Portfolio Update: Lithium Developer Surges Following Announcement of Strategic Investment

Our focus at Palisades is on establishing meaningful positions in companies with strong fundamentals, quality assets, and catalysts capable of generating significant shareholder value.

This week, a major strategic investment into one of our portfolio companies highlights the value that can be created when high-quality assets intersect with favorable market trends, strong management execution, and increasing investor interest.

Surge Battery Metals (TSXV: NILI / OTCQX: NILIF) – Significant Strategic Investment

On Wednesday, June 3, Surge announced an impressive $30 million strategic investment from Brian Paes-Braga of SAF Group and Michael Hess of Hess Capital; both of whom will be joining Surge’s Strategic Advisory Board to provide support across capital markets, government engagement, off-take discussions, and construction financing as the company advances the Nevada North Lithium Project toward a construction decision and navigates a Nasdaq listing application.

Surge’s Nevada North Lithium Project is one of America’s highest-grade lithium clay resources — even comparable to Lithium Americas’ (TSX: LAC / NYSE: LAC) Thacker Pass. Proceeds of this strategic financing will fully fund the project to a construction decision.

Palisades holds 13,225,000 warrants with a volume-weighted average exercise price of $0.74, representing a 5.3% partially diluted ownership stake (prior to strategic financing). The stock has risen roughly 25% from its 10-day VWAP since the release.

As significant stakeholders, we are excited by the validation that Brian Paes-Braga’s involvement provides. Brian has had prior success in the lithium arena with LithiumX Energy Corp., a company he founded and sold for $265M in 2018. Furthermore, the threat of a US listing will bring the story to a much larger audience and an investor base with a direct interest in the future product — a domestic supply of lithium.

In Summary

As demonstrated by Surge’s recent strategic investment announcement, meaningful gains can be generated through the intersection of rising demand for critical minerals, supportive policy initiatives, and company-specific catalysts.

Across our portfolio, we are seeing the fruits of the momentum of a junior resource bull cycle and continued company development. By securing positions early and emphasizing warrant exposure, Palisades is well positioned to capture the value generated as portfolio companies continue to execute on key milestones.

We will continue to keep you informed as additional news emerges from our portfolio.

Sincerely,

The Palisades Team

NOTE: This material is for discussion purposes only. This is not an offer to buy or sell or subscribe or invest in securities. The information contained herein has been prepared for informational purposes using sources considered reliable and accurate, however, it is subject to change and we cannot guarantee the accurateness of the information. The material does not necessarily reflect the official policy or position of Palisades Goldcorp Ltd.