Mr. John Wisbey reports

INTERNATIONAL LITHIUM CORP. TO RECEIVE CAD$2.2M PLUS A 2% NET SMELTER ROYALTY FOLLOWING REDUCTION OF INTEREST IN ITS NON-CORE AVALONIA PROJECT

International Lithium Corp. has signed a variation agreement in respect of its non-core Avalonia project in Ireland, which is a joint venture with GFL International Co. Ltd. (Ganfeng), whereby:

• The option period under which Ganfeng has to spend $10-million to increase its share in the Avalonia project from 55 per cent to 79 per cent is further extended to Dec. 31, 2025.
• In consideration of a payment schedule from Ganfeng totalling $2.2-million between the period of September, 2024, and Oct. 31, 2025, and in further consideration of a 2-per-cent net smelter royalty to International Lithium, the joint venture agreement will be varied such that International Lithium will reduce its stake in the Avalonia project to nil.

Background

The Avalonia project in Blackstairs, Ireland, has been a joint venture between International Lithium and Ganfeng since 2014, and Ganfeng has had management control of the project since 2017. While there were some historic resource estimates, drilling since then has not yet resulted in further resource estimates or an economic analysis.

Although the project is thought to have promise, it has remained relatively early stage and has not been a priority for either Ganfeng or International Lithium's expenditure.

Use of sale proceeds

The company plans to use part of the $2.2-million net proceeds, which will be payable mainly in 2025, for exploration in Ontario at its Raleigh Lake and Firesteel projects and in Zimbabwe, with the remainder used for working capital. The expenditure in Zimbabwe is dependent on the grant of exclusive prospecting orders (EPOs) there, which is believed to be relatively imminent.

Regulatory approval

The transaction is below the level that would make it a reviewable disposition under TSX Venture Exchange policies and is, therefore, not subject to TSX-V approval.

John Wisbey, chairman and chief executive officer of the company, commented: "We are pleased to have concluded this transaction, strengthening our balance sheet and enabling the board to focus on its other operations.

"We had for some time regarded our stake in Avalonia as a non-strategic asset, the more so as it would have reduced to 21 per cent with further expenditure by our partner Ganfeng, and the project still requires appreciable investment to reach the resource milestones which could make it valuable. Therefore, it made sense to sell the stake to Ganfeng while at the same time receiving a 2-per-cent net smelter royalty that would be valuable if the Avalonia project achieves its goals and comes to fruition. Our relationship with Ganfeng remains strong and important for us.

"We still have great expectations for the future demand for lithium and for Raleigh Lake and our other lithium projects despite the lithium price trends we have seen since the end of 2022. In addition, we are excited by the significant valuation upside from our rubidium deposits at Raleigh Lake, for which a maiden resource estimate for rubidium was declared in March, 2023, the potential to find copper-rich volcanogenic massive sulphide (VMS) deposits at our Firesteel copper project, and by our strategic interests in Zimbabwe. We look forward to updating the market on these various initiatives in due course."

About International Lithium Corp.

The world has seen a significant governmental and public drive to move away from the energy market's historic dependence on oil and gas. In addition, International Lithium has seen the clear and increasingly urgent wish by the United States and Canada and other major economies to safeguard their supplies of critical metals and to become more self-sufficient. International Lithium's Canadian projects, which contain lithium, rubidium and copper, are strategic in that respect.

International Lithium's key mission in the next decade is to make money for its shareholders from lithium and other battery metals and rare metals while at the same time helping to create a greener, cleaner planet and less polluted cities. This includes optimizing the value of International Lithium's existing projects in Canada as well as finding, exploring and developing projects that have the potential to become world-class deposits. International Lithium has announced separately that the company regards Zimbabwe as an important strategic target market for International Lithium and that the company has applied for and hopes to receive EPOs there. International Lithium hopes to be able to make announcements over the next few weeks and months.

The company's interests in various projects now consist of the following, and, in addition, the company continues to seek other opportunities.

The company's primary strategic focus at this point is on the Raleigh Lake lithium and rubidium project and the Firesteel copper project in Canada and on obtaining EPOs and mineral claims in Zimbabwe.

The Raleigh Lake project consists of 48,500 hectares (485 square kilometres) of mineral claims in Ontario and is International Lithium's most significant project in Canada. Drilling has so far been on less than 1,000 hectares of International Lithium's claims. A preliminary economic assessment (PEA) was published for International Lithium's lithium at Raleigh Lake in December, 2023, with detailed economic analysis of International Lithium's separate rubidium resource still to come. Raleigh Lake is 100 per cent owned by International Lithium, is not subject to any encumbrances and is royalty-free. The project has excellent access to roads, rail and utilities.

A continuing goal has been to remain a well-financed company to turn International Lithium's aspirations into reality, and, following the disposal of the Mariana project in Argentina in 2021, the Mavis Lake project in Canada in January, 2022, and the Avalonia project in 2024, International Lithium has achieved sufficient inward cash flow to be able to make progress with its exploration projects, even before any fundraising.

With the increasing demand for high-technology rechargeable batteries used in electric vehicles and electrical storage as well as portable electronics, lithium has been designated the new oil, and is a key part of a green energy sustainable economy. By positioning itself with projects with significant resource potential and with solid strategic partners, International Lithium aims to be one of the lithium and rare metal resource developers of choice for investors and to continue to build value for its shareholders in the 2020s, the decade of battery metals.

We seek Safe Harbor.