Mr. Kirill Klip reports

INTERNATIONAL LITHIUM CORP. AND PIONEER RESOURCES EXECUTE OPTION AGREEMENT

Strategic partner Pioneer Resources Ltd. has exercised an option agreement to advance an exploration program on International Lithium Corp.'s Mavis Lake lithium project in Ontario, Canada (see company news releases dated March 14 and April 20, 2016).

Key highlights:

• Mavis Lake lithium project option agreement executed with Pioneer;
• Pioneer may earn an initial 51-per-cent interest in the project by expending $1.5-million on exploration activities within three years;
• Exploration personnel on-site with field programs to include a comprehensive ground magnetic survey, litho- and soil geochemistry surveys to highlight prospective pegmatite targets in preparation for a diamond drill program;
• Field reconnaissance at the spodumene-bearing Pegmatite 18 prospect has confirmed the observable strike length in excess of 200 metres at surface has yet to be drill tested.

Mavis Lake project exploration program -- 2016

Company field personnel are currently on-site and have commenced the first phase of the 2016 exploration program at the Mavis lithium project, with additional field support from Coast Mountain Geological and members of the Wabigoon Lake Ojibway Nation.

The first phase exploration program will comprise ground magnetic, lithogeochemistry and soil surveys, and is scheduled for completion in July, 2016.

Ground magnetic surveys are useful to identify blind, near-surface pegmatite emplacements. Pegmatites typically have low magnetic susceptibility that is a distinctly identifiable characteristic, especially in contrast with the dark mafic metavolcanic host rocks at Mavis. The magnetometer survey will be highly detailed, taking continuous readings along lines spaced 50 metres apart. Up to 250 line kilometres are planned and will provide the first propertywide magnetic survey of the project area utilizing the most up-to-date technology.

Litho-geochemical surveys are utilized to identify the rare metal dispersion corridors within the host rocks adjacent to or capping buried or hidden rare metal pegmatites. Normally the rare metal alteration halo of the host rocks in contact with pegmatites is in the metre scale, but unique to the pegmatite belt at Mavis, the host rocks exhibit a rare metal dispersion halo well into the tens of metres. This significantly widens litho-geochemical targets; therefore, this type of survey at Mavis is anticipated to be highly effective in identifying corridors that host pegmatites buried under soil cover or near-surface, blind pegmatite bodies.

Soil geochemistry surveys are useful where there is limited outcrop to perform a litho-geochemical survey and are intended to identify rare metal dispersion halos associated with pegmatite emplacement as expressed in the overlying soils.

The field surveys in combination with prospecting and mapping are intended to identify high-priority targets for a subsequent drill program. The company has realized significant success, particularly at the company's Avalonia project in Ireland, in developing and employing this multilayered field survey approach to pegmatite exploration.

Recently, field reconnaissance at the Mavis Lake project spodumene-bearing Pegmatite 18 prospect has confirmed the observable strike length, in excess of 200 m at surface, has yet to be drill tested and clearly represents a high-priority drill target.

The highest lithium values on the Mavis Lake property occur in albite-spodumene-type pegmatites such as Pegmatite 18. Historical sampling on the Pegmatite 18 prospect by the company has returned grab samples grading up to 3.14 per cent dilithium oxide and one composite channel sample across part of Pegmatite 18 grading 1.22 per cent Li2O(*) over 5.3 m (documented in the company's 2009 Ontario work assessment report and National Instrument 43-101 technical report dated Feb. 5, 2010, respectively).

(*) Grab samples are by definition selective, should not be relied on and are unlikely to represent average grades on the property. Reported channel sample widths may not represent true widths of the pegmatite.

Dependent upon the completion of the above programs and obtaining regulatory approvals, drilling is likely to commence in September. A drill program totalling 1,500 m of diamond drilling is contemplated and is intended to follow up key spodumene intersections from earlier drilling and sampling campaigns with an allocation for new targets.

Mavis Lake option agreement

Under the terms of the agreement, Pioneer can earn up to an 80-per-cent interest in ILC's 100-per-cent-owned Mavis Lake property, which includes the Fairservice patented mining leases, located near Dryden, Ont., Canada.

The key terms of the option agreement:

• Pioneer may earn an initial 51-per-cent interest in the project by expending $1.5-million on exploration activities within three years and paying to ILC a total of $375,000 in cash and shares 50/50 over the same three years.
• Following the first earn-in, ILC will be granted a 1.5-per-cent net-smelter-return royalty, purchasable at any time for $1.5-million.
• Pioneer will then be granted, if it chooses, a second option where it can earn an additional 29 per cent through expending $8.5-million within seven years (total $10-million over 10 years). Thereafter the parties will contribute on a pro rata basis. If either party dilutes to 15-per-cent project equity, its interest is converted to a 1.5-per-cent NSR.

About Mavis lithium project

Key factors that make the Mavis lithium project attractive are its location and established infrastructure. The project is situated only 19 kilometres from the town of Dryden, Ont., and approximately 300 kilometres via the Trans-Canada Highway to Thunder Bay, an industrial centre in Ontario. Rail and power access is also readily available as well as a skilled work force, experienced in sustainable natural resource development. The claim blocks comprise a total of 2,624 hectares and straddle a continuous pegmatite field exhibiting high-grade, well-evolved, lithium and tantalum zonation, as well as significant levels of cesium and rubidium.

John Harrop, PGeo, FGS, is a qualified person as defined under NI 43-101 and has supervised preparation of the technical information contained in this news release.

We seek Safe Harbor.