Mr. Ross McElroy of Advantage Lithium reports

ADVANTAGE LITHIUM JV HITS BEST HOLE TO DATE AT CLAYTON NE: TOTAL COMPOSITE 387.69 METRES OF 243.66 MG/L LITHIUM IN BRINES

Advantage Lithium Corp. and its joint venture partner, Nevada Sunrise Gold Corp., have released the best lithium brine drilling results to date at the Clayton NE project in the Clayton Valley, Nevada. This follows successful results from the first two boreholes (see news releases dated Nov. 1 and Dec. 5, 2016). Clayton NE borders the Silver Peak mine, operated by Albemarle Corp., North America's only producing lithium mine. Hole CNE-16-03, drilled to a total depth of 591.3 metres (1,940 feet), has intersected multiple aquifer formations, including 387.69 metres of brine-producing strata averaging 243.66 milligrams per litre lithium from a depth of 209.23 to 596.92 metres, including a higher-grade interval averaging 299.5 mg/l over 36.92 metres and a peak measurement of 322 mg/l.

Highlights

• Strongest results to date: Lithium brines were intercepted by third drill hole at Clayton NE, CNE-16-03, showing a peak value of 322 milligram/litre lithium, within 387.69 metres averaging 243.66 mg/l. These results are the strongest to date at Clayton NE and are comparable with Albemarle's brine samples from their Silver Peak mining operation immediately adjacent to Clayton NE.
• Potentially untapped aquifer: Hole CEN-16-03 is one of the deepest boreholes drilled in the Clayton Valley and, based on results obtained, may have hit a previously untapped aquifer.
• Very strong brine flows: Brine flows of up to 100 gallons per minute were issued from borehole CNE-16-03 between 350.76 to 436.92 metres. Geochemical analysis shows this zone carries significant lithium concentrations. High brine flows are important for economic production.
• One-hundred-per-cent drilling success rate and 3.43-kilometre mineralized brine trend: All three holes, which are located 3.43 km apart, contain significant intervals of mineralized lithium brines.
• More drilling planned: Three more holes are already permitted and the company plans to complete these holes in 2017 to continue building toward a resource in Nevada.

Ross McElroy, technical adviser and director of Advantage Lithium, commented: "This is our strongest hole to date at Clayton NE, with robust grades, strong brine flow and wide intercepts. Even more exciting is the fact that we have drilled one of the deepest boreholes in the Clayton Valley and we may have intercepted an untapped aquifer system. Having hit with all three holes at Clayton NE over the 3.43 km mineralized brine trend, we are extremely pleased with the potential of this project, as well as the expertise of our exploration team."

Drill hole technical details

CNE16-03 was completed to a depth of 591.3 metres (1,940 feet), intersecting the base of the Clayton Valley salar sedimentary basin at 584.62 metres. Drilling has intersected typical Clayton Valley strata consisting of alternating layers of gravel, volcanic ash and clay. A total of 62 grab groundwater samples were collected as brine-bearing formations were encountered. The table presents a compiled summary of the depths of the aquifer systems with brine interval thickness and associated average lithium grades and TDS concentrations. Anomalous lithium results with average concentration of 243.66 mg/l were obtained from brine-bearing formations intersected over a 387.69-metre section (from 209.23 to 596.92 metres) within the main ash, lower aquifer system and lower gravel aquifer. The highest-grade results were obtained in the lower aquifer system, with peaks up to 322 mg/l lithium (332.31 to 338.46 metres), and in the deeper lower gravel aquifer, with peaks up to 316 mg/l (504.62 to 510.77 metres). In addition, drill cuttings were collected for each 1.5-metre interval and have been submitted for analysis. Analytical results for the drill cuttings are pending.

                          RESULTS OF BRINE SAMPLES FOR CNE-16-03
  
Drill hole     From     To   Width  Total dissolved solids    Li range  Li average grade
                 (m)    (m)     (m)                  (mg/l)      (mg/l)            (mg/l)

CNE-16-03    209.23 246.15   36.92        72,150 to 84,970  114 to 130            124.33
             246.15 436.92  190.77       87,400 to 199,000  139 to 322            267.71
including    313.85 350.77   36.92      137,000 to 181,000  279 to 322            299.50
             436.92 596.92  160.00      120,000 to 165,000  181 to 316            268.17
including    461.54 526.15    73.8      126,000 to 165,000  268 to 316            295.80

                    RESULTS OF BRINE SAMPLES FOR CNE-16-01 AND CNE-16-02
  
Drill hole     From     To   Width  Total dissolved solids    Li range  Li average grade
                 (m)    (m)     (m)                  (mg/l)      (mg/l)            (mg/l) 
                                                            
CNE-16-01     168.6  170.1     1.5                  68,000        94.3              94.3
              224.0  243.8    19.8                 110,000  195 to 218             209.7
              326.1  365.8    39.7      130,000 to 140,000  174 to 189             181.5
              396.2  499.9   103.7       35,000 to 190,000 72.4 to 234             134.8
including     457.2  481.6    24.4       58,000 to 190,000 72.4 to 234             187.5
CNE-16-02     190.5  199.6     9.1                No water                                                 
              207.3  396.2   188.9       50,000 to 380,000 72.4 to 228             164.2
including     286.5  396.2   109.7      140,000 to 380,000  151 to 227             202.8

Geochemical results for lithium are reported in mg/l rather than parts per million as mg/l is deemed conventional for reporting values of dissolved metals and salts in fluids. Variances in specific gravity of fluids will influence geochemical results if converted from mg/l to ppm. Previously reported values for holes CNE-16-01 and CNE-16-02 are now reported in mg/l as received from the laboratory.

Regarding sample analysis

Groundwater grab samples were sent to Western Environmental Testing Laboratory in Reno, Nev., for analysis. General chemistry testing included analysis for specific gravity, total hardness and alkalinity, bicarbonate, carbonate, hydroxide, TDS, and electrical conductivity. Anions (chloride, sulphate) were analyzed by ion chromatography. Trace metals (lithium, magnesium, boron, calcium, potassium and sodium) were analyzed by ICP-OES. TDS values obtained in the field are measured with a hand-held YSI model 556 multiparameter meter, which meets good laboratory practice (as proscribed by the Organization for Economic Cooperation and Development) for calibration and measurement. All depth measurements reported, including sample and interval widths, are downhole. As holes are oriented vertically and geologic stratigraphy is primarily horizontal to subhorizontal. Downhole measurements are assumed to be close to true thickness.

For further information on Clayton NE, including location maps, see Nevada Sunrise's website.

The technical information in this news release has reviewed and approved on behalf of the company by Ross McElroy, PGeol, technical adviser and director for Advantage Lithium, a qualified person as defined in National Instrument 43-101.

About Clayton NE

• Consists of 55 unpatented claims totalling approximately 1,080 acres (437 hectares);
• Clayton NE is subject to an option earn-in agreement where Advantage Lithium can earn up to a 70-per-cent interest in the project after fulfilling $3.0-million in exploration expenditures on a package of five lithium properties optioned from Nevada Sunrise (for further details, see Nevada Sunrise news release dated June 20, 2016);
• Nevada Sunrise is the project manager at Clayton NE on behalf of Advantage Lithium, the operator.

About Advantage Lithium

Advantage Lithium has signed a letter of intent with lithium producer Orocobre to acquire a 100-per-cent interest in five projects in Argentina and up to 75 per cent in a sixth, called Cauchari. Cauchari is host to a near-surface resource of 470,000 tonnes of lithium carbonate equivalent (LCE) and 1.62 million tonnes of potash (KCL). The company is also earning an interest from Nevada Sunrise Gold in a portfolio of five lithium brine projects in the Clayton and Lida Valley regions of Nevada, United States, including 70 per cent in Clayton NE. In addition, the company has acquired 100 per cent of the Stella Marys lithium brine project, immediately adjacent to Orocobre's Salinas Grandes project that hosts an inferred, near-surface resource, in Argentina's lithium triangle.

We seek Safe Harbor.