Mr. Michael Kobler reports

AMERICAN LITHIUM TO SECURE WATER RIGHTS FOR CONTINUED DEVELOPMENT OF TLC LITHIUM PROJECT, NEVADA

American Lithium Corp. has signed a letter of intent to acquire a 100-per-cent interest in certain privately held lands and the accompanying 1,176 acre-feet of water rights. The acquisition of the water rights will allow American Lithium to continue advancing its flagship TLC project near Tonopah, Nev., by guaranteeing a supply of water for any planned future development.

The water rights come from a 326-acre farm whose water rights are part of the same hydrographic basin as the TLC project (basin 137-a, or Big Smoky Valley/Tonopah Flat). The purchase of the farm is a critical step in securing the required makeup water for the innovative patent-pending lithium recovery process for TLC's unique lithium-bearing claystones. Work to date has identified a pit-constrained resource (at a 400-part-per-million cut-off) of 1,107 million tonnes measured and indicated plus 362 million tonnes inferred containing 5.37 million tonnes lithium carbonate equivalent (LCE) measured and indicated and 1.76 million tonnes LCE inferred (see American Lithium's news release dated May 20, 2020).

In addition, continuing metallurgical processing and testing by McClelland Laboratories Inc. have shown highly encouraging results in simplifying the process for recovering lithium, that the lithium is consistently highly leachable throughout the project and that average extraction grades of 87 per cent lithium can be achieved in minutes of leach contact time without the use of agitation or heat (see American Lithium's news release dated June 17, 2020).

Pursuant to the letter of intent, American Lithium has paid a deposit to an arm's-length vendor of $15,000 to allow for a due diligence period until Aug. 31, 2020. On completion of satisfactory due diligence, the company will complete a definitive purchase wherein transfer of the property interest and the water rights will be finalized through payment of $1.3-million (U.S.) over a four-year period.

Michael Kobler, chief executive officer of American Lithium, stated: "The goal of the lithium recovery process that is and continues to be developed for the TLC project is to be as water efficient as is practically possible. That said, there is makeup water required, and our goal with this purchase is to supply all the makeup water for the project. Our vision of resource and water conservation within the TLC project fits in with this acquisition. Our target is to have minimal impact on the land and water of the area around the project, and our efficient lithium recovery process and water rights are aligned with this goal."

About the TLC property

The TLC sedimentary lithium discovery is an exploration and development project located 12 kilometres northwest of Tonopah, Nev., and easily accessible by paved highway. Work to date has identified a 5.3-million-tonne measured and indicated lithium carbonate equivalent resource, with an additional 1.7 million tonnes inferred, placing the company's resource amongst a handful of potential lithium deposits in western North America capable of development. TLC is near surface, relatively flat lying and a free-digging lithium sedimentary deposit that the company expects to advance through an early-stage economic study in 2020. Just south of the Crescent Dunes solar energy plant, the project is favourably located for future production given the immediate access to some of the cheapest electricity in Nevada.

About American Lithium Corp.

American Lithium is actively engaged in the acquisition, exploration and development of lithium deposits within mining-friendly jurisdictions throughout the Americas. The company is currently exploring and developing the TLC project located in the highly prospective Esmeralda lithium district in Nevada.

The technical information within this news release has been reviewed and approved by Bruce Kienlen, PGeo, a consultant to the company and a qualified person under National Instrument 43-101.

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