Mr. Blake Hylands reports

LITHIUM IONIC FILES TECHNICAL REPORT FOR PRELIMINARY ECONOMIC ASSESSMENT AND UPDATED MINERAL RESOURCE ESTIMATE FOR THE BANDEIRA LITHIUM PROJECT, MINAS GERAIS, BRAZIL

Lithium Ionic Corp. has filed the independent technical report related to the preliminary economic assessment (PEA) and mineral resource estimate announced on Oct. 19, 2023, for its 100-per-cent-owned Bandeira lithium project, located in Minas Gerais state, Brazil. All currencies are reported in U.S. dollars unless otherwise specified.

The technical report, titled "Preliminary Economic Assessment for the Bandeira Lithium Project, Minas Gerais State, Brazil," was prepared by GE21 Consultoria Mineral Ltda. in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and has an effective date of Aug. 30, 2023.

The PEA results support a long-life and low-cost spodumene concentrate mining project. Highlights include:

• Posttax net present value (8 per cent) of $1.6-billion (approximately $2.2-billion (Canadian));
• Posttax internal rate of return of 121 per cent;
• Underground mine scenario processing 1.3 million tonnes per annum of ore over a 20-year mine life;
• After-tax payback of 14 months;
• Average life of mine annual production of 217,700 tonnes of high-quality spodumene concentrate at 5.5 per cent Li2O (lithium oxide) (SC5.5) equivalent (187,230 tonnes per annum SC5.5, in addition to 56,860 tpa of spodumene tails concentrate at 3 per cent Li2O, or SC3);
• Total capital expenditure (capex) of $233-million (including a 25-per-cent contingency);
• Pretax annual average free cash flow of $243-million;
• All-in LOM operating costs (opex) of $349/t of spodumene concentrate SC5.5;
• The PEA results were based on an updated mineral resource estimate for Bandeira of 13.72 million tonnes grading 1.40 per cent Li2O, containing 474,892 tonnes of lithium carbonate equivalent (LCE) in the measured and indicated (M&I) category, as well as inferred resources of 15.79 Mt grading 1.34 per cent Li2O, or 523,118 tonnes of LCE.

Note: Base case parameters assume SPO 5.5 per cent Li2O price of $1,859/t and exchange rate of $5/Brazilian real.

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

On Nov. 21, 2023, the company submitted the application for the concomitant environmental and installation licence (LAC, or licenca ambiental concomitante in Portuguese) to the State of Minas Gerais. The LAC approval would result in the environmental and social licence, together with an authorization to begin construction of the Bandeira lithium project.

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 regarding the PEA and MRE has been reviewed and approved by Carlos Jose Evangelista Silva (MAIG membership No. 7868) for the MRE, and Guilherme Gomides Ferreira (MAIG membership No. 7586) for the PEA, both from GE21 and qualified persons as defined in NI 43-101. All other scientific and technical information in this news release has been reviewed and approved by Carlos Costa, vice-president, exploration, of Lithium Ionic, and Blake Hylands, chief executive officer and director of Lithium Ionic, who are both qualified persons as defined in NI 43-101.

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