Lithium Ionic intersects 1.45% Li2O over 45.9m at the Galvani target, Minas Gerais, Brazil

TORONTO, May 29, 2023 - Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FSE: H3N) ("Lithium Ionic" or the "Company") reports additional assay results from the Galvani target as part of a near-complete 30,000 metre delineation drill program that is expected to culminate in an initial NI 43-101 compliant mineral resource estimate for the Bandeira and Galvani targets, expected in Q2 2023.

The Company has to date completed 28,400 metres of drilling at the Bandeira and Galvani properties and is currently drilling the last few holes before the cut-off of data for inclusion in the mineral resource estimate.

The Galvani claims are located approximately 5 kilometres northwest of its Bandeira property and Companhia Brasileira de Lítio's (CBL) Cachoeira lithium mine, and approximately 4 kilometres West of Sigma Lithium's large Xuxa lithium deposit (see Figure 1).

Lithium Ionic is currently the second largest mineral rights holder in the region, controlling 14,182 hectares in this emerging hard rock lithium-producing district. The Galvani and Bandeira properties, which will be the subject of the initial mineral resource estimate, covers only 872 hectares of its large land package.

Galvani Drill Intercept Highlights (See complete results in Table 1)

• 1.45% Li2O over 45.9m intersected at surface, 28 to 74 metres down-hole, represents one of the best holes drilled at Galvani (hole ARDD-23-56)
  • Confirms 50 metre down-dip extension from previously reported hole ARDD-23-45, which intersected 1.23% Li2O over 17m
  • Interpreted to form part of a large pegmatite dyke, which was also intersected in hole ARDD-23-048 with 1.87% Li2O over 45m, 100 metres away, and only 20m from surface

Blake Hylands, P.Geo., CEO of Lithium Ionic, commented, "These latest results further confirm the scale and continuity of the large spodumene-bearing pegmatite dykes at this target. The results from the initial drilling program at Galvani and Bandeira have been tremendously successful, and our team is confident that the upcoming mineral resource estimate will deliver scale and high-grade, that will form the basis for significant future growth."

The Company has engaged SGS Canada ("SGS"), internationally recognized for the estimation and modelling of mineral deposits, to complete the initial NI 43-101 mineral resource estimate. SGS has direct experience with lithium deposits in the region, including Sigma Lithium Corp.'s nearby deposits.

Figure 1: Galvani Property, Forming Part of the Itinga Project

View Figure 1 here: https://www.globenewswire.com/NewsRoom/AttachmentNg/1f574260-d592-4db7-b348-9debf98f4ec1

Figure 2: Galvani Plan Map with Latest Drill Results

View Figure 2 here: https://www.globenewswire.com/NewsRoom/AttachmentNg/0555dce0-8742-43e8-b930-241999bbe8b3

Figure 3: Core photo of holes ARDD-23-056

View Figure 3 here: https://www.globenewswire.com/NewsRoom/AttachmentNg/4053c110-cc5c-4a36-8666-61d8dd546d07

Table 1. Galvani Drill Results

*Assays pending for ARDD-23-58 to ARDD-23-60;
No significant values in holes ARDD-23-53 and ARDD-23-57

Lithium Ionic Forms SPV to Acquire Surface Rights

The Company also reports that it has formed Valitar Participacoes S.A. ("Valitar"), a special purpose vehicle ("SPV"). Through Valitar, Lithium Ionic proposes to acquire surface rights over its mining claims it believes have the potential to be mined. Under Brazilian law, the owner of surface rights on a mining claim is entitled to 1% of the mineral net revenue from the mining of lithium on such mining claim.

Valitar is a Brazilian company and Lithium Ionic, through its wholly-owned subsidiary, MGLIT Empreendimentos Ltda. ("MGLIT"), owns 100% of the preferred shares of Valitar (the "Preferred Shares"). The Preferred Shares entitle MGLIT to the economic benefits derived by Valitar.

MGLIT has entered into a loan agreement with Valitar to provide Valitar with up to a R$10 million (approximately USD$2 million) (the "Loan") to acquire the requisite surface rights over Lithium Ionic's mining claims. The Loan has a three-year term, is unsecured and accrues interest at 1% per annum. Under Brazilian law, rural land in Brazil must be owned by a Brazilian resident and, therefore, the common shares of Valitar are beneficially owned by an officer of Lithium Ionic who is a resident in Brazil. As a result, the Loan is a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.7(1)(a) in respect of the Loan as the fair market value of the Loan does not exceed 25% of the Company's market capitalization.

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
info@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 prospectivity of the Company's mineral properties, the Company's ability to produce a NI 43-101 compliant mineral resource estimate, the mineralization and development of the Company's mineral properties, the Company's ability to acquire an interest in the surface rights over its properties, the Loan, the Company's exploration program and other mining projects and prospects thereof. 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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