Mr. Steve Hanson reports

ACME LITHIUM TO ACQUIRE 90% INTEREST IN CIMARRON GOLD PROJECT IN NYE COUNTY, NEVADA AND PROVIDES CORPORATE UPDATE

Acme Lithium Inc. has signed a purchase agreement for a 90-per-cent interest in 31 unpatented lode mining claims comprising the Cimarron gold project in Nye county, Nevada, from Crestview Exploration Inc. The project is a high-grade, highly prospective exploration opportunity with a drill-indicated historic gold resource and a second target area with mineralized drill intercepts that remain open in several directions.

Acme's 90-per-cent interest in the project will be acquired for aggregate consideration of $149,000 (U.S.) in cash and one million shares, delivered as follows:

• Acme has paid CRS the sum of $124,000 (U.S.) and will issue 500,000 shares on closing;
• Acme will pay to CRS an additional $25,000 (U.S.) and deliver an additional 500,000 shares within six months of closing.

Upon payment of the purchase price in full, Acme will own a 90-per-cent interest in the project, and CRS will own a 10-per-cent interest in the project. Thereafter, Acme will be responsible for all exploration and development costs of the project up to and until such time as it has received a preliminary economic assessment pertaining to all or any part of the project. Until the trigger date, Acme will have full discretion as to operations involving the project, including any disposition thereof.

After the trigger date, a joint venture will then be formed between Acme and CRS, and an accompanying definitive agreement governing the same will be entered into by the parties for further ownership and development of the project, which agreement will include the following basic terms:

• Initial ownership will be held 90 per cent by Acme and 10 per cent by CRS;
• Each party will be responsible for its pro rata share of expenses from and after the trigger date;
• Acme's deemed capital contributions to the joint venture as of the trigger date will be the aggregate amount it has paid toward the purchase price hereunder, together with all costs and expenditures subsequently incurred toward exploration and development of the project (with an amount equal to 10 per cent thereof as administrative costs); and CRS's deemed capital contributions as of the trigger date will be an amount calculated as: Acme's contributions divided by 0.9 minus Acme's contributions;
• Acme will be the operator of the project and will be solely responsible for determining work programs and budgets, and will continue to have full discretion as to operations involving the project, including any disposition thereof;
• Following the trigger date, any failure of a party to contribute its pro rata share of expenses will result in dilution of such party's interest;
• At any time, Acme may acquire one-half of CRS's interest, being 5 per cent in the joint venture (to hold a 95-per-cent interest) for $500,000 (U.S.);
• The 31 claims are subject to a 2.5-per-cent net smelter royalty (NSR) being retained by Nevada Select Royalty Inc. on production from: (i) 13 claims and any property within a one-mile area of interest; and (ii) 18 claims staked by Crestview.

The project

Located at the north end of the San Antonio Mountains in the historic San Antonio (Cimarron) mining district, the project is approximately 18 miles north of Tonopah in Nye county, Nevada. It comprises 31 unpatented lode mining claims near the historic San Antonio mine workings and immediately adjacent ground. The prospect has drill-ready targets, subject to permitting and offers a significant opportunity to establish a National Instrument 43-101-compliant gold resource.

Regionally, the project is at the intersection of two prominent gold trends: the Walker-Lane trend which runs approximately northwest, and hosts a number of mines including Bullfrog, Goldfield and Rawhide; and an approximately north-northeast trend of gold mines including Manhattan, Gold Hill and Kinross's world-class Round Mountain, which is located 28 miles away and recorded over 15 million ounces of gold as of 2021.

Project highlights:

• The project includes an extensive historic record of drill results (190 holes), with high-grade intercepts which included 11 metres of 4.46 grams per tonne, 23 metres of 4.49 g/t and 46 metres of 3.94 g/t;
• Past drilling outlined a historic gold resource starting at surface of approximately 50,000 ounces (1987 non-NI 43-101 compliant);
• The project has good access near infrastructure and has a number of drill sites already built;
• Mineral intercepts remain open in several directions;
• The target is a shallow, low-sulphidation oxide gold system with strong structural control.

Exploration by both major and junior mining companies from 1980 through 2004, including Newmont and Echo Bay, identified gold mineralization in three discrete areas in the immediate Cimarron mine area.

Sampling of surface outcrops and underground adits by previous explorers reported gold assays from quartz-adularia-quartz veining as high as 107 g/t and 30.2 g/t (3.12 ounces per ton and 0.88 ounce per ton, respectively). The associated table lists examples of high-grade assays collected by the various mining groups (Bullion River Gold Corp., February, 2004).

Drill testing by Newmont, Budge Mining Ltd., Echo Bay and Romarco demonstrated continuity of lower-grade gold mineralization in three discrete mineralized areas at Cimarron, as shown in the associated tables (resources non-compliant with NI 43-101). Higher-grade gold intercepts were not uncommon or restricted to any particular explorer.

Echo Bay estimated a total gold resource in 1987 of over 50,000 ounces of gold within a block of about 1.5 million tons of material in the West, East and Central zones combined.

This resource is not considered to be compliant with NI 43-101 standards. Additional drilling with application of proper standards and check assays would be required to verify this historical estimate. A qualified person has not done sufficient work to classify the estimate as a current mineral resource or mineral reserve. Acme is not treating this historical estimate as a current mineral resource or mineral reserve.

In 2021, Crestview drilled four diamond core holes in the known resource area. All of the holes intercepted anomalous mineralization. SA-01 and SA-03 were drilled approximately 200 metres apart, and each intercepted significant zones of gold mineralization which may represent a wide area of oxide, heap-leachable gold mineralization starting at or near surface.

Cimarron represents a high-quality, early-stage exploration project with a drill-indicated historic resource and a target area with mineralized drill intercepts that remain open in several directions.

Corporate update

Acme intends to complete a consolidation of its authorized and issued common shares on the basis of one postconsolidated common share for each three preconsolidation common shares.

On a preconsolidation basis, the company currently has 77,972,727 common shares issued and outstanding. Following the consolidation, the company expects to have approximately 25,990,909 postconsolidation common shares issued and outstanding. No fractional common shares will be issued because of the consolidation. Any fractional common share resulting from the consolidation will be rounded up in the case of a fractional interest that is one-half of a common share or greater, or rounded down in case of a fractional interest that is less than one-half of a common share, and no cash consideration will be paid in respect of any fractional common share rounded down to the nearest whole common share.

All outstanding stock options and share purchase warrants of the company will also be adjusted by the consolidation ratio, and the respective exercise prices of outstanding options and share purchase warrants will be adjusted accordingly.

The company believes that the consolidation will provide the company with greater flexibility for the development of its business and the growth of the company, including financing arrangements.

In conjunction with the consolidation, the company will be adopting a new name subject to the approval of the Canadian Securities Exchange.

The consolidation and name change are subject to the approval of the Canadian Securities Exchange (CSE). In accordance with the company's articles, neither the consolidation nor the name change will require shareholder approval. The record date and effective date of the consolidation and name change, and the new Cusip and ISIN numbers, will be disclosed in a subsequent news release.

Acme Lithium intends to complete a private placement financing of up to $800,000. The chief executive officer of Acme has loaned the company $180,000 to complete the Cimarron transaction, which will be repaid from the proceeds of the financing.

Acme will retain its current lithium property interests for future development and will focus in the near term on the advancement of the Cimarron gold project.

Qualified person

Scientific and technical information contained in this document has been reviewed and approved by Bill Feyerabend, CPG, who is a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (NI 43-101).

About Acme Lithium Inc.

Acme Lithium is a mineral exploration company focused on acquiring, exploring and developing battery and precious metal projects in partnership with leading technology and commodity companies in North America. Acme is advancing and developing a lithium brine resource at Clayton and Fish Lake Valley, Nevada, and has entered into a strategic exploration agreement with a leading partner at a group of projects in the pegmatite region of Shatford, Birse and Cat-Euclid lakes in southeastern Manitoba.

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