Mr. Alex Tsakumis reports

AMERICAN LITHIUM SECURES WATER RESERVATION AGREEMENT FROM TONOPAH PUBLIC UTILITIES AND THE TOWN OF TONOPAH IN NEVADA FOR TLC PROJECT OPERATIONS

American Lithium Corp.'s wholly owned subsidiary, Tonopah Lithium Corp. (TLC), has signed a binding water reservation agreement with the town of Tonopah and Tonopah Public Utilities (TPU). TLC intends to use its existing fully owned water rights for phase 1 of the TLC project in Nye county, Nevada, with this essential additional water supply securing the needs for phase 2.

Key highlights of the agreement

• Reserved water supply: TPU agrees to reserve and allow for TLC's future use of 900 to 1,250 gallons per minute (1,450 to 2,000 acre feet annually) of water, subject to results of hydrology and engineering studies to be undertaken by TLC at its sole expense.
• Hydrology and engineering studies: TLC will conduct detailed studies in the Ralston Valley basin to confirm sustainable pumping rates and to determine the specifications of upgraded pipelines and well fields.
• Infrastructure commitment: If TLC elects to proceed with the water supply from TPU, TLC will be responsible for the construction of water delivery improvements, including upgraded wells, pipelines and storage tanks, with all infrastructure ultimately transferred to TPU following project closure.
• Community benefits financed by financial consideration: For this water reservation agreement TLC will provide an initial $200,000 (U.S.) payment, to be held in a restricted account through the Community Foundation of Northern Nevada. These funds may only be used by the town of Tonopah for:
  • Taking loans against it for infrastructure projects within the town;
  • Funding scholarships for Tonopah High School graduates and/or local residents enrolled in colleges.
• Long-term commitment: The agreement provides an initial three-year term for the reservation of water supply, renewable for up to seven additional one-year terms (for a consideration of $50,000 (U.S.) per year of extension), to allow TLC to complete the required hydrology and engineering studies. Importantly, if the TLC project is built, the agreement ensures that water will be supplied for the full life of the project's operations, subject to results of hydrology and engineering studies.

The TLC project -- scalable U.S. lithium production

The TLC project, located near Tonopah in Nye county, is one of the largest known lithium-bearing claystone deposits in North America. The company envisions a two-phased development approach:

• Phase 1: nominal production of approximately 24,000 tonnes per year of lithium carbonate equivalent (LCE);
• Phase 2: expansion to a nominal 48,000 tonnes per year of LCE, positioning TLC among the largest potential lithium operations in the United States.

TLC benefits from its strategic location close to infrastructure, skilled work force and downstream battery manufacturing capacity emerging across the U.S. Southwest.

Alex Tsakumis, interim chief executive officer of American Lithium, states:

"This agreement represents a significant milestone for American Lithium, ensuring the availability of critical water resources for phase 2 of the TLC project while directly supporting the town of Tonopah and Nye county. Our collaboration with Tonopah Public Utilities reflects our commitment to building strong, mutually beneficial relationships with local communities and we are proud that the $200,000 contribution will provide both infrastructure and educational benefits for the people of Tonopah."

About American Lithium Corp.

American Lithium is developing two of the world's largest, advanced-stage lithium projects, along with the largest undeveloped uranium project in Latin America. They include the TLC claystone lithium project in Nevada, the Falchani hard rock lithium project and the Macusani uranium deposit, both in southern Peru. All three projects have been through robust preliminary economic assessments, exhibit significant expansion potential and enjoy strong community support.

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