American Lithium Reports Strong Q2 Results, Advancing Key Projects

About American Lithium

American Lithium Corp. is a mining development company focused on large-scale lithium projects in the Americas. The Vancouver-based company is actively advancing three key projects in mining-friendly jurisdictions with strong expansion potential.

American Lithium's flagship asset is the TLC Lithium Claystone Project, strategically located in Nevada's lithium-rich Esmeralda district. A robust Preliminary Economic Assessment has been completed on TLC and pre-feasibility work is underway. TLC is well-positioned to supply the growing lithium demand from Nevada's battery gigafactories.

The company is also advancing the large-scale Falchani Hard-Rock Lithium Project in southeastern Peru. Falchani has a substantial lithium resource that continues to demonstrate upside through exploration. A Preliminary Economic Assessment has shown strong project economics and Falchani enjoys strong local community support.

American Lithium's third major project is the Macusani Uranium Project, also located in Peru. Macusani provides exposure to uranium in addition to lithium production potential. Preliminary studies have outlined robust project economics.

With its operations located close to key infrastructure, American Lithium is focused on responsibly developing its projects to take advantage of surging demand for lithium and uranium in the Americas' rapidly growing new energy market. The company has an experienced executive team with a proven track record of financing and operating mining projects in the region. By advancing its portfolio up the value chain, American Lithium aims to secure its position as a major new supplier to the booming battery metals sector.

Q2 Financial and Operational Highlights

In its second quarter of fiscal 2023 ended August 31, 2023, American Lithium continued to make progress across all projects. Some notable highlights from the quarter include:

• Strategic Investment in Surge Battery Metals: American Lithium invested CAD $5.36 million for a 9.7% stake in Surge Battery Metals, a company advancing the neighboring Northern Nevada Lithium Project. This aligns with American Lithium's strategy of enhancing their claystone profile in Nevada.
• High-Grade Lithium Intercepts at Falchani: Exploration drilling at the Falchani project in Peru intersected lithium grades up to 5,465 ppm and 12,610 ppm of cesium, both the highest results encountered so far. This demonstrates resource expansion potential.
• Flow Sheet Refinements at TLC: American Lithium continued optimizing the process flowsheet for its TLC project in Nevada. Recent tests achieved higher lithium purity, indicating potential to improve project economics outlined in the Preliminary Economic Assessment.
• Lithium Discovery at Quelcaya in Peru: Significant new lithium discovery at its Quelcaya prospect, located just 6 km west of its Falchani project in Peru. Assay results revealed high-grade lithium mineralization up to 2,668 ppm Li, as well as continuous mineralization over 222 metres.
• Advancing Macusani In-House: American Lithium announced it has deferred plans to spin out its Macusani Uranium Project into a separate entity. The company will continue advancing Macusani within its existing corporate structure.
• Maiden ESG Report: American Lithium published its first annual Environmental, Social and Governance (ESG) report covering the period of March 1, 2022 to February 2023.
• Financial Results: The company held CAD $21.9 million in cash and short-term investments by quarter-end.

Advancing the Flagship TLC Project

The TLC claystone lithium project in Nevada is American Lithium's flagship asset and the main strategic focus. TLC currently hosts a measured resource of 4.2 million tonnes Lithium Carbonate Equivalent (LCE), 4.63 million tonnes indicated, and 1.86 million tonnes inferred.

During Q2, American Lithium continued to optimize the process flowsheet to produce lithium materials from TLC's claystone ores. Recent testing by independent consultants indicates potential to achieve lithium purity levels above 99.5% while maintaining over 80% recoveries. This is a significant improvement from the 99.1% purity used in the 2022 Preliminary Economic Assessment.

Higher purity generally commands a pricing premium for battery-grade lithium chemicals. If American Lithium can consistently produce 99.5% lithium carbonate or hydroxide, it would represent a major value boost to the TLC project.

The company is progressing towards a Pre-Feasibility Study for TLC, expected for completion in mid-2024. Permitting and initial pilot plant design work is also underway. TLC's strategic location close to established infrastructure and the Tesla Gigafactory gives it a key advantage in becoming a major new source of lithium supply to support growing EV and battery demand in the U.S.

Expanding Footprint in Nevada's Claystone Belt

A key development in Q2 was American Lithium's strategic C$5.36 million investment into Surge Battery Metals, acquiring a 9.7% equity position. This provides exposure to Surge's adjacent Northern Nevada Lithium Project, which hosts a substantial lithium claystone resource.

Surge's project directly borders American Lithium's flagship TLC project in Nevada's Clayton Valley. By consolidating the neighboring lithium holdings, American Lithium expands its foothold in this prolific claystone belt. As part of the investment, American Lithium has appointed an executive to Surge's board and entered an advisory agreement to provide technical support. This further cements American Lithium's position as a leader in claystone lithium development in Nevada.

High-Grade Exploration Results at Falchani

While Nevada remains the strategic focus, American Lithium is also advancing exploration at its hard-rock Falchani Lithium Project in Peru. Highlight results from the latest drilling include lithium grades up to 5,465 ppm, significantly higher than Falchani's average grade of 2,500 ppm Li.

This suggests potential to expand the current Falchani resource of 4.7 million tonnes LCE by targeting high-grade zones. Falchani also contains very high cesium grades, including up to 12,610 ppm cesium in the latest results.

Cesium is an increasingly critical mineral for aerospace, electronics and healthcare applications. By-product revenues from cesium could provide a valuable revenue stream to complement lithium production at Falchani. The company is completing a Preliminary Economic Assessment for the project to quantify its full value.

Conclusion

With its focus on developing lithium projects in Tier-1 mining jurisdictions, American Lithium is an interesting play for investors seeking lithium exposure in the Americas.

The recent developments in Q2 2023 have substantially expanded American Lithium's lithium resources under management and exploration upside:

• Strategic consolidation of lithium claystone assets in Nevada.
• Potential to optimize economics at the flagship TLC lithium project as process improvements achieve higher purities.
• Encouraging exploration results at the Falchani project in Peru, with significant expansion potential.

As American Lithium systematically advances its projects up the value curve, while expanding its lithium footprint in Nevada, the company is positioning itself as a potential supplier of choice to support rising lithium demand domestically and from major battery customers like Tesla.

For investors seeking lithium exposure with assets located close to major battery manufacturing hubs in the U.S., American Lithium offers an intriguing risk/reward proposition.