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Coloured Ties Provides Corporate Update


Vancouver, British Columbia--(Newsfile Corp. - August 11, 2022) - Coloured Ties Capital Inc. (TSXV: TIE) ("Coloured Ties" or the "Company") provides the following corporate update:

Acquisition of Net Smelter Royalty on Arnett Creek Gold Project being developed by Revival Gold Inc.

Coloured Ties announces that, further to its news release dated May 12, 2022, it has entered into a royalty purchase agreement (the "Purchase Agreement") with BullRun Capital Inc. ("BullRun") pursuant to which it will acquire a one percent (1%) net smelter return royalty (the "NSR Royalty") on the Arnett Creek Gold Project currently being developed by Revival Gold Inc. (the "Acquisition"). As consideration for the NSR Royalty the Company will pay BullRun USD$2,500,000.

Kal Malhi, a director and the Chief Executive Officer of the Company, is the sole shareholder and director of BullRun. The Acquisition is therefore considered a "related party transaction" for the purposes of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") and TSX Venture Exchange ("TSXV") Policy 5.9. The Acquisition is exempt from the formal valuation requirement of MI 61-101 pursuant to section 5.5(b) as the Company's common shares are not listed on a "Specified Market" as set forth in MI 61-101. However, as the value of the consideration to be received by BullRun exceeds 25% of the Company's current stock market capitalization, disinterested shareholder approval will be required for the Acquisition.

Accordingly, the Company will seek the approval of the Acquisition by a majority of the votes cast by disinterested shareholders at the Company's annual general and special meeting to be held on September 23, 2022 (the "AGSM"). Additional details of the Acquisition, as required by MI 61-101, will be described in the Company's information circular to be filed and mailed to shareholders in connection with the AGSM.

62 Lithium Claims Acquired in Quebec Lithium

As announced on July 25, 2022, Coloured Ties reports that it has purchased 62 mineral claims, in the Cadillac-Pontiac region, about 50km southwest of Val-d'Or. The claims are immediately adjacent to claims currently held by Winsome Resources, a well-funded ASX-listed lithium exploration company and Vision Lithium Inc., a TSX-V listed lithium explorer. The Mazérac claims are accessible by a dense network of trails and other logging roads. The area also accessible through boat or seaplane within watershed of Decelles water reservoir, hosting the Rapid-7 hydroelectric dam of Decelles.

The general area has recently attracted many lithium prospecting and exploration companies such as Brunswick Exploration Inc., High Tide Resources Corp., Medaro Mining Corp., NeoTerrex Corporation (private company), Renforth Resources Inc., Sayona Mining, Vision Lithium Inc., and Winsome Resources.

The Cadillac-Pontiac area has gained attention due to recent discoveries of several high-grade spodumene prospects. The latest discovery of high-grade lithium prospects by Vision Lithium Inc, spurred several other exploration and drill programs within the Cadillac area. Since December 2021, approximately 4,000 new claims have been registered in the greater Mazerac area and the Pontiac Subprovince region, south of Val-d'Or and Rouyn-Noranda.

The claims have been acquired from prospectors, Mr Griesbach and Junita Asihto. Mr Griesbach is a Canadian-certified geologist with more than 40 years of mineral exploration experience across Canada, Africa, China, and Southeast Asia; Mr. Junita Asihto is a Quebec-based prospector with a strong understanding of the Mazérac region.

Coloured Ties Intends to Acquire an Additional 46 Claims Adjacent to the Recently Acquired 62 Claims at Quebec Lithium Belt

The Company is currently in advanced discussions to expand the recently acquired lithium project in the Mazerac Lithium area in Quebec and acquire 46 additional claims in the area from an arm's length party. There is no guarantee the additional claims acquisition will be successfully concluded and the Company will provide updates as the transaction proceeds.

The Company will continue to monitor exploration activity of adjoining projects and develop an expanded exploration plan within the area. As per its initial plan, Coloured Ties is compiling a detailed geological data of the area. The adjoining property is owned by Winsome Resources, who have provided early technical summary of the area, which will be considered in understanding of prospects of the claims acquired by the Company. Winsome News Release regarding Mazerac Area can be found here:

Summary of Activities of the Company

Normal Course Issuer Bid

As announced on December 8, 2021, the Company commenced a normal course issuer bid ("NCIB"). Under the NCIB, the Company purchased 1,163,782 common shares of the Company (the "Common Shares") at an average price of $0.325 for a total cost of $378,229.15. The Common Shares represent approximately 5% of the issued and outstanding shares as of the date hereof. The purchased Common Shares have been returned to the treasury and cancelled, resulting in the number of Common Shares being reduced from 23,275,641 to 22,114,141.

As of the March 31, 2022, the most recent financial period, the Company holds $21,442,000 in cash and investments and had liabilities of $206,200, representing a net asset value equal to $21,236,000 or $0.96 per Common Share.

The Company intends to complete another NCIB to purchase an additional 5% or 1,105,707 Common Shares in accordance with applicable regulatory requirements and subject to approval of TSX Venture Exchange. If regulatory approval is obtained, the new NCIB will proceed through Canaccord Genuity Corp. for market activities.

The management believes that the Company is in a good position to leverage the Company's balance sheet to make investments in emerging technologies and mineral exploration projects and repurchase of its own common shares for cancellation.

Patriot Battery Metals Inc.

Coloured Ties has acquired a total of 1,708,900 common shares of Patriot Battery Metals through purchases on the TSX Venture Exchange from December to July 15, 2022 at an average cost of $1.40 per share.

Patriot Battery Metals has achieved early drilling success at their Corvette Lithium property in Quebec and Patriot Battery Metals' stock price has seen appreciation to a high $4.50 as of August 11, 2022.

The Company applauds Patriot Battery Metals news release dated August 11,2022, whereby Patriot Battery Metals announced discovery of new lithium pegmatite cluster on trend with the CV5 pegmatite and samples of 3.73% LI2O on its Corvette Property in Quebec. For further details, see Patriot Battery Metals' news release:

Mr. Kal Malhi, CEO, and the management and related entities are significant shareholders of the Company are very positive on performance of the current investment portfolio of the Company and envision strong growth prospects of portfolio companies including Ride Vision, Patriot Battery Metals and Revival Gold, as all companies continue to expand their businesses successfully. The Company remains laser focused to build value for its shareholders by enhancing the net asset value for the Company. In the current market conditions, the Company will take careful and diligent analysis in assessing strategic opportunities in various sectors and deploy investments. The acquisition of the lithium claims in the Cadillac Pontiac region and the Net Smelter Royalty on the quickly developing Arnett Creek project by Revival Gold may be considered as such a good potential opportunity.

For further information please contact:

Kal Malhi
Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.

The forward-looking statements contained in this news release present the expectations of the Company as of the date hereof and, accordingly, is subject to change after such date. Readers are cautioned not to place undue reliance on forward-looking statements.

To view the source version of this press release, please visit