Stria Lithium Inc. announce the execution of a definitive agreement (the "Definitive Agreement") with Cygnus Gold Limited following the execution of a binding term sheet between the parties dated July 26, 2022. Pursuant to the Definitive Agreement, Cygnus has been granted the sole and exclusive option (the "Option") to acquire up to a 70 % undivided interest in Stria's Pontax-Lithium property (the "Property") under a two-stage option for total cash payments of $6 million and exploration expenditure commitments totalling $10 million (the "Transaction"). Following the exercise of the Option, the parties will form a joint venture (the "Joint Venture") with each of Cygnus and Stria holding an undivided interest of 70 % and 30 % respectively, with Cygnus acting as operator of the Joint Venture.

Stria's interest in the Joint Venture will be free carried until Cygnus delivers a feasibility study on the property. In consideration for the Option, Cygnus paid a cash consideration of CAD 1 million and subscribed for 1,400,000 common shares of the Company a price of CAD 0.25 per common share, for aggregate gross proceeds of CAD 350,000. The shares issued to Cygnus were issued pursuant to Canadian prospectus exemptions and are subject to a statutory four month and one day hold period.

The terms of the two-stage option can be summarized as follows: 1st option to acquire a 51% undivided interest ("First Option"): Under the First Option, Cygnus is required to incur exploration expenditures on the Property in the amount of $4 million over a period of 18 months. Following completion of such expenditures, in order to complete the First Option, Cygnus shall pay Stria a cash amount of $2 million. 2nd option to acquire an additional 19% interest ("Second Option"): Under the Second Option, conditional upon the exercise of the First Option, Cygnus shall incur additional exploration expenditures in the amount of $6 million over a period of 30 months from the date of exercise of the First Option.

Following completion of such expenditures, in order to complete the Second Option, Cygnus shall pay Stria an additional cash amount of $3 million. Upon the exercise of the Second Option, Cygnus shall have acquired a 70% undivided interest in the Property. In the event Cygnus elects not to proceed with, or otherwise fails to exercise the Second Option, the parties will form the Joint Venture with Cygnus automatically transfering a 2% undivided back to Stria for a nominal consideration.

Each of Cygnus and Stria shall thereafter hold an undivided Joint Venture interest of 49 % and 51 % respectively, with Stria becoming operator of the JointVenture.