Perpetual Resources Ltd (“Perpetual”) has initiated a comprehensive evaluation of its newly acquired Isabella Lithium Project, strategically positioned within Brazil's renowned Lithium Valley. This maiden due diligence exploration program marks the Company's initial steps towards assessing the project's potential lithium reserves and formulating a strategic exploration plan to unlock its value proposition.

The first phase of exploration will prioritize a high-intensity sampling program centered around established spodumene-rich artisanal sites. They will then expand the exploration footprint from these known resource areas. This first-pass surface exploration is designed to identify high-potential lithium anomalies, with the goal of positioning Perpetual’s Isabella Project as a prominent advanced lithium exploration project in the region. The findings from this preliminary work are expected to provide valuable insights and advance the project's potential within Brazil's Lithium Valley.

The Isabella Project has demonstrated confirmed high-grade lithium mineralization, with rock-chip assays revealing values of up to 5.62% Li2O. These results correspond with two mineralization trends extending up to 1.8 kilometers, delineated by artisanal workings that target the pegmatites. This promising data suggests that the project could offer potential near-term drill targets, which will be thoroughly assessed during the ongoing exploration program.

The acquisition of permit 830167/2013 in July 2024 marked a significant milestone for Perpetual’s lithium exploration endeavors in Brazil. This permit encompasses several outcropping spodumene occurrences and multiple historical artisanal mining sites, with tunnels reaching up to 150 meters that expose LCT-bearing pegmatites. These characteristics make the permit a potentially transformative asset for Perpetual, providing promising initial targets for testing and advancing their lithium exploration efforts in the region.

Perpetual has embarked on an intensive prospectivity assessment through on-the-ground reconnaissance led by its expanding in-country exploration team. The focus is on the known and potentially expanded spodumene-bearing artisanal workings, along with detailed evaluations of pegmatite occurrences in the area. The activities will prioritize consolidating and extending spodumene occurrences in the northern sections of the license while initiating preliminary assessments in the southern portions, which have not yet undergone systematic exploration.

The Isabella Project benefits from excellent access, facilitating rapid assessment and development. Results from the ongoing exploration program are anticipated later in the third quarter of the calendar year 2024. This accessibility is expected to accelerate the evaluation process and support swift progress in advancing the project. This a Project is located within a 962-hectare license in the state of Minas Gerais, approximately 27.5 kilometers from the city of Aracuai, a major regional hub for lithium projects. This area, historically known for semi-precious gemstones and ornamental granite, includes an established but now inactive quarry in the northeast corner of the project area.