An anonymous director reports

GROUNDED LITHIUM REPORTS SECOND QUARTER 2023 FINANCIAL AND OPERATING RESULTS

Grounded Lithium Corp. has released its financial and operating results for the three-month period and six-month period ended June 30, 2023. Selected financial and operational information is set out herein and should be read in conjunction with the company's June 30, 2023, financial statements and the related management's discussion and analysis, which are available for review on SEDAR+ or at the company's website.

Second quarter 2023 financial and operational highlights:

• On May 25, 2023, the company selected Koch Technology Solutions (KTS), a Koch Engineered Solutions company, and its proprietary Li-Pro technology as the direct lithium technology of choice for implementation in a future field pilot. Assuming the proposal from KTS is agreed upon by all parties, Grounded Lithium would be responsible for work associated with preparations of a functional field pilot, including, but not limited to, provision of sufficient feedstock, job site and associated facility requirements, such as permits, civil works, buildings, storage tanks, access to utilities, manpower and brine disposal. KTS would provide the pilot extraction equipment, and the right to use the Li-Pro technology together with complementary field support during construction and operations of the specific extraction unit.
• During the quarter, the company completed the preliminary economic assessment (PEA) on its Kindersley lithium project (KLP). The robust economics were released on July 26, 2023, and included:
  • After-tax net present value of $1-billion (U.S.) using an 8-per-cent discount rate and a capital investment of $335-million (U.S.), implying an after-tax profitability index of nearly four times. A profitability index of nearly four times suggests a highly accretive project with further torque to the upside if current spot prices for battery-grade lithium material were modelled.
  • After-tax internal rate of return (IRR) of 48.5 per cent.
  • Payout of only 3.7 years, inclusive of a 1.5-year design-and-construction phase. This is extremely rapid given a project of this magnitude and scope.
• The full KLP development involves a phased approach which provides several benefits stemming from economies of scale as each phase drives the financing, performance learnings, capital efficiencies and torque in rates of return. Prudent development of subsurface resource bases is critical to maximize shareholder value.

Operational and corporate update

During the quarter, the company achieved several operational accomplishments. This momentum will continue with a commensurate financing strategy. The company is evaluating a number of alternative strategies to allow it to execute on its stated business goals. In addition to traditional methods of raising capital in which insiders will continue to participate, the company actively pursues strategies which include:

• Seeking funds under various government programs which could defray the cost of both drilling and field pilot operations;
• Seeking financing and partnerships with one or more strategic partners. A strategic partner provides multiple benefits, including experience in either responsible resource development or technologies related to Grounded Lithium's emerging industry, an interest in realizing the robust value identified in the company's PEA, and/or a desire to support energy transition. The company maintains current dialogue with a number of qualifying strategic partners.

About Grounded Lithium Corp.

Grounded Lithium is a publicly traded lithium brine exploration and development company that controls approximately 4.2 million metric tons of lithium carbonate equivalent of inferred resource over its focused landholdings in southwest Saskatchewan as of the effective date of the PEA. The PEA, titled "NI 43-101 Technical Report: Preliminary Economic Assessment Kindersley Lithium Project -- Phase 1," dated Aug. 9, 2023, and effective as of June 30, 2023, reports a phase 1 after-tax net present value at an 8-per-cent discount of $1-billion (U.S.), with an after-tax internal rate of return of 48.5 per cent. Grounded Lithium's multifaceted business model involves the consolidation, delineation, exploitation and, ultimately, development of the company's opportunity base to fulfill its vision to build a best-in-class, environmentally responsible, Canadian lithium producer supporting the global energy transition shift.

Qualified persons

Scientific and technical information contained in this press release has been prepared under the supervision of Doug Ashton, PEng, Suryanarayana Karri, PGeoph, Alexey Romanov, PGeo, Meghan Klein, PEng, Dean Quirk, PEng, Jeffrey Weiss, PEng, Chad Hitchings, PLEng, and Michael Munteanu, PEng, each of whom is a qualified person within the meaning of National Instrument 43-101.

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