New Risk • Mar 26
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 16% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$1.4m free cash flow). Share price has been highly volatile over the past 3 months (99% average weekly change). Negative equity (-CA$1.7m). Revenue is less than US$1m. Market cap is less than US$10m (CA$3.23m market cap, or US$2.33m). Minor Risk Shareholders have been diluted in the past year (16% increase in shares outstanding). Announcement • Nov 09
Champion Electric Metals Inc. Announces Resignation of Paul Fornazzari as A Member of the Company's Board of Directors Champion Electric Metals Inc. announced that, effective immediately, Paul Fornazzari has stepped down from his position as a member of the Company's Board of Directors. The Company's Board of Directors will continue with the three remaining members until a suitable candidate is appointed. Announcement • Sep 10
Champion Electric Metals Inc. Collects Significant Lithium in Samples from its Trenching Program at Western Prospect of Quebec Lithium Project in Heart of Eeyou Istchee James Bay Territory Champion Electric Metals Inc. announced significant lithium in samples collected from its trenching program at the Western Prospect of the Quebec Lithium Project in the heart of the Eeyou Istchee James Bay territory. The two strongest intervals reported from the program to date are 10.5 metres averaging 0.96% Li2O and 8.5 metres that averaged 1.17% Li2O. The 2024 program trenching effort focused on less than half of the 1,700 metre-long boulder field identified early in the field season. The team excavated a total of 12 trenches, exposing spodumene-mineralized pegmatite dikes at three locations over a strike length of 340 metres. Systematic channel sampling yielded 143 samples of nominal one metre length each. The length- weighted average grade of all channel samples in pegmatite is 0.47% Li20, while the length-weighted average of the 45 samples grading more than 0.40% Li2O is 1.09% Li2O. The highest Li2O content for a one-metre channel sample is 2.39% Li2O from channel EIQCH24-24 in Trench 8. To date, lithium analyses for 128 channel samples have been received and analyses remain pending for an additional 15 samples. Highlights of the Exposed Spodumene-Bearing Pegmatite Dikes: The thickness of glacial sedimentary cover encountered in trenches ranges from one metre to more than five metres, the maximum reach of the excavator. Once exposed, the bedrock surface in the trenches tends to vary in depth, usually exposing only 10-20 metres at a time; and certain of the trenches failed to reach any bedrock. In most cases, groundwater flows into the trenches to cover the low lying areas. Once a mineralized pegmatite dike was encountered, the team then used the excavator to pursue the exposure as far as practical along strike. The geological team completed systematic mapping and channel sampling of pegmatite dikes with the aid of a two-bladed diamond saw. Channel sampling effectively approximates a "horizontal drill hole", which can be used to constrain the extent of the spodumene mineralized pegmatite dikes by using the geological and sample data. Visual estimates of spodumene content in pegmatite dike trench exposures range 2-10% with significant variability recognized over short distances along strike. Spodumene crystals are pale green in color with a maximum observed length of approximately 80 cm. Pegmatite dikes typically exhibit fine-grained selvages of a few tens of centimetres width at their contacts with amphibolite host rock; these selvages are absent of spodumene and are interpreted as chill margins. Spodumene crystals can locally exhibit crude alignment that is suggestive of the flow direction of the igneous melt. The spodumene pegmatite dikes exposed in trenches are provisionally interpreted to correlate to the mineralized dike intercept in drill hole EIQ24-007. A minimum strike length of 340 metres is indicated for this pegmatite dike that remains open in three directions, northeast, southwest, and at depth. Overview of the 2024 Field Program: The Company's Quebec Lithium Project lies near notable lithium occurrences, such as Patriot Battery Metals' Shaakichiuwaanaan Project (formerly Corvette Project) and Winsome Resources' Cancet Discovery. Fieldwork for 2024 began northeast of the recent mineralized pegmatite discovery and moved quickly to locate a source for the spodumene found in till samples and boulders. The program included fill-in till sampling (closer spacing), boulder prospecting, mapping, trenching, and channel sampling with overburden clearing at the new boulder field. The recent work with the excavator has uncovered large areas of pegmatite dike beneath overburden, and the most recent trench results have included significant lithium content over widths of up to 10.5m. Sampling techniques and QA/QC: Under the supervision of senior staff, geologists collected samples from diamond saw-cut channels in bedrock using rock hammer and chisel. The location for each series of contiguous samples was recorded using a Trimble GPS instrument with 50-centimeter accuracy. Geologists placed the samples in plastic bags which were then organized into larger rice bags to facilitate transport to the lab. Certified standards and blanks were inserted at regular intervals as part of the in-field QA/QC protocols. Champion geologists or contractors maintained secure custody of the samples until transporting them to Activation Laboratories ("Actlabs") in Val d'Or, Quebec for sample preparation and analysis. 
