Mr. Warren Stanyer reports

ALX RESOURCES CORP. ANNOUNCES CLOSING OF TRANSACTION WITH FORRESTANIA RESOURCES ON THE HYDRA LITHIUM PROJECT, JAMES BAY REGION, QUEBEC

ALX Resources Corp. has closed a transaction with Forrestania Resources Ltd. of West Perth, Australia, whereby Forrestania has exercised its option (see ALX's news release dated May 8, 2023) and has earned a 50-per-cent interest in the Hydra lithium project. Hydra is located in the James Bay region in the province of Quebec, Canada, which has become one of the most attractive lithium exploration districts in the world.

Details of the transaction

ALX acquired eight Hydra subprojects by staking in late 2022 and early 2023. Following closing of the transaction on July 7, 2023, the company and Forrestania now each own a 50-per-cent interest in the project. Staking and exploration costs incurred by ALX to the end of the 2023 field season are projected to total $900,000. The following terms provided for Forrestania to essentially match ALX's staking and exploration commitment. To earn its 50-per-cent interest in Hydra, Forrestania has paid to ALX:

• $400,000 in cash, which includes an initial $50,000 non-refundable deposit;
• $600,000 in Forrestania common shares totalling 4,579,586 shares based on an Australian-dollar/Canadian-dollar exchange rate of 0.881 and the 10-day volume-weighted average price of Forrestania (14.86 Australian cents per share) up to the day prior to the closing date of the transaction.

On July 6, 2023, Forrestania held an extraordinary general meeting and received shareholder approval for the issuance of the shares required to close the transaction. The newly formed 50/50 joint venture will explore and administer the project, with ALX acting as operator in exchange for an industry-standard administration fee. ALX and Forrestania will each vest with a 1.50-per-cent net smelter return royalty.

"ALX is pleased to launch this partnership at Hydra with Forrestania," said Warren Stanyer, chief executive officer and chairman of ALX. "We look forward to jointly resuming our lithium exploration in the James Bay region as soon as weather and forest fire conditions allow."

2023 summer/fall exploration plans

ALX commenced its current exploration at Hydra for lithium-cesium-tantalum (LCT) pegmatites on May 31, 2023, but the access restrictions imposed by the government of Quebec due to forest fires in the region led to the suspension of the program on June 4, 2023. Upon the resumption of exploration, the Hydra joint venture will focus on systematic prospecting, geological mapping and geochemical sampling. In conjunction with its own consulting geologist, Robert Campbell, PGeo, ALX has contracted a Quebec-based geological consulting company and a helicopter for the prospecting program, which is initially based from the town of Radisson, Que.

Forrestania shares ALX's opinion that Hydra holds potential for LCT pegmatites, supported by the encouraging exploration reports from, amongst others, the nearby Corvette lithium project owned by Patriot Battery Metals Inc., which has reported highly significant lithium drilling intersections during the past 12 months, including: 159.7 metres of 1.65 per cent Li2O (lithium oxide) and 86.2 metres of 2.13 per cent Li2O. ALX's Volta subproject lies 20 kilometres to the east of the Corvette deposit and is one kilometre north of the Corvette property boundary.

Similarly, the Viper and Cobra subprojects are located 50 kilometres north of Q2 Metals Corp.'s Mia lithium property, where numerous spodumene-bearing pegmatite outcrop samples have returned significant lithium grades of up to 4.37 per cent Li2O2. Both Viper and Cobra are hosted by a similar greenstone belt setting.

About Hydra

Hydra consists of eight subprojects totalling 29,262 hectares (72,306 acres) known as Volta (4,751 hectares), Echo (5,566 hectares), Nike (2,462 hectares), Sprite (3,437 hectares), Cobra (4,249 hectares), Viper (1,280 hectares), Python East (3,218 hectares) and Python West (4,298 hectares), located within a fertile lithium exploration district that hosts the James Bay, Rose and Whabouchi lithium deposits and numerous other lithium showings.

The ALX subprojects were selected for staking based upon the presence of historical lithium, cesium and tantalum lake sediment anomalies and by a review of public-domain geological mapping. ALX utilized an artificial intelligence (AI) search of Quebec government assessment files that found the Python West lithium showing in a pegmatite discovered during a historical uranium exploration program. A 2008 sample from the Python West pegmatite returned an anomalous value of 330 parts per million lithium. A proprietary AI process for pegmatite detection by KorrAI of Halifax, N.S., is continuing to prioritize target definition for the 2023 prospecting program.

National Instrument 43-101 disclosure

The technical information in this news release has been reviewed and approved by John Charlton, PGeo, a consultant to ALX, who is a qualified person in accordance with the Canadian regulatory requirements set out in National Instrument 43-101.

Management cautions that historical results were collected and reported by operators unrelated to ALX and have not been verified nor confirmed by its qualified person, but they create a scientific basis for continuing work in the Hydra project area. Management further cautions that historical results or discoveries on adjacent or nearby mineral properties are not necessarily indicative of the results that may be achieved on ALX's mineral properties.

About ALX Resources Corp.

ALX is based in Vancouver, B.C., Canada, and its common shares are listed on the TSX Venture Exchange under the symbol AL, on the Frankfurt Stock Exchange under the symbol 6LLN and in the U.S. OTC (over-the-counter) market under the symbol ALXEF.

ALX's mandate is to provide shareholders with multiple opportunities for discovery by exploring a portfolio of prospective mineral properties, which include uranium, lithium, nickel-copper-cobalt and gold projects. The company uses the latest exploration technologies and holds interests in over 220,000 hectares of prospective lands in Saskatchewan, a stable Canadian jurisdiction that hosts the highest-grade uranium mines in the world, a producing gold mine and production from base metals mines (both current and historical).

ALX's uranium holdings in Northern Saskatchewan include 100-per-cent interests in the Gibbons Creek uranium project, the Sabre uranium project, the Bradley Lake uranium project, and the Javelin and McKenzie Lake uranium projects; a 40-per-cent interest in the Black Lake uranium project (a joint venture with Uranium Energy Corp. and Orano Canada Inc.); and a 20-per-cent interest in the Hook-Carter uranium project, located within the uranium-rich Patterson Lake corridor, with Denison Mines Corp. (80-per-cent interest) as operator of exploration since 2016.

ALX owns 100-per-cent interests in Canadian lithium exploration properties staked in 2022 and 2023 known as the Hydra lithium project, located in the James Bay region of Northern Quebec, the Crystal and Reindeer lithium projects in Northern Saskatchewan, and the Anchor lithium project, located in Nova Scotia.

ALX also owns 100-per-cent interests in the Firebird nickel project (now under option to Rio Tinto Exploration Canada Inc., which can earn up to an 80-per-cent interest), the Flying Vee nickel/gold project and the Sceptre gold project and can earn up to an 80-per-cent interest in the Alligator Lake gold project, all located in Northern Saskatchewan, Canada. ALX owns or can earn up to 100-per-cent interests in the Electra nickel project and the Cannon copper project, located in historic mining districts of Ontario, Canada, the Vixen gold project (now under option to First Mining Gold Corp., which can earn up to a 100-per-cent interest in two stages), and the Draco VMS (volcanogenic massive sulphide) project in Norway.

We seek Safe Harbor.