Mr. Trevor Walker reports

FRONTIER LITHIUM ANNOUNCES PROPOSED AMENDMENTS TO CONVERTIBLE LOAN

Frontier Lithium Inc. has entered into an amendment agreement with the lender and holder of the company's $3.35-million unsecured convertible loan to amend certain terms thereof. The proposed amendments include an 18-month extension of the maturity date and a revision to the conversion price to better reflect current market conditions, while preserving the existing principal amount and interest rate of the loan. The extension provides Frontier with additional financial flexibility as it continues to advance the PAK lithium project, allowing management to preserve available capital for continuing permitting, engineering and development activities associated with the planned mine and mill stage of the project.

Pursuant to the terms of the amendment agreement, the lender has agreed to amend the convertible loan on the following terms:

• The principal amount of the convertible loan is amended to include the original principal amount of $3.35-million, together with all accrued and unpaid interest as at Aug. 25, 2026, being the original maturity date of the convertible loan, which is expected to be approximately $300,000 subject to the prevailing CORRA (Canadian overnight repo rate average) rate. Based on CORRA as of Aug. 12, 2026, the new principal amount of the convertible loan would be $3.63-million.
• The maturity date of the convertible loan will be extended by 18 months to Feb. 25, 2028.
• The interest rate remains unchanged at CORRA plus 3 per cent per annum.
• The conversion price will be amended to 45.5 cents per common share.
• All other terms and conditions of the convertible loan remain unchanged.

The proposed amendments do not result in any additional proceeds being received by the company. The company believes the revised conversion price more appropriately reflects current market conditions while maintaining the long-term support of a significant shareholder.

Related party transaction

The lender of the convertible loan is considered a related party of the company under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, and the policies of the TSX Venture Exchange as the lender is an affiliate or associated entity of Reginald (Rick) F. Walker (chairman of the board of directors of the company). As such, the convertible loan is considered a related party transaction under MI 61-101 and the policies of the TSX-V, but is exempt from the formal valuation and minority approval requirements under subsections 5.5(a) and 5.7(1)(a) of MI 61-101, and Section 3.1 of TSX-V Policy 5.9, because neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the convertible loan, as described herein, exceeds 25 per cent of the company's market capitalization.

The board of directors of the company, with Mr. Walker abstaining from all deliberations and voting with respect to the proposed amendments, have determined that the proposed amendments are in the best interests of the company and its shareholders.

The proposed amendments are contingent upon receipt of all necessary regulatory authorizations, including TSX-V approval. A subsequent news release will be provided once these permissions are granted. As currently contemplated, the proposed amendments are intended to come into effect on Aug. 25, 2026, pending receipt of all necessary approvals. No finder's fee applies to this transaction.

About Frontier Lithium Inc.

Frontier Lithium is a preproduction mining company with an objective to become a strategic and integrated supplier of premium spodumene concentrates, as well as battery-grade lithium salts to the growing electric vehicle and energy storage markets in North America. The company's PAK lithium project encompasses a large land position and resource in a premium lithium mineral district located in Ontario's Great Lakes region.

About the PAK lithium project

The PAK lithium project is a fully integrated critical minerals initiative in Ontario, developing North America's highest-grade known lithium resource. Operated as a joint venture between Frontier (92.5 per cent) and Mitsubishi Corp. (7.5 per cent), the project is advancing, in parallel, a mine and mill, and downstream lithium conversion facility in Thunder Bay, Ont., which are both key to supporting a secure domestic lithium supply for a clean energy transition. A 2025 mine and mill feasibility study, prepared by DRA and entitled "National Instrument 43-101 Technical Report FS PAK Lithium Project, Mine and Mill," outlines a 31-year project life with an after-tax net present value of $932-million at a discount rate of 8 per cent and an after-tax internal rate of return of 17.9 per cent.

These results are disclosed in a news release dated May 28, 2025, and the accompanying technical report was filed on July 9, 2025, on SEDAR+.

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