Mr. Hendrik van Alphen reports

WEALTH MINERALS ANNOUNCES POSITIVE PEA FOR THE KUSKA PROJECT, OLLAGUE, CHILE

Wealth Minerals Ltd. has reached an important milestone in its development of the Kuska project (formerly known as the Ollague project) at the Salar de Ollague, Antofagasta region, Chile. The preliminary economic assessment has been produced by DRA Global, from the Toronto, Canada, office, together with resource experts from Montgomery & Associates and other third party consultants with pertinent qualifications.

Hendrik van Alphen, chief executive officer, Wealth Minerals, states: "We are extremely happy with the positive PEA results and this important milestone to develop the Kuska project at our Ollague salar concessions. The PEA is a quality study that has thoroughly incorporated all the technical investigation, field data and best industry practices necessary to make Kuska into a world-class lithium production operation. Given Wealth's long experience with direct lithium extraction technology (DLE), we paid particular attention to this aspect of the PEA, incorporating an extensive selection process for the most suitable DLE equipment and technology providers."

Francisco Lepeley, operative chief executive officer, Wealth Minerals Chile, states: "This is an important milestone in the development of our lithium projects in Chile and brings us one step closer to execution and production. Our Kuska project is being developed consistently with the national lithium strategy defined earlier this year by the Chilean government. We are incorporating into our development plan the use of environmentally friendly DLE technology, the active involvement and collaboration of the Quechua indigenous community, and prospective industry partnerships that may facilitate downstream processing of lithium into value-added products. The positive economic figures that come with this PEA are very good news to our WML shareholders, the Chilean state and all other stakeholders."

Resource estimate

The Kuska project has been based on the maiden resource report published by Wealth Minerals (see press release Jan. 17, 2023). The resource report estimates 741,000 tons lithium carbonate equivalent (LCE) indicated resources grading 175 milligrams per litre (plus 701,000 tons LCE inferred resources grading 185 mg/L).

After the preparation of the resource report, the company acquired an additional 2,500 hectares of mineral concessions adjacent to the concessions covered in the resource report. To date, these new concessions have not been investigated for lithium.

Project

The PEA describes the Kuska project development toward a 20,000-metric-tonne-per-annum LCE output and an anticipated life of mine (LOM) of 20 years. The company intends to use a mature DLE technology (technology readiness level 8 in the PEA) converting lithium-bearing brine into battery-grade lithium carbonate (LC).

Wealth Minerals spent almost 1.5 years to analyze and select market-ready DLE technologies for the PEA. The final selected technology converts lithium-bearing brine into highly pure lithium chloride concentrate and a refinement step to convert the lithium-rich eluate into high purity lithium carbonate (greater than 99.5 per cent LC).

Operations will be scaled up in two phases. The initial phase envisions building out a mining operation and plant with a capacity of 10,000 tpa LCE, which will then be scaled up to double that capacity within two years with a second production module for a total of 20,000 tpa LCE at the Kuska project.

In addition, the preliminary plant concept includes process water recycling and waste treatment facilities for a minimum impact on the production area's environment. It is assumed to incorporate a maximum degree of renewable energy resource options.

Mining method

The mining operation consists of a well field with necessary lithium-rich brine pumping capacity and a reinjection feed system to return Li-depleted brine back into the salar. The combination of wells and depleted brine operations, together with DLE methods, enables a near-zero environmental impact on the salar to preserve salar integrity and water equilibrium to the maximum extent possible.

Wealth intends to decarbonize its lithium production operations as much as possible and has begun investigations into using renewable energy supplies that will power the production plant and associated infrastructure. Both solar and geothermal energy sources are targets of the company's engineering team and consultants.

Economic results

Economic results have been derived from data available at the time of PEA calculation and are based on pre- and posttax assumptions. Royalties and other external financial distributions have not been considered at this time, as the Chilean policy regarding these matters is evolving.

The PEA estimates a pretax/preroyalty net present value 10 (10-per-cent discount rate) of $1.65-billion (U.S.), an internal rate of return of 33 per cent for the project, and an after-tax NPV10 of $1.15-billion (U.S.) and a project IRR of 28 per cent.

Baseline capital expenditures to realize project operations have been estimated at $749-million (U.S.), which include total administrative, direct, indirect and contingency cost positions expected for equipment and construction. An extra $44-million (U.S.) amount to be spent in additional exploration works and permitting has been also incorporated.

Operating expenses during operations are estimated at $5,849 (U.S.)/ton LC and include reagents and consumables, maintenance, labour, energy, general and administrative, and transportation costs.

LC product pricing underlying the PEA has been sourced from Benchmark Mineral Intelligence services' fourth quarter 2023 conservative case real scenario price-line over the production period. Benchmark Mineral Intelligence is a leading industry consultancy and research firm dedicated to the fast-growing global lithium market.

Sensitivity analysis

An initial sensitivity analysis was conducted during the PEA study with parameters such as: LCE pricing, weighted average cost of capital, capital expenditures, operating expenditures and tax rate within realistic potential ranges. The analysis includes how each variable impacts key project financial performance indicators of NPV and IRR.

About DRA Global Ltd.

DRA Global is an international multidisciplinary engineering, project delivery and operations management group, predominantly focused on the mining, minerals and metals industry.

The group has an extensive record spanning almost four decades across a wide range of commodities. The group has delivered more than 8,000 projects, studies and managed services solutions, and currently operates more than a dozen sites through its operations and maintenance division. Its teams have deep expertise in the mining, minerals and metals processing industries, as well as related non-process infrastructure such as water and energy solutions. It delivers comprehensive advisory, engineering and project delivery services throughout the capital project life cycle, from concept through to operational readiness and commissioning as well as continuing operations, maintenance and engineering services. It does this with a focus on sustainability and assisting clients to achieve their environmental, social and governance goals.

DRA covers all major mining centres with offices across Africa and the Middle East, North and South America, and the Asia-Pacific.

About Montgomery & Associates

Montgomery & Associates (M&A) provides a range of hydrogeological services to address evolving client challenges throughout the western United States and South America. M&A specializes in groundwater, which is an essential resource in today's world. It is used to supply water and power to communities, grow food, sustain ecosystems, and support mining and industry, which are vital to the future. Groundwater is also a complex, shared and limited resource, subject to hydrogeologic uncertainty, ever-changing regulatory policies, debated legal doctrines, and socio-economic forces that mandate its sustainable use. Understanding and complying with these conflicting rules of use requires diverse expertise.

About Wealth Minerals Ltd.

Wealth is a mineral resource company with interests in Canada and Chile. The company's focus is the acquisition and development of lithium projects in South America.

The company opportunistically advances battery metal projects where it has a peer advantage in project selection and initial evaluation. Lithium market dynamics and a rapidly increasing metal price are the result of profound structural issues with the industry meeting anticipated future demand. Wealth is positioning itself to be a major beneficiary of this future mismatch of supply and demand. In parallel with lithium market dynamics, Wealth believes other battery metals will benefit from similar industry trends.

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