Mr. Ali Rahman reports

LEXI ANNOUNCES COMPLETION OF ANTOFALLA NORTH & SOUTH DRILLING PROGRAM

Lithium Energi Exploration Inc. has completed drilling at the Antofalla North project and the Antofalla South project, in the south of the salar.

The campaign consisted of 1,003.4 metres (m) across the northern and southern properties. Three diamond holes were drilled in the northern LEA I, LEA XXXIV and LEA V properties. Two diamond holes to 200 m depth and a third hole to 302 m depth were drilled in the LEA XXVI property in the south of the salar. The average depth of all holes across these two campaigns was 284 m. Core samples were collected to provide measurements of porosity. Samples were collected every 12 m, with porosity results yet to be received from the laboratory for the second program.

Brine sample analyses have been conducted at the independent Alex Stewart Laboratories to yield full spectroscopic analysis of brine chemistry and lithium concentrations (see tables 2 and 3 for results, together with the sample widths). The Alex Stuart laboratory in the city of Jujuy was used as the primary laboratory, with the laboratory in Mendoza used as the check laboratory. All brine samples have now been received from the program.

The company used the services of specialized downhole geophysical contractor, Zelandez Ltd., to collect borehole magnetic resonance (BMR) measurements of in situ porosity (specific yield) in the holes. This provides detailed measurements of porosity on a centimetre-scale, to understand changes in porosity with depth and location, providing high-quality detailed information on the porosity of the sediments. Additionally, data from spectral gamma and resistivity logging tools were collected to provide additional lithological information.

The Antofalla basin is a long, narrow, fault-based graben -- identified as one of the world's largest depressions, hosting extensive lithium-bearing brine -- although the total depth in the basin is not well known. The results of the brine sampling are presented in tables 2 and 3, for the southern and northern drilling programs. The brine sample results are highest from the southern LEA XXVI property, which is located on the western side of the salar.

The lithium concentration increases from north to south through the Antofolla South project (LEA XXVI), with the lithium concentration increasing from an average of 238 milligrams per litre (mg/l) lithium (Li) in the northern hole, DDH01, to 308 mg/l Li in the central hole, DDH5, and 412 mg/l Li in the southern hole, DDH3. Lithium concentration also showed an increase with depth in the holes, suggesting the influence of surficial infiltration of surface water and dilution of brine, most notably in the northern hole, DDH01, LEA XXVI. The suggestion from the TEM (transient electromagnetics) and MT (magnetotelluric) geophysics, and knowledge on other salar systems, is that lithium-bearing brine will extend west off the salar below areas of gravel, and potentially into porous Tertiary-age sediments or volcanics. This concept remains to be tested by future drilling.

In LEA XXVI brine is present in a surficial sequence of salt, which is underlain by sands and gravels, which vary in their degree of compaction and porosity. Drilling is not believed to have intersected tertiary terrestrial sediments, which are present around the salar margins and potentially form the base of the salar. These southern drill holes have terminated in gravel units, which are believed to be alluvial fans, formed from sediment eroded from the salar margins and deposited within the salar, and later covered by salt. This is a pattern noted in many other salar basins.

The northern drill holes intersected a sequence of interbedded loose friable sands and compact gypsum sands, gravels, sands and occasional volcanic units across the LEA XXXIV, LEAI and LEAV properties on the west and east of the salar. These drill holes are in the northern part of the salar, within Catamarca province, north of the Antofalla village. Lithium concentrations in the northern properties were lower than those in the LEA XXVI property in the south of the salar, with lithium concentrations in the northern properties interpreted to be less concentrated than those in the centre and south of the salar, which are interpreted as the nucleus of the salar. Lithium concentrations increased downhole from more dilute concentration around 100 mg/l Li (with a low of 76 mg/L Li), as near-surface values, to a high of 189 mg/L downhole in DDH01-LEA 1, at 251 to 269 m.

The location of drill holes was based on previous time-domain/transient electromagnetics studies. An extensive TEM survey was conducted over all the northern properties by geophysical contractor Quantec. TEM and MT was conducted in the LEA26 property by geophysical contractor GeoResource to allow deeper imaging of the conductive brine unit, confirming it is hundreds of meters thick and providing resolution of geological units at depth.

Samples were submitted with duplicate and standard samples, which show acceptable comparison between primary and duplicate samples and standard samples, compared with the certified standard concentration.

The technical content of this news release has been reviewed and approved by Murray Brooker, PGeo, a consultant to the company and a qualified person as defined by National Instrument 43-101.

Update on credit agreement

Further to the company's news release dated March 7, 2025, the company has not been able to arrange financing to repay the outstanding amounts under its secured credit facility with Arena Investors LP, for which it received a demand notice and notice of intention to enforce security pursuant to Section 244(1) of the Bankruptcy and Insolvency Act. The company therefore has a large working capital deficit, and there can be no assurance that its operations will continue in the current form or at all.

About Lithium Energi Exploration Inc.

Lithium Energi is an exploration company focused on the acquisition, exploration and development of lithium brine assets in Argentina. Lithium Energi's portfolio of prospective lithium brine concessions in the Argentine province of Catamarca (heart of the lithium triangle) includes approximately 57,000 hectares and a 200oer0cent interest in Triangle Lithium Argentina S.A., which owns an additional 15,000 hectares, all located in and around the Antofalla salar, one of the largest basins in the region. Lithium Energi is committed to innovation, sustainability and quality, striving to differentiate itself from other players in the industry to maximize its potential for success. Lithium Energi is headquartered in Vancouver, B.C., with offices in Catamarca, Argentina.

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