Grounded Lithium Expands its Resource Portfolio with Strategic Oil and Gas Acquisition in Saskatchewan

Grounded Lithium Expands Resources with Oil and Gas Acquisition

Grounded Lithium Corp. (TSX.V: GRD OTCQB: GRDAF) has made an important strategic move by announcing an acquisition of oil and gas rights in Saskatchewan. This acquisition, finalized through a Purchase Agreement dated December 30, 2025, aims to supplement the company’s cash flow while its key Kindersley Lithium Project (KLP) continues to progress in collaboration with Denison Mines Corp.

The agreement stipulates that Grounded will pay around $25,000 to a related entity, Analogy Capital Advisors Inc., in exchange for a 30% mineral interest in approximately four sections of land situated near Lloydminster, Saskatchewan. This area is recognized for its low-risk conventional oil deposits, providing a solid foundation for potential future profits. With Analogy Capital holding a 70% working interest in the land before the acquisition, it will now hold a 40% interest subsequent to the transaction.

The non-arm's length nature of this deal arises from John D. Wright, the Chairman of Grounded, being a co-owner of Analogy Capital. The remaining land interest is held by an unrelated corporate entity. Notably, no finder’s fees were applicable to this acquisition, further streamlining the process.

In addition to the acquisition, Grounded and the third-party entity plan to farm-out their combined 60% interest to a newly formed Limited Partnership, the Saskatchewan Renewal Drilling Limited Partnership #1 (SRDLP). This partnership successfully raised $900,000 for investment in oil and gas projects. The operational framework allows SRDLP to recoup its capital through a share of the net operating income (NOI); notably, Grounded will observe a smaller percentage of NOI until the partnership reaches a payout stage.

The collaborative group, which includes Grounded, Analogy Capital, and the third party, intends to drill up to two exploratory wells into the Mannville sequence on the acquired lands. Historical data suggests the presence of oil reserves in these wells, and projections indicate that the drilling operations could be performed at minimal cost, potentially achieving payback within a year.

Gregg Smith, the President and CEO of Grounded, remarked on the transaction, emphasizing the company’s commitment to diversifying its resource portfolio while continuing to focus on critical minerals. He noted that this venture presents a lower-risk opportunity that aligns with their lithium business goals, promising impressive cash flows that could fund future joint ventures and working capital.

The acquisition and its accompanying farm-out agreement have received conditional approval from the TSX Venture Exchange, and Grounded anticipates completing the transaction pending minor filing requirements. As the operations are set to commence in early 2026, this initiative is presented as a strategic move to enhance Grounded’s position in the evolving energy landscape while underpinning its lithium resources.

About Grounded Lithium Corp.: Grounded is a publicly traded company focusing on the exploration and development of lithium brine resources in Southwest Saskatchewan. The latest Preliminary Economic Assessment indicates a significant resource base, projecting a favorable return on investment as the company aims to play a pivotal role in the global shift towards clean energy solutions.

This forward-looking venture highlights not only Grounded’s adaptive capacity in resource management but also its intent to maximize financial viability through strategic acquisitions.