities included by the Company shall be reduced and (ii) second, if necessary, the Registrable Securities that are included in such offering shall be allocated among the selling holders in proportion (as nearly as practicable) to the number of Registrable Securities owned by each selling holder (including the Holders and the Other RR Holders) or in such other proportions as shall mutually be agreed to by all such selling holders. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.

5 *Registration Rights Agreement - Encompass*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Cutback in a Company Underwritten Offering</u>. If the total number of securities, including Registrable Securities, requested by stockholders (including the Holders and the Other RR Holders) to be included in a Company Underwritten Offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be sold by the Holders and the Other RR Holders can be included in such offering, then the Registrable Securities, above the amount to be distributed by the Company, that are included in such offering shall be allocated among the selling holders in proportion (as nearly as practicable) to the number of Registrable Securities owned by each selling holder (including the Holders and the Other RR Holders) or in such other proportions as shall mutually be agreed to by all such selling Holders. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.

For purposes of the provisions in this Section 2.2 concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single "selling Holder," and any pro rata reduction with respect to such "selling Holder" shall be based upon the aggregate number of Registrable Securities owned by all Persons included in such "selling Holder," as defined in this sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Postponement.</u> Notwithstanding the obligations set forth above, on no more than two occasions and for not more than ninety (90) consecutive calendar days or for a total of not more than ninety (90) calendar days in any 12-month period, the Company may (i) delay the effectiveness of the Initial Form S-1, (ii) delay the filing of any Shelf Registration Statement, or (iii) suspend the use of any prospectus included in any registration statement required to be filed pursuant to <u>Section 2</u>, in the event that the Board of Directors determines in good faith that such delay or suspension is necessary due to a Suspension Event; provided, that the Company shall promptly (x) notify each Investor in writing of the commencement of an Suspension Event, but shall not (without the prior written consent of an Investor) disclose to such Investor any material non-public information giving rise to a Suspension Event, (y) advise the Investors in writing to cease all sales under the Registration Statement until the end of the Suspension Event and (z) use commercially reasonable efforts to terminate a Suspension Event as promptly as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Obligations of the Company.</u> Whenever required under <u>Section 2</u> to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible, subject to Section 2.3:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective and keep such registration statement continuously effective until the date that all Registrable Securities have been sold, transferred (other than to Permitted Transferees) or no longer constitute Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at least five (5) Trading Days prior to the filing of any Shelf Registration Statement, provide counsel to Holders registering shares in a Shelf Registration Statement an opportunity to review (i) any description of the Holders, any transaction with the Holders, or any other specific mention of or reference to the Holders, including those disclosures relating to the Holders set forth in the section entitled "Selling Stockholders" or "Selling Securityholders" and (ii) the "Plan of Distribution" section included in such Shelf Registration Statement, and in each case to use its reasonable best efforts to incorporate any reasonable changes requested by such Holders, or their representatives, with respect to the disclosure regarding such Holders;

6 *Registration Rights Agreement - Encompass*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) at least three (3) Trading Days prior to the filing of any amendment or supplement to the Initial Form S-1 or any Shelf Registration Statement filed with the SEC, provide counsel to Holders an opportunity to review (i) any description of the Holders, any transaction with the Holders, or any other specific mention of or reference to the Holders, including those disclosures relating to the Holders set forth in the section entitled "Selling Stockholders" or "Selling Securityholders" and (ii) the "Plan of Distribution" section included in any such amendment or supplement to the extent that either (i) any description or mention of or reference to the Holders has been modified or (ii) the "Plan of Distribution" section has been modified in a manner that would adversely affect the Holders, and in each case to use its reasonable best efforts to incorporate any reasonable changes requested by such Holders, or their representatives, with respect to disclosure regarding such Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided that the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) use its commercially reasonable efforts to cause all the shares of Common Stock covered by such registration statement to be listed on the principal U.S. national securities exchange or U.S. trading system on which the same securities issued by the Company are then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provide a transfer agent and registrar for all Common Stock registered pursuant to this Agreement and provide a CUSIP number for all such Common Stock, in each case not later than the effective date of such registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement such registration statement or prospectus;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) in connection with any Underwritten Offering in which the Holders elect to participate, enter into such agreements (including an underwriting agreement in form, scope and substance as is customary in underwritten offerings) and take all such other actions reasonably requested by the managing underwriters to expedite or facilitate the disposition of such Registrable Securities, and in such connection, (i) make such representations and warranties to the underwriters with respect to the business of the Company and its subsidiaries, and the registration statement, prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers in underwritten offerings, and, if true, confirm the same if and when requested, (ii) furnish to the underwriters and selling Holders opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) will be reasonably satisfactory to the managing underwriters), addressed to each of the underwriters and selling Holders covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such underwriters, (iii) use commercially reasonable efforts to obtain comfort letters and updates thereof from the independent registered public accounting firm of the Company (and, if necessary, any other independent registered public accounting firms of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the registration statement) who have certified the financial statements included in such registration statement, addressed to each of the underwriters and selling Holders, such letters to be in customary form and covering matters of the type customarily covered in comfort letters in connection with underwritten offerings, (iv) deliver such documents and certificates as may be reasonably requested by the managing underwriters to evidence the continued validity of the representations and warranties made pursuant in the underwriting agreement and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) make available for inspection by a representative of the selling Holders, any underwriter participating in any such disposition of Registrable Securities, if any, and any attorneys, accountants or other professionals retained by such selling Holders or underwriter, at the offices where normally kept, during reasonable business hours, all financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries, and cause the officers, directors and employees of the Company and its subsidiaries to supply all information in each case reasonably requested by any such representative, underwriter, attorney, accountant or other professionals in connection with such registration statement. If so requested in writing by the Company, the Company's obligation to disclose information pursuant to the preceding sentence is conditioned upon the execution and delivery by each Person receiving such disclosure of an agreement satisfactory to the Company as to form relating to such Person's obligation to refrain from disclosing the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) in connection with any Underwritten Offering in which the Holders elect to participate, cause its officers to use commercially reasonable efforts to support the marketing of the Registrable Securities covered by the registration statement (including, without limitation, participation in "road shows" and appearing before analysts and rating agencies) taking into account the Company's business needs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) in connection with any Underwritten Offering in which the Holders elect to participate, cooperate with each selling Holder and each underwriter or agent participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with FINRA.

The Holders acknowledge that the none of the Company's warrants are listed and none are currently eligible to be listed on any U.S. stock exchange or any U.S. national trading system.

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In addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities of the Company under the Securities Act shall have become effective, its insider trading policy shall provide that the Company's executive officers and directors may implement a trading program under Rule 10b5-1 under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Expenses of Registration.</u> All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to <u>Section 2,</u> including all registration, filing and qualification fees, printers' and accounting fees, and fees and disbursements of counsel for the Company shall be borne and paid by the Company. All Selling Expenses relating to Registrable Securities registered pursuant to <u>Section 2</u> shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf; provided, however, in the case of an Underwritten Offering the Company shall pay the reasonable fees and disbursements, not to exceed $50,000.00, of one counsel collectively representing the Holders and Other RR Holders participating in the Underwritten Offering (the **"Selling Holder Counsel"**),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Delay of Registration.</u> No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this <u>Section 2.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Reports Under Exchange Act.</u> With a view to making available to the Holders the benefits of Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) make and keep available adequate current public information, as those terms are understood and defined in Rule 144, at all times after the effective date of the Initial Form S-1 or, if earlier, the registration statement filed by the Company for the IPO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request: (i) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of Rule 144 (at any time after ninety (90) days after the effective date of the Initial Form S-1 or, if earlier, the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company; and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Removal of Legend.</u> Upon request of the Holder and delivery of the any representation letters reasonably requested by the Transfer Agent and the Company's counsel, the Company will use its commercially reasonable efforts to promptly deliver to the Transfer Agent, within three (3) Business Days of such request, an opinion of counsel removing the restrictive legends from any shares of Common Stock that are eligible to be sold pursuant to Rule 144 without volume or manner of sale limitation and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144(c)(1), provided that the Holder is not at the time of request deemed an "Affiliate" of the Company (as such term is defined under Rule 144). The Company hereby acknowledges that the Holder shall not be deemed to be an "Affiliate" solely due to its ownership of shares of Common Stock, provided that the Holder beneficially owns less than twenty percent (20%) of the outstanding shares of the Company and the Holder has not entered into any voting or similar agreements with other stockholders with respect to the shares of the Company. As promptly as practicable, upon receipt of the representation letters reasonably requested by the Transfer Agent and the Company's legal counsel, the Company shall use its commercially reasonable efforts to cause its legal counsel to promptly deliver to the Transfer Agent, within three (3) Business Days hereof, an opinion of counsel removing the restricted legend from the shares of Common Stock acquired by the Investors as part of the Units sold by the Company in the 2024 Private Placement Transactions. Once the Transfer Agent removes the legend from the shares of Common Stock acquired by the Investors as part of the Units sold by the Company in the 2024 Private Placement Transactions, such shares of Common Stock will cease to be Registrable Securities.

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3.  **<u>Termination of Registration Rights</u>** <u>.</u> The right of any Holder to request registration or inclusion of Registrable Securities in any registration statement
 or in any Underwritten Offering shall terminate upon the earlier of (a) such date that the Holders cease to hold Registrable Securities
 or (b) the three (3) year anniversary of the effective date of the Initial Form S-1 (the "**Term** ").

4.  **<u>Indemnification and Contribution</u>** . If any Registrable Securities are included in a registration statement under <u>Section 2</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Indemnification by the Company</u>. To the extent permitted by law, the Company will indemnify, defend and hold harmless each selling Holder, and each Holder's partners, managers, members, officers, directors, stockholders, legal counsel, accountants, underwriter (as defined in the Securities Act), and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys' fees) and expenses (collectively, **"Losses"**), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement of a material fact contained in the Initial Form S-1, any Shelf Registration Statement and any other registration statement registering any Registrable Securities, any prospectus contained therein or relating thereto or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, any underwriter of such Holder, any controlling Person of such Holder, or other aforementioned Person expressly for use in connection with such registration of such Holder's Registrable Securities, or (ii) the use by such Holder of an outdated, defective or otherwise unavailable prospectus after the Company has notified such Holder in writing that the prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the notice from the Company that the use of the applicable prospectus included within the registration statement (as may have been supplemented or amended) may be resumed. The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company is aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified person and shall survive the transfer of any Registrable Securities by any of the Holders in accordance with <u>Section 6.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Indemnification by Holders</u>. To the extent permitted by law, each selling Holder shall, severally and not jointly, indemnify, defend and hold harmless the Company, its directors and officers, and each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), to the fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon any untrue or alleged untrue statement of a material fact contained in any registration statement, any prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading to the extent, but only to the extent, that such untrue statement or omission are based solely upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder expressly for use in connection with such registration. In no event shall the liability of a selling Holder be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this <u>Section 4.2</u> and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement or omission) received by such Holder upon the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification obligation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Conduct of Indemnification Proceedings</u>. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an "**Indemnified Party**"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the "**Indemnifying Party**") in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof, provided that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have materially and adversely prejudiced the Indemnifying Party. An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding on terms reasonably satisfactory to such Indemnified Party. Subject to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten (10) Trading Days of written notice thereof to the Indemnifying Party, provided that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such Proceedings for which such Indemnified Party is finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) not to be entitled to indemnification hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Contribution</u>. If the indemnification under <u>Sections 4.1</u> or <u>4.2</u> is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys' or other fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms. The parties hereto agree that it would not be just and equitable if contribution pursuant to this <u>Section 4.4</u> were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. In no event shall the contribution obligation of a Holder of Registrable Securities be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this <u>Section 4</u> and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation. The indemnity and contribution agreements contained in this <u>Section 4</u> are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.

5.  **<u>Waiver and Release of Rights</u>** . In consideration of the Warrant Term Extension and the execution of this Agreement by the Company, upon the effectiveness
 of the Warrant Amendments, the Investors, individually and on behalf of their Affiliates, release and forever discharge the Company
 and its agents, managers, officers, executives, as well as the Company's subsidiaries, affiliates, and parent, and their agents,
 managers, officers and executives (collectively, the "Released Parties"), from any and all actions, causes of action, obligations,
 costs, expenses, damages, losses, claims, liabilities, suits, debts, demands, and benefits (including attorneys' fees and costs),
 of whatever character, in law or in equity, known or unknown, suspected or unsuspected, matured or not matured, of any kind or nature
 whatsoever, now existing or arising in the future, based on any act, omission, event, occurrence, or nonoccurrence from the beginning
 of time to the date of execution hereof, arising under or related to the obligations of the Company under the Original Agreement, including
 but not limited any claims for damages or liquidated damages arising from the failure of the Company to comply with certain notification,
 filing or effective dates in the Original Agreement. For the avoidance of doubt, obligations of the Company and any Released Parties
 arising under this Agreement are not affected by the foregoing release.

6. <u>Miscellaneous .</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Springing Effectiveness</u>. Section 5 of this Agreement shall become effective only upon the effectiveness of the Warrant Amendments after the Company has obtained all required regulatory approvals (including any approvals that may be required under applicable securities law or by the TSX Venture Exchange) of the Warrant Amendments. If the Warrant Amendments do not become effective on or before November 15, 2025, Section 5 of this Agreement, including the waiver and release contained in Section 5 hereof, shall automatically terminate and any claims for damages or liquidated damages arising under the Original Agreement shall be reinstated and survive pursuant to its terms and Section 2(d) of the Original Agreement shall be incorporated by reference herein and shall apply to this Agreement *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Successors and Assigns.</u> This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Notwithstanding the foregoing, an Investor may assign all or any portion of its rights hereunder to one or more Permitted Transferees of such Investor and any Permitted Transferee will be entitled to the rights granted hereunder, provided that (i) the Company is given written notice at the time of said transfer or assignment identifying the name and address of the Permitted Transferee and (ii) that the Permitted Transferee assumes in writing the obligations of such Investor under this Agreement by executing a joinder agreement in a form reasonably acceptable to the Company.

12 *Registration Rights Agreement - Encompass*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction). Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the Southern District of New York United States or the courts of the State of New York in each case located in New York City, New York, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of process, summons, notice or other document by mail to such party's address set forth herein shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Counterparts.</u> This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g. www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Titles and Subtitles.</u> The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Currency.</u> All amounts designated as "$" or "US$" or "USD" are references to United States Dollars, while any reference to Canadian Dollars are identified by "CAD$".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Notices.</u> All communications provided for hereunder will be personally delivered or sent by registered or certified mail, nationally recognized overnight courier or facsimile and (a) if addressed to a Holder, addressed to the Holder at the postal mail address or email address set forth beside such Holder's signature, or at such other postal address or email address as such Holder furnishes to the Company in writing or (b) if addressed to the Company, to the postal address or email address set forth beside the Company's signature or at such other address or email address, or to the attention of such other officer, as the Company furnishes to Holder in writing. All notices and other communications required or permitted under this Agreement will be in writing and will be deemed effectively given: (w) when personally delivered to the party to be notified; (x) when sent by confirmed email if sent during normal business hours of the recipient or, if not, then on the next Business Day, as long as a copy of the notice is also sent via nationally recognized overnight courier, specifying next day delivery, with written verification of receipt; (y) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (z) one (1) Business Day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.

13 *Registration Rights Agreement - Encompass*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Amendments and Waivers.</u> The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of a majority of the then outstanding Registrable Securities, provided that, if any amendment, modification or waiver disproportionately and adversely impacts a Holder (or group of Holders), the consent of such disproportionately impacted Holder (or group of Holders) shall be required. If a registration statement does not register all of the Registrable Securities pursuant to a waiver or amendment done in compliance with the previous sentence, then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to designate which of its Registrable Securities shall be omitted from such registration statement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of a Holder or some Holders and that does not directly or indirectly affect the rights of other Holders may be given only by such Holder or Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the first sentence of this <u>Section</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>6.8</u>. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Severability.</u> In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>Entire Agreement.</u> This Agreement constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>Delays or Omissions.</u> No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>Further Assurances.</u> At any time or from time to time after the date hereof, the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <u>Cumulative Remedies</u>. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 <u>Independent Nature of Holders' Obligations and Rights</u>. The obligations of each Holder hereunder are several and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters, and the Company acknowledges that the Holders are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or transactions. Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect to the obligations of the Company contained was solely in the control of the Company, not the action or decision of any Holder, and was done solely for the convenience of the Company and not because it was required or requested to do so by any Holder. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Holder, solely, and not between the Company and the Holders collectively and not between and among Holders.

**[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]**

14 *Registration Rights Agreement - Encompass*

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| Address | **COMPANY** |
|  | INTERNATIONAL BATTERY METALS LTD. |
| 6100 Tennyson Parkway, Suite 240 |  |
| Plano, Texas 75024 |  |
|  | */s/ Joseph A. Mills* |
|  | Name: Joseph A. Mills |
|  | Title: Chief Executive Officer |

---

*[Signature Page to Registration Rights Agreement]*

---

| | |
|:---|:---|
|  | **INVESTORS** |
|  | ENCOMPASS CAPITAL MASTER FUND L.P. |
|  | By: Encompass Capital Advisors LLC, its Investment Manager |
| Address: |  |
|  | */s/ Syed Kazmi* |
| 200 Park Avenue, Suite 1604 New York, NY 10166 | Name: Syed Kazmi |
|  | Title: CFO & COO |

---

---

| | |
|:---|:---|
|  | ENCOMPASS CAPITAL E L MASTER FUND L.P. |
|  | By: Encompass Capital Advisors LLC, its Investment Manager |
| Address: |  |
|  | */s/ Syed Kazmi* |
| 200 Park Avenue, Suite 1604 New York, NY 10166 | Name: Syed Kazmi |
|  | Title: CFO & COO |

---

---

| | |
|:---|:---|
|  | ENCOMPASS CAPITAL ENERGY TRANSITION MASTER FUND L.P. |
|  | By: Encompass Capital Advisors LLC, its Investment Manager |
| Address: |  |
|  | */s/ Syed Kazmi* |
| 200 Park Avenue, Suite 1604 New York, NY 10166 | Name: Syed Kazmi |
|  | Title: CFO & COO |

---

---

| | |
|:---|:---|
|  | BEMAP MASTER FUND LTD. |
|  | By: Encompass Capital Advisors LLC, its Subadvisor |
| Address: |  |
|  | */s/ Syed Kazmi* |
| 200 Park Avenue, Suite 1604 New York, NY 10166 | Name: Syed Kazmi |
|  | Title: CFO & COO |

---

---

| | |
|:---|:---|
|  | BLACKSTONE CSP-MST FMAP FUND |
|  | By: Encompass Capital Advisors LLC, its Subadvisor |
| Address: |  |
|  | */s/ Syed Kazmi* |
| 200 Park Avenue, Suite 1604 New York, NY 10166 | Name: Syed Kazmi |
|  | Title: CFO & COO |

---

*[Signature Page to Registration Rights Agreement]*

## Exhibit 10.31

**Exhibit 10.31**

**INTERNATIONAL BATTERY METALS LTD**

(the **"** **Company"**)

**NOTICE AND CONSENT TO THE AMENDMENTS OF WARRANT TERMS**

I, Joseph Mills, Chief Executive Officer of the Company am hereby giving notice that the Company wishes to amend the term of (i) 2,702,400 warrants formerly issued to the EV Metals VI LLC ("**EV Metals**") on February 29, 2024, (the "**February 2024 Warrants"**) (ii) 7,924,157 warrants formerly issued to EV Metals on May 3, 2024 (the "**May 2024 Warrants"**); and (iii) 8,478,246 warrants formerly issued to EV Metals on June 19, 2024 (the "**June 2024 Warrants**, together with the February 2024 Warrants, the May 2024 Warrants, the "**Warrants**") from their respective expiry date to the same expiry date of the warrants to be issued at the closing of the private placement of the Company with Encompass Capital Advisors LLC, acting for certain fund entities and managed accounts for which Encompass Capital Advisors LLC exercises investment discretion, pursuant to the subscription agreements dated July 20, 2025 (the "**Private Placement Warrant Expiry Date**"), as set forth under Section 2 of this Notice (the "**Amendments**"). The details of the Warrants to be amended are set forth under Section 1 of this Notice.

Prior to effecting the Amendments, and in order to ensure the Company's compliance with TSX Venture Exchange Policy 4.1 "Private Placements", EV Metals is requested to review this notice, and if deemed advisable, to consent to the Amendments by executing the signatory line at the end of this document. The effectiveness of the Amendments is subject to the approval of the TSX Venture Exchange.

**1.**  **<u>Warrantholders and the Warrants to be Amended:</u>** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Warrantholder** | **Warrant <br> Certificate** | **# of <br> Warrants** | **Exercise <br> Price** | **Grant Date** | **Expiry Date** |
| EV Metals VI LLC | 2024-001 | 2702400 | CAD$1.25 | February 29, 2024 | March 1, 2026 |
| EV Metals VI LLC | 2024-E(6) | 7924157 | CAD$0.9579 | May 3, 2024 | May 3, 2026 |
| EV Metals VI LLC | 2024.2-E(1) | 8478246 | CAD$0.9579 | June 19, 2024 | June 19, 2026 |
| **Total Warrants** | **Total Warrants** | **19104803** |  |  |  |

---

**2.**  **<u>Warrantholders and the Warrants after the Amendments:</u>** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Warrantholder** | **Warrant <br> Certificate** | **# of <br> Warrants** | **Exercise <br> Price** | **Grant Date** | **Expiry Date** |
| EV Metals VI LLC | 2024-001 | 2702400 | CAD$1.25 | February 29, 2024 | Private <br> Placement <br> Warrant Expiry <br>Date |
| EV Metals VI LLC | 2024-E(6) | 7924157 | CAD$0.9579 | May 3, 2024 | Private <br> Placement <br> Warrant Expiry <br>Date |
| EV Metals VI LLC | 2024.2-E(1) | 8478246 | CAD$0.9579 | June 19, 2024 | Private <br> Placement <br>Warrant Expiry <br> Date |
| **Total Warrants** | **Total Warrants** | **19104803** |  |  |  |

---

[*Signature Page Follows*]

This Notice and Consent to the Amendments of Warrant Terms is dated effective as of July 20, 2025 (the **"Effective Date"**).

**INTERNATIONAL BATTERY METALS LTD.**

---

| |
|:---|
| /s/ Joseph Mills |
| Joseph Mills – CEO |

---

**WARRANTHOLDER CONSENT**

By executing the below signatory line, the warrantholder hereby consents to the Amendments as of the Effective Date.

**EV Metals VI LLC**

---

| | |
|:---|:---|
| By: | /s/ Jacob Warnock |
| Name: | Jacob Warnock |
| Title: | Manager |

---

## Exhibit 10.32

**Exhibit 10.32**

**INTERNATIONAL BATTERY METALS LTD**

(the "**Company**")

**NOTICE AND CONSENT TO THE AMENDMENTS OF WARRANT TERMS**

(the **"Notice"**)

I, Joseph Mills, Chief Executive Officer of the Company am hereby giving notice that the Company wishes to (a) amend the term of (i) 6,396,999 warrants formerly issued to the warrantholders on April 21, 2023 (the "**2023 Warrants**"), from the existing term of May 3, 2026, to April 21, 2028; (ii) 10,717,977 warrants formerly issued to the warrantholders on May 3, 2024 (the "**May 2024 Warrants**"), from the existing term of May 3, 2026, to the same expiry date of the warrants to be issued at the closing of the private placement of the Company with Encompass Capital Advisors LLC, acting for certain fund entities and managed accounts for which Encompass Capital Advisors LLC exercises investment discretion, pursuant to the subscription agreements dated July 20, 2025 (the "**Private Placement Warrant Expiry Date**"); and (iii) 3,000,000 warrants formerly issued to the warrantholders on June 19, 2024 (the "**June 2024 Warrants**", together with the 2023 Warrants and the May 2024 Warrants, the "**Warrants**"), from the existing term of June 19, 2026 to the Private Placement Warrant Expiry Date, as set forth under Section 2 of this Notice (the "**Term Extension Amendment**"), and (b) make certain amendments of the Warrants with respect to the limitation of warrant exercise, as set forth under Section 3 of this Notice (the "**Exercise Limitation Amendment**", together with the Term Extension Amendment, the "**Amendments**"). The details of the Warrants to be amended are set forth under Section 1 of this Notice.

Prior to effecting the Amendments, and in order to ensure the Company's compliance with TSX Venture Exchange Policy 4.1 "Private Placements", each warrantholder is requested to review this notice, and if deemed advisable, to consent to the Amendments by executing the signatory line at the end of this document. The effectiveness of the Amendments is subject to the approval of the TSX Venture Exchange.

**1. <u>Warrantholders and the Warrants to be Amended:</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**Warrantholder** | <br>**Warrant Certificate** | <br>**# of Warrants** | **Exercise Price** | **Exercise Price** | <br>**Grant Date** | <br>**Expiry Date** |
| Encompass Capital Master Fund L.P. | 2023-E(5) | 2659420 | CAD$ | 1.21 | April 21, 2023 | May 3, 2026 |
| Encompass Capital E L Master Fund L.P. | 2023-E(3) | 1688074 | CAD$ | 1.21 | April 21, 2023 | May 3, 2026 |
| BEMAP Master Fund Ltd. | 2023-E(1) | 305696 | CAD$ | 1.21 | April 21, 2023 | May 3, 2026 |
| Encompass Capital Energy Transition Master Fund L.P. | 2023-E(4) | 998750 | CAD$ | 1.21 | April 21, 2023 | May 3, 2026 |
| Blackstone CSP-MST FMAP Fund | 2023-E(2) | 745059 | CAD$ | 1.21 | April 21, 2023 | May 3, 2026 |
| Encompass Capital Master Fund L.P. | 2024-E(1) | 4462481 | CAD$ | 0.9579 | May 3, 2024 | May 3, 2026 |
| Encompass Capital E L Master Fund L.P. | 2024-E(2) | 2811515 | CAD$ | 0.9579 | May 3, 2024 | May 3, 2026 |
| BEMAP Master Fund Ltd. | 2024-E(3) | 519791 | CAD$ | 0.9579 | May 3, 2024 | May 3, 2026 |
| Encompass Capital Energy Transition Master Fund L.P. | 2024-E(4) | 1657879 | CAD$ | 0.9579 | May 3, 2024 | May 3, 2026 |
| Blackstone CSP-MST FMAP Fund | 2024-E(5) | 1266311 | CAD$ | 0.9579 | May 3, 2024 | May 3, 2026 |
| Encompass Capital Master Fund L.P. | 2024.2-E(2) | 1233933 | CAD$ | 0.9579 | June 19, 2024 | June 19, 2026 |
| Encompass Capital E L Master Fund L.P. | 2024.2-E(3) | 830954 | CAD$ | 0.9579 | June 19, 2024 | June 19, 2026 |
| BEMAP Master Fund Ltd. | 2024.2-E(4) | 142794 | CAD$ | 0.9579 | June 19, 2024 | June 19, 2026 |
| Encompass Capital Energy Transition Master Fund L.P. | 2024.2-E(5) | 429848 | CAD$ | 0.9579 | June 19, 2024 | June 19, 2026 |
| Blackstone CSP-MST FMAP Fund | 2024.2-E(6) | 362471 | CAD$ | 0.9579 | June 19, 2024 | June 19, 2026 |
| **Total Warrants** | **Total Warrants** | **20114976** |  |  |  |  |

---

**2. <u>Warrantholders and the Warrants after the Term Extension Amendment:</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>**Warrantholder** | **Warrant Certificate** | **# of Warrants** | **Exercise Price** | **Exercise Price** | **Grant Date** | <br>**Expiry Date** |
| Encompass Capital Master Fund L.P. | 2023-E(5) | 2659420 | CAD$ | 1.21 | April 21, 2023 | April 21, 2028 |
| Encompass Capital E L Master Fund L.P. | 2023-E(3) | 1688074 | CAD$ | 1.21 | April 21, 2023 | April 21, 2028 |
| BEMAP Master Fund Ltd. | 2023-E(1) | 305696 | CAD$ | 1.21 | April 21, 2023 | April 21, 2028 |
| Encompass Capital Energy Transition Master Fund L.P. | 2023-E(4) | 998750 | CAD$ | 1.21 | April 21, 2023 | April 21, 2028 |
| Blackstone CSP-MST FMAP Fund | 2023-E(2) | 745059 | CAD$ | 1.21 | April 21, 2023 | April 21, 2028 |
| Encompass Capital Master Fund L.P. | 2024-E(1) | 4462481 | CAD$ | 0.9579 | May 3, 2024 | Private Placement Warrant Expiry Date |
| Encompass Capital E L Master Fund L.P. | 2024-E(2) | 2811515 | CAD$ | 0.9579 | May 3, 2024 | Private Placement Warrant Expiry Date |
| BEMAP Master Fund Ltd. | 2024-E(3) | 519791 | CAD$ | 0.9579 | May 3, 2024 | Private Placement Warrant Expiry Date |
| Encompass Capital Energy Transition Master Fund L.P. | 2024-E(4) | 1657879 | CAD$ | 0.9579 | May 3, 2024 | Private Placement Warrant Expiry Date |
| Blackstone CSP-MST FMAP Fund | 2024-E(5) | 1266311 | CAD$ | 0.9579 | May 3, 2024 | Private Placement Warrant Expiry Date |
| Encompass Capital Master Fund L.P. | 2024.2-E(2) | 1233933 | CAD$ | 0.9579 | June 19, 2024 | Private Placement Warrant Expiry Date |
| Encompass Capital E L Master Fund L.P. | 2024.2-E(3) | 830954 | CAD$ | 0.9579 | June 19, 2024 | Private Placement Warrant Expiry Date |
| BEMAP Master Fund Ltd. | 2024.2-E(4) | 142794 | CAD$ | 0.9579 | June 19, 2024 | Private Placement Warrant Expiry Date |
| Encompass Capital Energy Transition Master Fund L.P. | 2024.2-E(5) | 429848 | CAD$ | 0.9579 | June 19, 2024 | Private Placement Warrant Expiry Date |
| Blackstone CSP-MST FMAP Fund | 2024.2-E(6) | 362471 | CAD$ | 0.9579 | June 19, 2024 | Private Placement Warrant Expiry Date |
| **Total Warrants** | **Total Warrants** | **20114976** |  |  |  |  |

---

**3. <u>Exercise Limitation Amendment</u>**

The Company wishes to make the following amendments to the Warrants:

---

| | |
|:---|:---|
| (a) | Section 1.1 of each warrant certificate of the Warrants is to be amended by adding the following new Subsection (c.1) or (b.1), as applicable: |
|  | ""**Common Share Equivalents**" means any securities of the Company that would entitle the holder thereof to acquire at any time Common Shares, including without limitation any debt, preference shares, exchangeable for, or otherwise entitles the holder thereof to receive, Common Shares;" |
| (b) | Section 1.1 of each warrant certificate of the Warrants is to be amended by adding the following new Subsection (f.1) or (d.1), as applicable: |
|  | ""**Control Person**" has the meaning given to such term under the *Securities Act* (Ontario);" |
| (c) | Article 3 of each warrant certificate of the 2023 Warrants and Article 4 of each warrant certificate of the May 2024 Warrants and the June 2024 Warrants are to be amended by adding the following new Section 3.7 or Section 4.7, as applicable: |

---

**"Warrant Exercise Limitation**

&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding
 anything to the contrary in the Warrant Certificate, at all times when Common Shares shall be listed for trading on the TSX Venture
 Exchange or any other Canadian stock exchange or inter-dealer quotation system, no Warrant Shares will be issued in connection with
 any exercise of the Warrants and the Company will not issue any Warrant Shares hereunder, if the Warrant Shares issuable to the Holder,
 together with all other Common Shares ()"**Other Shares**") held by the Holder, together with any person "acting
 jointly or in concert" (within the meaning of National Instrument 62-104 Take-Over Bids and Issuer Bids) with the Holder, would
 result in the Holder becoming a Control Person (the "**Threshold** "), then the Holder making such exercise shall automatically
 be deemed to have elected to exercise only such number of Warrants as would result in the Warrant Shares issued in respect thereof,
 together with such Other Shares, not exceeding the Threshold, and all Warrants whose exercise would result in such Warrant Shares
 plus such Other Shares exceeding such Threshold shall not be converted but shall remain outstanding hereunder unless and until exercised
 by the Holder in accordance with this Section [3.7(a)/4.7(a)]; provided, however, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the Holder
 may, in its sole and absolute discretion, elect that this Section [3.7(a)/4.7(a)] cease to apply to such Holder by sending written
 notice of such election to the Company, in which case this Section [3.7(a)/4.7(a)] will cease to apply to the Holder from, and including,
 the 61st calendar day after the date the Holder sends such notice to the Company; and

ii. this Section [3.7(a)/4.7(a)]
 will automatically cease to apply with respect to this Warrant Certificate from and after the 20th calendar day before the Expiry
 Time unless the Holder elects otherwise, in its sole and absolute discretion, by written notice sent to the Company before the 20th
 calendar day before the Expiry Time;

provided further that if approval of the Company's shareholders is required for the creation of a new "control person" under the policies of the TSX Venture Exchange or any other Canadian stock exchange on which the Common Shares are then listed and the Holder has elected that this provision cease to apply under section (i) above or section (ii) is applicable, the Holder will not exercise the Warrants until such time as the Company has received the applicable shareholder approval under the policies of the TSX Venture Exchange or such other Canadian stock exchange on which the Common Shares are then listed. In the event that approval by the Company's shareholders is required as described in the immediately preceding sentence, the Company shall use commercially reasonable efforts to hold a shareholders meeting as soon as reasonably practicable following the Company's receipt of the Holder's written notice of its election that this Section [3.7(a)/4.7(a)] cease to apply to such Holder and to use commercially reasonable efforts to obtain such shareholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 anything to the contrary contained herein, the Company shall not effect any exercise of the Warrants, and a Holder shall not have
 the right to exercise any portion of this Warrant Certificate, pursuant to Section [3/4] or otherwise, to the extent that after giving
 effect to such issuance after exercise as set forth on the exercise form on Schedule "B", the Holder (together with the
 Holder's affiliates (the "**Affiliates** "), and any other persons acting as a group together with the Holder
 or any of the Holder's Affiliates (such persons, "**Attribution Parties** ")), would beneficially own in excess
 of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of Common Shares beneficially
 owned by the Holder and Attribution Parties shall include the number of Common Shares issuable upon exercise of the Warrants with
 respect to which such determination is being made, but shall exclude the number of Common Shares which would be issuable upon (i)
 exercise of the remaining, nonexercised portion of the Warrants beneficially owned by the Holder or any of its Affiliates or Attribution
 Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including,
 without limitation, any Common Share Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained
 herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence,
 for purposes of this Section [3.7(b)/4.7(b)]), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange
 Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Holder is solely responsible
 for any schedules required to be filed in accordance therewith. In addition, a determination as to any group status as contemplated
 above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
 For purposes of this [3.7(b)/4.7(b)], in determining the number of outstanding Common Shares, a Holder may rely on the number of
 outstanding Common Shares as reflected in (A) the Company's most recent periodic or annual report filed with the Securities
 and Exchange Commission (the "**Commission** "), as the case may be, (B) a more recent public announcement by the Company
 or (C) a more recent written notice by the Company or the Company's transfer agent setting forth the number of Common Shares
 outstanding. Upon the written or oral request of a Holder, the Company shall within two (2) Trading Days confirm orally and in writing
 to the Holder the number of Common Shares then outstanding. In any case, the number of outstanding Common Shares shall be determined
 after giving effect to the conversion or exercise of securities of the Company, including these Warrants, by the Holder or its Affiliates
 or Attribution Parties since the date as of which such number of outstanding Common Shares was reported. The "**Beneficial Ownership Limitation**" shall be 19.9% of the number of Common Shares outstanding at the time of the respective calculation
 hereunder. The limitations contained in this paragraph shall apply to a successor holder of this Warrant Certificate."

[*Signature Page Follows*]

This Notice and Consent to the Amendments of Warrant Terms is dated effective as of July 20, 2025 (the **"Effective Date").**

**INTERNATIONAL BATTERY METALS LTD.**

---

| |
|:---|
| /s/ Joseph Mills |
| Joseph Mills - CEO |

---

**WARRANTHOLDER CONSENT**

By executing the below signatory lines each of the warrantholders hereby consent to the Amendments as of the Effective Date.

**BEMAP MASTER FUND LTD.**

**By: Encompass Capital Advisors LLC, its Subadvisor**

---

| | |
|:---|:---|
| By: | /s/ Syed Kazmi |
| Name: | Syed Kazmi |
| Title: | CFO & COO |

---

**BLACKSTONE CSP-MST FMAP FUND**

**By: Encompass Capital Advisors LLC, its Subadvisor**

---

| | |
|:---|:---|
| By: | /s/ Syed Kazmi<u> </u> |
| Name: | Syed Kazmi |
| Title: | CFO & COO |

---

**ENCOMPASS CAPITAL E L MASTER FUND L.P.**

**By: Encompass Capital Advisors LLC, its Investment Manager**

---

| | |
|:---|:---|
| By: | /s/ Syed Kazmi<u> </u> |
| Name: | Syed Kazmi |
| Title: | CFO & COO |

---

**ENCOMPASS CAPITAL ENERGY TRANSITION MASTER FUND L.P.**

**By: Encompass Capital Advisors LLC, its Investment Manager**

---

| | |
|:---|:---|
| By: | /s/ Syed Kazmi |
| Name: | Syed Kazmi |
| Title: | CFO & COO |

---

**ENCOMPASS CAPITAL MASTER FUND L.P.**

**By: Encompass Capital Advisors LLC, its Investment Manager**

---

| | |
|:---|:---|
| By: | /s/ Syed Kazmi |
| Name: | Syed Kazmi |
| Title: | CFO & COO |

---

## Exhibit 21.1

**Exhibit 21.1**

**INTERNATIONAL BATTERY METALS LTD.**

**List of Subsidiaries**

---

| | |
|:---|:---|
| **<u>Entity Name</u>** | **<u>Jurisdiction of Organization</u>** |
| IBAT USA, Inc. | Delaware |
| Selective Adsorption Lithium, Inc. | Delaware |

---

## Exhibit 23.1

**Exhibit 23.1**

**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

We consent to the inclusion in this Registration Statement on Form S-1 of our report dated July 30, 2025, with respect to the financial statements of International Battery Metals Ltd. included in this Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ CBIZ CPAS P.C.

Houston, Texas

July 30, 2025

## Exhibit 23.5

**Exhibit 23.5**

**<u>Independent Registered Public Accounting Firm's Consent</u>**

We consent to the use in this Registration Statement on Form S-1 of our report dated August 1, 2024 relating to the financial statements of International Battery Metals Ltd. appearing in this Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Marcum llp

Houston, Texas

July 30, 2025

## Ex-Filing

?xml version='1.0' encoding='ASCII'?

**Exhibit 107**

**Calculation of Filing Fee Tables**

**Form S-1**

(Form Type)

**International Battery Metals Ltd.** 

(Exact Name of Registrant as Specified in its Charter)

Table 1: Newly Registered Securities

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Security Type** | **Security Class Title** | **Fee Calculation Rule** | **Amount Registered** | **Proposed Maximum Offering Price Per Unit** | **Maximum Aggregate Offering Price** | **Fee Rate** | **Amount of Registration Fee** |
| Fees to be Paid |  |  |  |  |  |  |  |  |
| Fees Previously Paid | Equity | Common shares, no par value | 457(c) | 93481739<sup>(1)</sup> | $0.2331<sup>(2)</sup> | $21790593 | $0.00015310 | $3336.14<sup>(3)</sup> |
| Fees Previously Paid | Equity | Warrants to purchase common shares | 457(g) | 39219779<sup>(4)</sup> | $0.7338<sup>(5)</sup> | $28779474 | $0.00015310 | $4406.05 |
|  | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** |  | 50570067 |  | $**7742.19** |
|  | **Total Fees Previously Paid** | **Total Fees Previously Paid** | **Total Fees Previously Paid** | **Total Fees Previously Paid** |  |  |  | $**7742.19** |
|  | **Total Fee Offsets** | **Total Fee Offsets** | **Total Fee Offsets** | **Total Fee Offsets** |  |  |  | N/A |
|  | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** |  |  |  | $**0** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 number of common shares being registered includes the resale of up to 93,481,739 common shares
 held by the selling shareholders, consisting of (i) 54,261,960 shares of common stock issued
 in a private placement and (ii) 39,219,779 common shares issuable upon the exercise of warrants.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Estimated
 solely for the purpose of calculating the registration fee in accordance with Rule 457(c)
 under the Securities Act of 1933, as amended, the proposed maximum offering price per share
 is $0.2331, which is the average of the high and low prices of the common shares on the OTCQB
 of the OTC Markets Group, Inc. on July 28, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(3) A
 registration fee of $10,921.30 was previously paid by the Registrant in connection with the
 initial filing of the Registration Statement, as filed with the Securities and Exchange Commission
 on April 17, 2025, which provided for the registration of 111,256,290 Common shares. The
 number of Common shares being registered pursuant to the Registration Statement is being
 decreased, by amendment, to 93,481,739 shares.

&nbsp;&nbsp;&nbsp;&nbsp;(4) The
 amount includes 39,219,779 warrants issued in a private placement.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Estimated
 solely for the purpose of calculating the registration fee in accordance with Rule 457(g)
 under the Securities Act of 1933, as amended, based on the price at which the warrants may
 be exercised.