Patriot Battery Metals Inc. (TSX: PMET) (ASX: PMT) (OTCQX: PMETF) (FSE: R9GA) is pleased to announce that it has closed its previously announced private placement for proceeds of C$69 million¹Â or US$48 million to Volkswagen Group.

Following the closing of the Strategic Investment, Volkswagen now owns approximately 9.9% of Patriot’s issued and outstanding Common Shares on a non-diluted basis.

The proceeds from the Strategic Investment will be used for exploration, development and completion of a Feasibility Study on the Company’s Shaakichiuwaanaan Lithium Project in Quebec, Canada, as well as for general and working capital purposes.

Ken Brinsden, Patriot’s CEO and Managing Director said: “We are both pleased and proud to welcome VW as a strategic shareholder. Their investment in Patriot represents a significant step forward for the Company, while working towards the delivery of one of the more important lithium raw materials projects globally.

“As a high-grade and large-scale resource in North America, Shaakichiuwaanaan is well-placed to help meet the substantial demand growth for lithium that is forecast through to the end of this decade and beyond, and in the process to grow key western supply chains.

“We look forward to working closely with PowerCo SE and VW to support their significant investment in North American markets,” he added.

As previously outlined in the Company’s announcement of 18 December 2024 in relation to the Strategic Investment, the parties have entered into the following:

• Binding offtake term sheet between Patriot and Volkswagen’s wholly-owned and vertically integrated battery manufacturer, PowerCo SE, for Patriot to supply 100,000 tonnes of spodumene concentrate (SC 5.5 target) per year over a 10-year term;
• Investor rights agreement whereby Volkswagen will have certain rights including the right to participate in future equity raises by the Company and provide a voting support covenant in favour of management, in each case subject to certain customary conditions;²Â and
• Non-binding Memorandum of Understanding to establish an ongoing strategic relationship between PowerCo and Patriot to jointly explore and collaborate on shared strategic objectives, including opportunities for the future development of the Shaakichiuwaanaan Project centered around establishing a cost-competitive, sustainable and ESG-compliant battery supply chain that will attract government support and incentives and the potential development of a chemical conversion facility.

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¹Â Based on a USDCAD exchange rate of 1.4310 as at January 20, 2025.

²Â For ASX purposes, such voting covenant confers the Company with a ‘relevant interest’ in those Common Shares to which the voting rights are subject of the voting covenant from time to time. The Company therefore holds a ‘substantial holding’ (as those terms are defined in the Australian Corporations Act) in itself equal to Volkswagen’s interest.

For additional details regarding the terms and details of the Strategic Investment, including the Offtake, Investor Rights Agreement and MoU, please refer to the Company’s press release dated December 18, 2024.

About Patriot Battery Metals Inc.

Patriot Battery Metals Inc. is a hard-rock lithium exploration company focused on advancing its district-scale 100%-owned Shaakichiuwaanaan Property (formerly known as Corvette) located in the Eeyou Istchee James Bay region of Québec, Canada, which is accessible year-round by all-season road and is proximal to regional powerline infrastructure. The Shaakichiuwaanaan Mineral Resource³, which includes the CV5 & CV13 spodumene pegmatites, totals 80.1 Mt at 1.44% Li2O Indicated, and 62.5 Mt at 1.31% Li2O Inferred, and ranks as the largest lithium pegmatite resource in the Americas, and the 8th largest lithium pegmatite resource in the world. Additionally, the Shaakichiuwaanaan Property hosts multiple other spodumene pegmatite clusters that remain to be drill tested, as well as significant areas of prospective trend that remain to be assessed.

About PowerCo SE and Volkswagen AG

PowerCo’s parent company, Volkswagen AG, also known as the Volkswagen Group, manufactures and sells automobiles in Germany, other European countries, North America, South America, the Asia-Pacific, and internationally. The company operates through four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. From battery management to cell production and recycling – the Volkswagen Group is evolving into a profitable expert throughout the entire lifecycle of the key component, the battery. In the process, battery-cell technology will become one of the company’s core areas of expertise. Volkswagen AG’s subsidiary, PowerCo SE, was established in 2022 and focuses on developing battery cells.