Mr. Kirill Klip reports

INTERNATIONAL LITHIUM FILES TECHNICAL REPORT WITH INDICATED RESOURCE ESTIMATE OF 1.25 MILLION TONNES LCE AT THE MARIANA LITHIUM BRINE PROJECT, ARGENTINA

International Lithium Corp., with strategic partner Ganfeng Lithium Co. Ltd. (GFL), has filed a technical report that contains a maiden resource estimate for the Mariana lithium brine project located in Salta, Argentina.

Summary

Further to the company's news release dated March 8, 2017, International Lithium has filed a technical report for the Mariana lithium brine project containing a maiden resource estimate for the project. International Lithium requested Geos Mining Minerals Consultants based in Sydney, Australia, to prepare an independent lithium brine resource estimate for the company's Mariana lithium brine deposit in Argentina, and, with Geos's consent, International Lithium prepared a technical report in accordance with National Instrument 43-101, standards of disclosure for mineral projects.

The technical report, entitled "Technical Report; Mariana Lithium Project, Salar de Llullaillaco, Argentina," and dated April 10, 2017, is now available under the company's profile on SEDAR. The effective date for the resource estimate is Jan. 20, 2017, which represents the date of the most recent data that support the brine estimate in the technical report.

Report highlights -- Mariana lithium brine project, Argentina

The following highlights, taken from the technical report and set out as follows, should be considered in the context of the detailed information given there.

• The indicated resource contains an estimated 1,248,000 tonnes of lithium carbonate equivalent (LCE), previously reported with at a 60-per-cent recovery rate to be 747,000 tonnes LCE, which is now calculated as 749,000 tonnes of LCE.
• The inferred resource contains an estimated 618,000 tonnes of LCE.
• The indicated resource is estimated at 765 billion litres of brine grading 306 milligrams per litre lithium and 9,457 milligrams per litre potassium.
• The inferred resource is estimated at 361 billion litres of brine grading 322 milligrams per litre lithium and 10,316 milligrams per litre potassium.
• Brine resources are tabulated and reported for average specific yield (SY) of 15 per cent and a cut-off value of 230 milligrams per litre lithium. The effective date for this resource estimate is Jan. 20, 2017.

The preliminary estimates for lithium brine are in the upper end of the company's expectations.

Further report details

International Lithium has completed four drilling campaigns on the project since 2009 -- seven reverse circulation (RC) holes and 16 cored holes. A total of 2,880 metres were drilled on the project during the last 10 months. A final campaign hole, MA16-24, was in process as at the effective date of the technical report. Geophysical surveys were conducted downhole for the completed drill holes using an electrical probe. Resistivity and spontaneous potential were measured. As part of a bulk extraction of lithium from brine bulk test work undertaken in 2015, a pumping well (MA15-09-PW) and two monitoring wells (MA15-08-MW and MA15-10-MW) were drilled and constructed. Drill hole MA12-07 was used as a third monitoring well. The drilling and hydrogeological data indicate that the Mariana project at Salar de Llullaillaco is a brine-bearing sedimentary filled basin complex with unconfined interconnected aquifer to considerable depth of 328 metres and possibly deeper. Based on the preliminary drill information, eight lithological classes were identified in the drill hole cores, shown in the west, east and southern extents of the basin. The aquifer volume is still open at depth in the majority of the salar since only two drill holes (MA16-23 and MA16-18) potentially intercepted suspected basement Oligocene to Pliocene volcanic lithologies.

Brine deposits are unlike the majority of mineral deposits in that they are fluid. Fluids within a brine deposit can move and can mix with adjacent fluids when exploitation of a brine deposit begins. Evaluation of such deposits therefore requires special considerations that are not, in general, applied to other style of mineral deposits.

The assessment of brine deposit has been limited to defining mineral resources at different levels of certainty, varying from indicated resource to exploration target, based on the certainty provided by the data collected during fieldwork. Levels of assessment, as linked to data certainty, are listed as follows, covering those areas that fall within the project tenements only.

Brine resources are tabulated and reported for average specific yield of 15 per cent and use a cut-off value of 230 milligrams per litre lithium.

                           
                          TOTAL INDICATED AND TOTAL INFERRED RESOURCE ESTIMATES
   
Category       Effective      Brine      Li      B       K    SO42-      Mg   HCO3-        Li       LCE 
                  volume    density   (mg/l) (mg/l)  (mg/l)   (mg/l)  (mg/l)  (mg/l)  (000s t)  (000s t)
            (millions m3)     (g/ml)

Indicated            766      1.218     306    599   9,456   15,530   4,291     529       234     1,248 
Inferred             361      1.222     322    642  10,316   15,315   4,566     535       116       618  

The indicated resource of 766 million cubic metres at a grade of 306 milligrams per litre lithium equates to 234,000 tonnes of lithium as lithium ion. A conversion of lithium to lithium carbonate (Li2CO3) using a conversion factor of 5.324 gives an equivalent of approximately 1.3 million tonnes of Li2CO3. However, using a conservative 60-per-cent estimated total recovery return from processing gives a conservative estimate of 749,000 tonnes of Li2CO3 equivalent (LCE).

In preparing this resource estimates, Geos considered and applied processes to be appropriate for brine-style deposits, using the principles set out in NI 43-101, Joint Ore Resources Code (JORC) (2012) for mineral projects, and CIM ( Canadian Institute of Mining and Metallurgy) best practice guidelines for resource and reserve estimation for lithium brines.

The company cautions the reader that no economic studies have been carried out on the project. Mineral resources are not mineral reserves as defined by the Canadian Institute of Mining and Metallurgy, and the company cannot guarantee that the resources reported here will be converted to mineral reserves.

The initial brine resource estimate for the project is based on limited knowledge of the geometry of individual aquifer units between broadly spaced drill holes as well as the variation in porosity and brine grade within these aquifers. Specific yield values are based on porosity test results from a restricted sample population and compared with data from analogous salars in the region and technical references. In order to assess the recoverable brine resource with a higher level of confidence, further information on the permeability and flow regime in the aquifer, in addition to watershed basin water balance, is necessary.

Conclusions and recommendations from the report

The project is moving forward from early-stage exploration to advanced exploration. Work on the following tasks is currently under way and was originally scheduled to be completed by the end of 2017:

1. Detailed pump test;
2. Construction of evaporation ponds;
3. Water balance studies;
4. Transportation studies;
5. Environmental baseline and archeological study;
6. Preliminary feasibility study.

Updating of the mineral resources estimated in the technical report is another recommendation that will help to support the preliminary feasibility study. This work will include further exploration to bring the remaining inferred resource to indicated stage and indicated resource to measured resource.

Kirill Klip, executive chairman of International Lithium, stated: "We are very pleased with the results of the maiden resource estimation at the Mariana lithium potash brine project, together with our strategic partner Ganfeng Lithium. This project is now moving from an early exploration stage to an advanced exploration stage, where it will be more easily compared to other lithium brine projects in Argentina. We are looking forward to follow up with Ganfeng Lithium on the recommendations of this report in order to ensure the rapid advancement of the project towards the pilot stage and to conduct further feasibility studies that will investigate the economic viability of the Mariana project."

The following qualified persons are responsible for preparation of the report:

• Llyle Sawyer, senior consultant, Geos Mining;
• Oliver Willetts, senior resource geologist, Geos Mining;
• Afzaal Pirzada, MSc, PGeo.

Mr. Sawyer is a senior geological consultant with over 20 years of experience in geology, mineral exploration, mineral resource estimation and mineral project assessment. He is a registered professional and is currently a member of the Australia Institute of Geoscientists (No. 3512). Mr. Sawyer is an independent technical consultant contracted by Geos Mining and has worked on similar lithium brine salar deposits in Argentina and other brine-style deposits within Australia. He has the required level of experience and expertise to qualify as a qualified person as defined in NI 43-101, Form 43-101F1 (technical report) and related consequential amendments.

Mr. Sawyer is independent of Litio Minera Argentina SA (and International Lithium), as independence is described by Section 1.4 of NI 43-101. He has visited the Mariana project on four occasions during drilling operations since May, 2016. Mr. Sawyer has been involved with the project since August, 2010, in the form of continuing advice upon request, discussion of exploration programs, and during preparation of the brine resource estimate and the report.

Geos Mining is an independent consulting firm recognized for providing expertise in geological, mineral exploration, resource modelling and mining advice; and as a specialist in the fields of geology, exploration, mineral resource and mineral reserve estimation and classification, and project valuation. Litio Minera Argentina (the joint venture company formed by the companies to advance the Mariana project in Argentina) has continued to engage Geos Mining to prepare this independent preliminary resource report for the project.

Mr. Willetts is a senior resource geologist with over nine years of experience in geology, mineral exploration, mineral resource estimation and mineral project assessment. He is a registered professional and is currently a member of the Australasian Institute of Mining and Metallurgy (No. 312940). Mr. Willetts is an independent technical consultant contracted by Geos Mining and has worked on resource estimation for a variety of minerals (phosphate, potash (from brines), gold, coal and base metals) within Australia, Africa and South America.

Mr. Pirzada, a geological consultant of the company and a qualified person for the purposes of NI 43-101, has reviewed and approved the scientific and technical information contained in this news release.

About International Lithium Corp.

International Lithium's primary focus is the strategic stake in the Mariana lithium-potash brine project located within the renowned South American lithium belt. Current ownership of the project is through a joint venture company, Litio Minera Argentina, a private company registered in Argentina and owned 80 per cent by Ganfeng Lithium and 20 per cent by International Lithium.

Complementing the company's lithium brine project are three rare metals pegmatite properties in Canada, known as the Mavis, Raleigh and Forgan projects, and the Avalonia project in Ireland.

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