Mandrake Resources Secures Bulk Lithium Brine Production in Utah with $1M DOE Grant and Launches Gold-Copper Drilling in Australia

Well Access Agreement Enables Bulk Lithium Brine Extraction at Evelyn Chambers #1 Well

Mandrake Resources has secured a Well Access Agreement with Genesis ST Operating LLC, a local oil and gas operator, granting access to extract bulk lithium brines from the Evelyn Chambers #1 well within its 100% owned Utah Lithium Project. The agreement allows Mandrake to use a swabbing unit to extract up to 600 barrels (about 94,500 litres) of lithium brine from existing perforations in the Mississippian Leadville Formation reservoir. While the well infrastructure was originally designed for oil and gas extraction and is now depleted, it is not optimized for targeting the modelled high-grade lithium concentrations accessible with a purpose-built drill estimated to cost US$4 million.

A significant benefit of this agreement is the financial support from the US$1 million federal grant awarded by the US Department of Energy to the Paradox Basin Lithium Group, which includes Idaho National Laboratories (project lead), the National Laboratory of the Rockies, the University of Utah, and Mandrake Resources. Importantly, Mandrake will not owe payments to Genesis ST Operating LLC, reducing operational expenses and accelerating sampling activities. Extracted bulk brine will be stored onsite and initially supplied to Electroflow Technologies Inc and EnergySource Minerals for comprehensive technical and commercial evaluation.

Electroflow Technologies to Conduct Direct Lithium Extraction Evaluation

Electroflow Technologies Inc operates a direct lithium extraction (DLE) demonstration plant in Utah and plans to process approximately 10,000 litres of lithium brine from Mandrake. Their appraisal aims to produce battery-grade lithium carbonate and lithium iron phosphate, both critical battery materials. Lithium carbonate is a key precursor for lithium-ion batteries, while lithium iron phosphate is increasingly used in electric vehicles and energy storage systems due to its safety and thermal stability.

The technical and commercial data from Electroflow’s processing will provide essential purity, recovery, and cost metrics that will underpin Mandrake’s forthcoming Scoping Studies. These studies integrate technical, environmental, and economic data to assess project feasibility and establish an initial resource framework. Empirical data from actual brine processing will de-risk the Utah Lithium Project and support informed capital allocation decisions.

EnergySource Minerals to Perform Single Column Testing and Mass Balance Analysis

EnergySource Minerals (ESM), partially owned by SLB (formerly Schlumberger) and operator of the US$1.3 billion federally funded ATLiS lithium extraction project at California’s Salton Sea, will conduct a single column test on Mandrake’s brine to assess compatibility with their proprietary ILiad brine processing technology. This standard pre-pilot test enables rapid evaluation of brine chemistry behavior without the expense of full pilot operations.

Samples from ESM’s test will be analyzed using nuclear magnetic resonance (NMR) and confirmed by inductively coupled plasma optical emission spectroscopy (ICP-OES), providing precise elemental and chemical speciation data. These results will inform pilot-scale mass balance modeling and tuning targets, guiding Mandrake’s technical assessments and potential pilot or commercial development pathways.

Utah Lithium Project Resource and Leadville Formation Focus

Mandrake’s Utah Lithium Project covers approximately 93,755 acres (379 square kilometres) in Utah’s Paradox Basin and holds an Inferred Mineral Resource Estimate of 3.3 million tonnes of Lithium Carbonate Equivalent (LCE). This positions the project as a leading US lithium brine asset amid growing regional investment. The resource is based on lithium brines within the Leadville Formation, a geological unit with proven lithium-bearing brines compatible with modern extraction technologies.

The Leadville Formation is the source of lithium brines extracted from Evelyn Chambers #1. Existing perforations in the well were designed for oil and gas extraction and are not optimized for targeting high-grade lithium zones. This presents an opportunity: the current well offers immediate, low-cost brine access for evaluation, while confirming high-grade lithium concentrations supports future drilling of purpose-built wells if pilot results are positive.

Federal Support via Paradox Basin Lithium Group

The Paradox Basin Lithium Group, comprising Idaho National Laboratories, the National Laboratory of the Rockies, the University of Utah, and Mandrake Resources, received a US$1 million grant from the US Department of Energy. This funding acknowledges the strategic importance of lithium supply development in the western US and the Paradox Basin’s production potential.

Mandrake’s involvement enables leveraging this federal support to offset brine sampling and testing costs at Evelyn Chambers #1, preserving corporate capital and accelerating technical progress toward Scoping Studies. This funding arrangement reduces financial barriers and expedites data acquisition during a period of favorable US policy and investment toward domestic lithium supply.

Berinka Pine Creek Gold-Copper Drilling Campaign in Northern Territory

Mandrake contracted Geodrill Australia to execute a 3,200-metre reverse circulation drilling program at the Berinka Pine Creek Gold-Copper Project in the Northern Territory. The project lies within the renowned Pine Creek goldfield, which has produced over 20 million ounces of gold historically and is experiencing renewed exploration and development activity. Three new carbon-in-leach (CIL) processing plants have been approved recently, complementing the existing CIL plant at the Union Reefs deposit operated by Agnico Eagle, currently on care and maintenance.

The region hosts active operators including Agnico Eagle (Union Reef, 3 million ounces gold), Vista Gold (Mt Todd, 9.4 million ounces at feasibility), Hanking (Toms Gully and Rustlers Roost, 3 million ounces combined at feasibility), Patronus Resources (1.3 million ounces gold-equivalent), and PC Gold (Spring Hill, 0.8 million ounces at feasibility). This cluster of activity highlights strong investment momentum and provides Mandrake with access to processing infrastructure and technical expertise supporting future resource development at Berinka.

Berinka Drilling Program and Historical Results

Previous drilling at Berinka in 2020 and 2022 yielded promising results, including 6 metres averaging 2.3 grams per tonne gold and 0.34% copper over a 5-metre intersection, confirming gold and copper mineralisation amenable to reverse circulation drilling and assay. These findings underpin the targeting strategy for the upcoming drilling program.

The planned drilling will focus on the Terry's prospect group and several untested geochemical and geophysical anomalies to delineate economic mineralisation zones and expand understanding across the tenement. Mandrake applied for an Environmental Mining Licence in early May 2026, with drilling anticipated to start in August 2026 upon permit approval, indicating an expected timely regulatory process.

New Project Evaluations and Organic Growth in US and International Markets

During the June 2026 quarter, Mandrake evaluated multiple new project opportunities in the US and internationally, focusing on precious and base metals with strong shareholder value potential. Several projects advanced to preliminary technical and commercial assessments, reflecting progress beyond initial screening.

Simultaneously, Mandrake pursues organic project generation across various commodities in the US, leveraging its technical expertise, Utah Lithium Project data, and regional networks such as the Paradox Basin Lithium Group. This dual approach of external acquisitions and internal exploration positions Mandrake for portfolio expansion via mergers, acquisitions, and greenfield discoveries, enhancing shareholder value prospects.

Strong Financial Position and Cash Flow

As of 30 June 2026, Mandrake held approximately A$11.7 million in cash with no debt. This net working capital position provides substantial financial flexibility to fund exploration, drilling, and development activities without immediate external capital needs. The company has 627,259,920 ordinary shares outstanding, trading at 2.1 cents per share, equating to a market capitalization of approximately A$13.2 million at the quarterly report date.

During the June 2026 quarter, Mandrake’s net cash consumption from operations was A$177,000, reflecting a modest burn rate. This cash runway supports planned drilling and exploration programs and corporate overheads, enabling advancement of both Utah Lithium and Berinka Pine Creek projects while pursuing new growth opportunities without urgent capital raising requirements.