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Lithium Ionic drills 2.11% Li2O over 9.9m, 1.73% Li2O over 10.4m and 1.68% Li2O over 10.0m at Bandeira, Minas Gerais, Brazil

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TORONTO, ON, November 2, 2023 – Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) (“Lithium Ionic” or the “Company”) reports drill results from the Bandeira Project (“Bandeira”), in northern Minas Gerais State, Brazil. Bandeira is a 175-hectare property within its large 14,182-hectare land package, located in a region recently coined “Lithium Valley” by state officials, which is emerging as a globally significant hard rock lithium-producing district.

These results form part of a large 50,000-metre drill program underway for H2 2023, which is designed to expand and upgrade existing mineral resource estimates and grow mineralization at other prospective regional targets.

Bandeira Drill Intercept Highlights (See Figure 1):

  • 2.11% Li2O over 9.9m, 1.57% Li2O over 8.5m and 1.62% Li2O over 6.6m
    (hole ITDD-23-163)
  • 1.73% Li2O over 10.4m and 1.40% Li2O over 8.9m (hole ITDD-23-164)
  • 1.68% Li2O over 10.0m and 1.86% Li2O over 5.7m (hole ITDD-23-167)
  • 1.88% Li2O over 8.0m (hole ITDD-23-165)
  • 2.57% Li2O over 3.0m (hole ITDD-23-161)
  • 1.57% Li2O over 4.9m, 1.82% Li2O over 3.7m and 1.71% Li2O over 3.6m
    (hole ITDD-23-154)
  • 1.53% Li2O over 5.0m (hole ITDD-23-157)

Blake Hylands, P.Geo., Chief Executive Officer of Lithium Ionic, commented, "Today's drill results underscore the continued growth potential of Bandeira – a property which represents only approximately 1% of our total land package in this prolific lithium belt. The new mineral resource estimate we reported earlier this month for Bandeira reflects a snapshot in time, based on data up to August 2023. Since then, we have conducted substantial drilling, including the strong results announced today, which we expect will continue to improve the scale and quality of this deposit, and will act as the cornerstone of our forthcoming Feasibility Study."

On October 19, 2023, the Company reported a new mineral resource estimate (“MRE”) for Bandeira of 13.72Mt grading 1.40% Li2O (474,892t LCE) in the Measured and Indicated category, in addition to an Inferred resource estimate of 15.79Mt grading 1.34% Li2O (523,118t LCE). This MRE was based on 204 drill holes with a data cut-off of August 30, 2023. An additional 34 holes, including those announced today, have been drilled since then and will be included in an updated mineral resource estimate along with an independent NI 43-101 compliant Feasibility Study (“FS”), expected to be completed in early 2024.

The Bandeira MRE from October 2023 formed the basis of the Preliminary Economic Assessment (“PEA”) which supported a long-life and low-cost spodumene concentrate mining project with a post-tax Net Present Value (“NPV”)8% of US$1.6 billion (~C$2.2 billion) and an Internal Rate of Return (“IRR”) of 121% (see press release dated October 19, 2023).

The Bandeira Project is located in the same district where Companhia Brasileira de Litio (CBL)’s Cachoeira mine has been producing lithium for +30 years, and recent producer Sigma Lithium operates the Grota do Cirillo project, which hosts the largest hard rock lithium deposit in the Americas (See Figure 1).

The Company is rapidly advancing Bandeira towards a production decision, while it continues to explore and define regional targets. Permitting activities are progressing well, in parallel with the advancement of project engineering. NEO Agroambiental Ltda is completing the RCA (Environmental Control Report) and PCA (Environmental Control Plan) to support the application of a Concomitant Environmental and Installation License (“LAC”, or Licença Ambiental Concomitante) for the Bandeira operation, which is expected to be submitted by the end of the year. The LAC is an accelerated permitting scenario available to projects such as Bandeira, whose mine infrastructure covers a small footprint where deforestation is not required. The LAC replaces the first two steps of the environmental licensing process: the Preliminary License (LP - Licença Prévia) and the Installation License (LI – Licença de Instalação); which precede the final Operating License (LO - Licença de Operação).

Figure 1. Bandeira Drill Collars and Traces with Intercept Highlights

Figure 1. Bandeira Drill Collars and Traces with Intercept Highlights

Table 1. Bandeira Drill Results

Hole ID Az Dip From To Metres Li2O (%)
ITDD-23-152 150 -80 53.78 58.31 4.53 0.85
and 272.95 274.60 1.65 1.52
and 291.26 295.53 4.27 1.68
ITDD-23-153 150 -50 nsv
ITDD-23-154 150 -65 108.52 113.42 4.90 1.57
and 119.76 121.15 1.39 1.46
and 296.12 298.14 2.02 1.58
and 302.70 306.29 3.59 1.71
and 332.07 335.08 3.01 1.80
and 359.89 363.56 3.67 1.82
ITDD-23-157 150 -85 87.20 89.20 2.00 0.93
and 190.25 193.25 3.00 0.65
and 203.54 205.60 2.06 1.78
and 291.46 293.46 2.00 1.66
and 354.35 359.35 5.00 1.53
ITDD-23-159 150 -50 287.50 289.55 2.05 1.28
ITDD-23-160 150 -50 234.27 237.37 3.10 1.18
ITDD-23-161 150 -50 128.59 132.12 3.53 1.38
and 174.56 177.56 3.00 2.57
and 313.74 315.43 1.69 2.10
and 351.41 354.37 2.96 1.16
ITDD-23-162 150 -79 53.69 56.49 2.80 1.10
and 395.57 399.80 4.23 1.18
and 458.62 462.24 3.62 1.22
ITDD-23-163 150 -55 355.35 358.35 3.00 0.97
and 382.72 385.73 3.01 1.03
and 392.27 397.65 5.38 1.04
and 406.30 409.30 3.00 1.07
and 425.03 434.90 9.87 2.11
and 469.10 477.57 8.47 1.57
and 511.31 517.88 6.57 1.62
ITDD-23-164 150 -50 81.29 83.39 2.10 1.61
and 89.70 100.06 10.36 1.73
and 170.48 173.30 2.82 1.73
and 325.78 330.68 4.90 0.82
and 415.18 416.80 1.62 1.56
and 434.58 443.52 8.94 1.40
ITDD-23-165 150 -60 195.00 202.99 7.99 1.88
and 338.94 342.77 3.83 1.42
ITDD-23-166 150 -50 97.55 99.71 2.16 2.03
ITDD-23-167 150 -79 228.46 238.50 10.04 1.68
and 345.55 351.27 5.72 1.86
ITDD-23-168 0 -90 116.69 119.69 3.00 1.02

*Hole ITDD-23-155 released on Sept 13, 2023, and holes ITDD-23-156 and ITDD-23-158 released on Sept. 27, 2023.

About Lithium Ionic Corp.

Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in Brazil. Its flagship Itinga and Salinas projects cover 14,182 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. The Itinga 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.

Quality Assurance and Control

During the drill program, assay samples were taken from NQ core and sawed in half. One-half was sent for assaying at SGS Laboratory, a certified independent commercial laboratory, and the other half was retained for results, cross checks, and future reference. A strict QA/QC program was applied to all samples. Every sample was processed with Drying, crushing from 75% to 3 mm, homogenization, quartering in Jones, spraying 250 to 300 g of sample in steel mill 95% to 150. SGS laboratory carried out multi-element analysis for ICP90A analysis.

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, and both are “qualified persons” as defined in NI 43-101.

Investor and Media Inquiries:

+1 647.316.2500
[email protected]

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 prospectivity of the Company’s mineral properties, the economic viability of the Bandeira, the mineralization and development of the Company’s mineral properties, the Company’s exploration program and other mining projects and prospects thereof, the Company’s ability to complete a Feasibility Study, the Company’s ability to complete an environmental impact assessment and obtain the requisite permitting and approvals 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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