Mr. Gregg Smith reports

GROUNDED LITHIUM PROVIDES OIL & GAS OPERATIONS UPDATE, ANNOUNCES ANNUAL GENERAL AND SPECIAL MEETING AND OPTION GRANT

Grounded Lithium Corp. had continued success with its resource diversification strategy into oil and gas operations. Further to the company's press release on April 15, 2026, the company is now pleased to report that production for the two wells drilled off a single pad averaged over 120 barrels per day for the month of April. As the company achieves a deeper operational understanding of the formation and equipment, production is expected to increase in the short term until an expected shallow well decline curve begins. At current commodity pricing, this production is expected to deliver a realized sales price of over $90 per barrel. Final price realizations will be determined in the coming weeks and reported in the company's quarterly financial statements. Success on the initial two wells provides support for continued drilling efforts in this regard. With current commodity prices and production levels, payout is anticipated to occur is less than six months, at which time, the company's share of net operating income will increase from 1.5 per cent to 13.5 per cent.

Annual and special meeting

The company also announces that it will hold the annual general and special meeting for shareholders on June 17, 2026, at 2 p.m. MT at the offices of McCarthy Tetrault at suite 4000, 421 7th Ave. SW, Calgary, Alta. All meeting materials will be available on SEDAR+ in due course.

Stock option grant

As part of the overall compensation philosophy to incent personnel through equity rather than cash compensation, on May 6, 2026, the company granted 2.3 million stock options at an exercise price of seven cents per share and expiring on May 6, 2031, in accordance with the company's equity incentive plan. The grant remains subject to final TSX Venture Exchange approval, and stock options granted to insiders (as such term is defined in TSX Venture Exchange Policy 1.1 -- Interpretation) pursuant to the option grant require disinterested shareholder approval which will be sought at the upcoming annual general and special meeting. Following the option grant, 15,913,000 common shares in the capital of the company will be issuable upon the exercise of outstanding awards under the plan and the company's other security-based compensation arrangements.

About Grounded Lithium Corp.

Grounded Lithium is a publicly traded lithium brine exploration and development company that owns approximately 1.0 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 southwest 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 NPV8 (net present value, 8-per-cent discount rate) after tax of $1.0-billion (U.S.) with an after-tax IRR (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 funding in aggregate up to $15.15-million comprising both cash payments to Grounded Lithium of up to $3.15-million and funding 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 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 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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