H3N Lithium Ionic Corp

Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) ("Lithium Ionic" or the "Company") is pleased to present a summary of its key accomplishments in 2024 - a transformative year defined by major milestones across exploration, engineering and project development, alongside continued expansion of ESG and sustainability initiatives. These achievements have firmly positioned the Company for a pivotal 2025, with its flagship Bandeira Lithium Project in Brazil’s Lithium Valley set to transition to the construction phase.

Key 2024 Developments:

Flagship Bandeira Lithium Project: Progressing Towards Construction in 2025

• With a 161% increase in mineral resource estimates, Bandeira remains the fastest growing hard rock lithium deposit in the Americas with additional resource increases expected in 2025.
• Delivered a robust NI 43-101 Feasibility Study outlining a 14-year mine life, strong project economics and bottom-quartile operating costs.
• Drilled 8,200 metres in 2024, with results to be incorporated into an updated NI 43-101 mineral resource estimate (“MRE”) expected in early 2025.
• Secured a non-binding Letter of Interest (LOI) for up to US266M from the Export-Import Bank of the United States (EXIM), establishing a clear pathway for full project financing.
• Strengthened project funding with a non-dilutive US$20M royalty financing supporting the balance sheet and early development activities into 2025.
• Strengthened leadership in preparation for project development with key technical and governance appointments.

Baixa Grande Project (formerly referred to as “Salinas”): A Second Growth Engine

• Announced a maiden MRE of 14.76Mt in April 2024, with significant exploration upside.
• Completed 6,600 metres of drilling in 2024, which is currently being modelled into an updated MRE expected in early 2025.
• Remains a key development asset, with mineral deposit open at depth and extents, representing a significant opportunity for further growth supporting regional production capacity.

Ongoing Strategic Land Acquisitions Strengthened its Position in the Lithium Valley

• Acquired the remaining 15% of Salinas properties, achieving full 100% ownership.
• Expanded the Company’s land holdings by approximately 3,000 hectares through an option agreement for additional claims in the Itinga group of properties, increasing its total land position to ~17,000 hectares (see July 3, 2024, press release).
• Demonstrated success by the Lithium Ionic team in acquiring exploration tenements and generating tangible resources and exploration targets for further development.

Sustainability and ESG

• Reinforced its commitment to responsible development by joining the United Nations Global Compact and becoming a member of the International Lithium Association.
• Strengthened alignment with best standard practices by actively participating in IRMA Self-Assessing Mining Group meetings and progressing toward adoption of international standards (IFC, IFRS S1/S2, TCFD).
• Introduced key policies, including ESG, Diversity and Inclusion, and Human Rights, embedding global best practices to enhance corporate commitments.
• Advanced community and environmental initiatives, including the revitalization of public spaces and reclamation initiatives that involved planting over 2,000 native seedlings.

Blake Hylands, P.Geo., CEO of Lithium Ionic, commented, “2024 has been a defining year for Lithium Ionic, highlighted by substantial mineral resource growth and engineering milestones. At our flagship Bandeira Project, we’ve made remarkable progress, moving closer to a construction decision while establishing a clear funding pathway. Meanwhile, the Salinas claims which were acquired in 2023 have exceeded expectations with the maiden mineral resource estimate at Baixa Grande further strengthening our portfolio and long-term growth strategy. This significant mineral resource growth is a testament to the strong geological understanding of this region by our exploration team, and as a result we have set ourselves apart as one of the fastest growing hard rock lithium deposits in the Americas. As a company that only formed in 2022, I’m incredibly proud of the speed and efficiency with which our team has laid the foundation for success, advancing all critical pillars towards the development phase. Looking ahead, 2025 is set to be another pivotal year as we prepare to build a mine and realize our vision of becoming a leading lithium producer in Brazil’s Lithium Valley - a region that has only begun to show its strategic importance on a global stage.”

Bandeira: Key Milestones Towards Construction Stage

The Bandeira Lithium Project continued to establish itself as one of the most promising lithium assets in Brazil’s Lithium Valley. From 2023 to 2024, the mineral resources at Bandeira grew significantly, increasing by 161.4% to 41.9 Mt grading 1.35% Li₂O. Beyond this growth, drilling conducted since the March 2024 MRE cut-off has further demonstrated the Project’s potential with excellent intercepts such as:

• 64.7m grading 1.39% Li2O (ITDD-24-276, October 8, 2024)
• 40m grading 1.46% Li2O (ITDD-24-259, April 29, 2024)
• 24.1m grading 1.86% Li2O (ITDD-24-256, April 29, 2024)
• 20.4m grading 2.13% Li2O (ITDD-24-260, April 29, 2024)

In May 2024, the Company released a Feasibility Study outlining a 14-year mine life producing an average of 178,000 tonnes of high-quality 5.5% Li₂O spodumene concentrate annually (see press release from May 29, 2024). The study highlighted exceptional economics, including a low CAPEX of US$266 million, a post-tax NPV of US$1.3 billion, and an IRR of 40%. Additionally, Bandeira’s on-site operating costs of US$444/t position the project as highly resilient to volatile lithium market conditions.

Project engineering activities ramped up following the Feasibility Study, with the initiation of basic and detailed engineering and selection of key EPCM service providers, well positioning the Company for a transition to the construction and development phase (see press release dated October 22, 2024). Additionally, the Company also welcomed key technical talent to its leadership team and Board, strengthening its ability to deliver on its strategic objectives (see press releases dated February 1, 2024 and September 3, 2024).

In May 2024, a critical milestone was achieved with the granting of a water rights permit by the Minas Gerais Institute of Water Management (IGAM) (see press release from May 2, 2024). This permit guarantees sufficient water supply to meet the operational demands of the future Bandeira operation, addressing one of the most essential needs for mining projects.

Following the Feasibility Study, the Company prioritized project financing efforts, and by the end of November 2024, it had secured a non-binding Letter of Interest (“LOI”) for US$266M in debt financing for the development of Bandeira. This significant milestone further validates the Project’s viability and sets the stage for full project funding.

The Company is on the verge of achieving another pivotal milestone with the expected imminent approval of the Licença Ambiental Concomitante (“LAC”) license, which will authorize construction to begin. The LAC application was submitted in late 2023 and is in the final stages of approvals. with all information requests satisfied by the Company.

Baixa Grande: A Second Growth Engine

The Baixa Grande deposit, part of the Salinas group of properties, has been a key growth driver for Lithium Ionic since its acquisition in early 2023. On April 4, 2024, the Company announced a maiden MRE outlining 5.86Mt of Measured and Indicated (“M&I”) resources grading 1.09% Li₂O and 8.90Mt of Inferred resources grading 0.97% Li₂O; this based on drilling data up until November 2023. Subsequent drilling conducted into 2024 returned excellent results highlighting the strong growth potential of the deposit, including:

• 15m grading 1.53% Li2O (BGDD-24-133, April 23, 2024)
• 19m grading 1.15% Li2O (BGDD-24-131, April 23, 2024)
• 14m grading 1.32% Li2O (BGDD-24-140, April 23, 2024)
• 10.2m grading 1.44% Li2O (BGDD-24-135, April 23, 2024)

A total of 6,600 metres were drilled at Baixa Grande in 2024, with the data now being incorporated into an updated MRE expected in early 2025.

The strategic importance of the Salinas properties was further underscored by Pilbara Minerals’ acquisition of the Colina deposit in August 2024, located adjacently to the west of Baixa Grande. This marked Pilbara’s first venture into the Americas and reinforced the quality and global competitiveness of the lithium deposits in Brazil’s Lithium Valley.

While the Company remains focused on advancing Bandeira to near-term production, Baixa Grande is poised to play a significant role in Lithium Ionic’s long-term growth and production strategy, contributing to the overall strength and diversification of its portfolio.

Gearing up for Construction Start in 2025:

Lithium Ionic is entering 2025 with clear objectives, foremost among them maintaining strong momentum at Bandeira to quickly establish this project as the region’s next significant lithium producer. Key milestones at Bandeira this year include the anticipated granting of a construction permit in the near-term and advancing detailed engineering to support a production decision. The Company is committed to progressing through the due diligence process with EXIM, aiming to finalize a definitive project financing package that will support commencement of construction in the second half of the year.

Simultaneously, exploration and drilling activities will continue at Bandeira, Baixa Grande, and other high-priority regional targets to further expand mineralization and improve mineral resource classification, to continue reinforcing the long-term growth potential of the Company’s portfolio.

Lithium Ionic extends its gratitude to shareholders for their ongoing support and looks forward to delivering a transformative year, driving value creation for all stakeholders in 2025.

On behalf of the Board of Directors of Lithium Ionic Corp.

Blake HylandsChief Executive Officer, Director

About Lithium Ionic Corp.

Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in Brazil. Its Itinga and Salinas group of properties cover ~17,000 hectares in the northeastern part of Minas Gerais state, a mining-friendly jurisdiction that is quickly emerging as a world-class hard-rock lithium district. Its Feasibility-stage Bandeira Project is situated in the same region as CBL’s Cachoeira lithium mine, which has produced lithium for +30 years, as well as Sigma Lithium Corp.’s Grota do Cirilo project, which hosts the largest hard-rock lithium deposit in the Americas.

Qualified Persons

The technical information in this news release has been prepared by Carlos Costa, Vice President Exploration of Lithium Ionic and Blake Hylands, CEO and director of Lithium Ionic, who are both “qualified persons” as defined in NI 43-101. Mr. Costa and Mr. Hylands have both read and approved the content in this news release.

Investor and Media Inquiries:

+1 647.316.2500info@lithiumionic.com

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the mineralization and prospectivity of the Company’s mineral properties, the economic viability of Bandeira, the financing of the Project, the development of the Company’s mineral properties, the Company’s exploration program and other mining projects and prospects thereof, the Company’s ability to obtain the requisite permitting and approvals and the timing thereof, the Company’s ability to increase the mineral resource estimates at its projects, the Company’s ability to obtain financing, the timing of MREs, the impact of the Company’s ESG and other initiatives and the Company’s future plans. Such statements and information reflect the current view of the Company. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

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