Mr. Keshav Kochhar reports

LI-METAL ANNOUNCES STRATEGIC SALE OF LITHIUM METAL BUSINESS FOR US$11,000,000 (~C$15,000,000)

Li-Metal Corp. has completed the sale of certain assets constituting its lithium metal production business to Arcadium Lithium PLC. Pursuant to a definitive asset purchase agreement dated Aug. 2, 2024, Li-Metal sold the assets for aggregate cash consideration paid today by the purchaser of $11-million (U.S.). The assets include all of Li-Metal's lithium metal production technology, including all related patents, proprietary know-how and physical assets utilized in lithium metal production.

Pursuant to the agreement, Arcadium, amongst other things, will assume operations of Li-Metal's pilot metal production facility located in Markham, Ont., to continue the commercialization of lithium metal production technology. To support Li-Metal's next-generation lithium metal anode commercialization, parties have entered into a supply agreement under which Arcadium will provide lithium metal to Li-Metal as part of a long-term offtake agreement.

"The sale of our lithium metal technology to Arcadium, North America's largest established lithium metal producer, represents a pivotal milestone in Li-Metal's journey. This transaction validates the exceptional work of our dedicated team in advancing lithium metal production through our patented carbonate-to-metal process. The capital generated from this sale allows for continued development of our ultrathin, high-energy-density anodes for next-generation batteries. This investment will further solidify our commitment to pioneering innovations in battery technology," Keshav Kochhar, chief executive officer, stated.

In addition and pursuant to the agreement, Li-Metal's chief technology officer and co-founder, Maciej Jastrzebski, has stepped down from his position, and will be working with Arcadium to facilitate the transfer of technology and team. Mr. Jastrzebski will, however, continue in a consulting role with the company to assist in the continued development of its anode business.

About Li-Metal Corp.

Li-Metal is a leader in the development of advanced anode production technology to support next-generation batteries, providing potential for longer-range electric vehicles, electric flight and other advanced applications. At Li-Metal's Rochester facility, the company continues to actively work with automotive and battery manufacturers in the advancement of next-generation batteries. Li-Metal supports battery developers' ability to power more cost-effective electric vehicles that go farther and unlock the future of transportation.

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