Lithium Ionic Initiates Engineering and Construction Management Services Contracts, Awarded to Hatch and Reta for Bandeira Project Development

TORONTO, Oct. 22, 2024 - Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) ("Lithium Ionic" or the "Company") is pleased to announce the initiation of Engineering, Procurement, and Construction Management ("EPCM") services for its flagship Bandeira Lithium Project ("Bandeira" or the "Project") located in northeastern Minas Gerais State, Brazil. This milestone marks the transition to the construction and development phase of the Project and is a key step towards production. Advancing engineering and construction management services will progress the Project along the targeted timeline in anticipation of the upcoming approval of site permits.

Key Highlights:

• Hatch Ltd. has been awarded engineering and design services. Hatch is an internationally recognized engineering firm with extensive global experience in several commodities and a local presence in Brazil, including offices in Belo Horizonte, the capital city of Minas Gerais state. Hatch's involvement will bring world-class expertise and innovative solutions to the Bandeira Project, ensuring a streamlined and efficient development process.
• Reta Engenharia, a leading Brazilian construction management company, has been selected to provide construction management services for the Bandeira Project. With extensive experience in greenfield mining projects, Reta has supported both junior and large-cap producers, making them ideally suited to drive efficient and effective project outcomes. Their proven track record in managing greenfield projects, combined with their deep regional knowledge, will be instrumental in advancing the Bandeira Project towards production.
• Growing the Owner's Team: To support this transition to project development and ensure a smooth transition into production, Lithium Ionic is expanding the technical capabilities of its owner's team, by bringing in experienced professionals to guide the Bandeira Project through the construction and operational readiness phases.
  

Blake Hylands, P.Geo., CEO of Lithium Ionic, commented, "Our momentum towards production is stronger than ever as we kick off the engineering and construction management phase with our esteemed partners, Hatch and Reta. This significant milestone marks an important step towards our goal of becoming one of Brazil's next major lithium producers. On the permitting front, we are now in the final stages at both the national and state levels, putting us firmly on track to deliver on our commitment of building a sustainable and economic lithium mine that will contribute to the region's growing significance in the global lithium supply chain."

Permitting Process Advancing on Track, Key Milestones Approaching

The permitting process for the Bandeira Project is progressing efficiently at both the State and Federal levels, with key approvals approaching. Currently, the review process is underway for the granting of the Concomitant Environmental and Installation License (Licença Ambiental Concomitante - LAC), which is part of a fast-track permitting process for critical minerals projects, designed to expedite the timeline to construction. Following the LAC approval, the final steps for full-scale production will include the granting of the Mining Concession and the Operating License (Licença de Operação - LO), which is issued upon inspection of the completed site facilities. Lithium Ionic remains on track to begin initial production at Bandeira in the second half of 2026.

Bandeira Lithium Project

The Bandeira property covers 157 hectares, or ~1% of the Company's large ~17,000-hectare land package in Brazil's prolific Lithium Valley, in Minas Gerais State. Bandeira currently accounts for ~70% of Lithium Ionic's global lithium mineral resource estimate of 60.1Mt* (See press release dated April 12, 2024).

In May 2024, a Feasibility Study for Bandeira highlighted a robust 14-year mine life, producing an average of 178,000 tonnes of high-quality spodumene concentrate (5.5% Li?O) annually with a post-tax NPV of US$1.3 billion and an IRR of 40% (see press release dated May 29, 2024)

Bandeira is situated in northeastern Minas Gerais State, a Tier 1 mining region with excellent infrastructure, including low-cost, renewable hydroelectric power, access to water, excellent transport infrastructure and access to foreign markets via nearby ports. Known as Brazil's "Lithium Valley," this region hosts the largest lithium reserves in the country and has emerged as a globally significant producer of high purity spodumene concentrate. Bandeira is located approximately 500m from CBL's Cachoeira lithium mine and approximately 4km from Sigma Lithium's Grota do Cirilo Mine.

*See NI 43-101 compliant technical report related to the Bandeira Bandeira MRE titled "NI 43-101 Technical Report - Mineral Resource Update on Bandeira Project, Araçuaí and Itinga, Minas Gerais State, Brazil" (effective date of March 5, 2024; QP: Leonardo Soares of GE21); See NI 43-101 compliant technical report related to the Salinas MRE titled "Independent Technical Report on Mineral Resources Estimate" (effective date of January 4, 2024; QP: Leonardo Soares, P.Geo., M.Sc., of GE21); and the NI 43-101 compliant technical reports related to the Outro Lado deposit titled "Mineral Resource Estimate for Lithium Ionic, Itinga Project" (effective date of June 24, 2023; authored by Maxime Dupéré, B. Sc., P.Geo. and Faisal Sayeed, B. Sc., P.Geo).

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

Blake Hylands
Chief Executive Officer, Director

About Lithium Ionic Corp.

Lithium Ionic is a Canadian mining company advancing its lithium projects in Brazil, with near-term production expected from its flagship Bandeira Project. Situated in the heart of the "Lithium Valley" in Minas Gerais state, Bandeira is positioned to become the next major supplier of high-quality lithium concentrate. Since its formation in 2022, Lithium Ionic has rapidly progressed toward the construction stage, defining one of the largest lithium deposits in the belt, with ongoing drilling continuing to expand its significant resource base. Benefiting from a streamlined permitting process in a mining-friendly jurisdiction, Lithium Ionic is strategically positioned to meet the growing demand for lithium in the EV and battery supply chains.

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:

+1 647.316.2500
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 mineralization and prospectivity of the Company's mineral properties, the impact of the engagement of EPCM service providers, the timing, delivery and cost of EPCM services, the economic viability of Bandeira, the development of the Company's mineral properties, the timing for construction of the Project, the Company's ability to 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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