E79 Resources - Pivoting to Battery Metals as Gold Market Languishes

• Patrick Donnelly, CEO of E79 Resources, is attending the Beaver Creek conference to seek new business opportunities, connect with shareholders, and discuss the company's assets, especially in the gold sector.
• E79 Resources owns significant gold assets in Australia, notably the Myrtleford and Beaufort gold properties. The intention was to emulate the Fosterville model, which had seen significant success in gold mining.
• Despite promising drilling results, market conditions have been tough for gold equities. Consequently, the company decided to suspend activities and reevaluate their approach to avoid unnecessary expenditure.
• E79 is pivoting to green metals, given the strong market sentiment and fundamentals for commodities like lithium, nickel, and copper. The company is close to finalizing deals on assets, particularly in Brazil, in these sectors.
• The company has approximately CAD$4 million in the bank, which provides financial flexibility. Although the primary focus is shifting away from gold, the company recognizes the value of their gold assets and is considering options for them.

About E79 Resources

E79 Resources Corp. is a mineral exploration company focused on discovering Fosterville-style high-grade gold mineralization at its Beaufort and Myrtleford properties in the Victorian Goldfields of Australia. The company is also evaluating new opportunities across various commodities and jurisdictions to expand its project portfolio into metals such as copper, nickel, cobalt, and lithium. With a strong cash position of CDN$4.5 million, E79 Resources is well-funded to pursue accretive transactions and advance exploration on new projects. Under the leadership of President & CEO Patrick Donnelly, the company aims to leverage its technical expertise to unlock value from drill-ready mining assets with exceptional mineral potential.

Interview with President & Chief Executive Officer, Patrick Donnelly

Background on Gold Assets

E79's main assets were the Myrtleford and Beaufort gold properties in Victoria, Australia. The company acquired these properties in 2020 with the goal of finding high-grade, Fosterville-style gold mineralization. Drilling yielded some impressive intercepts up to 160 g/t gold over 11 meters at the Happy Valley target. The share price rose sharply in response. However, the complex, high-grade but erratic nature of the mineralization necessitated extensive further drilling.

Suspending Gold Exploration Due to Market Conditions

With gold equities continuing to languish despite a gold price of around $1900/oz, E79 decided last fall to suspend exploration and preserve capital. The assets remain prospective but require significant further expenditures to fully evaluated. With little market support for junior gold explorers, management determined it was prudent to pause work and redeploy capital into more attractive opportunities.

Cash Position Supports Pursuing New Directions

E79 Resources currently has around CAD$4 million in the treasury. This provides sufficient capital to perform due diligence and potentially acquire new projects. The company has been assessing opportunities in metals linked to the energy transition and battery revolution.

Lithium and Nickel Projects in BrazilAfter months of diligence across several countries, E79 has narrowed in on lithium and nickel projects in Brazil. The company has agreements in place on a couple of assets and expects to finalize terms shortly. Brazil offers extensive prospective geology, well-developed infrastructure, and a strong investment climate. The projects under consideration avoid sensitive areas from an ESG perspective.

Next Steps

Over the coming weeks, management will be traveling back to Brazil to conclude negotiations on the lithium and nickel opportunities. The company may also look at copper assets. Once terms are finalized, E79 will communicate details to the market.

Major shareholders and insiders are supportive of the pivot to battery metals. Their significant equity ownership provides stability during the transition. While some turbulence is possible, the potential rewards appear to justify the change in direction. After thorough due diligence, management believes Brazil offers excellent prospects to drive shareholder value in the years ahead.

The Investment Thesis

• Battery metals like lithium and nickel are in high demand due to the global energy transition and electric vehicle revolution. Solid projects in these sectors have strong tailwinds.
• Brazil offers extensive mineral potential and infrastructure in a relatively stable pro-mining jurisdiction. This allows for lower operating costs and reduced risk versus many mining destinations.
• The company has a strong cash position to acquire and advance new projects without an immediate need for dilutive financings.
• Insider ownership is high, aligning management interests with shareholders for long-term value creation.
• If E79 transitions smoothly and acquires promising properties, the potential upside could be substantial compared to the current valuation. Speculative investors get in early before the crowd arrives.
• Assets would be acquired at a time when many juniors are struggling. This distressed environment allows quality projects to be secured at favorable terms.
• Communicating a clear corporate strategy and vision could attract investor interest and re-rate the stock to better reflect underlying potential.
• Exploring new metals diversifies away from a single commodity. This reduces risk and expands possible upside from broader exposure.
• An exploration company with capital and a fresh start is nimble. They can move quickly to capitalize on new opportunities in a dynamic market.

If executed well, E79 Resources could offer investors upside leverage to rising battery metal demand with high insider ownership, cash to deploy, and a chance to get in early before wider attention returns. The pivot appears well-timed to acquire quality assets during a buyer's market.