American Lithium Files Key Permitting Document to Advance Falchani Lithium Project

• American Lithium submitted its Semi-Detailed Environmental Impact Assessment Study (EIA-sd) for the Falchani Lithium Project ahead of schedule.
• Approval of the EIA-sd expected within coming months and will enable further permitting and development of the project.
• EIA-sd allows for 420 drill platforms across Falchani, accelerating exploration and resource definition.
• Final EIA Study to follow completion of Pre-Feasibility Study; will enable full mine construction and production.
• Filing demonstrates progress by American Lithium's Peru team in advancing Falchani amidst regulatory changes.

About American Lithium

American Lithium Corp. is a Vancouver-based lithium exploration and development company focused on advancing its flagship Falchani Lithium Project in southern Peru. The company is listed on the TSX Venture Exchange as well as the Nasdaq stock exchange under the ticker symbols LI and AMLI. With Peru considered one of the best mining jurisdictions globally and boasting abundant lithium resources, American Lithium is strategically positioned to capitalize on rapidly growing lithium demand driven by the global energy transition and electric vehicle adoption.

Progressing Permitting at the Flagship Falchani Lithium Project

American Lithium has achieved a major milestone with the early submission of its Semi-Detailed Environmental Impact Assessment Study (EIA-sd) for the Falchani Lithium Project to Peru's Ministry of Energy and Mines. Approval of the EIA-sd, expected within coming months, will provide American Lithium several benefits as it continues to advance Falchani:

• Enables 420 Drill Platforms Across Falchani
• The EIA-sd allows American Lithium to utilize up to 420 drill platforms across the extensive Falchani land package without needing additional permits. This will significantly accelerate the company's exploration and resource definition activities.
• Paves Way for Final EIA Study and Full Mine Development
• Completion of a Final Environmental Impact Assessment Study, which will enable full-scale mine construction and production at Falchani, is contingent on conversion of mineral resources to reserves as part of a Pre-Feasibility Study. Approval of the EIA-sd is an important step along that pathway.
• Demonstrates Progress Amid Regulatory Changes
• Despite recent government changes in Peru leading to industry-wide permitting delays, American Lithium's operational team has continued advancing Falchani. The successful filing of the EIA-sd underscores this progress.

With the EIA-sd submitted, investors can expect a steady stream of exploration updates from American Lithium through 2024 as the company utilizes its extensive drill permit to expand resources at Falchani. The EIA-sd approval also de-risks the permitting process for the project, providing confidence in American Lithium's ability to successfully navigate Peru's regulatory system.

Falchani Lithium Project Overview

The Falchani Lithium Project is located in the Puno province of southern Peru, approximately 230 kilometers northeast of the regional capital and port city of Ilo. At an elevation of 4,000 meters above sea level, Falchani boasts year-round access and infrastructure advantages compared to many lithium projects globally.

With a 26-year mine life envisioned and significant resource expansion potential from untested areas, Falchani is slated to become a major lithium producing asset. A 2021 preliminary economic assessment outlined strong project economics including:

• $1.55 billion NPV (8% discount rate)
• 19.7% IRR
• 4.7-year payback period
• 23,000 tonnes per year lithium carbonate production years 1 -7, and 41,000 tonnes per year in years 8 to 26.

American Lithium is currently focused on expanding resources and reserves at Falchani alongside initial engineering studies and permitting efforts. The recent EIA-sd filing represents important progress as Falchani moves down the development pipeline towards production.

Demand Outlook for Lithium Remains Strong

The lithium market has come back down to earth in 2023 after a period of extreme tightness between 2020 and mid-2022. However, most analysts foresee strong demand growth resuming in the coming years. Benchmark Mineral Intelligence forecasts 800% demand growth for lithium by 2040 driven largely by expanding electric vehicle production and stationary storage applications.

With few new lithium projects globally expected to begin production before 2025, American Lithium is positioning itself in an enviable position to capitalize on the next run-up in prices. Alongside other major development stage companies such as Lithium Americas and Piedmont Lithium, American Lithium offers torque to growing lithium demand over the next decade.

The recent operational progress at Falchani provides investors confidence in American Lithium's ability to advance the project towards production just as demand is set to inflect higher again. The Peru-focused lithium explorer presents an attractive risk-reward balance for investors seeking exposure to the lithium supercycle over the coming years.

Conclusion

With the filing of its Semi-Detailed Environmental Impact Assessment Study for the Falchani Lithium Project, American Lithium has achieved an important permitting milestone ahead of schedule. Approval of the EIA-sd will pave the way for a Final EIA that enables full-scale mine development and production. It also allows the company to accelerate exploration efforts through 420 drill platforms.

Despite regulatory challenges in Peru, American Lithium's operational team continues advancing Falchani methodically. Well-positioned to capitalize on resurging lithium demand by mid-decade, the Company offers investors quality leverage to the global energy transition.