Ms. Simone Suen reports

IMAGINE LITHIUM ANNOUNCES DRILL PROGRAM AND CONVERTIBLE NOTE FINANCING

Imagine Lithium Inc. has planned a 2,800-metre drill program on the Jackpot lithium project as well as arranged a private placement offering of 7.0 per cent secured convertible notes for gross proceeds of $3-million.

Highlights:

• Financing from key battery industry company to explore vast 27,597-hectare land package;
• 1,200 metres of drilling planned to expand current resources of 3.1 million tonnes inferred at 1.00 per cent Li2O (lithium oxide) at Casino Royale;
• 1,600 metres of exploration drilling planned for newly discovered Ruth pegmatite.

The funds will be used for general corporate purposes, to continue advancing the company's newly discovered Ruth pegmatite and for expansion drilling on the company's Casino Royale lithium zone. Imagine Lithium's Jackpot lithium project comprises the Ruth pegmatite claims and the Jackpot deposit claims in the Georgia Lake pegmatite field, approximately 140 kilometres northeast of Thunder Bay, Ont. Total resources on the 27,597-hectare land package include 3.1 million tonnes indicated at 0.85 per cent Li2O for 26,200 tonnes of Li2O and 5.3 million tonnes inferred at 0.91 per cent Li2O for 49,500 tonnes of Li2O (September, 2024, Imagine Lithium).

The results of this drill program will be used to upgrade Imagine Lithium's National Instrument 43-101-compliant resources.

The private placement is fully subscribed with one arm's-length investor. Convertible notes will bear interest at 7.0 per cent per annum and will mature five years from their issuance. The company may repay all or a portion of the principal amount owing under the convertible notes at any time prior to maturity with 90 days of prior notice but at a premium of 10 per cent of the principal amount owing plus any accrued and unpaid interest. The principal amount owing under each convertible note will be convertible into common shares, in multiples of $500,000 of the principal amount, at a conversion price of five cents per share in the first year and for each year thereafter at a conversion price of 10 cents per share. The indebtedness owing under the convertible notes will be secured by a first-ranking general security interest over all of the present and after-acquired assets of the company.

Simone Suen, president of Imagine, commented: "This funding opportunity represents a strategic investment from a key player in the battery industry and will be used to continue to develop the new and existing lithium resources on the property and add tonnes to the Jackpot lithium project. We are encouraged that the planned drilling will add to our resource inventory, putting Imagine in an excellent position to build upon our significant resources on the project. Nearby infrastructure, ports and a skilled work force highlight the near-term production potential of the Georgia Lake deposits."

Concurrent with the completion of the private placement, the investor will also be granted a right of first refusal with respect to any offtake arrangements regarding lithium produced, if any, by or on behalf of the company from any mineral interest owned by the company.

Finders' fees may be payable on the private placement, subject to the policies of the TSX Venture Exchange. The private placement is also subject to the company receiving all necessary prior approvals from the TSX-V.

Qualified person

Jason Arnold, PGeo, president of DCX Geological Consulting Inc., reviewed and approved the technical content of this news release. Mr. Arnold is a consultant for the company and is not an independent qualified person as defined by NI 43-101 due to his position as a director of the company.

About Imagine Lithium Inc.

Imagine is a junior mining exploration company focused on seeking and acquiring world-class mineral projects. The company holds the Jackpot lithium property, which is located in the Georgia Lake area, about 140 kilometres north-northeast of Thunder Bay, Ont., is approximately 12 kilometres by road from the Trans-Canada Highway (Highway 11), and is in proximity to sources of power, railways and ports. The Jackpot property consists of 322 mineral claims covering 27,597 hectares. The property contains NI 43-101-compliant mineral resources of 3.1 million tonnes grading 0.85 per cent Li2O in the indicated category and 5.3 million tonnes grading 0.91 per cent Li2O in the inferred category as well as several other known pegmatite showings.

We seek Safe Harbor.