AMLI American Lithium Corporation

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of June 2024

Commission File Number:  001-41579

American Lithium Corp.
(Translation of registrant's name into English)

1030 West Georgia St., Suite 710
Vancouver, BC
Canada V6E 2Y3
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☐ Form 40-F ☒

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	American Lithium Corp. (Registrant)
Date:  June 12, 2024	/s/ Simon Clarke
	Simon Clarke Chief Executive Officer & Director

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EXHIBIT INDEX

Exhibit Number	Description
99.1	Falchani Project NI 43-101 Technical Report Preliminary Economic Assessment Update, dated February 22, 2024 with an effective date of January 10, 2024

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FALCHANI LITHIUM PROJECT
  

NI 43-101 TECHNICAL REPORT

PRELIMINARY ECONOMIC ASSESSMENT - UPDATE

 

Prepared for:

AMERICAN LITHIUM CORP.

 

Effective Date: 10 JANUARY 2024

Report Date: 22 FEBRUARY 2024

Prepared By:

DRA PACIFIC

 

L7 256 Adelaide Terrace

Perth, Western Australia, 6000

SIGNED BY QUALIFIED PERSONS

John Joseph Riordan BSc, CEng, FAusIMM, MIChemE, RPEQ

Aveshan Naidoo MBA, BSc, PrEng, MSAIMM

Derek J. Loveday, P.Geo

Mariea Kartick, P.Geo

David Alan Thompson B-Tech, Pr Cert Eng, SACMA

Falchani Lithium Project

Puno District of Peru

Project No: GPEPPR7027

GPEPPR7027-000-REP-PM-001

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Important Notice

DRA Note

This report was prepared as a National Instrument 43-101 Technical Report for American Lithium by DRA Pacific (DRA). The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in DRA's services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by American Lithium subject to the terms and conditions of its contract with DRA and relevant securities legislation. The contract permits American Lithium to file this report as a Technical Report with Canadian securities regulatory authorities pursuant to National Instrument 43-101, Standards of Disclosure for Mineral Projects. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party's sole risk. The responsibility for this disclosure remains with American Lithium. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued.

Stantec Note

This notice is an integral component of the American Lithium Corporation Falchani Project Technical Report ("Technical Report" or "Report") and should be read in its entirety and must accompany every copy made of the Technical Report. The Technical Report has been prepared in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects. 

The Technical Report has been prepared for American Lithium Corporation by Stantec Consulting Ltd (Stantec). The Technical Report is based on information and data supplied to Stantec by American Lithium Corporation. The quality of information, conclusions, and estimates contained herein are consistent with the level of effort involved in the services of Stantec, based on: i) information available at the time of preparation of the Report, and ii) the assumptions, conditions, and qualifications set forth in this Report.

GPEPPR7027-000-REP-PM-001

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Each portion of the Technical Report is intended for use by American Lithium Corporation subject to the terms and conditions of its contract (210223585) with the Stantec. Except for the purposes legislated under Canadian provincial and territorial securities law, any other uses of the Technical Report, by any third party, is at that party's sole risk.

The results of the Technical Report represent forward-looking information. The forward-looking information includes pricing assumptions, sales forecasts, projected capital, and operating costs, mine life and production rates, and other assumptions.  Readers are cautioned that actual results may vary from those presented. The factors and assumptions used to develop the forward-looking information, and the risks that could cause the actual results to differ materially are presented in the body of this Report.

Stantec has used their experience and industry expertise to produce the estimates in the Technical Report. Where Stantec has made these estimates, they are subject to qualifications and assumptions, and it should also be noted that all estimates contained in the Technical Report may be prone to fluctuations with time and changing industry circumstances.

GPEPPR7027-000-REP-PM-001

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CERTIFICATE OF QUALIFIED PERSON

I, John Joseph Riordan, BSc, CEng, FAuslMM, MIChemE, RPEQ do hereby certify that:

1. I am Process Engineering Manager for DRA Pacific Limited of 256 Adelaide Terrace, Perth, Western Australia.

2. This certificate applies to the technical report titled "Falchani  Project NI43-101 Technical Report Preliminary Economic Assessment Update," (the ''Technical Report"), prepared for American Lithium Corporation.

3. The Effective Date of the Technical Report is 10 January 2024.

4. I am a graduate of Cork Institute of Technology with a Bachelor of Science degree in Chemical Engineering (1986). I have worked as a metallurgist and process engineer continuously for a total of 36 years since my graduation and have been involved in the design, construction, commissioning, operation and optimisation of mineral processing and hydrometallurgical plants.

5. I am a Fellow of the Australasian Institute of Mining and Metallurgy (No. 229194), a Chartered Engineer (No. 461184), a Chartered Chemical Engineer (No. 256480), and a Registered Professional Engineer of Queensland (RPEQ No. 22426).

6. I have read the definition of "Qualified Person" set out in National lnstrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the requirements to be, a "Qualified Person" for the purposes of NI 43-101.

7. I am the coordinating author of the Technical Report and have carried out or supervised the work done by other DRA professionals for DRA's contribution to the Technical Report. I take responsibility for sections 1.1, 1.5, 1.6, 1.9, 1.10, 1.13, 1.14, 2, 3, 13, 17, 19, 21, 25 and 26, unless subsections are specifically identified by another Qualified Person.

8. I have not visited the property.

9. I am independent of American Lithium Corporation applying all the tests in section 1.5 of NI 43-101.

10. I have not had prior involvement with the property that is the subject of the Technical Report.

11. I have read NI 43-101 and Form 43-101F1; the sections of the Technical Report I am responsible for have been prepared in compliance with that instrument and form.

12. As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 23rd day of February 2024.

Signed

/John Joseph Riordan/

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John Joseph Riordan, FAuslMM (No. 229194)

DRA Pacific Pty Ltd

GPEPPR7027-000-REP-PM-001

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CERTIFICATE OF QUALIFIED PERSON

I Aveshan Naidoo, do hereby certify that:

1. I am Specialist Engineer: Hydromet and Economics for DRA South Africa Projects (Pty) Ltd of Building 33, Woodlands Office Park, 20 Woodlands Drive, Woodlands, Sandton, 2080.

2. This certificate applies to the technical report titled " Falchani Project NI 43-101 Technical Report - Preliminary Economic Assessment Update ", the ''Technical Report", prepared for American Lithium Corporation.

3. The Effective Date of the Technical Report is 10 January 2024.

4. I am a registered Professional Engineer with the Engineering Council of South Africa (Registration No. 20130523) and graduated from the University of KwaZulu-Natal, South Africa with a Bachelor of Science in Chemical Engineering and a Master of Business Administration at the University of Witwatersrand. I have practiced my profession continuously since 2008.

5. I have read the definition of "Qualified Person" set out in National lnstrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the requirements to be, a "Qualified Person" for the purposes of NI 43-101.

6. Responsibilities:  Section 22.

7. I am independent of American Lithium Corporation applying all the tests in section 1.5 of NI 43-101.

8. I have not visited the property.

9. I have not had prior involvement with the property that is the subject of the Technical Report.

10. I have read National Instrument 43-101 and Form 43-101F1 and the Technical Report has been prepared in compliance with same.

11. As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 23rd day of February 2024.

Signed

Aveshan Naidoo (PrEng 20130523)

DRA South Africa Projects (PTY) Ltd

GPEPPR7027-000-REP-PM-001

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CERTIFICATE OF QUALIFIED PERSON

I, David Alan Thompson, B-Tech, Pr Cert Eng, SACMA do hereby certify that:

1. I am Principal Mining Engineer for DRA Projects Pty Ltd of of Building 33 Woodlands Office Park, 20 Woodlands Drive Woodlands, Sandton, 2080, South Africa.

2. This certificate applies to the technical report titled "Falchani Lithium Project NI 43-101 Technical Report - Preliminary Economic Assessment Update," (the ''Technical Report"), prepared for American Lithium Corporation Limited.

3. The Effective Date of the Technical Report is 10January 2024.

4. I am a graduate of University of Johannesburg with a Bacclaureus Technologie Degree in Mining Engineering. I have worked as a mining engineer for a total of 34 years and 11 years since my B-Tech graduation.

5. I am a member of the Engineering Council of South Africa (No. 201190010), and a current member of the South African Colliery Managers Association (5066).

6. I have read the definition of "Qualified Person" set out in National instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the requirements to be, a "Qualified Person" for the purposes of NI 43-101.

7. I am co-author of the Technical Report, and co-author responsible specifically for sections 1.4, 1.9, 1.10,15,16, and 21 unless subsections are specifically identified by another Qualified Person.

8. I have not visited the property but have reviewed all technical documentation available for the project to date.

9. I am independent of American Lithium Corporation applying all the tests in section 1.5 of NI 43-101.

10. I have not had prior involvement with the property that is the subject of the Technical Report.

11. I have read NI 43-101 and Form 43-101F1; the sections of the Technical Report I am responsible for have been prepared in compliance with that instrument and form.

12. As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 23th day of February 2024.

Signed

/David Alan Thompson/

David Alan Thompson (ECSA 201190010)

GPEPPR7027-000-REP-PM-001

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CERTIFICATE OF QUALIFIED PERSON

I, Derek J. Loveday, P.Geo., do hereby certify that:

1. I am currently employed as a Project Manager by Stantec Services Inc., 2890 East Cottonwood Parkway Suite 300, Salt Lake City UT 84121-7283.

2. I graduated with a Bachelor of Science Honors Degree in Geology from Rhodes University, Grahamstown, South Africa in 1992.

3. I am a licensed Professional Geoscientist in the Province of Alberta, Canada, #159394. I am registered with the South African Council for Natural Scientific Professions (SACNASP) as a Geological Scientist #400022/03.

4. I have worked as a geologist for a total of thirty years since my graduation from university, both for mining and exploration companies and as a consultant specializing in resource evaluation for precious metals and industrial minerals. I have many years' experience exploring and modelling volcanic hosted metal deposits of high concentrations in the United States, Canada and Australia, as well as stratiform lithium clay deposits and lithium pegmatite deposits in the United States.

5. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101), and past relevant work experience, I meet the requirements to be a "Qualified Person" for the purposes of NI 43-101.

6. I am responsible for the preparation of portions of Sections 1,2, 25, 26 and 27; and the entirety of Sections 4 through 12, 14,15 and Section 23 of this Technical Report titled "Falchani Project NI 43-101 Technical Report- Preliminary Economic Assessment Update"

7. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form.

8. I personally inspected the property in May 2023.

9. At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

10. I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Report, the omission to disclose which makes the Report misleading.

11. I am independent of the issuer applying all of the tests in Part 1.5 of NI 43-101CP.

Dated December 14, 2023

		"Original Signed and Sealed by Author"
		Derek J. Loveday, P.Geo.
		Project Manager

GPEPPR7027-000-REP-PM-001

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CERTIFICATE OF QUALIFIED PERSON

. I, Mariea K. Kartick, P.Geo., do hereby certify that:

1. I am currently employed as a Resource Geologist by Stantec Services Inc., 410 17^th Street Suite 1400 Denver, CO 80402.

2. I graduated with a Master of Science Degree in Geology in 2015 and a Bachelor of Science Degree with Honors in 2014 from the University of Toronto in Toronto, Canada.

3. I am a licensed Professional Geoscientist in the Province of Ontario, Canada. I am a member in-good-standing of the Association of Professional Geoscientist of Ontario (Member 3226) since February 24, 2020.

4. I have worked as a geologist for a total of ten years since my graduation from university, both for mining and exploration companies and as a consultant specializing in resource evaluation for precious metals and critical minerals. I have many years' experience exploring and modelling volcanic hosted metal deposits of high concentrations in the United States, Canada and Mexico, as well as stratiform lithium clay deposits and lithium pegmatite deposits in the United States.

5. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101), and past relevant work experience, I meet the requirements to be a "Qualified Person" for the purposes of NI 43-101.

6. I am responsible for portions of Sections 1,2, 25, 26 and 27; and the entirety of Sections 4 through 12, 14,15 and Section 23 of this Technical Report titled "Falchani Project NI 43-101 Technical Report- Preliminary Economic Assessment Update"

7. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form.

8. I personally inspected the property in May 2023.

9. I have not had any prior involvement with the property that is the subject of this Technical Report.

10. At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

11. I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Report, the omission to disclose which makes the Report misleading.

12. I am independent of the issuer applying all of the tests in Part 1.5 of NI 43-101CP.

Dated December 14, 2023	"Original Signed and Sealed by Author"
	_________________________________
	Mariea K. Kartick P.Geo.
	Resource Geologist

GPEPPR7027-000-REP-PM-001

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Table of Contents

1 SUMMARY	1
1.1 Introduction	1
1.2 Geology & Mineralization	2
1.3 Mineral Resource Estimation	2
1.4 Mining Methods	4
1.4.1 Mine Planning	5
1.4.2 Mine Sequencing/Scheduling	6
1.5 Mineral Processing & Metallurgical Testing	7
1.6 Market Studies and Contracts	9
1.7 Environmental Studies, Permitting & Social Considerations	10
1.7.1 Environmental Assessment	10
1.7.2 Permitting	10
1.7.3 Social or Community-Related Requirements	11
1.8 Project Infrastructure	11
1.8.1 Access Roads	12
1.8.2 Power Supply	12
1.8.3 Water Supply	12
1.8.4 Tailings Transportation and Storage	12
1.9 Capital Cost Estimate	13
1.10 Operating Cost Estimate	14
1.11 Economic Outcomes	15
1.11.1 Introduction	15
1.11.2 Economic Outcomes	15

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1.11.3 Sensitivity	16
1.12 Adjacent Properties	17
1.13 Interpretations and Conclusions	18
1.14 Recommendations	19
2 INTRODUCTION	21
2.1 Background	21
2.2 Project Scope and Terms of Reference	22
2.3 Study Participants	22
2.4 Primary Information Sources	22
2.5 Qualified Persons	23
2.6 Qualified Person Site Visit	25
2.7 Financial Interest Disclaimer	25
2.8 Frequently Used Abbreviations, Acronyms and Units of Measure	25
3 RELIANCE ON OTHER EXPERTS	30
4 PROPERTY DESCRIPTION AND LOCATION	31
4.1 Description and Location	31
4.2 Mineral Tenure	32
4.2.1 Regulatory Mechanism	32
4.2.2 Property and Title	32
4.2.3 Environmental Regulations	33
4.2.4 Granting of Mining Concessions	33
4.2.5 Work Program for Mining Concessions	33
4.2.6 Mining Concession Description	34
4.2.7 Conclusions and Limitations	35
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY	39

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5.1 Accessibility to Site	39
5.2 Access to Land	39
5.3 Climate	40
5.4 Local Resources	40
5.5 Infrastructure	40
5.6 Physiography	41
6 HISTORY	42
6.1 Introduction	42
6.2 Ownership History	42
6.2.1 Uranium Price Fluctuations	42
6.2.2 Macusani Yellowcake	42
6.2.3 The Cameco-Vena Joint Venture	43
6.2.4 Azincourt buys Minergia	43
6.2.5 Macusani purchases Minergia	43
6.2.6 Macusani changes name to Plateau Uranium Inc.	43
6.2.7 Plateau Uranium Inc. changes name to Plateau Energy Metals Inc.	43
6.2.8 American Lithium Corp. Acquires Plateau Energy Metals	43
6.3 Previous Regional Exploration	44
6.3.1 Instituto Peruano de Energia Nuclear	44
6.3.2 UNDP/IAEA	44
6.4 Property Exploration	45
6.5 Historic estimates	45
6.6 Mining Studies	46
6.7 Mineral Processing and Metallurgical Testing	47
7 GEOLOGICAL SETTING AND MINERALIZATION	48
7.1 Introduction	48

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7.2 Regional  Geology	48
7.3 Local Geology	50
7.3.1 Mineral Occurrences	50
7.3.2 Structural Geology	52
7.4 Property Geology	54
7.5 Mineralization	59
8 DEPOSIT TYPES	60
9 EXPLORATION	61
10 DRILLING Program	63
10.1 Drilling methodology	63
10.2 Sample Recovery and Core	67
11 SAMPLE PREPARATION, ANALYSES AND SECURITY	68
11.1 Introduction	68
11.2 Sample Recovery	68
11.3 Sample Quality	68
11.3.1 Sample Preparation	68
11.3.2 Sample Delivery Procedures	69
11.3.3 Sample Preparation and Analysis	69
12 DATA VERIFICATION	76
12.1 Introduction	76
12.2 Property Investigation, Sample and Documentation Review	76
12.2.1 Data Validation Limitation	78
12.3 Opinion of the Independent Qualified Person	78
13 METALLURGY AND METALLURGICAL TESTING	81
13.1 Introduction	81
13.2 Sampling background	81

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13.3 PEA Update Testwork	82
13.3.1 Introduction	82
13.3.2 Phase II Testwork	83
13.3.3 Phase III Testwork	83
13.3.4 Effect of Varying Acidity	84
13.3.5 By-product Recovery	85
13.3.6 Other Testwork Data	85
14 MINERAL RESOURCE ESTIMATES	86
14.1 Approach	86
14.2 Basis for Resource Estimation	86
14.3 Socioeconomic and Government Factors	87
14.4 Data Sources	87
14.5 Model	88
14.5.1 Model Inputs	94
14.5.2 Surface Topography	94
14.5.3 Structural features	94
14.5.4 Model Zones	95
14.5.5 Metal Grade Statistics within the Mineralized Zone	97
14.5.6 Density	100
14.5.7 Model Build	101
14.6 Assessment of Reasonable Prospects for Economic Extraction	104
14.7 Lithium Resource Estimates	104
14.8 Potential Risks	109
15 MINERAL RESERVE ESTIMATES	110
16 MINING METHODS	111
16.1 Introduction	111

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16.2 Conclusions and Limitations	112
16.3 Units of Measure	112
16.4 Sources of Information	113
16.5 Geotechnical	114
16.6 Current Surveys	115
16.7 Stantec Resource Estimate	116
16.8 Open Pit Optimization	120
16.8.1 Block Models	120
16.8.2 Pit Optimization Parameters	121
16.8.3 Pit Optimization Results	123
16.9 Mine Planning	125
16.9.1 Dilution and Loss	126
16.9.2 Mine Sequencing/Scheduling	126
16.10 Open Pit Mine Operations	133
16.11 Waste Dumps	134
16.12 Mining Shift Cycles and Equipment	134
16.12.1 Blast Hole Drilling	136
16.12.2 Blasting	137
16.12.3 Explosive Design	137
16.12.4 Loading and Hauling	137
16.12.5 Production Equipment	137
16.12.6 Pit Access	139
16.12.7 Mining Personnel Estimate	139
16.13 Contractor Mining Benchmarked Opex	142
17 RECOVERY METHODS	144
17.1 Introduction	144

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17.2 Design Criteria	145
17.3 Power and Water Consumption	146
17.3.1 Base Case (Phase 1)	146
17.3.2 Alternate Case	147
17.4 Process Block Flow Sheet & Process Plant Layout	147
17.5 Process Description	151
17.5.1 Area 100 - Crushing	151
17.5.2 Area 200 - Milling	151
17.5.3 Area 400 - Leaching	151
17.5.4 Area 500 - Pre-neutralisation	152
17.5.5 Area 600 - Impurity Removal	152
17.5.6 Area 700 - Softening	153
17.5.7 Area 800 - SulfateSulfate of Potash Separation	153
17.5.8 Area 900 - Fluoride Ion Exchange and Product Precipitation	156
17.5.9 Area 1000 - Product Drying and Packaging	156
17.5.10 Area 1100 - Tailings	157
17.5.11 Reagents	157
18 PROJECT INFRASTRUCTURE	159
18.1 Introduction	159
18.2 Access Roads	159
18.3 Raw Water Supply	161
18.4 Power Supply	162
18.4.1 Acid Plant Power Generation	162
18.4.2 Emergency Power	162
18.4.3 Diesel Generators	162
18.5 Site Services	162

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18.5.1 Fuel Supply, Storage and Distribution	162
18.5.2 Compressed Air	163
18.5.3 Potable Water	163
18.6 Buildings	163
18.6.1 Workshops and Warehouses	163
18.6.2 Office Facilities	163
18.6.3 Employee Housing	163
18.7 Tailings Transport and Storage	163
19 MARKET STUDIES AND CONTRACTS	166
19.1 Market Studies	166
19.2 Lithium Demand Outlook	166
19.3 Lithium Supply Outlook	169
19.4 Lithium Supply Demand Balance Forecast	171
19.5 Lithium Chemical and Battery Cathode Demand and Capacity Outlook	172
19.6 Long-term Supply Cost Curves for Lithium to 2035	174
19.7 Lithium Price Forecast	177
19.8 By-Product Pricing	177
19.9 Conclusions	178
20 ENVIRONMENTAL STUDIES, PERMITTING & SOCIAL OR COMMUNITY	180
20.1 Introduction	180
20.2 Project Permitting Requirements	180
20.3 Environmental Baseline	182
20.4 Social, Community and Environmental Impacts	183
20.4.1 Stakeholder Engagement	183
20.4.2 Social and Environmental Impacts	183
20.4.2.1 Positive Impacts of American Lithium in The Macusani Region	183

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20.4.2.2 Health of Workers	184
20.5 Rehabilitation and Closure	184
20.5.1 Post-Closure Monitoring and Maintenance	184
20.6 Green Project Initiatives	185
21 CAPEX and OPEX	186
21.1 Capital Cost	186
21.1.1 Estimate Classification	186
21.1.2 Assumptions	186
21.1.3 Exclusions	186
21.1.4 Contingency	187
21.1.5 Mining Costs	188
21.1.6 Process Costs	188
21.1.7 Bulk Infrastructure (Access Roads) Costs	190
21.1.8 Tailings Costs	190
21.1.9 Sustaining Capital	191
21.1.10 Closure Capital	191
21.1.11 Capital Cost Summary	191
21.2 Operating Costs	192
21.2.1 Estimate Classification	192
21.2.2 Mining Operating Costs	192
21.2.3 Contractor Mining Benchmarked Operating Costs.	193
21.2.4 Process Plant Operating Costs	195
21.2.5 Tailings Handling and Storage	198
21.2.6 General and Administration	198
21.2.7 Operating Costs Summary	199
22 ECONOMIC ANALYSIS	201

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22.1 Introduction	201
22.2 Methodology	201
22.3 Key Economic Outcomes	202
22.4 Source of Information	202
22.5 Process Production Profile	204
22.6 Capital Expenditure and Phasing	205
22.7 Stay in Business Capital	206
22.8 Operating Costs	206
22.9 Product Recoveries	207
22.10 Product Pricing	207
22.11 Salvage Value	207
22.12 Working Capital	207
22.13 Sunk and On-going Capital	207
22.14 Reclamation and Closure	207
22.15 Taxation	208
22.15.1 Depreciation	208
22.15.2 Worker's Participation Tax	208
22.15.3 Pension Fund Contribution	208
22.15.4 Royalty Tax	208
22.15.5 Special Mining Tax	208
22.15.6 Income Tax	208
22.16 Economic Outcomes	209
22.17 Sensitivity	210
23 ADJACENT PROPERTIES	212
24 OTHER RELEVANT DATA AND INFORMATION	213
24.1 Project Development and Permitting Timeline	213

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25 INTERPRETATION AND CONCLUSIONS	213
25.1 Mineral Resource Estimate	213
25.2 Preliminary Economic Assessment	215
25.2.1 LC Production	215
25.2.2 Capital and Operating Costs	216
25.2.3 Financial Evaluation	216
25.3 Environment	217
26 RECOMMENDATIONS	218
26.1 Recommended Phased Studies	218
26.2 Additional Recommendations	220
26.2.1 Risks	220
26.2.2 Opportunities	220
26.2.3 Recommendations	221
26.3 Environmental	221
26.4 Metallurgical and Processing	221
26.4.1 Testwork	221
26.4.2 Equipment vendor Engagement	221
26.4.3 Geometallurgical Model	222
26.5 Infrastructure	222
27 REFERENCES	223

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LIST OF TABLES

Table 1-1  Milling Rate and Expansion Phases - Base and Alternate Case	1
Table 1-2 Mineral resource Estimate effective October 31 2023	3
Table 1-3 Base Case Mineral Resource Summary	5
Table 1-4 Mining Production Ramp Phases	6
Table 1-5 TLC Design Criteria	8
Table 1-6 Capital Cost	13
Table 1-7 Life of Mine Operating Cost Breakdown	14
Table 1-8 Discounted Cashflow Summary	16
Table 1-9 Phase 1 Surface Mapping Program Costs	19
Table 1-10 Phase 2 Infill Drilling Costs	19
Table 2-1 Report Sections and Qualified Persons	24
Table 2-2 Abbreviations, Acronyms and Units of Measure	25
Table 4-1 Falchani Mineral Resource Mining Concessions	35
Table 6-1 2018 Historic Estimates (Nupen, 2018)	46
Table 6-2 2019 Historic Estimates (Nupen, 2019)	46
Table 10-1 Drill Hole Locations, Inclination and Depth	63
Table 11-1 Summary of QAQC Samples for all Drillholes	70
Table 11-2 Summary of QAQC Samples for all Drillholes	74
Table 13-1 Head Analysis of Lithium-rich Tuff Trench Sample	81
Table 13-2 Data from Phase II Leaching Test	83
Table 13-3 Data from Phase III Testwork	84
Table 13-4 By-Product Recovery	85
Table 14-1 Block Model Parameters	89
Table 14-2 Vertical Zone Thickness (m) from Geological Implicit Model	96
Table 14-3 Composite and Capping Li, Cs, K and Rb Grades from Drill Holes	97
Table 14-4 Model Grade Estimation Parameters	101
Table 14-5 Mineral Resource Estimate effective October 31 2023	106
Table 16-1 Conversion Factors for Lithium Compounds and Minerals	113
Table 16-2 Conversion factors for Potassium and Cesium Compounds and Minerals	113
Table 16-3 Summary Geotechnical Testwork	115
Table 16-4 Mineral Resource Estimate Effective October 31,2023	117
Table 16-5 Mineral resource as of October 2023 (Source: Stantec)	119

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Table 16-6 Block Model Origin and Dimensions	120
Table 16-7 Summary of Key Fields in Block Model	120
Table 16-8 Pit Optimisation Parameters Base Case	122
Table 16-9 Summary of Pit Shell 3 In-situ Optimised Shell Content (Li < 2 600ppm)	124
Table 16-10 Base Case Mineral Resource Summary	125
Table 16-11 Production Ramp Phases	126
Table 16-12 PEA LoM Production Schedule Summary	127
Table 16-13 Typical Shift Roster	134
Table 16-14 Contractor Operated Mining Hour Summary	136
Table 16-15 Preliminary Production Equipment	138
Table 16-16 Mining Owners Team Compliment	140
Table 16-17 Contractor Mining Team Compliment	140
Table 16-18 Total Open Pit Summary Personnel Table	142
Table 16-19 Open Pit Summary Personnel Table	142
Table 17-1 Process Rate and Expansion Phases - Base Case	144
Table 17-2 Design Criteria	145
Table 18-1 Access Roads Analysis - Outcomes	160
Table 21-1 Mining Capital Costs	188
Table 21-2 Process Direct Capital Costs - Base Case	189
Table 21-3 Process Direct Capital Costs - Alternate Case	190
Table 21-4 Tailings Capital Cost	191
Table 21-5 LoM Capital Costs - Base Case	191
Table 21-6 LoM Capital Costs - Alternate Case	192
Table 21-7 ALC G&A Allowance	193
Table 21-8 Contractor Mining Operating Costs (Benchmarked)	193
Table 21-9 South American High Altitude Mining Operations	194
Table 21-10 Process Reagent and Consumable Costs	195
Table 21-11 Process Power Demand	196
Table 21-12 Phase 1 Labor Costs	197
Table 21-13 Process Consumable Costs	197
Table 21-14 Process Plant OPEX - Laboratory	198
Table 21-15 G&A Costs	198
Table 21-16 Operating Cost Summary - Base Case	199

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Table 21-17 Operating Cost Summary - Alternate Case	199
Table 22-1 Key Economic Outcomes (Post-tax)	202
Table 22-2 Source of Information	203
Table 22-3 Milling Rate and Expansion Phases	204
Table 22-4 Capital Expenditure - Base and Alternate Case - Constant Terms (2023)*	205
Table 22-5 Capital Costs Phase - Constant Terms (2023)	205
Table 22-6 SIB Capital Cost (LoM) - Constant Terms (2023)	206
Table 22-7 Operating Costs - Constant Terms (2023)	206
Table 22-8 Product Recoveries and Grades	207
Table 22-9 Economic Outcomes	209
Table 26-1 Phase 1 Surface Mapping Program Costs	218
Table 26-2 Phase 2 Infill Drilling Costs	219
Table 26-3 Estimated Schedule and Costs of Recommended Activities	219

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LIST OF FIGURES

Figure 1-1 Mining Production Schedule and Mined Lithium Grades	7
Figure 1-2 Mining Production Schedule and Strip Ratios	7
Figure 1-3 Sensitivity Analysis Summary - Base Case	17
Figure 4-1 General Location Map	37
Figure 4-2 Mineral Tenure Map	38
Figure 7-1 Regional Geology Map	49
Figure 7-2 Local Geology Map	51
Figure 7-3 Macusani Structural Zone	53
Figure 7-4 Fault Evidence and the Macusani Volcanic Field	54
Figure 7-5 Upper Breccia and LRT Contact in Core	56
Figure 7-6 Geologic Cross Section A-A'	58
Figure 7-7 Geologic Cross Section B-B'	59
Figure 9-1 Drilling Configuration	62
Figure 10-1 Drill Hole Location Map	66
Figure 11-1 PZ Series Drillholes Duplicate Li Scatter Plot	71
Figure 11-2 PZ Series Lithium Field Blanks (A) and Laboratory Blanks (B	73
Figure 11-3 PZ Series Lithium Standard STD 41R01-MA	75
Figure 12-1 Core Storage Facility and Hole PCHAC 14 - TW Core Box	77
Figure 12-2 Site Visit Photographs	79
Figure 14-1 Surface Topography and Model Limit Map	90
Figure 14-2 Model Fault Blocks	92
Figure 14-3 Model Stratigraphy and Lithium Grade from Representative Drilling	93
Figure 14-4 3D Geological Model	96
Figure 14-5 Mineralized Zones Grade Distributions	98
Figure 14-6 Global Lithium Semi-Variograms	99
Figure 14-7 Global Lithium Semi- Variogram	100
Figure 14-8 Resource Block Model Cross Section A-A'	102
Figure 14-9 Resource Block Model Cross Section B-B'	103
Figure 14-10 Economic Pit Shell	107
Figure 14-11 Generalized Resource Classification Map	108
Figure 16-1 Plant Feed Photo Core Photo PCHAC-14 (Source: Stantec)	114

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Figure 16-2 Road to Falchani Project (Source: Stantec)	115
Figure 16-3 Surface Topography and Model Limits Map (Source: Stantec)	116
Figure 16-4 Generalized Resource Classification Map (Source: Stantec)	119
Figure 16-5 Whittle Optimisation Results with Pit Shell 3 Selection	124
Figure 16-6 Mining Production Schedule and Mined Lithium Grades	128
Figure 16-7 Mining Production Schedule and Mined Potassium Grades	129
Figure 16-8 Mining Production Schedule and Mined Cesium Grades	130
Figure 16-9 Mining Production Schedule and Strip Ratios	131
Figure 16-10 Plant Feed Schedule and Feed Grades	131
Figure 16-11 Push Back Planning and Progression in the Mine Scheduling	132
Figure 16-12 Typical Mining Production Fleet	133
Figure 16-13 Production Fleet per Year per Production Phase	139
Figure 16-14 Contractor Mining LoM Costs	143
Figure 17-1 Process Block Flow Diagram - Base Case	148
Figure 17-2 Process Block Flow Diagram - Alternate Case	149
Figure 17-3 Falchani Lithium Overall General Arrangement Plan - Process Plant Phase 1	150
Figure 18-1 Proposed Route of Access Road from Interoceanica Highway to Site (Option 1)	161
Figure 18-2 Tailings Storage Facility Options (Source: Vice Versa Consulting)	164
Figure 18-3 TSF Capital Cost Options	165
Figure 19-1 Lithium Demand By Sector [Source: Benchmark Mineral Intelligence, Lithium Forecast, Q4 2023]	167
Figure 19-2 Lithium Battery Demand Breakdown by Cathode Chemistry and End Source, 2033 [Source Benchmark Mineral Intelligence, Lithium Forecast, Q4 2023]	168
Figure 19-3 Lithium Battery Demand Breakdown by Region [Source Benchmark Mineral Intelligence, Lithium Forecast, Q4 2023 ]	168
Figure 19-4 Lithium Supply Forecast to 2040 [Source: Benchmark Mineral Intelligence, Lithium Forecast, Q4 2023]	170
Figure 19-5 Recycled Lithium Supply Forecast, tonnes LC [Source: Benchmark Mineral Intelligence, Lithium Forecast, Q4 2023 ]	171
Figure 19-6 Long-Term Supply Forecast [Source: Benchmark Mineral Intelligence, Lithium Forecast, Q4 2023 ]	172
Figure 19-7 Lithium Supply & Demand by Chemical Product [Source: Benchmark Mineral Intelligence, Lithium Forecast, Q4 2023]	173

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Figure 19-8 Forecast Lithium Chemical Deficit, 2015-2040 [Source: Benchmark Mineral Intelligence, Lithium Forecast, Q4 2023]	174
Figure 19-9 C3 Supply Cost for Lithium Carbonate - 2022 [Source: Benchmark Mineral Intelligence, Lithium Forecast, Q4 2023]	176
Figure 19-10 Lithium Carbonate Price Forecast [Source: Benchmark Mineral Intelligence, Lithium Forecast, Q4 2023]	177
Figure 21-1 Contractor Mining LoM Costs	194
Figure 22-1 Mine and Plant Feed Profile	204
Figure 22-2 Sensitivity Analysis - Base Case	211
Figure 24-1 Estimated Schedule	213

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1 SUMMARY

1.1 Introduction

The Falchani Project (the "Project") is located within the Falchani and Ocacasa 4 concessions held by American Lithium Corporation (the "Company"). The Project is situated on the Macusani Plateau, located in the Carabaya Province, Puno District of south-eastern Peru in the Andes Mountains, which has been actively explored for uranium since the 1980's, and more recently for lithium. Located approximately 650 km east southeast of Lima and about 220 km by the Interoceanica Highway from Juliaca in the south, two roads connect the Falchani Project to the Interoceanica Highway and are accessible year-round. The town of Macusani is 25 km to the southeast of the Company's Project area.

This Technical Report presents a Base Case scenario which is exclusively lithium carbonate recovery excluding any by-products and an Alternate Case that includes the recovery of cesium as cesium sulfate and potassium as potassium sulfate as by-products. 

The Project consists of an open pit mine and an associated processing facility along with onsite and off-site infrastructure to support the operation. The design for the process plant is based on achieving a peak milled tonnage of 6M t/y over three phases. An overview of the phased production strategy is presented in Table 1-1.

Table 1-1  Milling Rate and Expansion Phases - Base and Alternate Case

Description	Years	Milling Rate
Phase 1	1 - 5	1.5M t/y
Phase 2	6 - 10	3.0M t/y
Phase 3	11 - 43	6.0M t/y

A total of 2.6 million tonnes of lithium carbonate (minimum purity 99.5%) is produced over life of mine at a lithium recovery of 80%. 

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1.2 Geology & Mineralization

The lithium occurrences at Falchani are hosted in an ash-flow Tuff named Lithium Rich Tuff (LRT) and volcanoclastic breccias (Upper and Lower Breccia, UBX and LBX) that bound the LRT. Lithium mineralization is also observed in the basal Coarse Felsic Intrusion (CFI) which is interpreted to be a stratiform felsic intrusion underlying the above lithium host rocks. Elevated concentrations of cesium, potassium, and rubidium are associated with lithium mineralization and these elements show potential to be included as a byproduct of lithium processing to produce battery grade lithium carbonate. The general dimensions of the mineralized zone at Falchani covers an area approximately 3,300 m wide by 2,440 m long extending from outcrop to a maximum modelled depth of approximately 1,000 m below surface. The mineralization is continuous from surface. The highest and most consistent lithium grades occur in the LRT. The basement mineralized coarse felsic intrusion has a known depth of 400 m from drillhole intercepts, however the maximum thickness of the unit is still unknown.

1.3 Mineral Resource Estimation

The geologic model from which lithium resources are reported is a 3D block model developed using the World Geodetic System (WGS) 1984 UTM Zone 19S and is in metric units. The geologic model is separated into seven lithological zones of which four mineralized zones exist. The lithologic zones are, from top to bottom: Overburden, Upper Rhyolite, mineralized Upper Breccia (UBX), mineralized Lithium Rich Tuff (LRT), mineralized Lower Breccia (LBX), mineralized Coarse Felsic Intrusion (CFI) basement unit, and Rhyolite Subvolcanic Intrusion. The lithologic zones are further separated into nine (9) fault blocks that are split by two (2) north-south trending high angle normal faults (Valley Fault and East Fault) and six (6) northwest and southwest trending normal faults (NW1 through NW6). The lithium, as well as cesium, potassium and rubidium grades from exploration drilling were estimated into the blocks using an inverse distance algorithm. Semi-variograms were used as guide in the estimation process and classification of mineral resource estimates into assurance categories.

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Mineral resources for the upper three mineralized zones (UBX, LRT and LBX) are classified by distance from nearest valid drill hole sample up to a maximum distance of 250 m for inferred, 160 m indicated, and 80 m measured. Mineral resources for the CFI are within 160 m for inferred, 80 m indicated, and 40 m measured.

The lithium mineral resource estimates are presented in Table 1.4 in metric units. The resource estimates are contained within an economic pit shell at constant 45° pit slope to a maximum vertical depth of 300 m below surface. Lithium resources are presented for a range of cutoff grades to a maximum of 5,000 ppm lithium. The base case lithium resource estimates are highlighted in bold type in Table 1.4. All lithium resources on the Falchani Property are surface mineable at a stripping ratio of 0.4 BCM/metric tonne at the base case cutoff grade of 600 ppm lithium. The effective date of the lithium resource estimate is October 31, 2023.

Table 1-2 Mineral resource Estimate effective October 31 2023

Cutoff	Volume	Tonnes	Li	Metric Tonnes (Mt)			Cs	K	Rb
Li (ppm)	(Mm3)	(Mt)	(ppm)	Li	Li2CO3	LiOH.H20	(ppm)	(%)	(ppm)
Measured
600	29	69	2,792	0.19	1.01	1.15	631	2.74	1,171
800	28	68	2,832	0.19	1.01	1.15	641	2.72	1,194
1,000	27	65	2,915	0.19	1.01	1.15	647	2.71	1,208
1,200	25	61	3,024	0.18	0.96	1.09	616	2.74	1,228
1,400	24	57	3,142	0.18	0.96	1.09	547	2.78	1,250
Indicated
600	156	378	2,251	0.85	4.52	5.14	1,039	2.92	1,055
800	148	357	2,342	0.84	4.47	5.08	1,058	2.90	1,070
1,000	136	327	2,472	0.81	4.31	4.90	1,095	2.87	1,104
1,200	129	310	2,549	0.79	4.20	4.78	1,086	2.86	1,146
1,400	120	288	2,646	0.76	4.04	4.60	1,041	2.88	1,166
Measured plus Indicated
600	185	447	2,327	1.04	5.53	6.29	976	2.90	1,072
800	176	425	2,424	1.03	5.48	6.23	991	2.87	1,090
1,000	163	392	2,551	1.00	5.32	6.05	1,021	2.84	1,121
1,200	154	371	2,615	0.97	5.16	5.87	1,009	2.84	1,160
1,400	144	345	2,725	0.94	5.00	5.69	960	2.86	1,180
Inferred
600	198	506	1,481	0.75	3.99	4.54	778	3.31	736
800	174	443	1,597	0.71	3.78	4.30	837	3.24	762
1,000	138	348	1,785	0.62	3.30	3.75	886	3.18	796
1,200	110	276	1,961	0.54	2.87	3.27	942	3.10	850
1,400	82	201	2,211	0.44	2.34	2.66	1,022	3.01	926

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• CIM definitions are followed for classification of Mineral Resource.
• Mineral Resource surface pit extent has been estimated using a lithium carbonate price of US20,000 US$/tonne and mining cost of US$3.00/t, a lithium recovery of 90%, fixed density of 2.40 g/cm3
• Conversions: 1 metric tonne = 1.102 short tons, metric m3 = 1.308 yd3, Li2CO3:Li ratio = 5.32, LiOH.H2O:Li ratio =6.05
• Totals may not represent the sum of the parts due to rounding.
• The Mineral Resource estimate has been prepared by Mariea Kartick, P. Geo., and Derek Loveday, P. Geo. Of Stantec Consulting Services Inc. in conformity with CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines and are reported in accordance with the Canadian Securities Administrators NI 43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that any mineral resource will be converted into mineral reserve.

1.4 Mining Methods

Open pit mining is planned to use conventional truck and shovel mining methods with drill and blasting to break the rock mass into manageable particle sizes. Mining operations are planned to be undertaken by a contractor operated fleet, which is the cost basis for this preliminary economic assessment. Mining and processing operations will be conducted 24 hours day, seven (7) days week and 353 days per year.

The following design parameters were used for the PEA study update: -

• Fully mobile production equipment, consisting of medium sized hydraulic shovels and 90 tonne rigid dump trucks has been planned.
• Total mining costs of $2.60/t and a mining height adjustment factor of $0.06 per vertical meter of all material moved at altitude is the basis for the Project economics.
• A bulk supplies diesel price of $1.10/L is incorporate in the mining costs.
• Support equipment will be Front End Loaders, tracked dozers, graders, and water trucks.
• The run-of-mine (RoM) pad at near the Process Plants primary crusher will be the mining and process battery limit.
• Benchmarked operation elevation of 4700 masl was used.
• Operation elevation of 4480 to 4875 masl have been observed and this will require dual turbo charging of all equipment to limit high altitude derating factors
• The deepest pushback planned is at a depth of 305 m.
• Geotechnically designed slope are applied to relevant pit areas.

The open pit design contains 152M t (LoM) of mineralized material with an average Li grade of 3321 ppm, 24M t of low grade mineralized material with an average Li grade of 2287 ppm and 35 Mt of marginal grade mineralized with an average grade of 1520 ppm. The stripping ratio is low at 0.6:1, waste t to mineralization t, and the total waste mined is 126M t.

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1.4.1  Mine Planning

Production scheduling and push back planning was undertaken on the selected pit shells. The conceptual mine scheduling for the ramping up from 1.5 to 6 M t/y process plant feed. The mineral resource summary results are shown in Table 1-3.

Table 1-3 Base Case Mineral Resource Summary

Falchani - Production Scheduled Mineral Resources
Parameter	Unit	Value
Mine Production Life	Year	34
High Grade Stockpile Range	ppm	> 2600
HG Process Feed Material	Mt	152.4
HG Diluted Li grade (mill head grade)	ppm	3321
HG Contained LCE (Mt)	Mt	2.695
HG Diluted K grade (mill head grade)	%	2.960
HG Diluted Cs grade (mill head grade)	%	0.056
Low Grade Stockpile Range	ppm	< 2600 >1600
LG Process Feed Material	Mt	24.6
LG Diluted Li grade (stockpile grade)	ppm	2287
LG Contained LCE (Mt)	Mt	0.299
LG Diluted K grade (stockpile grade)	%	2.779
LG Diluted Cs grade (stockpile grade)	%	0.117
Marginal Grade Stockpile Range	ppm	> 1600 > 1000
Marginal Process HG Feed Material	Mt	35.7
Marginal Diluted Li grade (stockpile grade)	ppm	1520
Marginal Contained LCE (Mt)	Mt	0.289
Marginal Diluted K grade (stockpile grade)	%	2.315
Marginal Diluted Cs grade (stockpile grade)	%	0.099
Waste	Mt	127
Total Material	Mt	339.7
Strip Ratio	tw:t total pf	0.6
Strip Ratio	tw:H-G pf	0.83

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Dilution and Loss

Since the mining mineralized deposits zones are massive with low strip ratios the following dilution and losses parameters where used:

• Mining losses of only 2% where used due to the limited zones of interaction between waste and mineralized material.
• For mining modelling purposes geological losses of 5.8% average are derived from the historic geological resource works which consider the current relatively low drilling density. In the new resource model this would be zero but time did not allow this to be included in the PEA Update modelling and will be addressed in the Pre-feasibility Study (PFS).

1.4.2 Mine Sequencing/Scheduling

The annual mining schedule has been developed based on the three phases (1.5, 3.0 & 6.0M t/y) production ramp up detailed in Table 1-4. Production is planned to be ramped up to a maximum mill feed of 6M t/y, (≈16,500t/d). The mining activity for this Project is approximately 32 years, (including 6 months pre-production), with a further 11 years of processing of low-grade material from stockpiles, based on the 152.4Mt of Indicated and Inferred Mineral Resources.

The plant feed tonnage, waste tonnes and lithium grades are shown in Figure 1-1. The strip ratios are shown in Figure 1-2.

Table 1-4 Mining Production Ramp Phases

Production Ramp Up	Y 1	Y 2	Y 3 to 7	Y 8	Y 9 to 12	Y 13	Y 14 to 32
Plant Feed M t/y	0.75	1.00	1.50	2.25	3.00	4.50	6.00

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Figure 1-1 Mining Production Schedule and Mined Lithium Grades

Figure 1-2 Mining Production Schedule and Strip Ratios

1.5 Mineral Processing & Metallurgical Testing

A substantial body of metallurgical testwork has been carried out on the Falchani lithium-bearing tuff material. The testwork referenced in this report was carried out by Tecmmine in Peru (prior to 2018) and testwork carried out in 2018 and 2019 was carried out by Tecmmine and ANSTO Minerals in Australia. Both the Tecmmine and ANSTO testwork was carried out on the lithium rich tuff obtained from a trench on site. The testwork supports a number of technically viable process flowsheet routes (hydrochloric acid leaching, salt roast, sulfation baking, pressure leaching, purification processes) but for the purpose of this PEA a flowsheet using atmospheric leaching in a sulfuric acid medium, followed by downstream purification processes, was selected for the production of battery grade lithium carbonate. The early focus of the acid leach process was on maximizing the extraction of lithium using aggressive leach conditions and the later work focused on optimizing the leach parameters and confirming inputs to the process design criteria.

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The process flow sheet was developed by DRA, working with ANSTO Minerals (ANSTO) and with input from M.Plan International (M.Plan). Following mining, mineralized material will be crushed to a P80 of 150 μm, followed by a warm (95 °C) sulfuric acid tank leach with a residence time of 24 hours, to extract 85% of lithium to leach solution. The process utilizes conventional tank leaching, widely used in various mining operations to extract metals from mineralized material. This is followed by a three-stage purification process to reduce various impurities in the leach solution, mechanical evaporation and conventional precipitation, using a crystallization plant, to produce a battery grade Li₂CO₃ product. An overall recovery of 80% from mineralized material to Li₂CO₃ is utilized in the PEA.

As a significant portion of the operating costs are derived from sulfuric acid use as the leaching reagent, the PEA includes the construction of a 1,700 tonnes per day (t/d) sulfur burning acid plant at site in Phase I (P1) to produce, on average, 1,500 t/d of sulfuric acid. The acid plant includes a power generation facility that generates approximately 18MW of clean energy from the steam generated in the sulfur burner. In subsequent phases, additional modules are added to meet expanded processing capacity.

More recent (2023) testwork performed by ANSTO focused on the recovery of by-products namely potassium as potassium sulfate and cesium as a cesium sulfate. While potassium sulfate is expected to be a relatively pure product the cesium sulfate would need to be further refined by third parties into desired end-products. The Alternate Case discussed and presented in this PEA Update includes the by-product recovery in addition to the LC production.

The key project design criteria for both the Base Case and the Alternate Case are shown in Table 1-5.

Table 1-5 TLC Design Criteria

Description	Unit	Value
Life of Mine	y	43
Plant Design Throughput (Phase 1 - Year 1 to 5)	M t/y	1.5
Plant Design Throughput (Phase 2 - Year 6 to 10)	M t/y	3.0

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Description	Unit	Value
Plant Design Throughput (Phase 3 - Year 11 to 43)	M t/y	6.0
Operating Hours Per Year	h/y	8 000
Lithium Head grade RoM (Year 1- 32)	ppm Li	3 380
Lithium Head grade Low Grade (Year 33 - 43)	ppm Li	1 841
Lithium Production as LC (Phase 1)	t/y	23 000
Lithium Production as LC (Phase 2)	t/y	45 000
Lithium Production as LC (Phase 2 - RoM)	t/y	84 000
Lithium Production as LC (Phase 2 - Low Grade)	t/y	44 800
Lithium extraction Method		Sulfuric acid leach
Acid addition/ t Run of Mine (RoM)	Kg/t	387
Lithium recovery	%	80
Alternate Case (Year 6 - 43)
Potassium recovery	%	20.7
SOP Produced (Average LoM)	t/y	81 556
Cesium Recovery	%	74.7
Cs₂SO₄ Produced (Average LoM)	t/y	3 796

1.6 Market Studies and Contracts

The Falchani Project is not currently in production and has no operational sales contracts in place.  To evaluate the market for its lithium product, American Lithium subscribed to the Lithium Forecast Service of Benchmark Mineral Intelligence (BMI). BMI's Q4 2023 forecast describes the lithium supply chain, long-term supply forecasts for lithium to 2040 and long-term supply cost curves for lithium to 2040.  Forecast prices for the same period for battery grade LC and hydroxide are also provided, and these have formed the basis for the economic analysis undertaken for the PEA.

There is an ongoing need for capacity investments in lithium raw material extraction, chemical processing and cathode manufacturing as shown in the BMI forecast to 2040. Given the direction of travel and level of investment in the downstream of the electric vehicle supply chain, at an automobile manufacture and battery cell level, there is an impending shortfall in all areas of the upstream supply chain which needs to be addressed.

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The forecast market deficit will incentivise investment in both raw material and chemical processing capacity. For LC, BMI forecasts long-term pricing to settle in the region of $28 980/t and for lithium hydroxide $30 980/t.

An opportunity exists for the Falchani project to become a significant regional supplier of potassium sulfate products. American Lithium Corp. has not engaged with any traders but estimates a likely future market price of $1 000/t of potassium sulfate.

The potential exists to produce a by-product stream containing cesium sulfate. Cesium is used in high-pressure, high-temperature offshore oil and gas drilling and is used in infrared detectors, optics, photoelectrical cells, scintillation counters and spectrometers. Cesium sulfate produced at Falchani can be further refined by third parties into desired end-products. ALC has advised DRA to use a value of $58 000/t of Cesium sulfate for the financial modelling of the Alternate Case. No contracts have been entered into so pricing and market size should be considered prospective at this stage.

1.7 Environmental Studies, Permitting & Social Considerations

1.7.1 Environmental Assessment

A baseline environmental study undertaken by ACOMISA, a Lima-based environmental consulting company, and continued in collaboration with Anddes is ongoing. The study was expanded to include each of the Falchani Lithium Project and Macusani Uranium Project areas and now covers the affected areas belonging to the communities of Isivilla, Tantamaco, Corani, Chimboya and Paquaje, and Chacaconiza. The study has recently progressed into an EIA that includes community relations and impacts of future development, as well as flora, fauna, water, air and noise sampling and comprehensive archaeological studies.

1.7.2 Permitting

Peru has many environmental laws and regulations that apply to resources sector. These are arranged in a general framework of laws, legislative decrees, supreme decrees, legislative resolutions, ministerial resolutions and decisions. Key among these are: the General Environmental Law (28611-2005) (GEL); the Environmental Impact Assessment (EIA) Law (27446-2001); the Environmental Impact Assessment Regulation (Supreme Decree 019-2009); the Environmental Regulation on Exploration Activities (020-2008-EM) (EREA); the Environmental Regulation for mining exploration activities (020-2008-EM); and the Regulations on the Protection and Environmental Management for exploitation, operation, general labor, transportation and storage (040-2014-EM).

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Prior to commencing mine development and operation, Peruvian Environmental Regulations require an EIA-d to be carried out. The EIA-d must be approved by SENACE before mining activities may commence.

1.7.3 Social or Community-Related Requirements

An environmental study is required to be completed to fully understand the potential social and environmental impacts due to the implementation of the Project.

The development of the Project will include the following Green Initiatives:

• Water Efficiency: Use of filtered tailings enables recycling of up to 90% of process water;
• Environmental and Personnel Safety: Use of environmentally responsible dry stacking tailings technology;
• Clean Energy Generation: The sulfuric acid plant on site produces sufficient clean energy to power entire process plant and provide excess power;
• Future development work to evaluate opportunities such as:

• Electric mine fleet with excess clean energy storage on site;
• Rainwater run off storage and additional water recycling;
• Low CO2 transport and logistics for consumables.

1.8 Project Infrastructure

An investigation into infrastructure requirements for the Project revealed the following requirements for the Falchani site.

• Access road;
• Raw water supply;
• Power transmission line and sub-stations;
• Emergency power;
• General site services;
• Buildings;
• Tailings transportation and storage.

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1.8.1 Access Roads

The existing connecting road between the highway and the Project site is not suitable for heavy vehicle transit. A study was conducted by Vice Versa consulting to evaluate potential access road options. On the outcomes from this study, the Project has assumed a new road starting at the diversion that is currently used to access the area of Project. This option takes advantage of the existing section of access to the town of Tantamaco, Isivilla and the accesses built for the communities of Quelccaya and Chaccaconiza.

1.8.2 Power Supply

The plant's primary source of electrical power will be the power co-generation facility at the acid plant. Diesel-fuelled generators will provide power for remotely located equipment (the raw water pumps at the river and equipment located at the tailings storage facility). The grid will provide power for emergency lighting and for key process drives (for example, leach tank agitators, scrubber fans, thickener rakes).

1.8.3 Water Supply

Water is sourced from local river courses. In its 2014 Preliminary Economic Assessment (PEA) for Plateau Energy Metals' uranium projects, GBM Mining Engineering Consultants Limited (GBM) was of the view that the area has access to sufficient water resources for the purposes of mining operations at a rate of 1M t/y (Short et al, 2016). The availability of water has not been assessed during the PEA and it is recommended that the availability of suitable water be quantified in later stages of the Project's development.

1.8.4 Tailings Transportation and Storage

Tailings from the plant will be pumped to a belt filter adjacent to the Tailings Storage Facility (TSF). The filtered tailings will be stacked in the TSF and the filtrate will be pumped back to the process water tank in the plant. Vice Versa Consulting have identified a number of suitable locations for the TSF that will be utilised throughout the life of the Project. The Base Case will utilize a total of three deposition locations over LoM based on capacity requirements.

1.9 Capital Cost Estimate

A contractor-operated fleet has been adopted for the purposes of this Project and capital requirements relating to mining cover pre-site establishment. The capital cost estimate for the plant has been compiled based on a priced mechanical equipment list. Factors were applied to the equipment cost to derive costs for bulk materials, freight, installation and for Project indirects. Initial (Phase I) capital estimates are identical for both the Base Case and Alternate Case. Quotations from suppliers have accounted for approximately 80% of total equipment costs. Non-process infrastructure costs relating to access roads and the TSF have been based on a study concluded by Vice Versa Consulting.

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The prepared estimate is classified by DRA as a Class 4 estimate with a +40% / -40% accuracy, similar to an AACE International Class 4 (+50% / -30%) and deemed suitable for a PEA level study.

An 11% contingency, relative to total process plant cost and exclusive of non-process infrastructure, has been allocated to the direct and indirect costs.

A summarized version of the capital estimates over LoM has been presented in the table below and cover the Base Case. The initial capital outlay amounts to $ 681M of which direct costs constitute 75% of total costs. Table 1-6 shows the capital cost summary for the Project by area presented in United States $.

Table 1-6 Capital Cost

Area	Phase 1, $ M	Phase 2, $ M	Phase 3, $ M	LoM, $ M
Mining Capital	10.3	10.3	20.6	41.1
Process Plant, Direct Costs	399.9	359.9	720.5	1 480.0
Plant/Mine, Infrastructure	36.3	32.7	65.5	134.0
Bulk Infrastructure	35.1	17.6	35.2	88.0
Tailings	29.2	-	127.4	157
Total Direct Costs	510.8	420.5	969.1	1 900.0
Indirect Costs	109.7	98.7	197.4	406.0
Contingency	60.1	54.1	108.2	222.0
Closure	-	-	-	36
Total Project Capital Cost	680.6	573.3	1 274.7	2 565.5
Note: Costs for closure capital have been estimated.

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1.10 Operating Cost Estimate

The operating cost estimate was completed from a zero base and presented in United States $. Costs associated with power, labor, materials, consumables and general and administration have been included in this estimate. A contractor-operated fleet has been adopted for the purposes of this Project.

The prepared estimate is classified by DRA as a Class 4 estimate with a +40% / -40% accuracy, and deemed suitable for a PEA level study.

No contingency has been applied to the Project operating costs.

The overall operating cost estimate is presented in Table 1-7 for the Base Case.  The breakdown shows all the costs associated with mine and plant operation covering costs for contractor mining, labor, power, maintenance, reagents, consumables and general administration. Key cost drivers for both options reside with the process plant of which reagents constitute the largest single cost category overall.

Table 1-7 Life of Mine Operating Cost Breakdown

Description	Units	LoM Base Case	LoM Alternate Case
G&A Costs	$ M	353	353
Mining Costs	$ M	1 226	1 226
Processing Costs	$ M	11 623	13 242
Tailings Costs	$ M	238	238
Total LoM Operating Cost	$ M	13 440	15 059
Unit Costs
G&A Costs	$/t LC	134	134
Mining Costs	$/t LC	464	464
Processing Costs	$/t LC	4 403	5 017
Tailings Costs	$/t LC	90	90
Total Unit Cost	$/t LC	5 092	5 705

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1.11 Economic Outcomes

1.11.1 Introduction

The financial evaluation presents the determination of the net present value (NPV), payback period (time in years to recapture the initial capital investment), and the internal rate of return (IRR) for the Project. Annual cash flow projections were estimated over the life of the mine based on the estimates of capital expenditures, production cost, and sales revenue.  The analysis has been conducted in real terms with no consideration given to inflation or escalation of costs or prices over the life of the Project.

The economic model has been populated on a 100% equity basis and therefore does not consider alternative financing scenarios. Financing related costs such as interest expense, withholding taxes on dividends and interest income, are excluded from the economic model.

A Base Case which considers the production of battery grade lithium carbonate has been evaluated. In addition, the upside potential to produce sulfate of potash (SOP) and cesium sulfate (Cs₂SO₄) as by-products has been presented as an Alternate Case.

1.11.2 Economic Outcomes 

The economic analysis is prepared on a 100% equity project basis and does not consider financing scenarios.  An 8% real discount rate has been used in the analysis.  A throughput over LoM of 213 Mt producing 2.6 Mt of LCE is projected for the Base Case and Alternate Case.

The Base Case total capital cost over LoM is estimated to be $ 2.6bn, inclusive of mine rehabilitation and closure costs, with an initial capital expenditure of $ 681M allocated for Phase I. Mining costs are estimated to be $ 464/t LCE on average, over LoM. Process costs are estimated at $ 4 403/t LCE for the Base Case and $ 5 017/t LCE for the Alternate Case. General and administration costs begin at $ 5M for Phase 1, $ 7M for Phase 2 and ramping up to $ 9M for Phase 3. The analysis has revealed a post-tax Net Present Value (NPV) of $ 5.1bn with an internal rate of return (IRR) of 32% with post-tax payback period of 3.0 years based LoM price of $ 22 500/t LCE. For the Alternate Case the analysis has revealed a post-tax Net Present Value (NPV) of $ 5.6bn with an internal rate of return (IRR) of 29.9% with post-tax payback period of 3.0 years based LoM price of $ 1 000/t SOP and $ 58 000/t cesium sulfate. The outcomes of the analysis are summarised and presented in Table 1-8.

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Table 1-8 Discounted Cashflow Summary

Description	Units	Base Case	Alternate Case
Financial Outcomes (PRE-TAX)
NPV (8%)	$ M	8 410	9 251
IRR	%	40.7	38.5
Payback Period (undiscounted)	years	2.5	2.5
Financial Outcomes (POST-TAX)
NPV (8%)	$ M	5 109	5 585
IRR	%	32.0	29.9
Payback Period (undiscounted)	years	3.0	3.0

1.11.3 Sensitivity

A sensitivity analysis, as shown in Figure 1-3, has been conducted on the Base Case assessing the impact of variations in capital cost, operating cost, lithium carbonate selling price and reagent pricing (lime, limestone and sulfur). Each variable is assessed in isolation to determine the impact on NPV and IRR.

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Figure 1-3 Sensitivity Analysis Summary - Base Case

1.12 Adjacent Properties 

The Falchani Property is surrounded by other American Lithium controlled concessions as part of the MPA. Other explorers of significance within the region are Fission 3.0 Energy Corporation (Fission), whose portfolio of properties in the Macusani area resulted from a spin-out from Strathmore Minerals in 2007 (Fission Energy Corporation, 2010). In April 2013, Fission announced the arrangement whereby Denison Mines Corporation acquired all the outstanding common shares of Fission and the spin-out of certain assets into a new exploration company, Fission Uranium Corporation. In November 2013, certain properties and assets of Fission Uranium, including the Macusani, Peru property, became properties and assets of Fission 3.0 Corp. Nine claim blocks encompassing 51km2 were held in the Macusani area (Fission 3.0 Uranium Corporation, 201420) (Riordan et al.,2020). Fission 3.0 has subsequently relinquished these concessions after failing to pay their good standing fees in June 2021.

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1.13 Interpretations and Conclusions

Exploration of the Falchani property has been successful in identifying a mineral resource of lithium and ancillary cesium, rubidium, and potassium. The Falchani lithium deposit is unique in its host rock and mineralization. The lithium occurrences are hosted in an ash-flow Lithium Rich Tuff (LRT) and volcanoclastic breccias (Upper and Lower Breccia, UBX and LBX, respectively) that bound the LRT. Lithium mineralization is also observed in the basal Coarse Felsic Intrusion (CFI) which is interpreted to be a stratiform felsic intrusion underlying the above lithium host rocks.

Potential risks that may impact accuracy of the mineral resource estimates are:

• The resource is limited to within two E-W fault blocks east of the Valley Fault as described in Section 14.4.3 that may shift location given further exploration. Should new supporting data support a significant shift in the fault locations this may have a material impact on the resource estimates.
• The CFI basement and the other volcanics around the extremities of the Property are only recognized from 28 drillholes. Future exploration drilling in these areas of the Property may show these intrusions and other volcanics extending into the Property below surface. This may have a material impact on the resource estimates in these regions of the deposit.
• Metallurgical tests currently under the coordination  of DRA may indicate that the input costs for the practical extraction of lithium to be higher than anticipated. Since processing costs are a significant component of lithium carbonate (or lithium hydroxide monohydrate) production, the lithium cutoff grade may be higher than the base case cutoff grade of 600 ppm used for the lithium resource estimates.
• Given the uniform densities applied to the mineralized zones, Stantec believes the density to be adequate for resource estimation, however, additional density data would support more accurate mineral resource tonnage estimates.
• There is potential for elevated uranium concentrations on Falchani based on proximity of the deposit to the Macusani Yellowcake project located 5-25 km east and north of the property. 

The PEA for the Falchani Project is based upon limited and time-sensitive information, such as lithium carbonate, fuel and reagent pricing. Changes in the understanding of the Project such as access to power, social/environmental issues, the ability to convert Mineral Resources to Mineral Reserves and market demand conditions could have significant effects on the Project's overall economic viability.

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The Base Case project economics have revealed a post-tax Net Present Value (NPV) of $ 5.1bn with an internal rate of return (IRR) of 32.0% and a post-tax payback period of 3.0 years based on an average LoM price of $ 22 500/t LCE. 

1.14 Recommendations

The Falchani mineral resource estimation has relied on exploration drilling results. The following development path is recommended for the Falchani Project.

Phase 1 Work Program Surface Mapping

Surface mapping of the Project area will provide additional information that will enhance the understanding of the structural geology and faulting within the property. This information will greatly improve the accuracy of the current geologic model and resource estimates. Structural mapping will validate and focus the interpolated faults in the geologic model. The Authors site inspection of the property identified areas of exposed rhyolite outcrops on the Property that could be mapped in detail. Costs for a geologist and mapping program is listed in Table 1-9.

Table 1-9 Phase 1 Surface Mapping Program Costs

Activity	Unit costs (US$)	No.	Cost (US$)
Surface Mapping	1,000/day	14	14 000
Grab Sample Assay	50/sample	120	6 000
Structural modeling	1,200/day	8	9 600
		Total	29 600

Phase 2 Work Program Infill Drilling and Modeling

The proposed Phase 2 program is not dependent on the successful results of the Phase 1 program above. For Phase 2 an infill drilling program of approximately 2,500 m is recommended to improve the mineral resource confidence. Estimated costs for the Phase 2 program is outlined in Table 1-10.

Table 1-10 Phase 2 Infill Drilling Costs

Activity	Unit costs (US$)	No.	Cost (US$)
Core Drilling	200/m	2 500	500 000
Core Sample Assay	50/sample	2 000	100 000
Resource Modeling	n/a	n/a	50 000
		Total	650 000

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Phase 3 Pre-Feasibility Study

It is recommended that a Pre-feasibility Study (PFS) be completed to further demonstrate the Project's technical and economic viability and to provide a greater degree of confidence in the capital and operating cost estimates. Further definition of the Project is required to allow a PFS to be completed and the following is recommended to further develop the Project and reduce its technical uncertainty and risk:

• Mineralized material characterisation (to better define the design data for the crushing and milling circuits);
• Mineralized material variability (to understand how variability across the orebody may impact on plant performance and to make design allowances accordingly);
• Process optimisation testwork (to optimise operating parameters and reagent consumptions);
• Equipment Sizing (to allow equipment vendors to size their equipment and provide performance guarantees);
• By-product Recovery (to define the design conditions for the recovery of valuable by-products)
• Engage with equipment vendors to carry out testwork (for example, thickeners, filters, crystallisers) to allow them to offer performance guarantees;
• Engage with vendors of the major packages to better define their scope and investigate possibilities for build, own, operate commercial arrangements.

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2 INTRODUCTION

This Technical Report was prepared by DRA for American Lithium Corporation (American Lithium) in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). This Technical Report is an update of a prior Technical Report on the Falchani Lithium Property (the Property) completed by Stantec in December 2023 (Kartick and Loveday, 2023) and includes a PEA. In 2020 (Riordan et. al., 2020) DRA completed a PEA for the same property. The information presented in this PEA supersedes results of prior reports.

Information used in the compilation of the Technical Report was provided by American Lithium

as well as from public domain sources. All source of information in addition to the American Lithium's exploration data are listed in the reference Section 27.

Qualified Persons (QP), Mariea Kartick (P.Geo) and Derek Loveday (P.Geo), inspected the Property in May 2023. The QP's verified drill hole locations, and reviewed core, geological logs, and sample handling procedures.

2.1  Background

The Falchani Lithium Project falls within licenses held by Macusani Yellowcake S.A.C. (Macusani Yellowcake) which is controlled by American Lithium Corp. (ALC). The Project is situated on the Macusani Plateau, a region of Peru which has been actively explored for uranium since the 1980s, and more recently for lithium. ALC also controls several other properties on the Macusani Plateau, as described in Section 4.2.  The combination of ALC exploration properties on the Macusani Plateau is referred to as the Macusani Project Area (MPA).

This Technical Report presents a Base Case scenario which is inclusive of both the Falchani and Ocacasa 4 concessions. 

The Project consists of an open pit mine and an associated processing facility along with onsite and off-site infrastructure to support the operation.

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2.2 Project Scope and Terms of Reference

The Project consists of an open pit mine and an associated processing facility along with onsite and off-site infrastructure to support the operation. The life of mine production covers 43 years with 32 years processing feed from mining activities and 11 years processing low grade stockpiles build up over the mine life. Mining activities commence two years (Years -2 and -1) prior to start of production resulting in 34 years mining activities The initial Project (Phase 1) has been designed to produce nominally 23,000 tonnes per year of battery grade lithium carbonate. Production will increase in Phase 2 to 45 000 tonnes per year and Phase 3 to 84 000 tonne per year.

This technical report has been prepared by DRA Pacific Pty Ltd and DRA Projects Pty Ltd (DRA) on behalf of ALC, a company listed on the TSX Venture Exchange. This technical report documents the results of a Preliminary Economic Assessment (PEA) Update for the Falchani Lithium Project (Falchani) located on the Macusani Plateau in the Puno District of southeastern Peru.

2.3 Study Participants

DRA is an independent company specializing in the development, design, construction, and operation of mining and metallurgical projects globally. DRA was commissioned by ALC to carry out a PEA Update to design and cost a process facility, with associated infrastructure, to treat the Falchani lithium-bearing material to produce battery grade lithium carbonate. DRA also prepared the mine plan. The prepared estimate is classified by DRA as a Class 4 estimate with a +40% / -40% accuracy, similar to an AACE International Class 4 (+50% / -30%) and deemed suitable for a PEA-level study.

Stantec is a leading advisory firm focused on the provision of geological and mining engineering services and has prepared the Mineral Resource estimates and completed data verification for the project.

2.4 Primary Information Sources

This report makes use of the following primary information sources:

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Technical Report and Mineral Resource Estimate- Falchani Property; Prepared by Stantec Consulting Ltd. Salt Lake City, Utah. Report Date December 2023, and Effective Date October 31, 2023.

The technical report titled "Mineral Resource Estimates for the Falchani Lithium Project in the Puno District of Peru" with an effective date of 1 March 2019 prepared by The Mineral Corporation for Plateau Energy Metals Inc under National Instrument 43-101 and accompanying documents NI 43-101F1 and NI 43-101CP. The Mineral Corporation Report No. C-MYI-EXP-1727-1134. Effective Date: 01 March 2019 (The Mineral Corporation, 2019).

ANSTO Minerals, "Lithium Recovery From the Macusani Deposit - C1568," ANSTO, 2018.

"Plateau Energy Metals Falchani Lithium Trade-off Study Report," DRA, Perth, 2019.

ANSTO Minerals, "Optimisation of Sulfuric Acid Extraction of Lithium From The Macusani Deposit - C1630 DRAFT," ANSTO, 2019.

ANSTO Minerals, "PN1 Leach Tests American Lithium Phase III vs 2 (3_11_23)," ANSTO, 2023.

ANSTO Minerals, "ANSTO Report C1818_Plateau Energy Metals Alum Processing Phase II," ANSTO, 2023.

ANSTO Minerals, "C1667 Alum Processing Desktop Study and Preliminary Tests DRAFT 29.01.2020," ANSTO, 2023.

DRA Pacific, "Falchani Lithium Project NI 43-101Technical Report - Preliminary Economic Assessment" DRA, 2022.

DRA has also used various other information sources which are referenced where applicable in this report.

2.5 Qualified Persons

The DRA Qualified persons are:

• John Riordan, BSc, CEng, AuslMM, MIChemE, RPEQ
• Aveshan Naidoo, MEng, PrEng
• David Thompson, B-Tech, Pr Cert Eng, SACMA

The Stantec Qualified persons are:

• Derek J. Loveday, P. Geo.
• Mariea Kartick, P. Geo.

This PEA was prepared by, or under the supervision of, the Qualified Person(s) identified in Table 2-1.

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Table 2-1 Report Sections and Qualified Persons

Section #	Section Title	Qualified Person(s)
1	Summary	DRA - John Riordan Stantec - Derek Loveday Stantec - Mariea Kartick
2	Introduction	DRA - John Riordan Stantec - Derek Loveday Stantec - Mariea Kartick
3	Reliance on Other Experts	DRA - John Riordan
4	Property Description and Location	Stantec - Derek Loveday Stantec - Mariea Kartick
5	Accessibility, Climate, Local Resources, Infrastructure and Physiography	Stantec - Derek Loveday Stantec - Mariea Kartick
6	History	Stantec - Derek Loveday Stantec - Mariea Kartick
7	Geological Setting and Mineralization	Stantec - Derek Loveday Stantec - Mariea Kartick
8	Deposit Types	Stantec - Derek Loveday Stantec - Mariea Kartick
9	Exploration	Stantec - Derek Loveday Stantec - Mariea Kartick
10	Drilling	Stantec - Derek Loveday Stantec - Mariea Kartick
11	Sample Preparation, Analyses and Security	Stantec - Derek Loveday Stantec - Mariea Kartick
12	Data Verification	Stantec - Derek Loveday Stantec - Mariea Kartick
13	Metallurgy and Metallurgical Testing	DRA - John Riordan
14	Mineral Resource Estimates	Stantec - Derek Loveday Stantec - Mariea Kartick
15	Mineral Reserve Estimates	Stantec - Derek Loveday Stantec - Mariea Kartick
16	Mining Methods	DRA - David Thompson
17	Recovery Methods	DRA - John Riordan
18	Project Infrastructure	DRA - John Riordan
19	Market Studies and Contracts	DRA - John Riordan
20	Environmental Studies, Permitting and Social or Community Impact	DRA - John Riordan
21	Capital and Operating Costs	DRA - John Riordan DRA - David Thompson
22	Economic Analysis	DRA - Aveshan Naidoo
23	Adjacent Properties	Stantec - Derek Loveday Stantec - Mariea Kartick
24	Other Relevant Data and Information	DRA - John Riordan
25	Interpretation and Conclusions	DRA - John Riordan Stantec - Derek Loveday Stantec - Mariea Kartick
26	Recommendations	DRA - John Riordan Stantec - Derek Loveday Stantec - Mariea Kartick
27	References	DRA - John Riordan Stantec - Derek Loveday Stantec - Mariea Kartick

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2.6 Qualified Person Site Visit

Derek Loveday and Mariea Kartick authors and independent Stantec Qualified Personnel (QP) inspected the Property in May 2023. The QP's verified drill hole locations, and reviewed core, geological logs, and sample handling procedures.

A visit to site in January 2019 was attended by DRA's Val Coetzee. DRA's mining QP has not visited site visit but has reviewed all relevant reports and associated annexures. DRA was given full access to relevant data on the Project areas.

2.7 Financial Interest Disclaimer

Neither DRA, Stantec nor any of their agents or consultants employed in the preparation of this report have any beneficial interest in the assets of American Lithium Corporation.

2.8 Frequently Used Abbreviations, Acronyms and Units of Measure

Table 2-2 Abbreviations, Acronyms and Units of Measure

Abbreviation	Description
A	Ampere
AACE	AACE International
ALC	American Lithium Corporation
amsl	Above Mean Sea Level
ANSTO	Australian Nuclear Science and Technology Organisation
BCM	Bulk Cubic Metre
BG	Battery Grade
BMI	Benchmark Mineral Intelligence
BOO	Build Own Operate
°C	Degrees Celsius
Capex	Capital Expenditure
CIMM	Centro de lnvestigacion Minera y Metalurgica

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Abbreviation	Description
cm	Centimetre
CRM	Certified Reference Material
COC	Chain of Custody
COG	Cut-off grade
Cs₂SO₄	Cesium Sulfate
d	Day
d/y	Days per year
Datamine	Datamine Strat3DTM modelling software
DEM	Digital Elevation Model
DGAAM	General Directorate of Mining Environmental Affairs (Dirección General de Asuntos Ambientales Mineros)
DRA	DRA Pacific
EA	Environmental Evaluation
EBITDA	Earnings before interest, taxes, depreciation, and amortization
edds	electronic data deliverables
EIA	Environmental Impact Assessment
EIA-d	Detail Environmental Impact Assessment
EIA-sd	Semi-detail Environmental Impact Assessment
EIS	Environmental Impact Statement
EPC	Engineering, Procurement, Construction
EPCM	Engineering, Procurement & Construction Management
EREA	Environmental Regulation on Exploration Activities (020-2008-EM)
Falchani	Falchani Lithium Project
FEED	Front End Engineering and Design
FEL	Front End Loader
FS	Feasibility study
ft	Foot
GL	Giga liter
h	Hour
h/d	Hours per day
ha	Hectare
HV	High Voltage

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Abbreviation	Description
ICP-OES	Inductively Coupled Plasma Optical Emission Spectrometry
ICP-MS	Inductively Coupled Plasma Mass Spectrometer
IDW	Inverse-distance weighted algorithm
INGEMMET	Institute of Geology, Mining and Metallurgy
IPEN	Instituto Peruano de Energia Nuclear
IRR	Internal rate of return
IR	Impurity removal
IX	Ion exchange
J	Joule (energy)
k	Kilo or thousand
kg	Kilogram
km	Kilometre
kt	Kilo tonne (thousand metric tonne)
kW	Kilowatt (power)
kWh	Kilowatt hour
L	Liter
lb	Pounds
LC	Lithium Carbonate
LCE	Lithium Carbonate Equivalent
LCT	Locked Cycle Testwork
LIBS	Laser Induced Breakdown Spectroscopy
LoM	Processing Life of Mine - Total 43 years consisting of mining activity for 32 years plus 11 years treating low grade surface dumps
LV	Low voltage
m	Metre
M	Million
Mt	Million tonnes
m2	Square metre
m3	Cubic metre
MEM	Ministry of Energy and Mines (See MINEM)
MetSim	METSIM metallurgical modelling software
MCC	Motor control center

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Abbreviation	Description
MEG	Moment Exploration and Environmental Geochemistry Inc.
MINAM	Ministry of the Environment (Ministerio del Ambiente)
MINEM	Ministerio de Energía y Minas de Perú (See MEM)
mm	Millimetre
MM	Mineralized Material
m/h	Miles per hour
MPA	Macusani Project Area
MRE	Mineral Resource Estimate
MSP	Mixed Sulfate Product
Mst	Million std tonnes
Mt	Million tonnes (metric)
Mt/y	Million tonnes per year
MW	Megawatt
NPV	Net present value
OK	Ordinary kriging
OSINERGMIN	Supervisory Agency for Investment in Energy and Mining (Organismo Supervisor de la Inversión en Energía y Minas)
P80	80% passing size
PAMA	Program for Environmental Management and Adjustment
PEA	Preliminary Economic Assessment
PFS	Pre-Feasibility Study
PLS	Pregnant Leach Solution
PPM	Parts Per Million
PS	Process Start
QA/QC	Quality Assurance and Quality Control
QP	Qualified Person as defined in NI43-101
RC	Reverse Circulation drilling
RoM	Run-of-Mine
SIB	Stay in Business
SOP	Sulfate of Potash/ Potassium Sulfate/ K₂SO₄
RQD	Rock Quality Designation

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Abbreviation	Description
s	Second
SAP	Sulfuric Acid Plant
SENACE	National Environmental Certification Service for Sustainable Investments (Servicio Nacional de Certificación Ambiental para las Inversiones Sostenibles)
t	Tonne (metric)
t/d	Tonnes per day
t/h	Tonnes per hour
t/m3	Tonnes per cubic metre
t/y	Tonnes per year
TMI-RTP	Total Magnetic Intensity - Reduced to the Pole
TSF	Tailings Storage Facility
$	United States Dollar
$ M	United States Dollar - Million
$ B	United States Dollar - Billion
µm	Micrometre or micron
UNDP/IAEA	United Nation Development Programme/International Atomic Energy Agency
UTM	Universal Transverse Mercator
V	Volt
VAT	Value added tax
VSD	Variable speed drive
WAI	Wardell Armstrong International
WMSF	Waste Material Storage Facility
WRSF	Waste Rock Storage Facility
XRD	X-Ray Diffraction
XRF	X-Ray Fluorescence
y	Year or Years

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3 RELIANCE ON OTHER EXPERTS

The Qualified Persons have relied on expert opinions and information provided by American Lithium pertaining to environmental considerations, taxation matters and legal matters including mineral tenure, and surface rights.

With respect to Mineral Tenure (Section 4.2), Stantec has relied on information that has been provided by American Lithium. This information is believed to be correct to the best of the QP's knowledge and it would appear that no information has been intentionally withheld that would affect the contents of this report. It is noted that the QP has not interrogated the legal aspects of title or mineral rights for the properties and concessions and cannot therefore express a legal opinion as to the ownership status of the mining concessions. However, Stantec has interrogated the Peruvian national concession online registry administered by INGEMMET to confirm the validity and ownership of the Falchani project concessions by ALC subsidiaries.

For the purposes of Section 19 (Market Studies and Contracts) of this report, the Qualified Person has relied on information pertaining to market forecasts provided by Benchmark Minerals Intelligence as referenced within the section. The Qualified Person has reviewed the information provided by American Lithium and believes this information to be correct and adequate for use in this report.

For the purposes of Section 20 (Environmental Studies, Permitting, and Social or Community Impact) of this report the Qualified Person has relied on information provided by American Lithium as referenced within the section. The Qualified Person has reviewed the information provided by American Lithium and believes this information to be correct and adequate for use in this report.

For the purposes of Section 22 (Economic Analysis) of this report the Qualified Person has relied on information provided by American Lithium and other sources as referenced within the section, pertaining to taxation. The Qualified Person has reviewed the taxation information provided and believes it to be correct and adequate for use in this report.

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4 PROPERTY DESCRIPTION AND LOCATION 

4.1 Description and Location

Peru is divided into 24 "Departments", each of which is subdivided into provinces and districts or regions. The American Lithium concessions are located in the Carabaya Province which is a province of the Department of Puno in the south-eastern part of Peru. The Carabaya Province is divided into ten districts or regions. It is bounded to the north by the Madre de Dios Region, on the east by the Sandia Province, to the south by the provinces of Azángaro, Melgar and Putina and on the west by the Cusco Region. The capital of the province is Macusani. The people in the province are mainly indigenous citizens of Quechua descent. Quechua is the language which the majority of the population (84%) learn to speak from childhood, while 15% of the residents use the Spanish language and <1% communicate in Aymara.

Falchani is an exploration property located on the Macusani Plateau and falls within licenses held by Macusani Yellowcake S.A.C (Macusani Yellowcake), formerly Global Gold S.A.C, which is 100% controlled and 99.5% owned by American Lithium. American Lithium has a number of other exploration properties on the Macusani Plateau, which are primarily uranium exploration properties, and for which Mineral Resources have been declared. The combination of American Lithium' exploration properties on the Macusani Plateau is referred to as the Macusani Project Area (MPA). The locality of the Macusani Project Area (MPA) is shown in Figure 4-1, General Location Map. The portfolio comprises the amalgamation of those rights held by American Lithium along with along with six uranium Complexes. American Lithium owned concessions that include the lithium mineral resource outlined in Section 14 of the report is shown in Figure 4-2, Mineral Tenure Map.

The MPA is located approximately 650 km east southeast of Lima and about 220 km by road from Juliaca in the south. The town of Macusani is some 25 km to the southeast of the Macusani Plateau. The MPA covers a total area of 109,057 ha.

The survey reference system utilized for this report is Universal Transverse Mercator, Zone 19S, using the WGS 1984 datum, hereafter referred to as WGS84 UTM Zone 19S. The MPA concessions lie between the coordinates 320,000 and 340,000 East and 8,444,000 and 8,467,500 North.

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4.2 Mineral Tenure

4.2.1 Regulatory Mechanism

Mining in Peru is primarily regulated by national laws and regulations enacted by the Peruvian Congress and the executive branch of government. The principal legal framework on mining is set forth in the 1992 General Mining Law and its amendments to promote the development of the mineral resources of the nation. The mining sector is regulated by its Law and Regulations on Organization and Functions, pursuant to which the Ministry of Energy and Mines (MEM) was created. It is the principal government entity that, together with its various offices, departments, and agencies, is responsible for the mining sector in Peru. The MEM is a member of the executive branch of government and is responsible for putting in place specific policies and rules governing the matters in its jurisdiction, namely energy, hydrocarbon, and mining activities.

Investment promotion laws, the Peruvian tax regime and environmental framework are other components of the Peruvian mining landscape.  Concessions are granted for exploration, exploitation, beneficiation, auxiliary services, and transportation by the MEM. No concessions are required for reconnaissance, prospecting, or trading.

4.2.2 Property and Title

The general mining law defines and regulates different categories of mining activities according to stage of development (prospecting, exploitation, processing, and marketing). The ownership of mineral claims is controlled by mining concessions which are established using UTM coordinates to define areas of interest and measured in hectares. While the holder of a mining concession is protected under the Peruvian Constitution and the Civil Code, it does not confer ownership of land and the owner of a mining concession must deal with the registered landowner to obtain the right of access to fulfil the production obligations inherent in the concession grant. It is important to recognize that all transactions and contracts pertaining to a mining concession must be duly registered with the Public Mining Registry in the event of subsequent disputes at law.

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4.2.3 Environmental Regulations

The General Mining Law, administered by the MEM, may require a mining company to prepare an Environmental Evaluation (EA) Peru, an Environmental Impact Assessment (EIA), a Program for Environmental Management and Adjustment (PAMA) and a Closure Plan prior to mining construction and operation.

4.2.4 Granting of Mining Concessions

MEM grants mining concessions to local or foreign individuals or legal entities, through a specialized body called The Institute of Geology, Mining and Metallurgy (INGEMMET). A mining concession grants its holder the right to explore and exploit minerals within its area and the key characteristics include:

• Concessions are exclusive, freely transferable and mortgageable
• Location is in WGS84 UTM Zone 19S
• The aerial extent of concessions ranges from 100 ha to 1,000 ha
• Granted on a first-come, first served basis, without preference given to the technical and financial qualifications of the applicant
• With the exception of mining concessions granted within urban expansion areas, the term of a mining concession is indefinite but with restrictions and objective based criteria including payment of annual license fees of $3 per hectare. Failure to pay the applicable license fees for two consecutive years will result in the termination of the mining concession
• A single annual fee is payable; and
• Access to the property must be negotiated with surface landowners.

4.2.5 Work Program for Mining Concessions

A work program and expenditure schedule have to be presented in Year 7 of the life of a mining concession to the MEM and penalties are incurred for under expenditure.  By Year 12 of the life of a mining concession, it is expected that exploitation should be ongoing; if this is not the case, then justification has to be presented to the MEM and an extension of 6 years may be conferred (Henkle, 2014). The work program budget and expenditure defined in the "objective based criteria" for Macusani Yellowcake was approximately $3.8 m against a budget of $5 m.

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4.2.6 Mining Concession Description

The Mineral Resources in this report fall within four (4) mining concessions, as shown in Figure 4-2. Macusani Yellowcake is 100% controlled and 99.5% owned by American Lithium.

On February 20, 2019, INGEMMET issued Resolution No. 0464-2019-INGEMMET/PD (the "Resolution") declaring the expiration of the Ocacasa 4 concession, among others, citing the late payment of annual concession fees. The affected concessions are shown in Figure 4-2, and it is noted that the Falchani concession does not form part of the Resolution. The Resolution was upheld by MINEM in July 2019, through Resolution No. 363-2019-MINEM/CM (together with the Resolution, the "Admin Resolutions").

As the expiration of Ocacasa 4 was not issued through a court of law, Administrative Acts may be declared invalid within 2 years of the original issuance, through a legal process. In October 2019, the court in Peru admitted the "Demanda Contencioso Administrativa" (the "Contentious-Administrative Filing") submitted by Macusani, in adherence with the prescribed deadline (3 months) to commence the judicial process requesting annulment of the Admin Resolutions that cancelled the concessions and seeks to restore their validity and Macusani's legal title to the Concessions. 

As reported by American Lithium in November 2019, Macusani has been granted a "Medidas Cautelares", or "Precautionary Measure" with respect to 17 of these 32 concessions.  The Precautionary Measure provides for:

• Temporary suspension of the effects of the Resolution declared by INGEMMET
• Temporary suspension of the effects of the resolutions issued by MINEM which confirmed the resolution issued by INGEMMET
• Temporary suspension of the effects of the Presidential Resolution W/N issued by INGEMMET. dated October 3rd, 2018, that declared inadmissible the accreditation of the payments for the 32 mining concessions, and
• Temporary restoration of the validity and ownership of the 32 mining concessions.

American Lithium has further reported that a Precautionary Measure was granted for the remaining 15 concessions, including Ocacasa 4, on March 2, 2021. The Contentious-Administrative proceedings potentially has three phases and could last for between 36 and 78 months. A total of 6 judicial rulings on the 32 concessions have been decided in Plateau's favor, and American Lithium continues pursuing both judicial and administrative remedies. If ALC does not obtain a successful resolution to these proceedings, Macusani's title to the Ocacasa 4 concession could be revoked and ALC would not be able to proceed with the Base Case.

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Table 4-1 Falchani Mineral Resource Mining Concessions

Concession Number	Owner/ Title	Date	Area (Ha)
010320205	MACUSANI YELLOWCAKE S.A.C	13/10/2023	700
010076505	MACUSANI YELLOWCAKE S.A.C	28/3/2023	500
010078105	MACUSANI YELLOWCAKE S.A.C	29/3/2023	600
010215005	MACUSANI YELLOWCAKE S.A.C	11/7/2005	1,000

4.2.7 Conclusions and Limitations

The parts of the Falchani Project which fall within the Falchani concession lie within a valid and secure mining concession. There have been changes to the mineral tenure circumstances of Ocacasa 4 when compared to that reported in the 2019 Technical Report. These changes have required the QP to consider if the reporting of Mineral Resource estimates within the Ocacasa 4 concession remains appropriate.

The effect of the Precautionary Measure is that Macusani maintains the validity and ownership of 17 of the 32 mining concessions as they were prior to the issuance of the INGEMMET resolutions, until all administrative and judicial remedies have been exhausted. An identical Precautionary Measure was granted for the remaining 15 concessions, including Ocacasa 4, on March 2, 2021. Furthermore, American Lithium maintains that the concession payments were valid, on time, in accordance with the "General Mining Law" and that there is a reasonable prospect for a permanent resolution, either through judicial or administrative processes. Most recently, on November 15, 2023, 2023, a three-judge tribunal of Peru's Superior Court SALA 4 specialized in administration disputes has unanimously upheld the ruling of the lower court judge from Court SALA 6 from November 2, 2021, in favor of Macusani Yellowcake in relation to title over 32 disputed concessions out of 172 owned by Macusani Yellowcake. The Court ruling, consistent with prior legal proceedings, clearly establishes that Macusani is the rightful owner of these concessions and highlights that the action launched by INGEMMET and MINEM in October 2018 was baseless and unsubstantiated. INGEMMET and MINEM have one final opportunity to petition the Supreme Court of Peru to consider the tribunal's ruling based on legal arguments, which have been exhausted. American Lithium believes the Supreme Court will not accept any petition of the lower courts' rulings. American Lithium, and its subsidiaries, have a demonstrated track record of managing the mineral tenure for a number of projects in Peru over several years. On this basis, the QP considers it reasonable to still report the estimates within Ocacasa 4 as Mineral Resources.

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Stantec has restricted its review of the Mining Concession held by Macusani Yellowcake to checking the individual license boundaries on plans against those depicted on the mining concession outputs from the MEM. No legal reviews of the validity of the process Macusani Yellowcake went through to obtain the mining concessions have been undertaken, nor has an attempt been made to understand the various company structures and ownerships prior to transfer to Macusani Yellowcake.

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Figure 4-1 General Location Map

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Figure 4-2 Mineral Tenure Map

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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 Accessibility to Site

The MPA is located approximately 650 km east south-east of Lima and about 220 km by road from Juliaca to the south. The nearest towns to the MPA are Macusani (25 km to the south-east) and Corani (14 km to the north-west).

The Interoceanica Highway (IH) is a system of tarred/sealed roads that link the ports of Materani, Molendo and Ilo on the west coast of Peru over the Andes Mountains to the west side of Brazil. The IH passes within 10 km to 15 km to the east of the MPA. Two unpaved roads connect the Project to the IH and other unpaved roads, generally in good condition, connect the various sites within the MPA to one another. These roads are accessible during the dry season in two-wheel drive vehicles and during the wet season in four-wheel drive vehicles.

The closest airport to the MPA is located at Juliaca. The facility is in good condition and services daily flights from Lima and Cusco.

5.2 Access to Land

The issue of land tenure is of increasing significance in Peru, particularly as the national cadastral system for agricultural land ownership is not always accurate due to many rights over private land not being registered. Peruvian law does not vest surface rights with mineral rights and any proposed development requires the developer to purchase the surface rights or negotiate an appropriate access agreement with the surface rights owners to have access to the property.

At present the company has working agreements ("convenios") with the following communities within the MPA: Chaccaconiza, Isivilla, an independent Cooperative (Imagina), Quelccaya and various independent small land holders. The working agreement with the community of Quelccaya is valid until July 2020. Until sanctioned otherwise, the agreement with the Cooperative and the small land holders is open ended and based on the progress achieved by exploration. The agreement with the communities of Chaccaconiza and Isivilla have expired and are being renegotiated. Short-term agreements and subsequent renewals are the model under which ALC has been working with its host communities for the past 15 years. The Company is in constant dialogue with all of its host communities in the MPA as part of its continuity of community relations programs and does not foresee any issues with subsequent renewals when the time comes.

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5.3 Climate

The climate on the Macusani Plateau is characterized by two distinct seasons - the wet season (which starts in September but peaks from January to April) and the dry season (May to September). The rainy season is controlled by tropical air-masses and the dry winters by subtropical high pressure.

While the exposed eastern slopes of the Andes receive more than 2,500 mm of rain annually, the average rainfall for the Carabaya Province varies between 600 mm to 1,000 mm. The period between May and August is characterized by very dry conditions and cold nights. Significant electrical storm activity is common in the wet season and moisture falls in the form of rain, hail and, occasionally snow.

Temperatures range from 19°C in November to -10°C in July. While temperatures are mild, high ultraviolet readings are common in the middle of the day. These climatic conditions and the altitude dictate that the area is vegetated by coarse scrub and grasses.

5.4 Local Resources

Peru has a robust mining economy with many operations exploiting copper, gold, iron ore, lead, molybdenum, rhenium, silver, tin and zinc, as well as industrial minerals and mineral fuels (coal, natural gas and crude oil). Founded on this mining culture, it is thus reasonable to assume that a workforce consisting of skilled and semi-skilled people could be sourced for the Project.

5.5 Infrastructure

The San Gaban II hydro generation station is approximately 40 kms (88 km via the IH) to the north of the MPA and high voltage power lines run adjacent to the MPA. In order for a grid connection to be made an extension of the power line will be required to reach the project site and any connection will be subject to negotiation with the supply authority. These matters will need to be taken into account as the project progresses.

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At this time, the supply of water is derived from local river courses. In its 2014 Preliminary Economic Assessment (PEA) for Plateau Energy Metals' uranium projects, GBM Mining Engineering Consultants Limited (GBM) was of the view that the area has access to sufficient water resources for the purposes of mining operations (Short et al, 2014).

5.6 Physiography

The Macusani Plateau is part of the relatively flat Altiplano of the Eastern Cordillera of the Andes Mountain Range, except where incised narrow canyons exist with a relief of up to 250 m. The canyon walls are steep with slope angles up to 60°, with some sections being vertical. The elevation of the Plateau ranges between 4,330 m and 4,580 m above mean sea level.

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6 HISTORY

6.1 Introduction

The Falchani Property is situated within what is largely known as the Macusani Project Area (MPA) (Riordan et al., 2020). Historical ownership and exploration are described below. There is no record of mining activity within or adjacent to the Falchani Property.

6.2 Ownership History

6.2.1 Uranium Price Fluctuations

To a large extent, the cyclical nature of uranium exploration on the Macusani Plateau has been driven by the fluctuating price of the commodity since the mid-1980s. During the collapse of prices in the 1980s and in the wake of the Three Mile Island accident, there was little incentive for exploration and mining companies to explore for uranium. However, the uranium prices experienced a spectacular rise between 2001 and 2008 during which time junior mining companies mobilized their campaigns by staking properties over prospective ground. Amongst these early explorers was Vena Resources Inc (Vena) who acquired seven concessions in the Macusani Plateau as well as additional concessions elsewhere in Peru (Henkle, 2011). In 2006, Vena commenced scintillometer prospecting, radon, and surface outcrop mapping over various IPEN uranium showings.

Global interest in uranium declined in the wake of the Global Economic Crisis of 2008/2009 and, more so, in the aftermath of the Fukushima Daiichi nuclear disaster in March 2011.

6.2.2 Macusani Yellowcake 

Macusani Yellowcake Inc. was a Canadian uranium exploration and development company focused on the exploration of its properties on the Macusani Plateau. The Company was incorporated in November 2006 and was created through the amalgamation of privately held Macusani Yellowcake Inc. and Silver Net Equities Group, a TSX Venture Capital pool company. The Company owns a 99.5% interest in the Peruvian concessions through Global Gold S.A.C. Macusani has been actively exploring in the Macusani area since 2007.

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6.2.3 The Cameco-Vena Joint Venture

In 2007, Cameco Corporation (and its wholly owned subsidiary Cameco Global Exploration Limited (Cameco)) entered into a joint venture with Vena with the objective of jointly exploring for uranium in Peru. Minergia S.A.C was formed as the joint venture vehicle, with Cameco providing the funding and Vena undertaking the exploration management. The ownership was founded on 50% shareholding in favor of each party. The combined portfolio covered an area of 14,700 ha. The details of this transaction are summarized by Henkle (2014).

6.2.4 Azincourt buys Minergia

During November 2013, Azincourt Uranium announced that it had entered into a definitive share-purchase agreement with joint-venture partners Cameco and Vena to acquire full ownership of the resource-stage Macusani and other exploration projects. In January 2014, Azincourt announced that the acquisition of Minergia S.A.C. had been completed.

6.2.5 Macusani purchases Minergia

Macusani Yellowcake Inc. and Azincourt Uranium Inc. announced in September 2014 that they had completed the acquisition by Macusani of Azincourt's adjacent uranium properties located on the Macusani Plateau. Under the terms of the transaction, Macusani acquired 100% of Azincourt's Peruvian subsidiary, Minergia S.A.C. Arising from this transaction, there was a consolidation of mining concessions within the MPA.

6.2.6 Macusani changes name to Plateau Uranium Inc.

On April 30, 2015, Macusani Yellowcake Inc. changed its name to Plateau Uranium Inc. Young (2015) reported consolidated uranium Mineral Resources estimates for six mineral Complexes that fell under the Plateau Uranium umbrella. In May 2016, the Mineral Resources for two of the Complexes (Kihitian and Isivilla) were updated to include lithium and potassium (Stantec, 2016).

6.2.7 Plateau Uranium Inc. changes name to Plateau Energy Metals Inc.

In March 2018, Plateau Uranium Inc. changed its name to Plateau Energy Metals.

6.2.8 American Lithium Corp. Acquires Plateau Energy Metals

In April 2021, ALC, a Vancouver based TSX Venture listed company with lithium assets in the USA, acquired Plateau Energy Metals Inc.

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6.3 Previous Regional Exploration

6.3.1 Instituto Peruano de Energia Nuclear

In 1975, the uranium and nuclear activities in Peru were placed under the control of the Instituto Peruano de Energia Nuclear (IPEN). A five-year exploration plan (1976-1981) was initiated with the aim of identifying and developing resources in the country. The Macusani East area was the most studied area in southern Peru by IPEN. After IPEN discovered the first 60 uranium showings in 1978, systematic radiometric prospecting and trenching were carried out over an area of approximately 600km2, culminating in the discovery of numerous additional uranium showings (Young, 2013).

6.3.2 UNDP/IAEA

From mid-1977, a long-term United Nation Development Programme/International Atomic Energy Agency (UNDP/IAEA) project was initiated consisting of regional reconnaissance over selected areas. The results of most of the work were negative except for those from a car-borne radiometric survey of the Puno Basin where a significant discovery was made near Macusani in the southern Cordillera Oriental, north of Lake Titicaca. Anomalies were found in the volcanic and interbedded sediments of the Upper Tertiary age Macusani volcanics and the Permian age Mitu Group (Young, 2013).

In the same exploration phase, additional anomalies were located to the SSW near Santa Rosa in Tertiary age porphyritic rhyolites and andesites.

These (and other discoveries in the Lake Titicaca region) concentrated the exploration in the area. A helicopter spectrometric survey of selected areas was completed in 1980 in Muñani, Lagunaillas and Rio Blanca as an IAEA/IPEN Project and a fixed wing survey was completed in an adjacent area by IPEN. Numerous uranium anomalies were discovered.

In 1984, the Organization for Economic Co-operation and Development's Nuclear Energy Agency and the IAEA sponsored an International Uranium Resources Evaluation Project Mission (IUREP, 1984) to Peru. The mission estimated that the Speculative Resources of the country fell within the range of 6,000 to 11,000 t of uranium.

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6.4 Property Exploration

Two diamond drilling campaigns were undertaken at the Falchani Project. The first campaign was initiated in 2017, and the second program continued to the end of December 2018. In total, 51 drillholes were drilled by Macusani Yellowcake, from 15 drilling platforms. The total drilled length was 14,816 m with a total of 9,102 samples, excluding QAQC control samples. Due to drill access limitations, the drilling was mainly undertaken from a series of platforms, with anything from two to nine drillholes being drilled radially from each platform (Nupen, 2019, Riordan et al., 2020).

For the 2017-2018 drilling programs, sample preparation was done on site at a mobile field station which was located close to the drill rigs and periodically re-located. Once logged and photographed, the entire core identified for sampling was placed into a sampling bag. The pre-marked aluminum tag was stapled to the sample bag.  Sample depths were recorded together with a basic geological description on a sampling reconciliation log which was later entered digitally.  Quality control samples in the form of standards were inserted at the permanent field office located in the village of lsivilla. These standards were prepared by Macusani Yellowcake and certified by ALEPH Group & Asociados S.A.C. Metrologia de las Radiaciones (Radioactivity Measuring Techniques) by having check analyses of the standards completed at CERTIMIN SA (CERTIMIN), which was previously known as the Centro de lnvestigacion Minera y Metalurgica (CIMM), laboratory in Lima (Nupen, 2019, Riordan et al., 2020).

Plateau Energy Metals conducted a surface sampling program in April 2018. A total of 181 samples were collected and analyzed for lithium.

6.5 Historic estimates

Two prior estimates have been documented for the Falchani Property. In 2018, by The Mineral Corporation (TMC) (Nupen, 2018) for Plateau Energy Metals Inc. In 2019, TMC updated their estimates (Nupen, 2019) for Plateau Energy Metals Inc. Table 6-1 shows the 2018 historical estimates and Table 6-2 shows the 2019 historical estimates.

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Table 6-1 2018 Historic Estimates (Nupen, 2018)

Li (ppm) grade cut-off of 1,000 Li (ppm) applied

Li Conversion Factors as follows: Li:Li2O=2.153; Li:Li2CO3=5.323; Li2O:Li2CO3=2.473

Table 6-2 2019 Historic Estimates (Nupen, 2019)

Li (ppm) grade cut-off of 1,000 Li (ppm) applied

Li Conversion Factors as follows: Li:Li2O=2.153; Li:Li2CO3=5.323; Li2O:Li2CO3=2.473

To generate the estimates presented in Table 6-1 and Table 6-2, TMC modelled the deposit using the drillhole data contained in Plateau Energy Metals Microsoft Access database, Google Earth™ generated topography and Datamine Studio™ Software. For the estimates ordinary kriging was undertaken for lithium grades, into a block model using estimation parameters supported by semi-variograms generated from drillhole grade data. The QP is of the opinion that TMC's approach in generating the historic estimates shown in Table 6-1 and Table 6-2 follows general best practice. However, since 2019 additional exploration drilling has been completed Property and lithium market price projects have changed. These are material to the Project as demonstrated in Section 14, Mineral Resource Estimates.

The Authors have not done sufficient work to classify these historical estimates as current mineral resources and the issuer is not treating the historical estimate as current mineral resources.

6.6 Mining Studies

In 2020, a Preliminary Economic Assessment (PEA) was completed by DRA Pacific (Riordan et al., 2020) for Plateau Energy Metals Inc. A preliminary open pit Whittle optimization and conceptual production schedules were completed to support the PEA Study. Open pit mining was planned to use conventional truck and shovel mining methods with drill and blasting to break the rock mass into manageable particle sizes. The Base Case open pit design contained 145 Mt (LoM) of mineralized material with an average Li grade of 3,338 ppm. The stripping ratio is low at 0.97:1, waste t to mineralization t, and the total waste mined is 142 Mt. The annual mining schedule was developed based on maximum ramped up mill feed of 6 Mt/y, (≈16,500 t/d). The life of the mine of this Project was approximately 33 years producing a battery grade Li₂CO₃ product using sulfuric acid leaching and purification processes for an overall recovery of 80% from mineralized material.

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The 2020 PEA was preliminary in nature and included Inferred historic estimates (Nupen, 2019) that are considered too speculative geologically to have the economic considerations applied to them. There have been no prefeasibility study or feasibility studies completed for the Falchani project. Accordingly, at the present level of development, there are no Mineral Reserve estimates for the Falchani project.

6.7 Mineral Processing and Metallurgical Testing

Past mineral processing and metallurgical testing is well documented by Riordan et al. (2020). A substantial body of metallurgical test work has been carried out on the Falchani lithium-bearing tuff material. The test work referenced was carried out by Tecmmine in Peru (prior to 2018) and test work carried out in 2018 and 2019 was completed by Tecmmine and ANSTO Minerals in Australia. Both the Tecmmine and ANSTO test work was carried out on the lithium rich tuff obtained from a trench on site. The test work supported a number of technically viable process flowsheet routes, namely: hydrochloric acid leaching, salt roast, sulfation baking, pressure leaching, purification processes.

For the 2020 PEA (see section 6.7), a flowsheet using atmospheric leaching in a sulfuric acid medium, followed by downstream purification processes, was selected for the production of battery grade lithium carbonate. The early focus of the acid leach process was on maximizing the extraction of lithium using aggressive leach conditions and the later work focused on optimizing the leach parameters and confirming inputs to the process design criteria. The process flow sheet was developed by DRA, working with ANSTO Minerals (ANSTO) and with input from M.Plan International Limited.

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7 GEOLOGICAL SETTING AND MINERALIZATION

7.1 Introduction

The American Lithium concessions are located in the Carabaya Province, Puno Department of south-eastern Peru in the Andes. The Andes are a geographical feature formed by active mountain building processes driven by plate tectonics.

7.2 Regional  Geology

A common geological feature of orogenic belts is that they are usually structurally and stratigraphically complex. In the Puno region of Peru, mainly Paleozoic sediments (520-250 Ma old) that were formed on the western Brazilian Craton have been highly deformed by thrusting and folding due to the westward movement of the South American tectonic plate (Brazilian Craton) over-riding the Pacific tectonic plate (Nazca Plate) along the western margin of the Americas over the last ±150 Ma. This occurred during the Pangean breakup (~ 200 Ma) which coincided with rifting between the Eurasian and African plates relative to the Americas plates. The main regional geological units and physiographic features are shown in Figure 7-1, Regional Geology Map. The Oceanic Trench as shown in Figure 7-1 forms the western margin of the South American plate.

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Figure 7-1 Regional Geology Map

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The tectonic history has led to the older sediments being bounded by westward dipping thrusts, intense folding and intrusions of dykes, batholiths and being affected by volcanic activity at various times (Henkle, 2014). The Andes represents a large anticlinorium complicated by a series of faults and intrusions, with the flanks of this superstructure made up of the coastal Mesozoic and eastern Paleozoic belts. The Andes represent the Late Tertiary and Quaternary rejuvenation by block faulting of an eroded, early Tertiary folded mountain range which occupied the axis of Paleozoic and Mesozoic geosynclines. Topographically the mountains consist of a central dissected plateau, the Intermontane Depressions and Altiplano enclosed by narrow ranges, the Western Cordillera and the Eastern Cordillera as depicted in Figure 7-1.

7.3 Local Geology

7.3.1 Mineral Occurrences

Lithium mineralization at Falchani is hosted in an ash-flow tuff named Lithium Rich Tuff (LRT) and volcanoclastic breccias (Upper and Lower Breccia) that bound the LRT. Lithium mineralization is also observed in the basal Coarse Felsic Intrusion which is interpreted to be a stratiform felsic intrusion underlying the above lithium host rocks. These lithologic units are interpreted to be a part of the Sapanuta Member as shown in Figure 7-2, Local Geology Map. North-South (N-S), northwest (NW), and southwest (SW) trending faults are also interpreted on Figure 7-2 and discussed further below.

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Figure 7-2 Local Geology Map

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7.3.2 Structural Geology

Due to extensive pre-Andean orogenic deformation and active tectonic activity the structural geology of the Andes region is complex. The Falchani project is located within a structural deformation zone called the Macusani Structural Zone (MSZ) which is a sub-section of the Eastern Cordillera as shown in Figure 7-3, Macusani Structural Zone.

The MSZ is characterized by extensional structures that were active during Triassic rifting and later re-activated as compressional structures during Andean mountain building processes. Due to these pre-existing rift structures, the MSZ is dominated by N-S, northeast-southwest (NE-SW), and north-northwest-south-southeast (NNW-SSE) trending faults and folds (Perez, 2016). Much of the historic research on structural deformation near Falchani has focused on thick and thin-skinned tectonics affecting pre-Andean Palaeozoic rocks, and less on structural deformation affecting Cenozoic volcanic rocks. The MSZ is bounded to the south by the northwest trending re-activated Triassic San Anton normal-fault and to the north by the northwest trending Cenozoic Cordillera de Carabaya backthrust which has uplifted the MSZ as shown on Figure 7-3. Due to the active tectonic mountain building processes of the Andes, the MSZ has likely undergone more recent extension resulting in normal offset of the Cenozoic extrusion intrusive rocks that host the lithium mineralization at Falchani (Cheilletz A et al., 1992).

A detailed study of the structural geology affecting Cenozoic deposits in and around the Falchani area is warranted to better understand subsurface geology and mineralization.Figure 7-4, Fault Evidence and the Macusani Volcanic Field, shows potential fault traces as interpreted from imagery generated from the 2023 LiDAR survey.

As shown in Figure 7-4, there are N-S, NW, and SW trending topographic lows which are indicative of structural weakness. Also shown in Figure 7-4, are offset outcrop patterns that are present within the Falchani project area. The trends of the observed topographic lows bounded by steep topographic highs align with the well-studied structural trends observed in the MSZ.

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Figure 7-3 Macusani Structural Zone

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Figure 7-4 Fault Evidence and the Macusani Volcanic Field

7.4 Property Geology

Lithium mineralization within the Falchani Project is hosted in shallowly dipping acidic tuffs, with pyroclasts from sub-macroscopic to 60 mm in size. These volcanic rocks are contained within the Macusani Volcanic Field (MVF) shown in Figure 7-4 and described further by Torro et al. 2022.  Primary minerals constituting the tuff are quartz, orthoclase, and plagioclase in a groundmass of amorphous glass. Crude bedding is evident in some outcrops and is based on strata containing larger and smaller pyroclasts. The petrography of the samples analysed by Thatcher (2011) indicate that the acidic volcanics (crystal lapilli tuffs) may contain varying rock type compositions ranging from rhyolite to dacite to latite which supports the likely presence of stratigraphic layering of the volcanic pile as noted in Section 7.2.1 and by Cheilletz et al (1992).

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Limited mineralogical work has been undertaken by SGS Canada on samples from the Falchani Project, and the understanding of the stratigraphy has evolved through exploration mapping and drilling programs. In the immediate vicinity of the boreholes drilled at Falchani, the youngest rocks appear to be classified by Plateau Energy Metals as the Upper Rhyolite. The Upper Rhyolite forms prominent outcrops, demonstrates crude bedding, and is shallowly dipping to the north-northeast. Outcrops of the Upper Rhyolite demonstrate similar appearance to the acidic tuffs of the Yapamayo and Sapanuta Members of the Quenamari Formation, which host nearby uranium mineralization.

Below the Upper Rhyolite is the Upper Breccia, which separates the Upper Rhyolite from the Lithium Rich Tuff (LRT). The Upper Breccia is not well defined in outcrop but is very distinctive in core. Figure 7-5, Upper Breccia and LRT Contact in Core, shows the contact between the Upper Breccia and the LRT. The Upper Breccia contains angular clasts of volcanic material, in a very fine groundmass (Figure 7-5- top). The LRT is a light grey to white, very fine-grained rock, with prominent layering (Figure 7-5- bottom).

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Figure 7-5 Upper Breccia and LRT Contact in Core

The contact between the LRT and the Lower Breccia is less marked than the Upper Breccia. The Lower Breccia has been identified in outcrop in the Tres Hermanas trenches and has been interpreted from drilling. Below the Lower Breccia is Coarse Felsic Intrusion (CFI), another lithium mineralized basement lithological unit.

The thickness of the Upper Breccia varies from 10 m to 20 m, while the thickness of the Lithium-rich Tuff varies in drilling from 50 m to 140 m. The Lower Breccia unit varies in thickness. Recent drilling further demonstrates that the Lower Breccia unit may reach thicknesses of up to 175 m and contains large (up to 20 m intercept lengths) blocks of Lithium-rich Tuff. The CFI below the Lower Breccia extends beyond the limits of the modelled resource and has been intersected by 28 drillholes with the max depth of 407 m in drillhole PZ01-TV3. The CFI is interpreted to have a higher density of 2.7 g/cm3 in comparison to the upper mineralized zones. The density has been determined based on the similarity to that of analogous igneous intrusive rock types such as andesite and granite (www.geologyscience.com).

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The lithologic units and structures described above are displayed in two (2) cross sections (A-A' and B-B') as shown in Figure 7-6 Geologic Cross Section A-A' and Figure 7-7 Geologic Cross Section B-B'.

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Figure 7-6 Geologic Cross Section A-A'

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Figure 7-7 Geologic Cross Section B-B'

7.5 Mineralization

The general dimensions of the mineralized zone at Falchani covers an area approximately 3,300 m wide by 2,440 m long extending from outcrop to a maximum modelled depth of approximately 1000 m below surface. The mineralization is continuous from surface to depth. The highest and most consistent lithium grades occur in the Lithium Rich Tuff. The basement mineralized coarse felsic intrusion has a known depth of 400 m from drillhole intercepts, however the maximum thickness of the unit is still unknown

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8 DEPOSIT TYPES

Increased global demand for Battery Electric Vehicles (BEVs) and electronic devices requiring lithium-ion batteries has increased exploration efforts for discovering economic Li deposits. There are currently 124 known Li-bearing minerals, of which, nine (9) are economically important. The three (3) principal deposit types hosting economic quantities of Li are pegmatite deposits, volcanic clay deposits, and brine deposits (Bowell et al. 2020). Li bearing pegmatites occur globally and often contain other important rare metals (London 2008, Bradley et al. 2017). Li-bearing volcanic clay deposits are spatially related to rhyolitic volcanic rocks. Of the different type of volcanic clay deposits, Falchani is considered to a be hydrothermally altered ion-clay deposit hosted within lacustrine volcanoclastic and rhyolitic tuff rocks. The origin and formation of these deposits is heavily debated still. (Bowell et al. 2020). Lithium rich brines are formed through the chemical weathering of volcanic lithium bearing rocks by hydrothermal fluids usually restricted to basins in areas of high evaporation, forming lithium carbonate minerals such as zabuyelite. Prior technical reports have also proposed that the Li-bearing volcanic tuff is interpreted to have been deposited sub-aerially, and the transitional Li-bearing breccias are interpreted to have been deposited within a crater lake volcano-sedimentary environment (Nupen 2019, Riordan et al., 2020).

Close to 70% of the world's lithium resources are situated in the borders of Chile, Bolivia and Argentina (Lithium Triangle) area, but these deposits only account for 40% of global Li production (Bowell et al 2020). The Lithium Triangle contains the largest brine source lithium deposits such as Salar de Atacama, Sala de Uyuni and Salar de Hombre Muerto (Nupen 2019). While pegmatite deposits account for approximately 60% of global Li production, more focus is being directed to exploration and development of Li volcanic clay deposits (Bowell et al 2020).

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9 EXPLORATION

The section summarizes exploration that has occurred since the previous Technical Report (Nupen, 2019, Riordan et al., 2020). Prior exploration is summarized in Section 6.

Exploration was initiated at the Falchani Project as a result of an observed radiometric anomaly. In 2018 Plateau Energy Metals undertook surface sampling and collected 181 field grab samples, which were analyzed for lithium. Between 2017 and 2018 Plateau Energy Metals conducted a drilling campaign of 51 diamond drill holes for a total drilling length of 14,816 m. Due to drill access limitations, the drilling was mainly undertaken from a series of platforms, with anything from two to nine drillholes being drilled radially from each platform, shown in Figure 9-1 Drilling Configuration. The platform spacing resulted in mineralized zone intersection separation distances ranging from 50 m to up to 200 m. Results from this exploration was incorporated into a MRE in 2019 (Nupen, 2019).

Recent exploration by American Lithium at Falchani include a LiDAR survey of the property, and additional drilling of 15 piezometer core holes in 2022-23. The core holes were analyzed for lithium and the potential of byproducts cesium, rubidium, and potassium. Details on the 2022-2023 drilling is found in Section 10.

A drone-based laser imaging detection and ranging (LiDAR) Survey was flown by Global Mapping S.A.C. during April 2023. The results of this survey were used in the building of the geologic resource model described in Section 14.

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Figure 9-1 Drilling Configuration

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10 DRILLING PROGRAM

10.1 Drilling methodology

A combination of diamond core holes and piezometer holes have been drilled on the Falchani Property. Drilling began in 2017 and is planned to continue in the next few years. The previous technical report's (Riordan et al., 2020; Nupen, 2019) drill hole database included holes from the 2017 and 2018 drilling campaigns and consisted of 52 diamond core holes totaling a length of 14,816 m. For this Technical Report update, an additional 15 piezometer drill holes were completed for a total of 67 drill holes used to define the mineral resource estimate as outlined in Section 14.

The additional 15 holes were completed by American Lithium owned drill rigs with local contract personnel. The 15 vertical piezometer holes were drilled from 10 platforms for a total length of 3,075 m.Table 10-1 shows the list of all drill hole locations used within the model with their details on year, depth, and type. Figure 10-1, Drill Hole Location Map, shows the locations of the holes listed in Table 10-1.

Table 10-1 Drill Hole Locations, Inclination and Depth

Hole Name	Drilling Campaign	Easting	Northing	Elevation (m)	Depth (m)	Dip	Azimuth
PCHAC 01-TNE	2017-18	319,729	8,451,374	4,755	183	-55	55
PCHAC 01-TNW	2017-18	319,729	8,451,374	4,755	146	-55	355
PCHAC 01-TSE	2017-18	319,729	8,451,374	4,755	119	-60	130
PCHAC 01-TSW	2017-18	319,729	8,451,374	4,755	83	-55	265
PCHAC 01-TSW1	2017-18	319,732	8,451,372	4,754	261	-55	215
PCHAC 01-TV	2017-18	319,729	8,451,374	4,755	133	-90	180
PCHAC 01-TV1	2017-18	319,732	8,451,372	4,754	178	-90	0
PCHAC 02-TSE	2017-18	319,875	8,451,465	4,738	192	-60	135
PCHAC 02-TV	2017-18	319,875	8,451,465	4,738	202	-90	0
PCHAC 03-TE	2017-18	319,852	8,451,253	4,748	149	-60	90
PCHAC 03-TSW	2017-18	319,852	8,451,253	4,748	158	-55	230
PCHAC 03-TV	2017-18	319,852	8,451,253	4,748	159	-90	0
PCHAC 04-TV	2017-18	319,748	8,451,643	4,764	269	-90	90
PCHAC 05-TV	2017-18	320,134	8,451,868	4,718	239	-90	0
PCHAC 06-TE	2017-18	319,712	8,452,003	4,718	131	-60	90

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Hole Name	Drilling Campaign	Easting	Northing	Elevation (m)	Depth (m)	Dip	Azimuth
PCHAC 06-TN	2017-18	319,712	8,452,003	4,718	107	-60	0
PCHAC 06-TV	2017-18	319,712	8,452,003	4,718	104	-90	0
PCHAC 07-TNE	2017-18	319,789	8,452,212	4,727	246	-90	0
PCHAC 07-TV	2017-18	319,794	8,452,221	4,725	302	-90	0
PCHAC 08-TNE	2017-18	319,540	8,451,445	4,740	264	-70	55
PCHAC 08-TV	2017-18	319,540	8,451,445	4,740	88	-90	0
PCHAC 09-TNW	2017-18	319,641	8,451,679	4,755	309	-55	325
PCHAC 09-TV	2017-18	319,641	8,451,679	4,755	224	-90	0
PCHAC 10-TV	2017-18	319,504	8,452,028	4,718	143	-90	0
PCHAC 11-TSW	2017-18	320,167	8,452,361	4,688	244	-90	0
PCHAC 12-TV	2017-18	318,853	8,451,298	4,758	175	-90	0
PCHAC 12-TW	2017-18	318,853	8,451,298	4,758	148	-55	270
PCHAC 13-TV	2017-18	318,900	8,451,499	4,747	143	-90	0
PCHAC 13-TW	2017-18	318,900	8,451,499	4,747	174	-55	270
PCHAC 14-TV	2017-18	318,992	8,451,753	4,700	179	-90	0
PCHAC 14-TW	2017-18	318,992	8,451,753	4,700	401	-55	270
PCHAC 16-TNE	2017-18	319,932	8,451,674	4,754	213	-60	45
PCHAC 16-TV	2017-18	319,932	8,451,674	4,754	211	-90	90
PCHAC 17-TV	2017-18	320,012	8,451,552	4,729	187	-90	0
PCHAC 19A-TS	2017-18	319,810	8,451,060	4,738	59	-55	245
PCHAC 19A-TV	2017-18	319,810	8,451,060	4,738	42	-90	0
PCHAC 19-TV	2017-18	319,908	8,450,966	4,720	157	-90	0
PCHAC 23-TV	2017-18	319,946	8,451,065	4,698	210	-90	0
PCHAC 25-TV	2017-18	319,326	8,452,171	4,627	42	-90	0
PCHAC 29-TN	2017-18	319,552	8,452,104	4,696	224	-60	360
PCHAC 29-TV	2017-18	319,552	8,452,104	4,696	255	-90	0
PCHAC 30-TSW	2017-18	319,938	8,451,940	4,745	227	-55	250
PCHAC 30-TV	2017-18	319,938	8,451,940	4,745	222	-90	0
PCHAC 32-TNW	2017-18	318,562	8,451,416	4,802	122	-55	315
PCHAC 32-TV	2017-18	318,562	8,451,416	4,802	71	-90	0
PCHAC 32-TW	2017-18	318,562	8,451,416	4,802	114	-55	270
PCHAC 33-TV	2017-18	318,698	8,451,613	4,727	342	-90	0
PCHAC 33-TW	2017-18	318,698	8,451,613	4,727	246	-55	270
PCHAC 36-TV	2017-18	318,297	8,451,635	4,804	74	-90	270
PCHAC 36-TW	2017-18	318,297	8,451,635	4,804	174	-55	270

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Hole Name	Drilling Campaign	Easting	Northing	Elevation (m)	Depth (m)	Dip	Azimuth
PCHAC 41-TV	2017-18	319,648	8,451,444	4,762	79	-90	90
PCHAC 43-TV	2017-18	319,626	8,451,615	4,756	115	-90	0
PZ01-TV	2022-23	318,267	8,452,180	4,750	233	-90	0
PZ01-TV2	2022-23	318,278	8,452,180	4,750	226	-90	0
PZ01-TV3	2022-23	318,256	8,452,180	4,750	300	-90	0
PZ02-TV	2022-23	318,629	8,452,037	4,722	300	-90	0
PZ03-TV	2022-23	319,181	8,452,011	4,642	169	-90	0
PZ04-TV	2022-23	318,087	8,451,593	4,847	233	-90	0
PZ05-TV	2022-23	319,163	8,451,739	4,650	214	-90	0
PZ06-TV	2022-23	318,986	8,451,507	4,726	46	-90	0
PZ06-TV1	2022-23	318,996	8,451,507	4,722	100	-90	0
PZ06-TV2	2022-23	318,976	8,451,507	4,729	34	-90	0
PZ06-TV3	2022-23	318,987	8,451,497	4,726	256	-90	0
PZ07-TV	2022-23	317,889	8,451,584	4,879	234	-90	0
PZ08-TV	2022-23	318,231	8,451,188	4,883	209	-90	0
PZ09-TV	2022-23	318,500	8,451,257	4,882	165	-90	0
PZ10-TV	2022-23	318,266	8,451,615	4,811	251	-90	0

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Figure 10-1 Drill Hole Location Map

Data for the added 67 drillholes were provided as individual files for both lithology and laboratory assays by American Lithium staff. Lithology was received by either Excel or assay data was provided by Excel spreadsheets accompanied by the original laboratory PDF certificates. Information on sample depths and QA/QC samples were acquired from a combination of the files mentioned above and follow up communications with American Lithium staff. Stantec compiled the individual data files into a MinePlan software Torque database for insertion into a MinePlan resource model. Downhole thicknesses for vertical drill holes are considered accurate true thickness intersections.

Drill core samples are cut longitudinally with a diamond saw, with one-half of the core placed in sealed bags and shipped to Certimin's sample analytical laboratory in Lima for sample preparation, processing, and ICP-MS/OES multi-element analysis, see Section 11. Certimin is an ISO 9000 certified assay laboratory.

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10.2 Sample Recovery and Core

The core recovery over the length of the drillholes is approximately 95%, which is above industry standard deeming the overall core recovery as acceptable.

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11 SAMPLE PREPARATION, ANALYSES AND SECURITY

11.1 Introduction

The data which informs these lithium Mineral Resource estimates are derived from the exploration efforts of American Lithium. Stantec reviewed all Quality Assurance and Quality Control (QAQC) data for the Project and the documented QAQC procedures described in Stantec's (TMC) 2019 NI43-101 technical report (TMC, 2019).

11.2 Sample Recovery

Core from these deposits was scrutinized by the TMC QP during the May 2018 site visit and again by the Stantec QP in May 2023, although the overall quality of the core recovered was good, there are zones, particularly within the Upper and Lower Breccia, where drilling conditions are difficult, and the core recovery was relatively poor but adequate for representative sampling. Observation of core available on site was that, although the core was in some cases blocky, the core recovery in the Lithium-rich Tuff was good, and the core pieces fit together well in the core boxes prior to sampling. In the Upper and Lower Breccias, the core recovered was often broken, and an assessment of core recovery was difficult. The overall core recovery was 95%.

Given the overall thickness of the mineralized zones, the consistent lithium grade within the zones and the relatively good core recovery, it is considered unlikely that any bias related to core recovery could be introduced.

11.3 Sample Quality

As the entire core was sampled, the sample taken from the core box is considered representative. Whole core was sampled in order to minimize the risk of sample loss. The method of sampling the whole core is sound, even though no intact library sample was retained. A comprehensive photo archive has been retained along with the sample reject material.

11.3.1 Sample Preparation

Sample preparation occurred on site at a mobile field station which was located close to the drill rigs and periodically re-located. Once logged and photographed, the entire core identified for sampling was placed into a sampling bag. The pre-marked aluminum tag was stapled to the sample bag. Sample depths were recorded together with a basic geological description on a sampling reconciliation log. This log was later captured into an Excel spreadsheet.

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Quality control samples in the form of standards were inserted at the permanent field office located in the village of Isivilla.  These standards were prepared by Macusani Yellowcake and certified by ALEPH Group & Asociados S.A.C. Metrologia de las Radiaciones (Radioactivity Measuring Techniques) by having check analyses of the standards completed at CERTIMIN SA (CERTIMIN), which was previously known as the Centro de Investigación Minera y Metalủrgica (CIMM), laboratory in Lima.

11.3.2 Sample Delivery Procedures

The complete sample batch, accompanied by a senior representative of the Macusani Yellowcake exploration team, was sent by road to the town of Juliaca. The samples entered the CERTIMIN LIMS system at this point. From the preparatory laboratory in Juliaca, the pulverized samples were transported by CERTIMIN, to the main CERTIMIN Laboratory in Miraflores, Lima, by either road or as air freight.

11.3.3 Sample Preparation and Analysis

Sample preparation and analysis was carried out through the CERTIMIN Laboratory. 

Preparation Laboratory (CERTIMIN - Juliaca)

The samples were weighed on delivery and entered into the LIMS system. Drying was completed over a 12-hour period at 100˚ C. Crushing was done by two jaw crushers; the first to 6 mm and the second to 2.5 mm. Crushing was completed when the sample was 100% <2.5 mm. Laboratory standards were entered into the stream after the first jaw crusher. The jaw crushers were flushed with quartz, some of which were sent to the Lima offices for analysis on a regular basis.

One certified reference material, one blank sample and two duplicate samples were incorporated into each batch of 50 samples delivered to CERTIMIN for laboratory analytical quality assurance and control (QAQC). These results were given to Macusani Yellowcake on the analysis certificates.

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After homogenization, the crushed sample was riffle split to an approximate 250 g sample that was pulverized by a ring mill. The ring mill was flushed with quartz after approximately every five samples or if there was a marked color change in the crushed material. The preparation facility strives to have the pulverized material at 85% <200 mesh grain size.

Acid Digestion and Final Analysis (CERTIMIN - Miraflores)

The pulverized material was manually homogenized.  Wet samples were dried before an approximate 0.20g aliquot (±0.02g) sample was spooned out and digested with a mixture of HCl+HNO3+HF+HClO4 acid over a period of eight hours. The concentration of lithium was determined from the acid digested liquid by inductively coupled plasma - mass spectrometry (ICP-MS) for abundances of 0.05 ppm to 10,000 ppm (1%).  Any results greater than 10,000 ppm were re-analyzed via inductively coupled plasma-optical emission spectrometry (ICP-OES).  The latter instrument would require a new acid digest to be completed on an aliquot of 0.25 g.  The ICP-MS and ICP-OES equipment is calibrated daily with three appropriate standards.

Analytical Quality Assurance and Control (QAQC) Procedures

The data which informs these lithium Mineral Resource estimates was generated by American Lithium, or its subsidiaries, since the initiation of exploration on the Falchani Project in 2017. American Lithium inserted standard, blank, and duplicate samples (Field) into the sampling streams, in addition to those inserted by the laboratory, in order to assess the accuracy and precision of the lithium analytical results.

A summary of the overall statistics for the QAQC samples is shown in Table 11-1.

Table 11-1 Summary of QAQC Samples for all Drillholes

No. of Samples	Duplicates		Standards		Blanks		% QAQC
	Field	Laboratory	Field	Laboratory	Field	Laboratory
12,738	264	389	106	580	110	342	14

QAQC data was reviewed for both PCHAC (2017-2018) and PZ Series (2023) drillholes. Stantec reviewed the documentation for PCHAC series QAQC data from TMC's 2019 report, and found the results to be accurate; therefore, only QAQC results for PZ Series drillholes are discussed below.

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Duplicate Data

Laboratory duplicate Li values were paired with their respective parent sample and then plotted together. Duplicate analysis showed positive repeatability, with a R2 value of 0.9965 on 105 duplicate pairs as shown in Figure 11-1, PZ Series drill holes duplicate Li scatter plot. All duplicate Li values were within 20% of the original Li value and 104 out of 105 duplicate Li values were within 10% of the original Li value.

Figure 11-1 PZ Series Drillholes Duplicate Li Scatter Plot

Blank Data

Field and laboratory blank values were plotted in order of drillhole name. The analytical results for field and laboratory blanks are shown in Figure 11-2 , PZ Series Lithium Field Blanks (A) and Laboratory Blanks (B). The field blanks show low levels of lithium. Laboratory blanks return values below the detection limit of >0.1 Li ppm. The levels of lithium returned from the field blanks are not considered material, when compared with the anticipated lithium grades within the Project.

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Sample Database

Stantec received the drillhole logging results as a series of Microsoft Excel files. The database was imported into Leapfrog Geo for further analysis. A check on the accuracy of the transposition of approximately 5% of the sample results from assay certificate to database was completed by Stantec, and no transcription errors were identified.

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