• American Lithium won a court ruling upholding its ownership of 32 disputed mining concessions in Peru, confirming its rights to valuable lithium and uranium deposits.
• The company plans to update economic studies and permitting for its Falchani lithium project, targeting the first production by mid-2025.
• Falchani's resource estimate has been upsized/upgraded to 5.53 million tonnes of LCE in the Measured & Indicated category – a 476% boost in size.
• The company may spin out its valuable uranium assets into a separate entity to fund accelerated development as the uranium market strengthens.
• Management believes lithium prices are near the bottom and will start recovering in 2024 as supply deficits widen amid still-strong electric vehicle growth.

About American Lithium

American Lithium is a company actively engaged in the development of large-scale lithium projects within mining-friendly jurisdictions in the Americas. The company is focused on the continued development of its TLC Lithium Project located in the Esmeralda lithium district in Nevada, as well as advancing its Falchani Lithium Project  and Macusani Uranium Project in southeastern Peru. These three projects have undergone preliminary economic assessments that indicate strong potential for expansion. Additionally, the projects appear to enjoy strong community support in their respective locations. Pre-feasibility work on the Falchani and TLC projects is progressing steadily.

Interview with President & CEO, Simon Clarke

Favorable Court Ruling and Improving Market Conditions

American Lithium scored a major court victory in November by upholding its ownership rights to 32 disputed mining concessions in Peru. The unanimous ruling by a three-judge panel rejected regulators' earlier claims that the company had failed to properly pay concession fees.

According to CEO Simon Clarke, "We've got probably the strongest ruling we could have got from the court... Very much confirming we've never actually lost the title to the concessions." The decision removes uncertainty around American Lithium's lithium and uranium assets from the disputed concessions, clarifying its ability to incorporate associated resources into upcoming economic studies.

Falchani Lithium Project on the Fast Track

With the court ruling in hand, American Lithium plans to update the preliminary economic assessment (PEA) for its flagship Falchani lithium project within weeks. The company then aims to complete a pre-feasibility study on Falchani by May 2024 as it charges toward a targeted first production date of mid-2025.

According to Clarke, "Falchani is the one where we're assuming the Peruvian permitting process is working...we could be at FID on that project by mid-2025." He cited the government's efforts to streamline permitting and noted that lithium is deemed a non-metallic mineral in Peru, enabling an expedited 6 to 12-month permitting process. With analysts forecasting a deepening supply deficit amid unrelenting EV demand growth, Clarke remains "confident and we are seeing a normalization of things in a government that is really pro mining and really wants to see lithium."

Optimistic on Long-Term Lithium Price Recovery

Despite recent declines from unsustainably high levels, Clarke believes lithium markets are positioned for a price recovery as early as 2024. He suggests pricing may have bottomed near $20,000 per tonne, stating:

"I think we're in an environment where we're going to see the price start to recover next year...it was never going to be a straight line."

Industry heavyweight Benchmark Mineral Intelligence recently boosted its long-term lithium price forecast to $28,000 per tonne. Meanwhile, Clarke notes that Chinese export pricing no longer serves as an accurate benchmark:

"I think it's heavily manipulated...there's a bunch of projects on the far right side of the cost curve that are going to struggle at those numbers."

He expects the ongoing decoupling from China to lift ex-China pricing to $28,000 per tonne or more. Against this backdrop, Clarke foresees "lots of opportunities strategically to bring in the right players to help us get Falchani built."

Spinning Out Uranium Assets to Fund Growth

Beyond lithium, American Lithium controls extensive uranium resources, also located in Peru. With uranium prices recently hitting $76 per pound, Clarke sees further upside as the market transitions "from a buyer market to a seller's market." He suggests a spin out into a standalone uranium entity may soon make sense, explaining:

"We can spin it out at appropriate value recognizing it is one of the bigger assets out there and certainly one of the best production and opex profiles."

The move would enable accelerated development, supported by dedicated capital. A uranium spinout also offers investors focused exposure to burgeoning uranium market strength.

The Investment Case for American Lithium

• Recent court victory confirms rights to extensive lithium and uranium resources, removing uncertainty
• Rapidly advancing Falchani lithium project targeting 2025 production start amid forecast supply deficits
• Completed large resource increase at Falchani; updated PEA and PFS imminent
• Spin out of uranium assets offers optionality on rising uranium prices
• Long-term lithium price recovery expected as EV growth unabated by economic issues
• Targeting low-cost lithium production to maintain profitability across price cycles
• Strategic partners likely to assist development funding for capital-intensive mine build

American Lithium has cleared a pivotal legal hurdle, paving the way for accelerated development of its flagship Falchani lithium project. With permitting progressing in a more mining-friendly policy environment and lithium markets seen recovering soon, the company appears well-positioned to achieve its goal of commencing low-cost lithium production in 2025. A likely uranium spin-out provides added exposure to rising uranium prices. American Lithium offers investors leveraged exposure to surging demand for metals critical to the global energy transition.