The Big Smoky Valley is located 25 km immediately north of the Clayton Valley, home to Albemarle’s Silver Peak Lithium Mine, the only producing lithium brine facility in the United States. The Lincoln Lithium Property is located approx. 225 km SE of the Tesla Motors Gigafactory site.

Redhill will pay a non-refundable deposit of $25,000 to the owner upon signing of the agreement and to pay an additional $225,000 to the underlying owner upon exchange approval of the agreement. Redhill is required to expend $250,000 in exploration expenditures on the property in the next year and to pay an additional $750,000 at the end of the year to the vVendor to earn its interest.

The vendor will be issued 1,500,000 post-consolidated shares upon closing of the agreement. Upon acquisition of the property, if the option is fully exercised, a GORR of 1% on industry standard terms will be payable by the company to the underlying owner on any commercial production from the property. A finder’s fee of $25,000 is payable in connection with the Agreement.

Redhill currently has sufficient working capital to cover most of its operating expenses for the next year but will require additional capital to fund its commitments under the agreement.

As a result, the Redhill is engaging in a private placement financing the proceeds of which will fund its financial obligations resulting from the agreement. Redhill will issue a total of 8,000,000 post-consolidation units at a price of $0.15 per Unit. Each unit is to comprise one common share and a share purchase warrant exercisable for a period of two year at an exercise price of $0.30. If Redhill’s share price closes at or above $1.00 for a period of 20 consecutive trading days, the holders of the warrants will either have to exercise them on 14 days’ notice or the warrants will be cancelled.

Upon receiving Exchange approval, Redhill plans to change its name to Millennial Minerals Ltd.

Redhill currently holds mineral claims in Northern British Columbia and oil and gas licences in Alberta which were the subject of a recent farm-out agreement. It intends, over the next few months and conditional upon market conditions for commodities and financing, to investigate the possibility of acquiring additional mineral properties, both in Canada and abroad, that are prospective for lithium. The Lincoln property is not expected to a primary focus for the next year.