Caravan Energy Corporation announced that it has entered into agreements dated September 11, 2023 to acquire rare earth TREO properties located near Prince George, British Columbia, comprised of a total of 27 mineral claims and totaling 4,610 hectares. Pursuant to an agreement with the vendors thereof, the Company has agreed to acquire? 24 mineral claims in consideration for $100,000 in cash, 4,363,636 common shares (each, a ?Consideration Share?) of the Company, and the grant of a 2% net smelter returns (?NSR?) royalty (subject to the Company?s right to buy-back 50% of the NSR royalty for $1,000,000).

The Consideration Shares will be subject to a four month and one day hold period pursuant to applicable securities laws and will also be subject to a voluntary leak out schedule whereby they will be released over a 36-month period from the date of closing. Pursuant a separate agreement with the separate vendors thereof, the Company has agreed to acquire three mineral claims in consideration for $100,000 in cash, 1,045,454 Consideration Shares, and the grant of a 2% NSR royalty (subject to the Company?s right to buy-back 50% of the NSR royalty for $500,000). $50,000 of the cash consideration is to be paid upon Closing?

and the remaining $50,000 ?is to be paid on or before January 31, 2024?. The Consideration Shares will be subject to a four month and one day hold period pursuant to applicable securities laws and will also be subject to a voluntary leak out schedule whereby they will be released over a 30-month period from the date of Closing. The Consideration Shares will be issued at a deemed value of $0.52 per share, being the closing price of the Company?s common shares on September 11, 2023.

All the vendors are arm?s length the Company, and the Closing of the Acquisition is subject to customary closing conditions. The TREO Property is situated adjacent to the north, east, and south of the Wicheeda rare-earths property of Defense Metals Corp., in respect of which Defense Metals has commenced Pre-Feasibility Study work.