Stria Lithium Terminates Option Agreement on the Pontax II Property

Stria Lithium Inc. has announced the termination of its option agreement on the Pontax II property located in Quebec's James Bay region, following disappointing exploration results and challenging market conditions. The decision comes after a comprehensive evaluation program conducted in summer 2023, which included grab sampling and assay work by ALS Laboratory and mineralogical analysis by IOS Services Géoscientifiques. The results failed to confirm the presence of spodumene in the submitted pegmatites and granitoids, undermining the property's lithium potential.

The strategic withdrawal from Pontax II allows Stria to preserve capital and focus resources on more promising lithium projects within its portfolio. The company cited current challenging capital markets as a key factor in determining that continued investment in the property was not economically viable. By discontinuing the option, Stria avoids the second tranche of transfer payments and ongoing expenditure requirements associated with maintaining the property rights.

Despite the setback on Pontax II, Stria maintains a strong position in the James Bay lithium district through its Central Pontax project, which is operated under a joint venture with ASX-listed Cygnus Metals. This project has already established a maiden JORC-compliant inferred mineral resource estimate of 10.1 million tonnes at 1.04% Li2O, positioning it as a significant occurrence in the emerging regional lithium sector. Cygnus has committed up to $10 million in exploration funding and $6 million in cash payments for up to 70% interest in the property.

The company's portfolio also includes the recently acquired Jeremiah project in Quebec's Abitibi region, strategically located near Sayona's North American Lithium mine. This property features a confirmed spodumene-bearing pegmatite with grab sample results of 0.54% Li2O, providing another avenue for lithium development. The decision to terminate Pontax II reflects disciplined capital allocation in a challenging market environment, allowing Stria to concentrate on assets with stronger near-term development potential and established mineralization.