Cygnus Metals Limited (ASX:CY5) agreed to acquire Auclair Lithium Project in James Bay from Osisko Development Corp. (TSXV:ODV) for approximately CAD 6.5 million on February 28, 2023. Cygnus will acquire the additional ground through an outright purchase from Osisko comprising: (a) CAD 0.247165 million in cash, which is for the reimbursement of costs of the exploration licences; (b) 1 million fully paid ordinary shares in Cygnus, which are expected to be issued shortly using Cygnus?

placement capacity under Listing Rule 7.1 and which will be subject to voluntary escrow for a period of 12 months from completion; and (c) Deferred Consideration of: (i) CAD 3 million in shares or cash (at Cygnus? election) when the Company achieves a JORC Code 2012 or NI 43-101 compliant mineral resource estimate of inferred or greater quality at Auclair of three million tonnes containing not less than 1.2% Li2O3; and (ii) CAD 3 million in shares or cash (at Cygnus? election) when the Company achieves a JORC Code 2012 or NI 43-101 compliant mineral resource estimate of inferred or greater quality at Auclair of 1Moz Au or greater at a minimum of 3 g/t.