Mr. Garry Flowers reports

INTERNATIONAL BATTERY METALS LTD. ANNOUNCES CLOSING OF PRIVATE PLACEMENT

International Battery Metals Ltd. has closed its non-brokered private placement as previously announced on Dec. 21, 2023, by issuing 2,694,804 units of the company at a price of 70 cents per unit for aggregate proceeds to the company of approximately $1,415,000 (U.S.) ($1,886,362.80). The private placement was oversubscribed.

Each unit consists of one common share in the capital of the company and one common share purchase warrant, with each warrant entitling the holder to acquire an additional common share for a period of 24 months from closing at an exercise price of 82 cents.

The proceeds from the private placement will be used to finance the company's continuing operations and other general corporate expenditures.

"We are pleased to announce the second closing of the private placement which, as previously announced, had been reopened due to investor demand. These additional funds allow us to pro-actively begin preparing our 1st generation plant for mobilization and deployment," Garry Flowers, co-chief executive officer, commented on the private placement.

The securities issued under the private placement are 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.

Related party transaction

Pursuant to the private placement, 190,443 common shares were issued to an officer of the company, who is considered a related party of the company as such term is defined in Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions.

Accordingly, the private placement is a related party transaction 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 private placement, 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 the transaction was agreed to, neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the private placement, insofar as it 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's focus has been 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.