Mr. Blake Hylands reports

LITHIUM IONIC ADVANCES ENVIRONMENTAL & SOCIAL PERMITTING PROCESS WITH SUBMISSION OF LAC LICENSE APPLICATION FOR THE CONSTRUCTION AND DEVELOPMENT OF THE BANDEIRA LITHIUM PROJECT, MINAS GERAIS, BRAZIL

Lithium Ionic Corp. has achieved a major milestone with the application of a concomitant environmental and installation licence (LAC, or licenca ambiental concomitante in Portuguese) submitted to the State of Minas Gerais for the construction and development of its Bandeira lithium project.

The preliminary economic assessment (PEA) for Bandeira announced last month defined an underground mining operation which provides a reduced environmental footprint relative to other development options. This development approach qualifies the Bandeira project as a candidate for the accelerated LAC licence that would result in the environmental and social licence, together with an authorization to begin construction.

As part of the application, the company submitted both an RCA (environmental control report) and PCA (environmental control plan) which have been under way since March, 2023, by local environmental consultancy group NEO Agroambiental Ltda., with assistance from Lithium Ionic's technical team.

All of the company's properties and projects, including Bandeira, have been recognized as priority projects within the State of Minas Gerais government, which is expected to accelerate the licensing review process for project construction and operations (see press release dated July 19, 2023).

Blake Hylands, PGeo, chief executive officer of Lithium Ionic, commented: "The submission of the LAC permit application marks a major milestone on our development path towards becoming a near-term producer of high-quality lithium concentrate. We are pleased that Minas Gerais state officials recognize the importance of supporting the development of the battery materials sector in the region and we are confident that having our project on their priority business development list will result in our application being evaluated accordingly, without delay."

The Bandeira project covers 175 hectares, or approximately 1 per cent of its large 14,182-hectare land package in the northern part of Minas Gerais state within a region recently coined Lithium Valley by state officials, which is emerging as a globally significant producer of high-quality lithium concentrate. Two lithium producers currently operate in the region, located between 800 metres and four kilometres from the Bandeira project.

The company is currently undertaking an independent National Instrument 43-101 compliant feasibility study (FS), including an updated mineral resource estimate, expected to be completed in early 2024. The FS follows a preliminary economic assessment (PEA), which showcased a viable and highly economic mining project. The PEA, which had a drill data cut-off of Aug. 30, 2023, with respect to the MRE, supported 20 years of low-cost spodumene concentrate production with a posttax net present value (8 per cent) of $1.6-billion (U.S.) (approximately $2.2-billion) and an internal rate of return of 121 per cent (see details of the PEA in the press release dated Oct. 19, 2023).

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.

Qualified persons

The technical information in this news release has been prepared by Carlos Costa, vice-president, exploration, of Lithium Ionic, and Mr. Hylands, CEO and director of Lithium Ionic, who are both qualified persons as defined in NI 43-101. Mr. Costa and Mr. Hylands have both read and approved the content in this news release.

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