Mr. Alex Klenman reports

ARMORY MINING RETAINS CANDELA II LITHIUM PROJECT AT INCAHUASI LITHIUM SALAR, ARGENTINA

American Salars has relinquished its option to develop the Candela II lithium brine project, so Armory Mining Corp. now has control of the Candela II property, which covers 3,000 hectares and has an inferred resource of 457,000 tonnes of lithium carbonate in situ at the Incahuasi salar (salt lake). This resource estimate was completed by WSP Australia. The current lithium carbonate price is $10,070 per tonne for 99.5-per-cent battery grade.

A 200-litre sample of brine was collected in September, 2022, with a lithium content of 140 parts per million for Ekosolve Inc., a DLE (direct lithium extraction) solvent extraction specialist company in Australia and the United States. Ekosolve was able to extract 93.1 per cent of the lithium from the brines that averaged 140 parts per million in well 4 although an assay of 169 parts per million was recorded from another sample. Five RC (reverse circulation) wells have been drilled and TEM (transient electromagnetic) geophysics and geochemistry surveys have been completed.

Ganfeng Lithium, China's largest producer of battery metals, has the adjacent concession and Rio Tinto and Power Minerals are close by. Ganfeng has a production well approximately 9.8 kilometres from the Candela II concession.

Fast-track Ekosolve lithium processing facility

Armory advises it has signed a licence agreement to utilize the Ekosolve lithium solvent exchange extraction process, which can efficiently manage the processing of the brines to produce lithium carbonate with a grade higher than 99.2 per cent and a recovery of 93 per cent far exceeding any ion exchange or adsorption process available to date. Ekosolve is licensed by Ekosolve Inc. USA.

The key advantage of the Ekosolve system is the high rate of lithium extraction yield at 93 per cent and 99.7 per cent of the solvent is reclaimed (which is biodegradable), making it very environmentally friendly. Hence the capital and operation expenditure is usually much lower. There are no ponds required, which is a more ecofriendly solution. At the current lithium price, Ekosolve advises a 10,000-tonne plant would return about 250-per-cent operating margin at current prices.

Technical information in this news release has been reviewed and approved by Phillip Thomas, BSc (geology), MBM, FAusIMM (CPVal), MAIG, who is a qualified person under the definitions established by the National Instrument 43-101.

Referenced nearby occurrences provide geologic context for the Candela II project but are not necessarily indicative that they host similar potential, size or grades of mineralization.

Technical report

Scientific and technical information relating to the Incahuasi salar property is supported by the technical report titled "NI 43-101 Technical Report Candela II, Salta Province, Argentina," dated Sept. 18, 2023, and prepared by Aaron Radonich, Jason Van den Akker and Ian Unsworth of WSP for Armory (formerly Spey Resources Corp.). Reference should be made to the full text of the technical report, which was prepared in accordance with National Instrument 43-101 and is available electronically on SEDAR+ under the company's issuer profile, for a description of the company's data verification and quality assurance/quality control procedures.

About Armory Mining Corp

Armory Mining is a Canadian exploration company focused on minerals critical to the energy, security and defence sectors. The company controls an 80-per-cent interest in the Candela II lithium brine project, located in the Incahuasi salar in Salta province, Argentina; a 100-per-cent interest in the Kaslo silver project, located west of Kaslo, B.C.; and a 100-per-cent interest in the Riley Creek antimony-gold project, located in Haida Gwaii, British Columbia. It also holds an option to acquire a 100-per-cent interest in the Ammo antimony-gold project, located in Nova Scotia.

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