Comstock Announces Strategic Expansion Plans, Including Renewable Fuels and Metals Projects in Nevada and Oklahoma, Explores Spin-Off of Fuels Business and Reverse Stock Split

Comstock Inc. (NYSE:LODE) ("Comstock" and the "Company") today announced that its executive chairman and chief executive officer issued the following letter to Comstock's shareholders:

Dear Shareholders:

On behalf of our Board of Directors, Executive Officers and the entire team, we thank you for supporting our bold and strategic transformation into an innovator and integrator of commercially ready technologies.

In 2021, we set our sights on this ambitious undertaking and your support has been integral as we invested in technologies, together with the resulting systems and supply chains, that are now positioned to lead the world in enabling energy independence, and potentially energy dominance. We understand the magnitude of what we are undertaking, and we could never have arrived here without your support. The result is globally transformative and the adoption by our customers, partners and capital sources continues accelerating.

Comstock Fuels is now deploying sustainable, proprietary, and extremely low-carbon fuel solutions, that harnesses abundant waste and natural resources – imagine an oil well that never stops producing.

Comstock Metals has deployed a sustainable, proprietary, and highly-efficient metal recycling solution that produces clean aluminum, silver, copper, and glass – critical to renewable energy supply chains – and harnesses abundant photovoltaic waste resources – imagine a silver mine that never stops producing.

First Chapter: Establishing Commercial Ready Technology and the Platform for Growth

Since this process began nearly four years ago, your support has been indispensable, allowing us to boldly invest in new ideas, technologies and ultimately businesses that meaningfully expand upon the innovative legacy of the historic Comstock Lode. We are proud of the teams and partnerships we have built, and continue to build, and the tremendous, now commercial-ready advancements achieved thus far. These achievements have created the foundation of a truly huge shareholder opportunity. Our teams relentlessly attack every obstacle and challenge inherent in these incredibly powerful and impactful goals.

The journey from a small, non-producing junior miner was not without setbacks. Those efforts, including MCU and LINICO, resulted in the introduction to like-minded companies (that is, Mana, Plain Sight Innovations, and Renewable Process Solutions) that now make up the core of Comstock Fuels. Our investment in SSOF was how we initially met and engaged with our current president of Comstock Metals, enabling us to collectively pivot our combined technologies into our rapidly growing solar panel recycling business, with our first facility now operating on an SSOF property, in Silver Springs, Nevada. Turning these obstacles and setbacks into successes, stem from our resolute, relentless and tireless pursuit of our goal.

Fully Dedicating Each Business for Exponential Expansion

Comstock Metals has now ramped up, gaining world-class customers and permitting the expansion to industry scale production. Comstock Fuels has already signed 5 international agreements, for its market-leading solution (yielding up to 140 gallons per dry metric ton of feedstock) and is now securing vast quantities of historically unused feedstock, with remarkably dedicated management teams operating more and more independently. We literally never quit, and we are now commercializing with full focus and speed.

We have rapidly and conclusively demonstrated our readiness to key industry partners, including jurisdictions spanning from Australia to Vietnam to Pakistan to Oklahoma, Nevada, and California, just to name the initial few, with feedstock suppliers, landowners, technology and operating partners, and a rapidly growing base of willing offtake customers. Our continuously expanding relationships, including federal and state governments, lumber mills, pulp and paper processors, fuel labs, renewable and petroleum refineries, aviation, energy and utility companies, and a growing roster of potential capital partners, grow every day.

Building on that momentum, our core objectives for 2025–2029 are not only achievable but poised to deliver tremendous value: including three commercial facilities for renewable metals, starting in Nevada, and multiple commercial facilities, both our own and our licensees, for renewable fuels, starting with Oklahoma.

Next Chapter: Capitalizing and Generating Profitable Growth

Based on these plans, and our demonstrated technological leadership, we are engaged with a significant number of strategic and financial capital sources to pursue equity and debt financings, subsidiary-level funding, and project-level financing. These potential partners are well-recognized, both known and new, and will allow us to optimize our capital stack while supporting the tremendous opportunity for profitable growth. We are committed to realizing and delivering significantly higher share value to our shareholders.

However, financing opportunities at technology readiness levels below TRL 7 are extremely difficult. Progressing from low TRLs up to TRL 7 is commonly referred to as the Valley of Death, because often, the innovators have good technical competency but lack the broader expertise or systems for successfully commercializing their innovations. We have now crossed that valley, and we have attracted the right strategic and financial partners – both operating and capital sources – across industries and jurisdictions, for capitalizing and elevating the enterprise into an entirely new reality, a leading and well-funded energy solutions provider. We are ready to secure that capital and deploy.

The growth opportunities for both Fuels and Metals have developed well beyond our original expectations, and we have attracted some of the most sophisticated partners, for feedstocks, technologies, operations, governments, and refining and offtake, with many now evaluating direct investments, and in multiple cases exploring deeper integrations with us into an even bigger system, under our control. Our capital structure, balance sheet and public valuations have introduced complexities in these discussions but also fostered more collaborative relationships leading to additional opportunities across the country and world. We expect this trend to continue as we work with our stakeholders to create and unlock the greatest possible value for our shareholders. Again, through all these challenges, our businesses have never stopped advancing and winning.

To achieve these objectives, we require an increase in the authorized shares of Comstock Inc. To that end, we are convening a special meeting on February 14, 2025, where shareholders will be asked to vote on a proposal that effectively increases our authorized shares – including a reverse stock split, and that will enable the right share posture, values, liquidity and profile that we believe best attracts the right amount and type of capital resources needed to grow and maximize the value of each of these businesses for our shareholders.

We are also evaluating a number of potentially transformative transactions for 2025, designed to ensure we unlock and deliver the value that we have created and are continuously creating, including a spin-off of Comstock Fuels Corp., that would result in two high-growth public companies, a renewable metals and mining company headquartered in Nevada, and a renewable fuels company headquartered in Oklahoma.

We are fully committed to continually creating, delivering, growing, and accelerating shareholder wealth. To fully realize these aims, we must adapt our corporate and capital structure in a manner that enables high-value growth. Our systems are validated by a range of technology partners, recognized by our operating partners, and have garnered mature interest from both strategic and financial capital partners. We are keen to deliver the capital we are currently engaged with and unblock our valuations.

I appreciate everyone's commitment, participation, and support of our journey to sustainable energy, and very much look forward to discussing and completing these proposals for our Company.

Respectfully, 

Corrado De Gasperis 

Executive Chairman CEO, Comstock Inc.