Mr. Bora Ugurgel reports

FRONTIER LITHIUM REPORTS FIRST QUARTER RESULTS

Frontier Lithium Inc. has released its financial results for the first quarter ended June 30, 2023. The financial statements and the related management's discussion and analysis have been filed on SEDAR+ and can be viewed under the company's profile on SEDAR+.

The company continues to advance its plans to develop a lithium salts refining plant in North America's Great Lakes region. Frontier is advancing the definitive feasibility study (DFS), assessing the viability of constructing and operating a fully integrated lithium mining and chemicals company to deliver battery-grade lithium carbonate and lithium hydroxide for the burgeoning lithium-ion battery market in North America.

On June 30, 2023, the company had cash and cash equivalents of $22.34-million, leaving it well positioned to meet corporate and administrative expenses, and to further execute on its planned business objectives.

Highlights for the quarter ended June 30, 2023, and recent developments

Exploration

Phase XIII drill program

Phase XIII drill program commenced in February, 2023, with four additional holes drilled at Spark, testing the western extension of the deposit before delineating the Bolt pegmatite. Since February, the company has completed 11,364 metres in 46 drill holes, including geomechanical and hydrogeological testwork at the PAK deposit, delineating Bolt pegmatite as well as condemnation drilling in areas of proposed infrastructure.

Regional mapping program

Since May, 2023, follow-up to the 2022 reconnaissance program has been under way, including more detailed prospecting/mapping and channel sampling. In 2022, a new spodumene-bearing pegmatite zone, 10 by 15 metres, was discovered approximately one kilometre west-northwest of the Spark pegmatite, with grab samples averaging 3.1 per cent Li2O. Prospecting and mapping in the Pennock pegmatite area discovered additional pegmatite dikes up to 30 metres in length and three to five metres in width, grab samples averaging 1.7 per cent Li2O.

Results of prefeasibility study

In May, 2023, the company released the results of PFS for a proposed mine-to-lithium chemical/hydromet plant facility. The PFS was published on July 14, 2023. The results of the PFS include a posttax NPV (net present value), at a discount rate of 8 per cent, of $1.74-billion (U.S.) with a posttax IRR (internal rate of return) of 24.1 per cent. The PFS confirms that the 100-per-cent-owned project could be the continent's largest and lowest-cost producer of lithium hydroxide able to supply the rapidly growing electric vehicle industry in North America.

Corporate leadership team changes

In June, 2023, the company appointed Gregory Da Reas as vice-president of corporate development. Mr. Da Reas brings a deep understanding of electric vehicle battery supply chains and two decades of experience as an accomplished investment executive.

In August, 2023, the company announced the appointment of Erick Underwood as its new chief financial officer. Mr. Underwood brings with him over 25 years of extensive experience in the finance and project development sectors within the mining industry.

Other matters

Annual general meeting

The annual general meeting of the shareholders of Frontier Lithium will be held on Wednesday, Sept. 13, 2023, at 2 p.m. Toronto time, virtually via the Zoom meeting platform. Shareholders can register on-line for the event and to submit their questions.

About Frontier Lithium Inc.

Frontier Lithium is a preproduction business with an objective to become an integrated strategic domestic supplier of spodumene concentrates for industrial users, as well as battery-grade lithium hydroxide and other chemicals to the growing electric vehicle and energy storage markets in North America. The company's sole project maintains the largest land position and resource in a premium lithium mineral district located in Ontario's Great Lakes region.

About PAK lithium project

The PAK lithium project contains North America's highest-grade lithium resource and is the second largest in North America by size. The project encompasses close to 27,000 hectares and remains largely unexplored; however, since 2013, the company has delineated two premium spodumene-bearing lithium deposits (PAK and Spark), located 2.3 kilometres apart. Exploration is continuing on the project through two other spodumene-bearing discoveries: the Bolt pegmatite (located between the PAK and Spark deposits); as well as the Pennock pegmatite (25 kilometres northwest of PAK deposit within the project claims). A 2023 prefeasibility study, entitled, "National Instrument 43-101 Technical Report PFS PAK Lithium Project," by BBA E&C Inc. delivered a 24-year project life, delivering a posttax NPV (8 per cent) of $1.74-billion (U.S.) and an IRR of 24.1 per cent, as per the news release disseminated on May 31, 2023, and was filed on SEDAR+.

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