Usha Resources Obtains Final Court Order Approving the Spin-Out of Formation Metals Inc

Drilling at Jackpot Lake Lithium Brine Project Set to Resume Post Holidays

VANCOUVER, BC / ACCESSWIRE / January 10, 2023 / Usha Resources Ltd. ("USHA" or the "Company") (TSXV:USHA)(OTCQB:USHAF)(FSE:JO0), a North American mineral acquisition and exploration company focused on the development of drill-ready battery and precious metal projects, is pleased to announce that it has obtained the final order from the Supreme Court of British Columbia approving the previously announced proposed spin-out of the Company's wholly owned-subsidiary, Formation Metals Inc. ("Formation Metals" or "FMI"), through a plan of arrangement ("Arrangement") between USHA and FMI. The Company will proceed with completing closing conditions of the Arrangement, including seeking final approval of the Arrangement by the TSX Venture Exchange (the "TSXV"). The Arrangement cannot be completed until these conditions have been met.

Upon completion of the Arrangement and the share exchange pursuant to the Arrangement, each USHA Shareholder will receive one (1) common share of FMI with respect to every five (5) common shares of USHA held on the Share Distribution Record Date (the "Share Distribution Record Date"). For example, upon completion of the Arrangement, for each 10,000 common shares of USHA owned on the Share Distribution Record Date, the USHA Shareholder will own 2,000 common shares of FMI. USHA Shareholders will continue to own the same number of USHA common shares as they did on the Share Distribution Record Date.

FMI will then hold the Company's interest in the Nicobat Nickel Project and will focus on the advancement of this project, while USHA will retain and focus on the advancement of its exploration projects in the USA, including the Jackpot Lake Lithium Brine Project where the Company has begun its drilling program (https://tinyurl.com/26ryndz3).

USHA Shareholders must hold their USHA common shares on the Share Distribution Record Date in order to receive their pro rata portion of the FMI common shares being distributed pursuant to the Arrangement. USHA will disseminate a press release to notify shareholders in advance of the Share Distribution Record Date once the conditions to closing of the Arrangement have been satisfied.

Jackpot Lake Lithium Brine Project Exploration Update

The Company is also pleased to provide an update on drilling activities at its Jackpot Lake Lithium Brine Property ("Project"). Drilling is scheduled to resume shortly, with exploration at borehole JP-1, which was paused at the 440‑metre level in December, set to continue to a target depth of approximately 600 metres before moving on to the next drilling location. The Company anticipates providing additional updates throughout January and February 2023 as its exploration program progresses.