HERTZ ENERGY ENTERS AGREEMENT TO ACQUIRE COMINCO URANIUM PROPERTY

VANCOUVER, February 13, 2024 – Hertz Energy Inc. (the “Company”) (CSE: HZ; OTCQB: HZLIF; FSE: QE2) is pleased to announce that it has entered into a Property Purchase and Sale Agreement dated February 2, 2024 (the “Definitive Agreement”) with BullRun Capital Inc. (the “Vendor”) pursuant to which the Company has agreed to acquire the Cominco Uranium Project, located in Bathurst Inlet, Nunavut, Canada (the “Cominco Property”).

PURCHASE AGREEMENT

The Company has entered into the Definitive Agreement to acquire the Cominco Property. Pursuant to the terms and conditions of the Definitive Agreement and as consideration for the acquisition of a 100% undivided interest in the Cominco Property, the has agreed to:

  • Reimburse the Vendor acquisition costs to date estimated not to exceed $75,000; and
  • grant the Vendor a two percent (2%) net smelter returns royalty on the Cominco Property.

Mr. Kal Malhi, CEO of Hertz states, “Hertz was always founded and positioned to explore for mineral deposits that will power the future. We started with our Lucky Mica project and have added the AC/DC Lithium Project, while also obtaining options to acquire the Snake and Patriota Lithium Projects, since our listing in April 2023. Adding the Cominco Property fits extremely well with our energy metals offering and we aim to aggressively explore both the lithium and uranium mineral projects and continue to offer investors a well-diversified energy metals project portfolio.”

The Vendor is wholly-owned by Kal Malhi, a director and officer of the Company. Accordingly, the Company’s acquisition of the Cominco Property constitutes a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101”). The Company is relying on the exemption from valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, for its acquisition of the Cominco Property, as the value of the consideration to be paid by the Company for the acquisition of the Cominco Property does not represent more than 25% of the Company’s market capitalization, as determined in accordance with MI 61-101.

COMINCO URANIUM PROPERTY

The Cominco Property is focused on two main uranium showings of interest, the Pomie and the Yon showings in Nunavut (see Figure 1 below). Additional showings of uranium, copper, gold, nickel, and lead are known in the area. The Pomie and Yon showings were both explored in the mid 1970s by Cominco and Noranda and no work using modern exploration technologies has taken place since.

Previous regional work in the area by the Geological Survey of Canada (GSC) identified mineral potential for uranium in the area (Roscoe, 1984), based on the presence of the above showings and favourable stratigraphy for the formation of Unconformity Related Uranium (URU) deposits, similar to the stratigraphy found in the Athabasca and Thelon basins.

The Cominco Property covers the Yon and Pomie “Advanced Exploration” stage showings and is comprised of four licensing spanning 5,046.25 hectares covering favourable geology.

The two main uranium showings on the Cominco Property, the Yon and Pomie showings, are described in greater detail below. There are other smaller occurrences usually associated with copper mineralization in the region.

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