Mr. Blake Hylands reports

LITHIUM IONIC: 2024 YEAR-IN-REVIEW, SETTING STAGE FOR A PIVOTAL 2025

Lithium Ionic Corp. has presented a summary of its key accomplishments in 2024 -- a transformative year defined by major milestones across exploration, engineering and project development, alongside continued expansion of environmental, social and governance and sustainability initiatives. These achievements have firmly positioned the company for a pivotal 2025, with its flagship Bandeira lithium project in Brazil's Lithium Valley set to transition to the construction phase.

Key 2024 developments

Flagship Bandeira lithium project: progressing toward construction in 2025:

• With a 161-per-cent increase in mineral resource estimates, Bandeira remains the fastest-growing hardrock lithium deposit in the Americas with additional resource increases expected in 2025;
• Delivered a robust National Instrument 43-101 feasibility study outlining a 14-year mine life, strong project economics and bottom-quartile operating costs;
• Drilled 8,200 metres in 2024, with results to be incorporated into an updated NI 43-101 mineral resource estimate expected in early 2025;
• Secured a non-binding letter of interest for up to $266-million (U.S.) from the Export-Import Bank of the United States, establishing a clear pathway for full project financing;
• Strengthened project financing with a non-dilutive $20-million (U.S.) royalty financing, supporting the balance sheet and early development activities into 2025;
• Strengthened leadership in preparation for project development with key technical and governance appointments.

Baixa Grande project (formerly referred to as Salinas): a second growth engine:

• Announced a maiden mineral resource estimate of 14.76 million tonnes in April, 2024, with significant exploration upside;
• Completed 6,600 metres of drilling in 2024, which is currently being modelled into an updated MRE expected in early 2025;
• Remains a key development asset, with mineral deposit open at depth and extents, representing a significant opportunity for further growth supporting regional production capacity.

Continuing strategic land acquisitions strengthened its position in the Lithium Valley:

• Acquired the remaining 15 per cent of Salinas properties, achieving full 100-per-cent ownership;
• Expanded the company's landholdings by approximately 3,000 hectares through an option agreement for additional claims in the Itinga group of properties, increasing its total land position to approximately 17,000 hectares (see July 3, 2024, press release);
• Demonstrated success by the Lithium Ionic team in acquiring exploration tenements and generating tangible resources and exploration targets for further development.

Sustainability and ESG:

• Reinforced its commitment to responsible development by joining the United Nations Global Compact and becoming a member of the International Lithium Association;
• Strengthened alignment with best standard practices by actively participating in IRMA self-assessing mining group meetings and progressing toward adoption of international standards (International Finance Corp., international financial reporting standards S1/S2 and Task Force on Climate-Related Financial Disclosures);
• Introduced key policies, including ESG, diversity and inclusion, and human rights, embedding global best practices to enhance corporate commitments;
• Advanced community and environmental initiatives, including the revitalization of public spaces and reclamation initiatives that involved planting over 2,000 native seedlings.

Blake Hylands, PGeo, chief executive officer of Lithium Ionic, commented: "Two thousand twenty-four has been a defining year for Lithium Ionic, highlighted by substantial mineral resource growth and engineering milestones. At our flagship Bandeira project, we've made remarkable progress, moving closer to a construction decision while establishing a clear funding pathway. Meanwhile, the Salinas claims which were acquired in 2023 have exceeded expectations with the maiden mineral resource estimate at Baixa Grande, further strengthening our portfolio and long-term growth strategy. This significant mineral resource growth is a testament to the strong geological understanding of this region by our exploration team, and as a result, we have set ourselves apart as one of the fastest-growing hardrock lithium deposits in the Americas. As a company that only formed in 2022, I'm incredibly proud of the speed and efficiency with which our team has laid the foundation for success, advancing all critical pillars towards the development phase. Looking ahead, 2025 is set to be another pivotal year as we prepare to build a mine and realize our vision of becoming a leading lithium producer in Brazil's Lithium Valley -- a region that has only begun to show its strategic importance on a global stage."

Bandeira: key milestones toward construction stage

The Bandeira lithium project continued to establish itself as one of the most promising lithium assets in Brazil's Lithium Valley. From 2023 to 2024, the mineral resources at Bandeira grew significantly, increasing by 161.4 per cent to 41.9 million tonnes grading 1.35 per cent Li2O. Beyond this growth, drilling conducted since the March, 2024, MRE cut-off has further demonstrated the project's potential with excellent intercepts such as:

• 64.7 metres grading 1.39 per cent lithium oxide (ITDD-24-276, Oct. 8, 2024);
• 40 m grading 1.46 per cent Li2O (ITDD-24-259, April 29, 2024);
• 24.1 m grading 1.86 per cent Li2O (ITDD-24-256, April 29, 2024);
• 20.4 m grading 2.13 per cent Li2O (ITDD-24-260, April 29, 2024).

In May, 2024, the company released a feasibility study outlining a 14-year mine life producing an average of 178,000 tonnes of high-quality 5.5 per cent Li2O spodumene concentrate annually (see press release from May 29, 2024). The study highlighted exceptional economics, including low capital expenditures of $266-million (U.S.), a posttax net present value of $1.3-billion (U.S.) and an internal rate of return of 40 per cent. Additionally, Bandeira's on-site operating costs of $444 (U.S.) per tonne position the project as highly resilient to volatile lithium market conditions.

Project engineering activities ramped up following the feasibility study, with the initiation of basic and detailed engineering and selection of key engineering, procurement and construction management service providers, well positioning the company for a transition to the construction and development phase (see press release dated Oct. 22, 2024). Additionally, the company also welcomed key technical talent to its leadership team and board, strengthening its ability to deliver on its strategic objectives (see press releases dated Feb. 1, 2024, and Sept. 3, 2024).

In May, 2024, a critical milestone was achieved with the granting of a water rights permit by the Minas Gerais Institute of Water Management (see press release from May 2, 2024). This permit guarantees sufficient water supply to meet the operational demands of the future Bandeira operation, addressing one of the most essential needs for mining projects.

Following the feasibility study, the company prioritized project financing efforts, and, by the end of November, 2024, it had secured a non-binding letter of interest for $266-million (U.S.) in debt financing for the development of Bandeira. This significant milestone further validates the project's viability and sets the stage for full project financing.

The company is on the verge of achieving another pivotal milestone with the expected imminent approval of the Licenca Ambiental Concomitante licence, which will authorize construction to begin. The LAC application was submitted in late 2023 and is in the final stages of approvals, with all information requests satisfied by the company.

Baixa Grande: a second growth engine

The Baixa Grande deposit, part of the Salinas group of properties, has been a key growth driver for Lithium Ionic since its acquisition in early 2023. On April 4, 2024, the company announced a maiden MRE outlining 5.86 Mt of measured and indicated resources grading 1.09 per cent Li2O and 8.90 Mt of inferred resources grading 0.97 per cent Li2O. This is based on drilling data up until November, 2023. Subsequent drilling conducted into 2024 returned excellent results highlighting the strong growth potential of the deposit, including:

• 15 m grading 1.53 per cent Li2O (BGDD-24-133, April 23, 2024);
• 19 m grading 1.15 per cent Li2O (BGDD-24-131, April 23, 2024);
• 14 m grading 1.32 per cent Li2O (BGDD-24-140, April 23, 2024);
• 10.2 m grading 1.44 per cent Li2O (BGDD-24-135, April 23, 2024).

A total of 6,600 metres were drilled at Baixa Grande in 2024, with the data now being incorporated into an updated MRE expected in early 2025.

The strategic importance of the Salinas properties was further underscored by Pilbara Minerals' acquisition of the Colina deposit in August, 2024, located adjacently to the west of Baixa Grande. This marked Pilbara's first venture into the Americas and reinforced the quality and global competitiveness of the lithium deposits in Brazil's Lithium Valley.

While the company remains focused on advancing Bandeira to near-term production, Baixa Grande is poised to play a significant role in Lithium Ionic's long-term growth and production strategy, contributing to the overall strength and diversification of its portfolio.

Gearing up for construction start in 2025

Lithium Ionic is entering 2025 with clear objectives, foremost among them maintaining strong momentum at Bandeira to quickly establish this project as the region's next significant lithium producer. Key milestones at Bandeira this year include the anticipated granting of a construction permit in the near term and advancing detailed engineering to support a production decision. The company is committed to progressing through the due diligence process with EXIM, aiming to finalize a definitive project financing package that will support commencement of construction in the second half of the year.

Simultaneously, exploration and drilling activities will continue at Bandeira, Baixa Grande and other high-priority regional targets to further expand mineralization and improve mineral resource classification, to continue reinforcing the long-term growth potential of the company's portfolio.

Lithium Ionic extends its gratitude to shareholders for their continuing support and looks forward to delivering a transformative year, driving value creation for all stakeholders in 2025.

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 approximately 17,000 hectares in the northeastern part of Minas Gerais state, a mining-friendly jurisdiction that is quickly emerging as a world-class hardrock lithium district. Its feasibility-stage Bandeira project is situated in the same region as CBL's Cachoeira lithium mine, which has produced lithium for 30-plus years, as well as Sigma Lithium Corp.'s Grota do Cirilo project, which hosts the largest hardrock 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 Blake Hylands, chief executive officer 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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