LIT Agreement (Emu Lake Project)The Company has entered into an...

LIT Agreement (Emu Lake Project)

The Company has entered into an option agreement with Lithium Australia NL (LIT)dated 12 April 2019 (LIT Agreement), pursuant to which LIT has granted the Companythe exclusive option to acquire a 100% legal and beneficial ownership of explorationlicence E27/562 (LIT Tenement) (LIT Option). The Company has paid an option fee of$1 for the LIT Option.The LIT Option is valid for a period of 24 months from the execution date of the LITAgreement (LIT Option Period).The Company may exercise the LIT Option at any time during the Option Period, andwill be deemed to have exercised the LIT Option on the date that it notifies LIT ofreceipt of a Conditional Admission Letter from ASX.On exercise of the LIT Option, the Company must issue to LIT 300,000 Shares at adeemed issue price of $0.20 each (LIT Shares). The issue of the LIT Shares is subjectto the Company obtaining shareholder approval for such issue (if required).As an alternative to the issue of the LIT Shares, the Company may make a cash paymentof $60,000 to LIT in the event that the Company elects to exercise the LIT Option priorto receipt of a Conditional Admission Letter from ASX.LIT retains the right to explore for, mine, treat and own Lithium on the LIT Tenement(LIT Lithium Rights) and contemplates that the parties may enter into a formalagreement to govern the shared mineral rights and the coordination of activities onthe LIT Tenement (there are currently no terms and conditions in the LIT Agreementthat address this). The LIT Lithium Rights do not preclude the Company from sellingthe LIT Tenement (in part or in whole) provided a deed is entered into with LIT.The LIT Agreement contains additional provisions, including various warranties infavour of the Company in respect of the LIT Tenement, which are considered standardfor agreements of this nature.

What this 2 YEAR option was given in April 2019 for $1 to buy for effectively $60,000 .How many more are there as this is way before appointing a Raw Materials Manager