Mr. James Lumley reports

CAPE LITHIUM SEEKS ANNOUNCES STRATEGIC ALTERNATIVE STRATEGY FOR ITS NORRABEES LITHIUM PROJECT IN SOUTH AFRICA

Cape Lithium Corp. intends to seek an alternative strategy regarding its investment in the Norrabees lithium project, located in Northern Cape, South Africa.

The company, which holds a 40-per-cent indirect interest in Dune Resources Pty. Ltd., a private South African company whose wholly owned subsidiary Namli Exploration & Mining Pty. Ltd. holds the permit for the project, will be actively marketing a total of 100 per cent of the project. The company will also seek to explore potential joint ventures and strategic investments in connection with the project.

James Lumley, president, chief executive officer and a director of Cape Lithium, stated: "Our counterparty in South Africa is aware of this objective and our efforts to identify a third party to acquire 100 per cent of the project or other type of alternative investment. The company is committed to finding the best possible solution for all shareholders in light of the current situation, and believes that this alternative strategy will lead to create opportunities for enhanced value creation."

Located in the Namakwa district municipality, Northern Cape, South Africa, about 80 kilometres north of Springbok and directly south of the Orange River and border with Namibia, the project consist of a prospecting right of approximately 167,500 hectares and a five-hectare mining permit situated on remainder of the farm Steinkopf 22, owned by the state and administered by the Nama Khoi Municipality in Springbok. For more information on the project see the company's news release dated Oct. 31, 2024, and the National Instrument 43-101 -- Standards of Disclosure for Mineral Projects technical report titled "NI 43-101 Technical Report for The Norrabees 1 Pegmatite, South Africa. Mineral Resource Estimate," effective dated Jan. 17, 2024, filed under the company's profile on SEDAR+.

About Cape Lithium Corp.

Cape Lithium, headquartered in Vancouver, B.C., Canada, is a mineral exploration and development company focused on exploiting world-class hard-rock lithium projects in Africa. The company's core focus is the Norrabees project in northern Cape, South Africa. Cape Lithium's management is committed to operating efficiently and with transparency in all areas of the business, staying sharply focused on creating long-term, sustainable shareholder value.

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