Musk Metals Enters into Pluto Property Option Agreement to Focus on Lithium Projects

VANCOUVER, BC / ACCESSWIRE / January 25, 2022 / MUSK METALS CORP. ("MUSK METALS" OR THE "COMPANY") (CSE:MUSK)(OTC PINK:EMSKF)(FSE:1I30) is pleased to announce, further to its news release dated October 27, 2021, it has entered into a property option agreement dated January 19, 2022 (the "Option Agreement") with Jinhua Capital Corporation ("Jinhua"), a capital pool company ("CPC" ) as defined under Policy 2.4 - Capital Pool Companies ("Policy 2.4") of the TSX Venture Exchange (the "Exchange"), pursuant to which the Compnay has agreed to grant an option (the "Option") for Jinhua to earn up to a 100% interest in and to the 58 mineral claims that constitute the Pluto Gold and Base Metals Property, located in the Dolomieu and Daubree Townships of Quebec (the "Pluto Property") in accordance with the terms and conditions as described in the Option Agreement (the "Transaction").

Summary of the Transaction

First Option

The Option may be exercised by Jinhua acquiring an initial 80% interest in and to the Pluto Property (the "First Option") by:

• paying $118,324 in cash, common shares of Jinhua (each, a "Jinhua Share"), or combination thereof, at the sole election of Jinhua on the closing date of the Transaction (the "Closing Date"); and
• paying an additional $118,324 in cash, Jinhua Shares, or combination thereof, at the sole election of Jinhua on or before the date that is 18 months from the Closing Date.

Upon satisfaction of the payments set out above, the first stage of the Option will be deemed to be exercised and Jinhua will earn an 80% interest in and to the Pluto Property. Any Jinhua Shares issued in connection with the Option will be issued at the price of the Private Placement Financing (as defined below), or as otherwise required by the Exchange. All Jinhua Shares issued will be subject to a restricted period of four months and one day.

Upon exercise of the First Option, Jinhua and Musk will be deemed to have formed a joint venture (the "Joint Venture") on an 80% - 20% basis, respectively, and will promptly execute a joint venture agreement based upon the material terms attached to the Option Agreement. Jinhua will initially have a participating interest in the Joint Venture and Musk will have a carried interest in the Joint Venture until the earlier of: (a) exercise of the Second Option as defined below; and (b) termination of the Second Option. In the event the Second Option is terminated for failing to satisfy the conditions thereof, Musk's interest in the Pluto Property will automatically change to a participating interest.