Mr. Trevor Walker reports

FRONTIER LITHIUM AND MITSUBISHI CORPORATION COMPLETE JOINT VENTURE TRANSACTION

Frontier Lithium Inc. has successfully closed tranche 1 of the joint venture partnership with Mitsubishi Corp. (Tokyo Stock Exchange: 8058:JP). This joint venture for the PAK lithium project marks a significant milestone in advancing the first fully integrated lithium mining and processing operation in Ontario, Canada.

Through the joint venture partnership, as initially announced on March 4, 2024, Mitsubishi has acquired an initial 7.5-per-cent interest in the project for $25-million. This strategic investment underscores the confidence in the size, quality and strategic importance of the project to the North American EV (electric vehicle) supply chain.

Frontier plans to utilize the funding from Mitsubishi to progress the project toward a vertically integrated definitive feasibility study (DFS), which is expected to be completed in 2025.

Trevor Walker, president and chief executive officer of Frontier Lithium, emphasized the significance of the milestone achieved today as the company advances its mission to become a leading lithium supplier within the North American EV battery materials supply chain. "Mitsubishi's investment underscores their trust in Ontario's jurisdiction, as well as the calibre and scale of the PAK lithium project," stated Trevor Walker. "We warmly welcome Mitsubishi and are honoured to have a strategic, and reliable partner enabling us to focus on generating long-term value for shareholders, communities and all stakeholders."

Transaction details

The joint venture is structured to facilitate the majority of equity funding for the planned mine and mill, with Frontier being able to reduce its share of development costs for the whole project, while maintaining at least 75 per cent of future offtake optionality. This partnership aligns with the recent memorandum of co-operation signed between the governments of Canada and Japan to encourage value-added investments that will help establish sustainable and reliable battery supply chains between the company's two countries.

Key points of the joint venture transaction:

• Frontier has contributed all assets pertaining to the project in exchange for a 92.5-per-cent stake in the JV and has assumed the role of JV manager.
• Following the completion of the DFS, Mitsubishi will have the option to increase its interest in the JV up to a 25-per-cent interest at a valuation based upon, among other things, the net asset value of the project outlined in the DFS (tranche 2).
• Mitsubishi will collaborate closely with Frontier in securing debt financing to ensure full funding for the project's production.
• The completion of tranche 2 investment is contingent upon certain preconditions, such as obtaining material infrastructure permits and other customary approvals. Frontier expects these conditions to be met in 2025.

About Mitsubishi Corp.

Mitsubishi is a global integrated business enterprise that develops and operates businesses together with its global network of around 1,800 group companies. Mitsubishi has eight business groups that operate across virtually every industry: environmental energy, materials solution, mineral resources, urban development and infrastructure, mobility, food industry, smart-life creation, and power solution. Through these eight business groups, Mitsubishi's current activities have expanded far beyond its traditional trading operations to include project development, production and manufacturing operations.

About Frontier Lithium Inc.

Frontier Lithium is an exploration and development mining company with headquarters and assets in Northern Ontario, a Tier 1 mining jurisdiction. The company's PAK lithium project represents a high-grade, large-tonnage pure lithium resource in a new, premium lithium mineral district in Northwestern Ontario. Strategically located in the Great Lakes region near the United States border, Frontier is developing the first fully integrated lithium mining and processing operation in Ontario, with an aim to become Canada's lithium champion, and a significant supplier of spodumene concentrates and battery-grade lithium chemicals to the growing electric vehicle and energy storage markets across North America.

About the PAK lithium project

The PAK lithium project contains North America's highest-grade lithium resource and is the largest in Ontario by size. The claims encompass more than 26,000 hectares and remains largely unexplored, however, since 2013, the company has delineated two premium spodumene-bearing lithium deposits (PAK and Spark), located only 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 located 25 kilometres northwest of PAK deposit within the project claims. A 2023 prefeasibility study, titled "National Instrument 43-101 Technical Report PFS PAK Lithium Project," authored by BBA E&C Inc., delivered a 24-year project life, at a posttax net present value (NPV) (at an 8-per-cent discount) of $1.74-billion (U.S.) and internal rate of return of 24.1 per cent as per the press release disseminated on May 31, 2023, and filed on SEDAR+.

We seek Safe Harbor.