OTC: LBSR

Tombstone
Area Exploration Properties: Tombstone is located in Cochise County, Arizona and covers the Tombstone caldera and its environs. All
four of our exploration properties within Hay Mountain Holdings LLC, Earp Ridge, Red Rock Canyon, American Strategic Minerals,
Tombstone/Robbers Roost lie within or on the flank of the Tombstone caldera structure. We are concentrating our work at Red Rock
Canyon at this time. We plan to ascertain whether the Hay Mountain claims possess commercially viable deposits of copper,
molybdenum, gold, silver, lead, zinc, manganese, and other metals including Rare Earth Elements (REE’s). We have not
identified any ore reserves to date, although we have identified mineralized areas which may be of potential economic
interest.

Title
to mineral claims involves certain inherent risks due to difficulties in determining the validity of certain claims, as well as potential
for problems arising from the frequently ambiguous conveyancing history characteristic of many mineral properties. We have investigated
title to all the Company’s mineral properties and, to the best of our knowledge, title to all properties retained are in good standing.

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The
mineral resource business generally consists of three stages: exploration, development, and production. Mineral resource companies that
are in the exploration stage have not yet found mineral resources in commercially exploitable quantities and are engaged in exploring
land in an effort to discover them. Mineral resource companies that have located a mineral resource in commercially exploitable quantities
and are preparing to extract that resource are in the development stage, while those engaged in the extraction of a known mineral resource
are in the production stage. We have not found any mineral resources in commercially exploitable quantities.

There
is no assurance that a commercially viable mineral deposit exists on any of our properties, and further exploration is required before
we can evaluate whether any exist and, if so, whether it would be economically feasible to develop or exploit those resources. Even if
we complete our current exploration program and we are successful in identifying a mineral deposit, we would be required to spend substantial
funds on further drilling and engineering studies before we could know whether that mineral deposit will constitute a commercially viable
one.

To
date, we have not generated any revenue. Our ability to pursue our business plan and generate revenues is subject to our ability to obtain
additional financing, and we cannot give any assurance that we will be able to do so.

Competition

We
are a mineral resource company engaged in the business of mineral exploration. We compete with other mineral resource exploration companies
for financing from a limited number of investors that are prepared to make investments in mineral resource exploration companies. The
presence of competing mineral resource exploration companies may impact our ability to raise additional capital in order to fund our
property acquisitions and exploration programs if investors are of the view that investments in competitors are more attractive based
on the merit of the mineral properties under investigation and the price of the investment offered to investors.

We
also compete for mineral properties of merit with other exploration companies. Competition could reduce the availability of properties
of merit or increase the cost of acquiring additional mineral properties.

Many
of the resource exploration companies with whom we compete may have greater financial and technical resources than we have. Accordingly,
these competitors may be able to spend greater amounts on acquisitions of properties of merit and on exploration of their properties.
In addition, they may be able to afford greater geological expertise in the targeting and exploration of resource properties. This competition
could result in our competitors having resource properties of greater quality and interest to prospective investors who may finance additional
exploration and to senior exploration companies that may purchase resource properties or enter into joint venture agreements with junior
exploration companies. This competition could adversely impact our ability to finance property acquisitions and further exploration.

Compliance
with Government Regulation

We
will be required to comply with all regulations, rules and directives of governmental authorities and agencies applicable to the exploration
of minerals in the State of Arizona and all other States in which we plan to operate.

We
are required to pay annual rentals for our federal lode mining claims for the Tombstone, Hay Mountain Holding LLC project in the
State of Arizona. The rental period begins at noon on September 1st through the following September 1st and rental payments are due
by the first day of the rental period. As listed on the Bureau of Land Management (BLM) web site, new claims located on or after
September 1, 2024, cost $274 each which includes processing, location, and maintenance fees. The annual rentals are $200 per claim
after the first year. The rentals due by September 1, 2026, for the period from September 1, 2026, through September 1, 2027, of
$18,600 have not been paid yet, however, we plan to pay these fees prior to the due date. All rentals during the year ended January
31, 2026, have been paid.

We
are required to pay annual rentals for our Arizona State Land Department Mineral Exploration Permits (“AZ MEP”) at our
Hay Mountain Holdings LLC project in the State of Arizona. AZ MEP permits cost $500 per permit per year in non-refundable filing
fees and are valid for 1 year and renewable for up to 5 years. The rental fee is $2.00 per acre for the first year, which includes
the second year, and $1.00 per acre per year for years three through five. The minimum work expenditure requirements are $10 per
acre per year for years one and two and $20 per acre per year for years three through five. If the minimum work expenditure
requirement is not met the applicant can pay an equal amount in fees to the Arizona State Land Department to keep the AZ MEP permits
current. The rental period begins on the date of acceptance for each permit. Rental payments are due by the first day of the rental
period. We hold AZ MEP permits for 12,878.18 acres at our Tombstone project. We plan to pay filing and rental fees for our AZ MEPs
before their respective due dates in the amount of $33,433. All fees and expenditures due during the year ended January 31, 2026,
have been paid.

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With
respect to the foregoing properties, additional approvals and authorizations may be required from other government agencies, depending
upon the nature and scope of the proposed exploration program. The amount of these costs is not known at this time as we do not know
the size, quality of any resource or reserve at this time, and it is extremely difficult to assess the impact of any capital expenditures
on earnings or our competitive position.

Personnel

Patricia
Madaris, VP Finance and Chief Financial Officer will serve as the Interim Chief Executive Officer. The Board also elected Pete
O’Heeron as Chairman of the Board. We also employ one full-time CFO, who is also our VP of Finance, one full-time VP of Field
Operations (Geology), and one Investor Relations Representative. We hire consultants for investor relations, geology, drilling and
exploration, administrative functions, financial and derivative accounting on a as needed basis.