Mr. Ali Haji reports

ION ANNOUNCES US$13.5M JOINT VENTURE ON URGAKH NARAN, CORPORATE UPDATES AND UPDATE ON RARE EARTHS TRANSACTION

Lithium Ion Energy Ltd. has entered into a binding joint venture agreement with SureFQ Ltd. for the advancement of the Urgakh Naran project in Mongolia, in which Ion will continue to hold a 20-per-cent free carried interest through to commercial production.

Highlights:

• Proven DLE operator looking to deploy modular capacity;
• $5.5-million (U.S.) in cash considerations to Ion over 4.5 years;
• $8.0-million (U.S.) in development expenditure for UN over four years;
• Ion to maintain 2.5-per-cent net smelter royalty in perpetuity.

"This milestone is a testament to the Ion team's perseverance to deliver upon a strategic partnership that ensures the advancement of our UN asset at a time of historical low lithium prices, demonstrating a path to production with associated upside that benefits our shareholders. We continue to see Urgakh Naran as an asset with significant potential and are excited to bring on a partner with proven technology that ensures revenue generation expeditiously," said Ali Haji, chief executive officer and director -- Lithium Ion.

"SureFQ is thrilled to support this transformative partnership, which not only accelerates the development of the Urgakh Naran project, but also underscores the resilience and foresight of the Ion team. In a challenging lithium market, strategic collaborations like this pave the way for sustainable growth and long-term value creation. We look forward to the positive impact this venture will have on the industry and stakeholders alike," said Hao Qu, chief executive officer, SureFQ.

The joint venture agreement was signed, effective March 26, 2025. The transaction is expected to close by July 1, 2025, subject to TSX Venture Exchange approval.

Debt settlement

The company further announces that it has negotiated debt settlements with certain non-arm's-length creditors. Pursuant to the debt settlement and subject to acceptance by the TSX-V, the company has agreed to settle an aggregate amount of $120,000 in debt, in consideration for which it will issue an aggregate of three million common shares of the company at a deemed price of four cents per share.

All securities issued in relation to the debt settlement will be subject to a hold period expiring four months and one day after the date of issuance in accordance with applicable securities laws and the policies of the TSX-V. Completion of the debt settlement remains subject to the receipt of all necessary regulatory approvals, including the approval of the TSX-V.

Related-party transaction

The conversion of debt to shares by insiders will be considered a related-party transaction pursuant to Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) requiring the company, in the absence of exemptions, to obtain a formal valuation for, and minority shareholder approval of, the related-party transaction. The company is relying on an exemption from the formal valuation requirements of MI 61-101 available, because no securities of the company are listed on specified markets, including the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the Nasdaq, or any stock exchange outside of Canada and the United States other than the Alternative Investment Market of the London Stock Exchange or the Plus markets operated by Plus Markets Group PLC. The company is also relying on the exemption from minority shareholder approval requirements set out in MI 61-101 as the fair market value of the participation in the offering by the insiders does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101. It is likely the company will not file a material change report in respect of the related-party transaction at least 21 days before the closing of the offering as the company wishes to close the offering in an expeditious manner.

Update on contemplated business combination

Ion also announces that it is no longer pursuing the contemplated business combination transaction with United Rare Earths as previously announced on Oct. 29, 2024. Following a thorough review of the contemplated transaction by the board, a collective decision was arrived at not to pursue the transaction. The board continues to evaluate additional lithium and critical metal projects to align with the company's strategic objectives.

About Lithium Ion Energy Ltd.

Lithium Ion is committed to exploring and developing high-quality lithium resources in strategic jurisdictions. Ion's flagship 65,000-plus-hectare Baavhai Uul lithium brine project represents the largest and first lithium brine exploration licence award in Mongolia. Ion also holds the 29,000-plus-hectare Urgakh Naran highly prospective lithium brine licence in Dorngovi province in Mongolia. With the acquisition of the Bliss Lake and Little Nahani projects in Northwest Territories, Canada, Ion has enhanced its lithium asset and jurisdiction profile. Ion is well poised to be a key player in the clean energy revolution, positioned well to service the world's increased demand for lithium.

We seek Safe Harbor.