Mr. Michael Dake reports

AMERICAN SALARS SIGNS OPTION TO ACQUIRE A 100% INTEREST IN THE CANDELA II LITHIUM BRINE PROJECT WITH NI 43-101 INFERRED RESOURCE OF 457,000 TONNES OF LITHIUM CARBONATE EQUIVALENT

American Salars Lithium Inc. has signed an option agreement with Spey Resources Corp. and A.I.S. Resources Ltd. to acquire a 100-per-cent interest in the Candela II lithium brine project located in the Incahuasi salar, Salta province, Argentina.

The Candela II lithium brine project contains a National Instrument 43-101 mineral resource estimate completed by WSP Australia Pty. Ltd. (see the Spey Resources news release dated Sept. 26, 2023). This National Instrument 43-101 resource report estimates the project to contain lithium metal of 86,000 tonnes, which equate to 457,500 tonnes of in situ lithium carbonate equivalent and a lithium yield of 48,000 tonnes of LCE from 9,000 tonnes of lithium metal. The calculations assume no losses from lithium metal.

According to SunSirs Commodity Data Group, lithium carbonate (Li2CO3) spot prices increased to 118,700 yuan or $22,792 on Friday, March 1, 2024.

Ekosolve Ltd., a leading direct lithium extraction lithium processor, has conducted extraction efficiency tests on 200 litres of brine from the Candela II project at its University of Melbourne pilot plant and achieved a 93.2-per-cent lithium extraction rate. Prof. Kathryn Mumford commented that this extraction efficiency can be further improved. Dr. Carlos Sorentino, chief technical officer of Ekosolve, commented that the 173 parts per million lithium assayed from hole 5 on Candela II was ideal for the process, and the solvents used are regenerated by collecting more than 99 per cent on each pass with these brines.

American Salars' director Rodney Campbell stated: "The Candela II lithium brine project is a 3,000-hectare (30 square kilometres) established resource ideally situated for a DLE project that adds tremendous value to our existing portfolio of lithium and battery metals projects. The Candela II concession is contiguous to and close in proximity to multiple major lithium companies including: Ganfeng, Allkem (now Arcadian PLC), Power Minerals and Patagonia Lithium on the Incahuasi salar. We anticipate upcoming drilling and pumping tests on the Candela II project to expand and further define [an] NI 43-101-compliant indicated and measured mineral resource estimate."

Mineral resource estimate

The MRE for the Candela II lithium project is reported in accordance with NI 43-101, and has been estimated in conformity with generally accepted Canadian Institute of Mining, Metallurgy and Petroleum estimation of mineral resource and mineral reserve best practice guidelines. The effective date of the MRE is Sept. 18, 2023. Average specific yield values, per domain, were applied to the total metal tonnages to obtain the yield from the available brine. The LCE is calculated from the ratio of lithium carbonate (Li2CO3) to lithium (5.32 to 1). The calculations assume no process losses.

The Ekosolve extraction pilot tests were completed and reported on March 14, 2022.

The mineral resources presented herein are not mineral reserves and do not reflect demonstrated economic viability. The reported inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that all or any part of the mineral resource will be converted into a mineral reserve. All figures are rounded to reflect the relative accuracy of the estimates, and totals may not add correctly.

The transaction

American Salars may exercise the option and earn a 100-per-cent ownership interest in Spey Resources Argentina SA, consisting of the acquisition of Spey Argentina shares representing that amount, by paying to the optionors cash payments totalling $2,447,500 and issuing 6.6 million shares at a deemed price of 30 cents per share, based on the attached table.

15-per-cent royalty

The optionee, at any time as long as that the initial 100-per-cent earn-in conditions have been satisfied, has the right, but not the obligation, to exercise an option to acquire the 15-per-cent net smelter royalty from Spey and A.I.S. by paying a total cash payment of $8.25-million.

This supersedes and cancels all previously held royalties on the Candela II lithium project.

The transaction is subject to a finder's fee in accordance with Canadian Securities Exchange policies. The agreement was negotiated at arm's length. The transaction does not represent a change of business. There will be no change of directors or officers of the company required by the transaction. A copy of the agreement is filed along with the company's public disclosure on SEDAR+.

American Salars will be meeting with shareholders, investors and industry peers, as well as the media, during the 2024 PDAC in Toronto, Canada. American Salars invites all those attending the PDAC to visit the company's booth No. 3241 in the investors exchange to learn more about the company's lithium portfolio.

Qualified person

Phillip Thomas, BSc geol, MBusM, FAusIMM, MAIG, MAIMVA, CMV, a qualified person as defined under NI 43-101 regulations, has reviewed the technical information that forms the basis for portions of this news release and has approved the disclosure herein.

About American Salars Lithium Inc.

American Salars is an exploration company focused on exploring and developing high-value battery metal projects to meet the demands of the advancing electric vehicle market.

We seek Safe Harbor.