Mr. Simon Clarke reports

AMERICAN LITHIUM ANNOUNCES POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR TLC, BASE CASE - AFTER-TAX NPV8% US$3.26 BILLION & AFTER-TAX IRR OF 27.5%

American Lithium Corp. has released the results of its maiden preliminary economic assessment (PEA) for the Tonopah lithium claims (TLC) project located in the Esmerelda lithium district northwest of Tonopah, Nev. This independent PEA was completed jointly by DRA Global and Stantec Consulting Ltd., and demonstrates that the TLC project has the potential to become a substantial, long-life producer of low-cost lithium carbonate (LCE or Li2CO3) with the potential to produce either battery-grade LCE or lithium hydroxide (LiOH). The PEA base case envisions an initial 4.4 million tonnes per annum (Mtpa) processing throughput expanding to 8.8 Mtpa. The PEA alternative case is identical, but with added production of high-purity magnesium sulphate as a byproduct over life of operations. Unless otherwise stated, all dollar figures are in United States currency.

TLC PEA highlights (base case -- ramp-up production Li-only production):

• Pretax net present value (NPV) at an 8-per-cent discount of $3.64-billion at $20,000/tonne (t) LCE;
• After-tax NPV (8-per-cent discount) of $3.26-billion at $20,000/t LCE;
• Pretax internal rate of return (IRR) of 28.8 per cent;
• After-tax IRR of 27.5 per cent;
• PEA mine and processing plan produces 1.46 Mt (million tonnes) LCE LOM (life of mine) over 40 years;
• Pretax initial capital payback period of 3.6 years and after-tax payback of 3.8 years;
• Average LOM annual pretax cash flow of $435-million and annual after-tax cash flow of $396-million;
• Initial capital costs (capex (capital expenditure)) estimated at $819-million;
• Total capex estimated at $1.43-billion and sustaining capital estimated at $792-million;
• Operating cost (opex (operating expenditure)) estimated at $7,443/t LCE, inclusive of power credits.

Simon Clarke, chief executive officer of American Lithium, states: "We are extremely pleased to announce a very robust maiden PEA for TLC. Our team has worked hard and spent considerable time getting an in-depth understanding of TLC mineralization, and the best way to recover high-purity lithium utilizing conventional processing methods with the latest techniques and best-in-class plant and equipment. A significant portion of the processing work has been done to prefeasibility levels as we believe this will help us move quickly through the next phases of development. At 99.4-per-cent LCE purity, TLC offers the capability to produce either battery-grade lithium carbonate or hydroxide with minimal additional refining.

"In this PEA, we showcase a long mine life utilizing only the highest-grade sections of the deposit, with the potential for additional production ramp-up and mine life utilizing our mid-grade and lower-grade sections. Not only are the economics very strong for high-purity lithium production, but TLC also has the potential to produce high-purity magnesium sulphates as byproducts for agriculture and other end uses. As shown in the PEA, even assuming conservative pricing, these byproducts can add significant economic value. At the same time, we have focused our work on ensuring we continue to minimize environmental impacts and water usage in the mining, processing, and production of lithium from TLC."

TLC PEA highlights (alternate case -- ramp-up production Li plus magnesium sulphate production):

• Identical LCE production scenario, but with added LOM average production of 1,681,856 tpa (tonnes per annum) of magnesium sulphate (MgSO4 -- monohydrate and heptahydrate) byproducts;
• Pretax NPV (8-per-cent discount) of $6.06-billion at $20,000/t LCE and $150/t MgSO4;
• After-tax NPV (8-per-cent discount) of $5.16-billion at $20,000/t LCE and $150/t MgSO4;
• Pretax IRR of 38.6 per cent;
• After-tax IRR of 36 per cent;
• Pretax initial capital payback period of 3.5 years and after-tax payback of 3.7 years;
• Average LOM pretax annual cash flow of $684-million and annual after-tax cash flow of $591-million;
• Initial capital costs estimated at $827-million;
• Total capex estimated at $1.43-billion and sustaining capital estimated at $763-million;
• Operating cost estimated at $7,443/t LCE, inclusive of power credits;
• Operating cost estimated at $817/t LCE, inclusive of power and MgSO4 credits;
• PEA mine plan produces 1.46 Mt LCE and 64.9 Mt MgSO4 LOM over 40 years.

Mine life and production

• Simple truck and shovel open-pit mining of the shallow resource underpins the scalable, long-life lithium project producing approximately 24,000 tpa LCE over years one to six, expanding to 48,000 tpa LCE production for years seven to 19, when mining ceases. Rehandling of the over-1,000-part-per-million (ppm) stockpile allows production to continue for years 20 to 40.
• Average LOM production of approximately 38,000 tpa LCE for 40 years.
• Targeted 1,400 ppm Li average feed-grade pit-constrained resource supports mining for 19 years and processing over-1,000 ppm Li stockpile for an additional 21 years.
• 1,400 ppm feed material beneficiation increases the head grade to leaching to 2,000 ppm Li.
• LOM strip ratio (waste:ore) of 0.93:1, with a maximum final pit depth of approximately 325 feet to 350 feet, well above the water table depth.
• Where possible, progressive reclamation of mining areas is planned along with in-pit back-filling of waste rock and filtered tailings.
• Sulphuric acid leaching using industry-standard techniques and flowsheet produces high-purity lithium carbonate to enable the production of battery-grade LCE or LiOH.
  • PEA study estimates that for an additional $100-million (installed) capex and $406/t LCE opex, a final conversion and refining processing step will enable the production of battery-grade LiOH; or
  • End users have the flexibility of acquiring high-purity LCE from TLC and converting it themselves, to whichever product is required.
• Magnesium sulphate (monohydrate) is an increasingly important fertilizer add-on product with a large and growing global market. High-purity hydrated products (heptahydrate and epsom salts) are used in the food, personal care and water-quality industries.

Sensitivities

The project is most sensitive to LCE price and process costs, but relatively far less sensitive to capital costs and mining costs, in descending order of affect (see the table entitled "TLC project metal pricing NPV 8 per cent and IRR sensitivity").

Mining

Based on the analysis completed by Stantec, the TLC project is highly amenable for development by conventional open-pit truck-and-shovel operation. The base case and alternative case have identical LOM production plans and schedules.

Flat 24,000 tonne LCE production scenarios

As part of the PEA modelling and design work, DRA Global and Stantec were also requested to evaluate flat 24,000 t/year LCE production scenarios without any production ramp-up using the identical 1,400 ppm Li feed scenario. The flat scenarios both have 20 years of mining followed by processing of stockpiled material for years 21 to 36.

The two additional scenarios are as follows:

• Case 3: flat 24,000 t/a LCE -- stand-alone Li-only production;
• Case 4: flat 24,000 t/a LCE -- Li and magnesium sulphate co-production.

Qualified persons

Joan Kester, PG, and Derek Loveday, PGeo, of Stantec Consulting, independent qualified persons as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, have prepared or supervised the preparation of, or have reviewed and approved, the scientific and technical data pertaining to the mineral resource estimates contained in this release.

Satjeet Pander, PEng, and Sean Ennis, PEng, of Stantec Consulting, independent qualified persons as defined by NI 43-101, have prepared or supervised the preparation of, or have reviewed and approved, the scientific and technical data pertaining to mining, mine scheduling and tailings management contained in this release.

John Joseph Riordan, BSc, CEng, FAuslMM, MIChemE, RPEQ, of DRA Pacific Pty. Ltd., and Valentine Eugene Coetzee, BEng, Meng, PEng, of DRA Projects SA Pty. Ltd., independent qualified persons as defined by NI 43-101, have prepared or supervised the preparation of, or have reviewed and approved, the scientific and technical metallurgical information and financial modelling results contained in this news release.

Ted O'Connor, PGeo, executive vice-president of American Lithium, and a qualified person as defined by NI 43-101, has also reviewed and approved the scientific and technical information contained in this news release.

In accordance with NI 43-101, the company intends to file the completed technical report on the PEA under the company's profile on SEDAR and on the company's website within 45 days from the date of this news release.

About American Lithium Corp.

American Lithium, a member of the TSX Venture 50, is actively engaged in the development of large-scale lithium projects within mining-friendly jurisdictions throughout the Americas. The company is currently focused on enabling the shift to the new energy paradigm through the continued development of its strategically located TLC lithium claystone project in the richly mineralized Esmeralda lithium district in Nevada, as well as continuing to advance its Falchani lithium and Macusani uranium development-stage projects in southeastern Peru. Both Falchani and Macusani have been through robust preliminary economic assessments, exhibit strong significant expansion potential and enjoy strong community support. Prefeasibility work has now commenced at Falchani.

We seek Safe Harbor.