Regional Information

Regional Setting & Lithium Exploration Potential in Nevada

Nevada is one of the most prospective jurisdictions for lithium exploration in North America,
supported by favourable geology, established mining infrastructure, and increasing strategic
importance within the domestic battery materials supply chain.

Basin and Range Province
Railroad Valley lies in the northern part of the Basin and Range tectonic province, characterized
by north-south trending mountain ranges and intramontane basin-hosting playas. The tectonic
history includes multiple Paleozoic and Mesozoic compressional events, widespread late
Eocene to Oligocene volcanism, and ongoing Basin and Range extensional faulting — which
created high-permeability pathways for geothermal fluids and deep groundwater circulation.
The state hosts fault-bounded closed basins, including Clayton Valley and Railroad Valley,
which can host lithium-enriched brines. Growing investment in domestic critical minerals and
battery supply chains has further increased exploration interest across the region.

Clayton Valley
Located in Esmeralda County, Clayton Valley is the only basin in North America with a long
history of commercial lithium brine production. Its closed-basin hydrogeology and extensive
evaporitic sedimentary sequences have contributed to the concentration and entrapment of
lithium in subsurface brines, establishing it as the continental benchmark for lithium brine
exploration. Pure Energy's flagship project is located in Clayton Valley.

Railroad Valley
Railroad Valley is a large, remote, closed drainage sedimentary basin in east-central Nevada,
located approximately 90 miles east of Clayton Valley. The basin shares several characteristics
commonly associated with lithium brine accumulation:

• Basin-bounding faults and deep sedimentary fill (valley fill exceeding 3,800 ft in wells
drilled within the project)
• Widespread Oligocene volcanism — including the Garrett Ranch Group silicic
ignimbrites (rhyolite, dacite, quartz latite) — a recognized lithium source rock
• Active geothermal spring systems linked to deep groundwater circulation along high-
angle normal faults
• Closed drainage geometry enabling concentration of dissolved minerals over geological
time
• Evidence of lithium-bearing groundwater in neighbouring properties
Geophysical surveying has identified resistivity lows interpreted as potential brine targets at
depths of 1,000–3,300 feet, and gravity data indicates a large depression associated with the
valley filled with clastic sedimentary rocks, with the potential to host a lithium-enriched brine
deposit.

Infrastructure & Jurisdiction
The Railroad Valley Project in Nye Couty, Nevada, is accessible by vehicle by travel north from
Las Vegas, NV, or east from Tonopah, NV, via paved highway and maintained secondary
roads. The project's 563 unpatented Placer Claims are held on Bureau of Land Management
(BLM) federal land. Historical oil and gas wells adjacent to the project provide valuable
downhole data including wireline logs, stratigraphic picks, and geothermal gradient information.

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