Grounded Lithium Fuels Green Dream with New Oil Wells

CALGARY, AB – April 15, 2026 – In a strategic pivot that intertwines the old energy economy with the new, Grounded Lithium Corp. (TSXV: GRD) has revealed it is using fresh oil production to finance its ambitions of becoming a key player in the green energy transition. The company's year-end results for 2025, announced today, not only showcased a significant reduction in financial losses but also detailed the successful start of new oil and gas operations designed to provide the financial lifeblood for its flagship Kindersley Lithium Project (KLP) in Saskatchewan.

While the company managed to slash its annual net comprehensive loss to $302,543 from over $1 million in the previous year, the most striking news was the operational update. Two newly drilled oil wells have commenced production, a move designed to generate immediate cash flow. This dual-resource strategy presents a fascinating case study in pragmatic financing, but also raises questions about the identity of a company that touts itself as an “environmentally responsible, Canadian lithium producer supporting the global energy transition shift.”

A Tale of Two Resources

The immediate focus of the announcement is the company’s venture into fossil fuels. Grounded Lithium confirmed the successful drilling, completion, and equipping of two oil wells from a single pad, a method that minimizes capital costs. With initial production and testing having started in the last week of March, the company expects to generate “noteworthy cash flows” in the current pricing environment. The stated goal is to achieve a rapid payout, estimated between six and twelve months, which will bolster the company’s working capital reserves—a critical need given the company ended 2025 with a working capital deficit of $62,404.

This move is a calculated deployment of the company's existing resource extraction expertise to solve a pressing financial challenge. Developing a large-scale lithium project is a capital-intensive, long-term endeavor. By generating near-term revenue from a familiar industry, Grounded Lithium aims to self-fund its operations and reduce reliance on dilutive equity financing while advancing its primary lithium objective.

“Our initial investment thesis to enter into another category of the resource extraction industry is demonstrating promising initial production,” commented Gregg Smith, President & CEO, in the press release. “Our Team's resource extraction expertise provides us potential to supplement liquidity as we deliver on our main investment thesis of delivering a commercially viable battery grade lithium project.”

Smith’s comments frame the oil venture not as a departure from the core mission, but as a necessary and synergistic enabler. The success of these initial wells has already encouraged the company to begin planning its next oil drilling program, signaling a firm commitment to this dual-asset strategy for the foreseeable future.

The Lithium Endgame: Saskatchewan's White Gold

Despite the buzz around the new oil wells, the ultimate prize for Grounded Lithium remains the Kindersley Lithium Project. The KLP is a vast lithium brine resource located in Southwest Saskatchewan, with a Preliminary Economic Assessment (PEA) from 2023 boasting a formidable after-tax net present value of US$1.0 billion and a powerful internal rate of return of 48.5%. This project represents the company's long-term vision to supply battery-grade lithium for the burgeoning electric vehicle and energy storage markets.

Progress on this front continues in partnership with uranium giant Denison Mines Corp. Denison has an option to earn up to a 75% interest in the project by funding up to $15.15 million in project expenditures and cash payments. This partnership significantly de-risks the project's development for Grounded Lithium, providing crucial capital and technical expertise.

The next major milestone is the completion of a Pre-Feasibility Study (PFS), which is expected to be filed in the summer of 2026. This study will provide a much more detailed technical and financial roadmap for the KLP, moving it a critical step closer to commercial reality. A positive PFS will serve as the foundation for securing further financing and making a final investment decision.

Central to the KLP's potential is the use of Direct Lithium Extraction (DLE) technology. DLE represents a paradigm shift from traditional, water-intensive evaporation ponds or carbon-heavy hard rock mining. These advanced technologies can extract lithium from brines—like those found in Saskatchewan's oilfields—with higher efficiency, greater speed, and a significantly smaller environmental footprint, a factor that aligns with the company's stated green ambitions.

Balancing the Books and the Brand

The dual-resource strategy, while financially pragmatic, creates a complex narrative for Grounded Lithium. On one hand, the sharp reduction in net loss and cash used in operations for 2025 demonstrates improved fiscal discipline. The new oil revenue provides a clear, non-dilutive path to funding the company through the costly pre-production phase of its lithium project. This could be seen as a shrewd move to navigate the notoriously difficult financing landscape for junior resource developers.

On the other hand, the strategy puts the company in a delicate position regarding its environmental, social, and governance (ESG) profile. In an investment climate where capital is increasingly allocated based on sustainability metrics, actively drilling for new fossil fuel resources could be a red flag for ESG-focused investors. It opens the company to potential accusations of 'greenwashing'—using its lithium project to obscure its ongoing participation in the fossil fuel industry.

The company's challenge will be to convince stakeholders that this is a temporary, transitional strategy. The argument is that the carbon footprint of its oil operations is a necessary trade-off to unlock a far greater climate benefit: a large-scale, domestic supply of lithium produced with next-generation, low-impact DLE technology. The success of this messaging will be as crucial as the success of the drill bit.

Market Crosswinds and the Path Forward

Grounded Lithium's strategy is unfolding against a dynamic backdrop for both commodities. After a sharp correction in 2025, lithium prices are forecast to stabilize and potentially rise in 2026, driven by relentless growth in EV demand and a burgeoning market for grid-scale energy storage. An anticipated supply deficit for battery-grade lithium could emerge as early as this year, making projects like the KLP increasingly strategic.

Simultaneously, oil prices, while volatile, remain at a level where efficient, low-cost operations can be highly profitable, supporting the company's cash flow objectives. Grounded Lithium is betting it can ride the wave of both markets—using today's oil profits to build tomorrow's lithium supply chain.

For Grounded Lithium and its investors, the coming months will be pivotal. The market will be watching for operational updates on the oil wells' cash generation, progress on the KLP's pre-feasibility study, and how the company navigates the delicate dance of balancing its books, its brand, and its role in the global energy transition.