https://canaccordgenuity.bluematrix.com/sellside/EmailDocViewer?e...

https://canaccordgenuity.bluematrix.com/sellside/EmailDocViewer?encrypt=bc59b55f-faee-4193-8549-9d2b3904b627&mime=pdf&co=Canaccordgenuity&[email protected]&source=mailCorrection: What a hole! 156.9m at 2.12% Li2OCorrection: We are reissuing this note to correct the percentage in the title; it should be 2.12%.What’s new? Patriot Battery Metals announced the assay results of 14 additional holes, completed as part of its 2022 drill campaign at the highly prospective Corvette Property.We highlight hole CV22-083, which intersected a 156.9m interval of 2.12% Li2O, including 25.0m of 5.04% Li2O - the widest, highest-grade lithium drill interceptreported to date at the CV5 Pegmatite. The hole was drilled at the eastern side of CV5 (Figure 1) and is interpreted to have intersected part of a larger, high-grade zone that has been defined over a strike length of at least 250m, as confirmed by assay (holes CV22-017 to 083).We look forward to follow-up drilling in this area in early 2023 that will test the extension of the high-grade zone to the east and at depth. A 100m step-out hole was already completed as part of the 2022 program (CV22-093), but assays results have not yet been released. We continue to believe that Patriot is well on its way to delineating what could become one of the largest lithium hard discoveries in Canada. Prior to these latest assay results, we estimated a mineral resource of ~100Mt at 1.15% Li2O. Spanning PMET's entire property, this is likely conservative. At CV5 alone, mineralization has already been defined over a strike length of at least 2,200m and remains open along strike at both ends.Additional drill hole highlights include:• CV22-068: 1.45% Li2O over 22.7m• CV22-069: 1.72% LI2O over 45.3m, including 2.11% Li2O over 31.0m • CV22-070: 1.95% Li2O over 31.2m, including 2.78% Li2O over 9.0m • CV22-074: 2.00% Li2O over 16.9m• This hole is the most westerly hole completed to date• Step-out drilling will continue to the west to test the extension• CV22-080: 1.33% Li2O over 29.5m2023 exploration now underway: Last week, the winter phase of the 2023 drill campaign commenced on site. This portion of the program is targeting a minimum of 20,000m of drilling between January and April utilizing at least five drill rigs, making it one of the largest lithium drill programs in Quebec in recent history. The objectives of this program include extension of the 2,200m strike length of the CV5 pegmatite to the east toward the CV4 pegmatite, as well as infill drilling intended to support the definition of an indicated mineral resource estimate. Management is currently targeting the release of a maiden mineral resource in the first half of 2023.In early January, the company also announced that the ~20km of winter road connecting the project site to the all-season Trans-Taiga Road is nearing completion (Figure 4). This additional infrastructure should make site access significantly easier, simplifying future exploration, technical, and project development work.Potential upcoming catalysts:• Further assay results from 2022 drill program - ongoing • Maiden mineral resource estimate – H1 2023• Additional HLS and DMS test work• Potential additional pegmatite discoveries Rating Price TargetSPECULATIVE BUY C$9.75PMET-TSXV PMT-ASXPriceC$7.9352-Week Range (C$) : 2.45 - 10.50Avg Daily Vol (000s) : 243.31Shares Out. (M) : 91.9Market Cap (C$M) : 728.5Dividend /Shr (C$) : 0.00Dividend Yield (%) : 0.0 Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX)The recommendations and opinions expressed in this research report accurately reflect the research analyst's personal, independent and objective views about any and all the companies and securities that are the subject of this report discussed herein.For important information, please see the Important Disclosures beginning on page 6 of this document.Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23Patriot Battery Metals Inc. Company UpdateFigure 1: Drill hole collar locations at the CV5 PegmatiteISource: Company Reports2Speculative Buy Target Price C$9.75 | 18 January 2023EV Materials 2Patriot Battery Metals Inc. Company UpdateFigure 2: Mineralization drill intercept summaryISource: Company Reports3Speculative Buy Target Price C$9.75 | 18 January 2023EV Materials 3Patriot Battery Metals Inc. Company UpdateFigure 3: Drill hole CV22-083ISource: Company Reports4Speculative Buy Target Price C$9.75 | 18 January 2023EV Materials 4Patriot Battery Metals Inc. Company UpdateFigure 4: Segment of winter road extending from the Trans-Taiga Road to the drill area at CV5Source: Company ReportsI5Speculative Buy Target Price C$9.75 | 18 January 2023EV Materials 5Appendix: Important DisclosuresAnalyst CertificationEach authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research, and (iii) to the best of the authoring analyst’s knowledge, she/he is not in receipt of material non-public information about the issuer.Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity LLC and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.Sector CoverageIndividuals identified as “Sector Coverage” cover a subject company’s industry in the identified jurisdiction, but are not authoring analysts of the report.Investment RecommendationDate and time of first dissemination: January 18, 2023, 20:50 ET Date and time of production: January 18, 2023, 21:14 ETTarget Price / Valuation Methodologyatriot Battery Metals Inc. - PMETOur target price is based on 1.0x NAV, measured as at September, 1 2023.Risks to achieving Target Price / Valuationatriot Battery Metals Inc. - PMETExploration risksExploration is subject to a number of risks and can require a high rate of capital expenditure. Risks can also be associated with the conversion of inferred resources and lack of accuracy in the interpretation of geochemical, geophysical, drilling and other data. No assurances can be given that exploration will delineate mineral resources or that the company will be able to convert the current mineral resource into minable reserves.Financing risksAs a pre-production company with no material income, PMET is reliant on equity and debt markets to fund the development of its assets and the continuing business development activities. There is no guarantee that PMET will be able to access capital markets should there be changes in market sentiment and/or pricing.Permitting risksOur estimates and valuation assume the successful receipt of permits for the Corvette project; however, there is no guarantee that this will be the case, or that permits will be received within assumed timelines.Operating risksIf and when in production, the company will be subject to risks such as plant/equipment breakdowns, metallurgical (meeting design recoveries within a complex flowsheet), materials handling and other technical issues. An increase in operating costs could reduce the profitability and free cash generation from the operating assets considerably and negatively impact valuation. Further, the actual characteristics of an ore deposit may differ significantly from initial interpretations, which can also materially impact forecast production from original expectations.Commodity price and currency fluctuationsAs with any mining company, PMET is directly exposed to commodity price and currency fluctuations. Commodity price fluctuations are driven by many macroeconomic forces, including inflationary pressures, interest rates and supply and demand factors. These factors could reduce the profitability, costing and prospective outlook for the business.Patriot Battery Metals Inc. Company UpdateSpeculative Buy Target Price C$9.75 | 18 January 2023EV Materials 6 Distribution of Ratings:Global Stock Ratings (as of 01/18/23)Buy 616 Hold 159 Sell 14 Speculative Buy 149Patriot Battery Metals Inc. Company Update64.91% 25.49% 16.75% 14.47% 1.48% 0.00% 15.70% 40.94%Rating Coverage Universe IB Clients#%%949* 100.0% *Total includes stocks that are Under ReviewCanaccord Genuity Ratings SystemBUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months. SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months.NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer.“Risk-adjusted return” refers to the expected return in relation to the amount of risk associated with the designated investment orthe relevant issuer.Risk QualifierSPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments inthe stock may result in material loss.12-Month Recommendation History (as of date same as the Global Stock Ratings table)A list of all the recommendations on any issuer under coverage that was disseminated during the preceding 12-month period may be obtained at the following website (provided as a hyperlink if this report is being read electronically) http://disclosures- mar.canaccordgenuity.com/EN/Pages/default.aspxRequired Company-Specific Disclosures (as of date of this publication)Patriot Battery Metals Inc. currently is, or in the past 12 months was, a client of Canaccord Genuity or its affiliated companies. During this period, Canaccord Genuity or its affiliated companies provided investment banking services to Patriot Battery Metals Inc..In the past 12 months, Canaccord Genuity or its affiliated companies have received compensation for Investment Banking services from Patriot Battery Metals Inc. .In the past 12 months, Canaccord Genuity or any of its affiliated companies have been lead manager, co-lead manager or co- manager of a public offering of securities of Patriot Battery Metals Inc. or any publicly disclosed offer of securities of Patriot Battery Metals Inc. or in any related derivatives.Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from Patriot Battery Metals Inc. in the next three months.Canaccord Genuity (Australia) Limited received a fee for its role as Joint Lead Manager to Patriot Battery Metals' $4.2m equity raising at $0.60 on 16 November 2022.Patriot Battery Metals Inc. Rating History as of 01/17/2023I:SB:C$9.75 10/17/2022C$10 C$8 C$6 C$4 C$2 C$0 Apr 18Jul 18Oct 18Jan 19Apr 19Jul 19Oct 19Jan 20Apr 20Jul 20Oct 20Jan 21Apr 21Jul 21Oct 21Jan 22Apr 22Jul 22Oct 22Jan 23Closing Price Price TargetBuy (B); Speculative Buy (SB); Sell (S); Hold (H); Suspended (SU); Under Review (UR); Restricted (RE); Not Rated (NR) Speculative Buy Target Price C$9.75 | 18 January 2023EV Materials 7Required Company-Specific Disclosures (as of date of this publication)Past performanceIn line with Article 44(4)(b), MiFID II Delegated Regulation, we disclose price performance for the preceding five years or the whole period for which the financial instrument has been offered or investment service provided where less than five years. 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