CO2 Energy Transition Corp. (Nasdaq: NOEM) Signs Letter of Intent with Texas-Based Energy Company to Advance Domestic Lithium Recovery and Strontium Ferrite Production for Defense Applications

CO2 Energy Transition Corp. (Nasdaq: NOEM) today announced the signing of a non-binding Letter of Intent with a Texas-based operating oil and gas company with a track record of unconventional natural resource development in the United States. The target plans to recover lithium and strontium from subsurface brines produced from its own leased wells to support domestic critical mineral production and energy independence. This initiative leverages the target company’s existing natural gas assets and oilfield infrastructure to create a three-prong revenue model — combining natural gas production with lithium and strontium recovery. This approach is designed to deliver increased revenue per barrel and provide downside protection against lithium price volatility. “The energy transition creates a powerful opportunity to repurpose oilfield infrastructure for critical mineral recovery,” said Chuck Fox, Chairman of CO2 Energy Transition Corp. “This partnership aligns with our mission to build sustainable energy solutions and strengthen America’s supply chain security, particularly in defense applications.” The target company plans to utilize proven extraction technologies in its processing plants in the near term while advancing longer-term process improvements. A core element of the long-term vision is producing low-cost strontium ferrite magnet materials domestically — enabling a “wellbore to weapons” advantage over traditional “mine to magnets” supply chains. This is particularly relevant for high-volume, low-cost applications such as one-way drones, which are increasingly treated as expendable munitions in modern defense strategies. Strontium ferrite magnets represent a strategic pathway around rare earth dependency — fit-for-mission performance from domestic brine at a fraction of the cost. Lithium remains on the USGS critical minerals list, while substantial U.S. government investments — including DPA Title III awards and stockpile funding — underscore the strategic importance of domestic strontium production. The parties intend to negotiate and enter into definitive agreements for the proposed business combination in good faith as soon as practicable, but in no event later than September 16, 2026, unless mutually extended. The transaction remains subject to the execution of definitive agreements, completion of due diligence, receipt of all necessary approvals, and other customary closing conditions.