SPOKANE, Wash. (News release) -- PotlatchDeltic Corporation announced that it has entered into a mineral lease agreement (the "Lease") with TETRA Brine Leaseco LLC. ("TETRA"). The Company has granted TETRA exclusive rights to conduct brine exploration and production on approximately 900 surface acres in Lafayette County, Arkansas, within a higher-grade area in the Smackover Formation rich in lithium reserves. The lease anticipates an initial five-year term for planning, engineering, and construction before potential production begins. In addition to lease payments for the duration of the lease, the lease provides for: (1) future production payments for bromine; and (2) royalty payments for the profitable extraction of lithium, with reference to the rate to be set by the Arkansas Oil and Gas Commission.

"We view the Lease with TETRA as a great first step in demonstrating the lithium potential from our brine deposits," said Eric Cremers, President and Chief Executive Officer. "We estimate we have 5,000 - 7,000 acres with lithium-bearing opportunities that are located within the higher-grade area in the Smackover Formation, where billions in future lithium-related investments have been announced. Accordingly, we are currently in lease discussions with other parties. We believe we are well-positioned to drive long-term value for our shareholders through all of our natural climate solution opportunities," stated Mr. Cremers.