Gold Mountain Limited announced the proposed acquisition of up to a 75% interest in an additional package of tenements ("The Salinas II Project") ("proposed transaction") in Brazil, which are highly prospective for lithium. The Salina II Project comprises seven tenements covering an area of approximately 9,264 hectares. The Proposed Transaction is subject to shareholder approval, to be sought at an upcoming Extraordinary General Meeting (EGM).

Gold Mountain and Mars Mines Limited ("Mars") have entered into a conditional which, subject to shareholder approval in accordance with Listing Rule 7.1, will see Gold Mountain acquire a 75% interest in the Salinas II Lithium Project, located in eastern Brazil. The key commercial terms of the agreement are: Subject to shareholder approval (to be sought in January 2023) and transferring the tenements to a newly incorporated SPV, Gold Mountain will issue Mars (or its nominees) with 125,000,000 fully paid ordinary shares for a 75% interest in the Salinas II Lithium Project. Gold Mountain will free-carry Mars 25% interest in the project until a decision to mine is made.

Following completion of the free-carried period, both parties will fund joint venture activities pro- rata to their respective interests or dilute per standard dilution metrics. Should either party wish to divest their interest in the joint-venture, the other party will have a first right of refusal. There will be no change to the Gold Mountain Board following completion of the Proposed Transaction.

The Proposed transaction comprises a western group of tenements located close to the town of Salinas and Água Boa, and one tenement located south of the town of Pedra Grande. The western group of tenements cover areas where subsurface extensions to the Água Boa granitic batholith, have intruded into schists greywackes and arkose sediments of the Ribeirão da Folha formation and greywackes, meta-arenites, meta-conglomerates and schist of the Salinas Formation. Pegmatites are known to emanate out from the Água Boa granite and have been intruded into the adjacent country rock formations.

The Água Boa batholith is composite with a series of different suites of intrusives. The G4 suite of intrusives, which are found on the western margins of the batholith, are considered to be the parent intrusives to the LCT pegmatites in the Salinas-Água Boa region and are shown with black dotted outline on Figure 3. LCT pegmatites are the final intrusive phases of the related granite, containing concentrations of the most volatile and last crystallizing phases of the granite. There is a well-recognised zonation of pegmatite composition outward from the related granite with the most evolved and often highest-grade pegmatites in the most distal zones which may be up to 10 km from the related granite.

The GMN - Mars Mines Salinas II tenements cover areas adjacent to the G4 granite ­ meta-sediment contact zone and above the projected sub-surface extensions of the G4 granite. In the Salinas II area, it has been observed that weathering has resulted in near surface leaching of lithium from surface rocks, and pegmatite may not outcrop in areas with deeper weathering but have been shown to continue subsurface by drilling in competitors areas. This area covered by the Mars tenements has been largely ignored by artisanal miners and other explorers.

Mars believes that even though pegmatites have not yet been identified on its tenements, they are nevertheless located in a very fertile LCT pegmatite province, meaning the potential for identifying high grade lithium pegmatites is high. Experience by other modern explorers in the same region have found numerous previously undiscovered pegmatites.