SEARLES VALLEY MINERALS ANNOUNCES DEFINITIVE ASSET PURCHASE AGREEMENT WITH 5E ADVANCED MATERIALS

Searles Valley Minerals Inc. has entered into a definitive Asset Purchase Agreement with 5E Advanced Materials, Inc. for the sale of substantially all of its operating assets, valued at approximately $3.36 million. This transaction, executed under a court-supervised Section 363 sale process, is anticipated to close in October 2026, pending approval from the United States Bankruptcy Court for the District of Delaware. The agreement follows a competitive bidding process involving multiple parties and reflects Searles Valley Minerals' strategic efforts to position its assets under ownership committed to long-term development.

The assets being acquired by 5E Advanced Materials include Searles Valley Minerals' production facilities, specifically the Westend and Argus plants, along with around 9,000 acres of brine resources from Searles Lake. Additionally, the transaction encompasses the Trona Railway short-line railroad, potable water production and distribution facilities, and various permits and licenses essential for operations in California's San Bernardino, Kern, and Inyo Counties. The consideration for this acquisition includes $3,357,906 in cash, 8.3 million shares of common stock in 5E Advanced Materials, and a $6.22 million senior unsecured note.

5E Advanced Materials has secured $10 million in bridge financing from its parent company to facilitate the acquisition and ensure sufficient working capital. This strategic purchase is expected to enhance 5E's operational capabilities in the critical minerals sector, aligning with its commitment to sustainable resource development. The acquisition is particularly significant given the ongoing demand for specialty minerals, which are crucial for various industrial applications, including energy storage and electronics.

Throughout the bankruptcy process, Searles Valley Minerals will maintain normal operations, with the Westend facility continuing to produce boron, sodium sulfate, and other specialty products. The Trona Railway will remain operational, and the Searles Domestic Water Company will continue to provide potable water services to the Trona community without disruption. This continuity is vital for preserving the local economy and ensuring that customer relationships are maintained during the transition.

The implications of this transaction extend beyond the immediate operational aspects of Searles Valley Minerals and 5E Advanced Materials. As the market for critical minerals continues to grow, driven by increasing demand for sustainable technologies, this acquisition positions 5E to capitalize on emerging opportunities. The successful transition of Searles Valley's assets under 5E’s stewardship could serve as a model for similar transactions in the sector, highlighting the importance of strategic investments in resource-rich companies amidst the evolving landscape of the minerals market.