Mr. Gregg Smith reports

GROUNDED LITHIUM REPORTS 2025 YEAR END RESULTS AND OIL AND GAS OPERATIONS UPDATE

Grounded Lithium Corp. has released its financial and operating results for the three- and 12-month period ended Dec. 31, 2025. Selected financial and operational information is set out below and should be read in conjunction with the company's Dec. 31, 2025, financial statements and the related management discussion and analysis, which are available for review on SEDAR+ or the company's website.

2025 KLP update

The company continued to make measured progress on the Kindersley lithium project (KLP) with its partner, Denison Mines Corp. The next major milestone for the KLP involves the completion and filing of a prefeasibility study. The PFS will incorporate detailed operational, technical and financial assessments for the KLP. The combined expertise from Denison and Grounded Lithium will support a meticulous approach to the PFS that acknowledges all the necessary engineering aspects for a lithium project and the production over the mine's life. More importantly, the PFS, assuming positive conclusions, will serve as the basis for important next steps in the journey to bring the KLP to a commercial project. Grounded Lithium expects to file the PFS over the course of the summer of 2026.

Oil and gas operations update

Grounded Lithium also announces the successful drilling, completion and equipping of the initial two oil wells as part of the previously announced partnership with various third parties (see press release dated Jan. 14, 2026). Both wells were drilled from a single pad with operations completed in a very short time frame, thereby keeping capital costs to a minimum. The partnership is now focused on well-optimization efforts to deliver high-quality spec-grade product into the commodity markets as initial production and testing commenced in the last week of March. Given the current pricing environment, Grounded Lithium expects to generate noteworthy cash flows, which will shorten the payout timetable, thereby enhancing working capital reserves for the company.

"Our initial investment thesis to enter into another category of the resource extraction industry is demonstrating promising initial production," commented Gregg Smith, president and chief executive officer. "Our team's resource extraction expertise provides us potential to supplement liquidity as we deliver on our main investment thesis of delivering a commercially viable battery-grade lithium project with our partners at Denison Mines Corp. We look to provide further updates over the coming months on operations from both categories of assets, and the results to date encourage us to plan our next oil drilling program."

About Grounded Lithium Corp.

Grounded Lithium is a publicly traded lithium brine exploration and development company that owns approximately one million metric tonnes of measured and indicated lithium carbonate equivalent mineral resource and approximately 3.2 million metric tonnes of inferred lithium carbonate equivalent resource over the company's focused landholdings in southwestern Saskatchewan, as per the company's updated PEA (preliminary economic assessment). The updated PEA, titled "NI 43-101 Technical Report: Preliminary Economic Assessment Kindersley Lithium Project -- Phase 1 Update," dated Nov. 7, 2023, and effective as of June 30, 2023, reports a phase 1 net present value (discounted at 8 per cent) after-tax of $1-billion (U.S.) with an after-tax internal rate of return of 48.5 per cent. In January, 2024, Grounded Lithium entered into an agreement with Denison, whereby Denison has the option to earn up to a 75-per-cent working interest in the KLP by financing in aggregate up to $15.15-million comprising both cash payments to Grounded Lithium of up to $3.15-million and financing project expenditures of up to $12-million through a structured earn-in option.

Grounded Lithium's multifaceted business model involves the consolidation, delineation, exploitation and, ultimately, development of its opportunity base to fulfill the company's vision to build a best-in-class, environmentally responsible Canadian lithium producer supporting the global energy transition shift.

Qualified person

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

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