Mr. Blake Hylands reports

LITHIUM IONIC DRILLS 2.45% LI2O OVER 9.1M AND 1.61% LI2O OVER 11.9M AT BANDEIRA, MINAS GERAIS, BRAZIL

Lithium Ionic Corp. has released additional results from the continuing drilling program at the Bandeira project, located in northern Minas Gerais state, Brazil. The company is rapidly advancing Bandeira, situated within the emerging Lithium Valley, where two lithium producers currently operate.

These results form part of a large 50,000-metre drill program under way for H2 2023, which is focused on expanding and upgrading existing mineral resource estimates to support a feasibility study planned for completion in early 2024, as well as grow the known mineralization at other prospective regional targets.

Bandeira drill intercept highlights (see the table entitled "Bandeira drill results"):

• 2.45 per cent Li2O (lithium oxide) over 9.1 metres, 1.61 per cent Li2O over 11.9 m, 1.30 per cent Li2O over nine m and 1.39 per cent Li2O over 7.8 m (hole ITDD-23-188);
• 1.92 per cent Li2O over 6.9 m and 1.42 per cent Li2O over 8.2 m (hole ITDD-23-175);
• 1.42 per cent Li2O over 8.9 m (hole ITDD-23-196);
• 1.12 per cent Li2O over 10.6 m, including 1.34 per cent Li2O over 7.9 m (hole ITDD-23-184);
• 1.59 per cent Li2O over 5.6 m (hole ITDD-23-199).

Blake Hylands, PGeo, chief executive officer of Lithium Ionic, commented: "These latest drill results continue to bolster our efforts to expand and enhance the Bandeira project for our upcoming feasibility study. The growth trajectory of this deposit since we began drilling it in April, 2022, is a testament to its significance within our large portfolio of properties in this belt and will continue to be a key driver of our success. Bandeira represents just a fraction of our landholdings, and our team strongly believes that our success at this property could be replicated at our other properties in the region with the same effort."

The company began drilling Bandeira in April, 2022, reporting an initial mineral resource estimate (MRE) in June, 2023. In October, 2023, an updated MRE at Bandeira showcased a near doubling of the MRE, which formed the basis of a preliminary economic assessment (PEA). This study supported a long-life and low-cost spodumene concentrate mining project with a posttax net present value (NPV) (8-per-cent discount) of $1.6-billion (U.S.) (approximately $2.2-billion) and an internal rate of return (IRR) of 121 per cent (see press release dated Oct. 19, 2023).

The company is currently undertaking an independent National Instrument 43-101-compliant feasibility study (FS), including an updated MRE, expected to be completed in early 2024.

The Bandeira project is located in the same district where Companhia Brasileira de Litio (CBL)'s Cachoeira mine has been producing lithium for over 30 years, and recent producer Sigma Lithium operates the Grota do Cirillo project, which hosts the largest hard rock lithium deposit in the Americas.

The company is rapidly advancing Bandeira toward a production decision, while it continues to explore and define regional targets. Permitting activities are progressing well, in parallel with the advancement of project engineering. NEO Agroambiental Ltda. is completing the RCA (environmental control report) and PCA (environmental control plan) to support the application of a concomitant environmental and installation licence (LAC, or licenca ambiental concomitante) for the Bandeira operation, which is expected to be submitted by the end of the year. The LAC is an accelerated permitting scenario available to projects such as Bandeira, whose mine infrastructure covers a small footprint where deforestation is not required. The LAC replaces the first two steps of the environmental licensing process: the preliminary licence (LP -- licenca previa) and the installation licence (LI -- licenca de instalacao), which precede the final operating licence (LO -- licenca de operacao).

Stock option grant

Lithium Ionic's board of directors has approved the grant of 1.46 million incentive stock options to various directors, officers and consultants of the company, pursuant to its stock option plan. The options may be exercised at a price of $1.44 per option for a period of five years from the date of grant. The grant of options remains subject to the approval of the TSX Venture Exchange.

About Lithium Ionic Corp.

Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in Brazil. Its Itinga and Salinas group of properties cover 14,182 hectares in the northeastern part of Minas Gerais state, a mining-friendly jurisdiction that is quickly emerging as a world-class hard rock lithium district. Its feasibility-stage Bandeira project is situated in the same region as CBL's Cachoeira lithium mine, which has produced lithium for over 30 years, as well as Sigma Lithium Corp.'s Grota do Cirilo project, which hosts the largest hard rock lithium deposit in the Americas.

Quality assurance and control

During the drill program, assay samples were taken from NQ core and sawed in half. One-half was sent for assaying at SGS Laboratory, a certified independent commercial laboratory, and the other half was retained for results, cross-checks and future reference. A strict quality assurance/quality control (QA/QC) program was applied to all samples. Every sample was processed with drying, crushing from 75 per cent to three millimetres (mm), homogenization, quartering in Jones, spraying 250 grams to 300 g of sample in steel mill, 95 per cent to 150. SGS laboratory carried out multielement analysis for ICP90A analysis.

Qualified persons

The technical information in this news release has been prepared by Carlos Costa, vice-president of exploration for Lithium Ionic, and Blake Hylands, CEO and director of Lithium Ionic, and both are qualified persons as defined in National Instrument 43-101.

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