Mr. Garry Flowers reports

INTERNATIONAL BATTERY METALS LTD. ANNOUNCES PRIVATE PLACEMENT AND SHARES FOR SERVICES ISSUANCES

As a result of investor demand, International Battery Metals Ltd. intends to complete a second closing of its previously announced private placement completed on Dec. 8, 2023. In the second closing, the company expects to issue up to 2,475,757 units for a price of 70 cents per unit, for total proceeds of up to $1.3-million (U.S.). Each unit will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will permit the holder to acquire one additional common share at a price of 82 cents for a period of 24 months from closing of the private placement.

The proceeds from the private placement will be used to finance the company's continuing operations and other general corporate expenditures. The company expects that an officer of the company will purchase units under the private placement.

The units are being offered pursuant to available prospectus exemptions, including sales to accredited investors. Completion of the private placement is subject to regulatory approval, including, but not limited to, the approval of the Canadian Securities Exchange. The securities issued under the private placement will be subject to a statutory hold period of four months from the date of issuance under Canadian Securities laws and will also be restricted securities under the United States Securities Act of 1933.

The company also announces that, effective Dec. 12, 2023, it issued a total of 431,788 common shares to directors, officers and advisers of the company in lieu of payment for amounts owing for services rendered to the company. The common shares issued pursuant to the share settlements were issued at prices of 70 cents and 89 cents. In addition, the company has granted and agreed to grant a total of 378,708 common shares to certain officers of the company pursuant to signing and year-end bonuses, issued at deemed prices of 89 cents and 90 cents.

Related-party transaction

Pursuant to the share settlements, 71,495 common shares were issued to officers and directors of the company, each of which is a related party of the company as such term is defined in Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. Further, the company expects that an officer of the company will participate in the private placement.

Accordingly, each of the private placement, share settlements and bonus payments are related-party transactions pursuant to MI 61-101. Under sections 5.4 and 5.6 of MI 61-101, the company is required to obtain a formal valuation and minority shareholder approval for the transactions, unless exemptions are available.

The company is relying on the exemptions from the formal valuation requirement and the minority shareholder approval requirement under sections 5.5(a) and 5.7(1)(a), as at the time that each of the private placement, share settlements and bonus payments were agreed to, neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transactions, insofar as each involves interested parties, exceeds 25 per cent of the company's market capitalization.

About International Battery Metals Ltd.

The company's direct lithium extraction technology is based on proprietary lithium extraction housed in patented extraction towers that are enclosed in a modular, shippable platform able to be loaded and brought into production within 10 days of arrival on a customer site. Utilizing the patented technology, the company has a focus on advanced extraction of lithium chloride from groundwater salt brine deposits and returning the same water to the subsurface aquifer from which it is extracted. The company's unique patented technology ensures faster delivery of lithium chloride while ensuring minimal environmental impact.

We seek Safe Harbor.