Mr. Scott Taylor reports

LITHOS ANNOUNCES SUBMISSION OF $30 MILLION FOLLOW-ON GRANT TO THE US DEPARTMENT OF ENERGY

Lithos Group Ltd.'s wholly owned subsidiary Aqueous Resources LLC has submitted its complete application for $30-million (U.S.) to the U.S. Department of Energy under funding opportunity announcement DE-FOA-0003105. Awards are anticipated to be announced in May, 2024.

The company's mission is to become the global standard in economically efficient, sustainable lithium production. Lithos's patent-pending AcQUA technology eliminates the need for evaporation ponds -- an environmentally damaging and water-intensive step in the lithium extraction process. AcQUA technology helps resource owners unlock higher yields more quickly from continental brine lithium resources at a substantially lower cost.

Lithium is now among one of the world's most in-demand metals due to aggressive ambitious electrification efforts to limit carbon dioxide emissions. This global demand is underpinned by the adoption of electric vehicles and the installation of hundreds of gigawatts of intermittent solar power generation capacity requiring partial battery storage solutions.

The company previously disclosed its prequalified status in September, 2023, and has now finalized its application for up to $30-million (U.S.) under area of interest (AOI) 1B phase II from the DOE funding opportunity DE-FOA-0003105 announced on Sept. 6, 2023. This provides up to $30-million (U.S.) of total grant funding per awardee to support pilot-scale facility development and construction of lithium hydroxide processing plants to produce and refine critical minerals and materials in the United States. This directly aligns with the vision and goals previously set out in the company's Sept. 6, 2023, announcement and Jan. 16, 2024, announcement that its Bessemer, Ala., processing complex is fully operational and permitted to produce pilot-scale lithium hydroxide.

"We are excited to extend and expand our relationship with the U.S. Department of Energy and use this additional grant funding to accelerate pilot-scale production of lithium hydroxide from the Bessemer, Ala., complex," said Scott Taylor, chief executive officer. "The requirement for the Bessemer complex was driven by substantial incoming, unsolicited customer demand for bespoke conditioning and pretreatment processing prior to direct lithium extraction (DLE). We now can deliver near real-time ICP fluid sampling results for visiting customers to validate and verify our AcQUA technology on their reservoir brines. The existing permits allow us to seamlessly extend our pretreatment processing flowsheets to DLE and all the way through polishing and purification of battery-grade lithium. We are grateful for the support we received from the Senate, Congress, the University of Alabama and the City of Bessemer."

About Lithos Group Ltd.

The company's mission is to deliver sustainable lithium production without the use of evaporation ponds. AcQUA is Lithos's patent-pending technology that spans the complete value chain from the conditioning and pretreatment of raw brines through the DLE phase into the polishing and purification of battery-grade lithium feedstock. Lithos has two fully operational processing facilities: a 4,000-square-foot lab in Denver, Colo., and a 55,000 square ft complex in Bessemer, Ala. Lithos is working under contract with multiple strategic mineral resource owners and processing brines from the largest Salars in Chile and Argentina, and the Smackover reservoir in the southeastern United States. Its wholly owned subsidiary, Aqueous Resources, is a U.S. Department of Energy grant awardee and a Colorado Advanced Industries grant awardee.

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