Mr. Gary Schellenberg reports

INTERNATIONAL LITHIUM CORP. OPTIONS MAVIS LITHIUM PROJECT AND FORMS STRATEGIC ALLIANCE WITH AUSTRALIAN COMPANY, PIONEER RESOURCES LIMITED

International Lithium Corp. has entered into an option agreement and strategic alliance with Australian Securities Exchange-listed Pioneer Resources Ltd. 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.

Benefits to the strategic alliance

This agreement enables the new alliance to test multiple undrilled pegmatite targets within the project area. It also allows for further acquisitions that build the alliance's ability to engage emerging lithium market opportunities.

The option agreement, which is subject to a three-month exclusivity and due-diligence period, provides Pioneer with:

• Immediate, direct exposure to the lithium sector through equity in the advancing Mavis lithium project, which has known lithium-bearing pegmatites;
• The ability to increase the project portfolio through further acquisitions and staking opportunities;
• An offtake strategy through ILC.

Under the terms of the agreement, Pioneer will manage the exploration program on the Mavis lithium project utilizing ILC's technical team, which is currently advancing the Avalonia lithium pegmatite project in Ireland and the Mariana lithium brine project in Argentina.

The agreement provides ILC with the first stage of its North American strategy to join with strategic partners and to advance lithium opportunities with them that have no infrastructure constraints, consequently making potential mining projects less capital intensive.

Pioneer brings a management team of individuals having over 30 years of corporate and technical experience in mineral exploration, finance, a good record of discoveries as well as mine development.

Gary Schellenberg, chief executive officer, International Lithium, stated: "This is the first step of our new strategy developed for North America. We see an escalating demand for lithium in North America, especially in the automotive sector with new sources being either many years away, or with logistic and metallurgical challenges. Our strategy for the Upper Canada region sees us advancing a multitude of smaller deposits that possess near-perfect accessible infrastructure and that can supply a central lithium-carbonate-processing facility. Identifying smaller high-grade deposits within close proximity can greatly enhance the economics of a processing facility as well as allowing these smaller deposits to be mined at a greatly reduced capital expenditure. We intend on bringing our strategy to reality through strategic partners, like Pioneer, that share our vision."

Key terms of the transaction

• Pioneer will either pay $65,000 cash to ILC or subject to TSX Venture Exchange approval, subscribe for $100,000 of units of ILC at a price of eight cents per unit (as part of the recently announced financing ILC news release dated March 2, 2016) in exchange for an exclusive 90-day due-diligence period.
• On electing to proceed, Pioneer may earn a 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. 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.

          MAVIS LITHIUM PROJECT DRILL RESULTS

DDH          From (m)     To (m) Length (m)     Li2O %

MF-11-08         2.25      11.00       8.75       1.83
MF-11-09        18.85      26.65       7.80       2.58
MF-11-12       125.00     141.00      16.00       1.63
MF-11-12       152.00     178.25      26.25       1.86
MF-11-13        19.00      24.00       5.00       1.44
MF-11-14        24.00      27.00       3.00       2.15
MF-11-152       78.40      85.00       6.60       1.38
MF-12-24       151.35     174.75      21.40       1.51
incl           165.55     174.75       9.20       2.37
MF-12-25       129.65     135.85       6.20       1.51
MF-12-28         6.00      12.00       6.00       2.53
MF-12-30        32.25                  6.95       1.45
MF-12-33        22.00      30.50       8.50       1.34
MF-12-34        22.45      33.30      10.85       1.05
MF-12-36        27.75      38.50      10.75       1.06

All widths reported are drill core widths and have not been converted into true width. These results were previously reported in news releases by the company dated Jan. 10, 2012, and April 3, 2013, and in the company's management's discussion and analysis for the year ending Dec. 31, 2012.

Wayne Spilsbury, a director of ILC, is also a director of Pioneer.

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

We seek Safe Harbor.