American Lithium Positions for Success in the Global Lithium Market with World-Class Projects

• American Lithium is advancing 2 large lithium projects -TLC in Nevada and Falchani in Peru, and a uranium project - Macusani uranium project also in Peru.
• Lithium markets have been volatile but long-term demand fundamentals remain strong. American Lithium capitalizes on the growing demand with its advanced-stage projects.
• The company is focused on de-risking its projects and believes lithium clay deposits are underappreciated but have advantages in producing high-purity lithium.
• An updated PEA for Falchani shows strong economics even at conservative lithium price assumptions, with pilot plant and PFS work planned in 2024.
• American Lithium plans to spin out its uranium asset when market conditions are favorable to maximize shareholder value.

American Lithium is a lithium exploration and development company focused on large-scale sedimentary lithium deposits in the Americas. With 2 advanced lithium projects and a promising uranium asset, the company is well-positioned to capitalize on the growing demand for lithium driven by the electric vehicle and renewable energy storage markets. Despite recent volatility in lithium prices, American Lithium is steadily advancing its projects and believes the long-term fundamentals for lithium remain extremely strong.

American Lithium's Projects

American Lithium's flagship asset is the TLC lithium project in Nevada. TLC hosts a large sedimentary lithium deposit with the potential to produce high-purity lithium using conventional processing methods. The company is working to optimize its flowsheet with a focus on reducing acid consumption and incorporating by-product credits like potassium sulfate (SOP) and cesium.

In Peru, American Lithium is advancing the Falchani hard rock lithium project. Falchani hosts an impressive resource and benefits from access to low-cost power and reagents. A recently updated Preliminary Economic Assessment (PEA) demonstrates strong project economics with an after-tax NPV8% $5.11 billion at $22,500/t LCE, triple versus the NPV stated on the 2019 PEA.

The company plans to complete a Pre-Feasibility Study (PFS) for Falchani in 2024 while also conducting pilot plant testing. With its Environmental Impact Assessment (EIA) already filed, American Lithium could be in a position to make a construction decision by the end of 2024 if permitting and financing progress smoothly.

Finally, American Lithium's Macusani uranium project in Peru offers additional upside potential. The company attempted to spin out the asset in 2023 but unfavorable market conditions led them to delay the process. American Lithium plans to seek a separate listing for the uranium asset when markets improve to highlight its value.

Interview with CEO & Director Simon Clarke

Lithium Market Outlook

While lithium prices reached as high as $80,000 per tonne in November 2022, they have since retreated to around $12,000-$14,000 per tonne amid short-term volatility and uncertainty. However, American Lithium CEO Simon Clarke believes the lithium market will face significant supply shortages by the end of the decade even under conservative demand growth scenarios.

"If you do believe in the lithium thematic, even on a lower growth rate, say last year's is the norm, the amount of lithium you still need by the end of the decade is several times higher than it is now," explains Clarke.

With only a small fraction of lithium exploration projects likely to reach production, Clarke sees the recent pullback in lithium equities as a compelling opportunity for long-term investors. "I think there's a lot of good companies out there that are seriously undervalued."

Lithium Clay Advantage

While lithium clay deposits have historically been overlooked compared to brines and hard rock sources, American Lithium believes they offer compelling advantages. Since clays are sedimentary deposits, they are soft and easy to mine with low strip ratios. The processing is also relatively simple, with lithium extracted using sulfuric acid before impurities are removed to produce a high-purity product.

"People over-mystify the clays because there's been no production from them yet globally," notes Clarke. "We're miners, so we wanted to avoid anything that involves black boxes."

With several lithium clay projects now moving towards production in the US, American Lithium expects investor sentiment to improve as the simplicity and economic benefits of clay deposits become more widely appreciated.

American Lithium offers investors a unique opportunity to gain exposure to 2 world-class lithium development projects and a strategic uranium asset. With its projects significantly de-risked through conventional mining and processing plans, the company is positioned to create meaningful value as it advances its assets through key technical milestones in the coming year. Despite near-term lithium market volatility, the long-term fundamentals for lithium remain exceptionally strong, suggesting current valuations offer an attractive entry point for far-sighted investors.

Investment Thesis for American Lithium

• Two world-class lithium development assets in stable jurisdictions (Nevada and Peru)
• Conventional mining and processing using proven technologies significantly de-risks projects
• Strong project economics resilient to lower lithium prices; leveraged to lithium price upside
• Near-term catalysts include Falchani PFS, pilot plant testing, and TLC optimization work
• Provides investment exposure to both lithium and uranium; strategic uranium spin-out planned
• Proven management team with a track record of advancing projects and creating shareholder value

The outlook for lithium remains exceptionally bullish despite near-term volatility in prices. Driven by the unstoppable trend towards vehicle electrification and the growing need for energy storage, lithium demand is forecast to grow at a 20%+ CAGR through 2030. Even under more conservative growth assumptions, the world will need several times more lithium supply than is currently available.

However, new lithium projects face significant challenges in terms of technical and execution risk, permitting hurdles, and access to capital. Industry executives estimate fewer than 1 in 100 early-stage lithium projects will successfully reach production, underscoring the need for careful due diligence.

As CEO Simon Clarke of American Lithium explains:

"The fact of the matter is we know that we have 2 very large lithium deposits and a big uranium one...so we are that 1 in 3,000 in terms of we've identified them. Now it's more about finishing off the development cycle on them and then pushing them through."

While the recent pull-back in lithium prices has weighed on sentiment for development-stage companies, Clarke sees this as a compelling opportunity for long-term investors. Well-capitalized companies with high-quality assets should weather this period of uncertainty and be ideally positioned for the next leg higher in lithium prices as growing demand butts up against supply constraints.