Frontier Lithium Boosts Lithium Processing Capabilities with $2 Million Grant from Ontario Government

• Frontier Lithium is advancing the PAK Lithium Project to become a fully integrated lithium mining and processing operation in Ontario, Canada.
• The company recently received a $2 million grant from the Ontario government to test advanced lithium by-product conversion processes.
• PAK encompasses the largest and highest-grade lithium resource in North America with major expansion potential.
• A 2023 pre-feasibility study outlined robust economics for a 24-year operation producing technical and battery-grade concentrates.
• Frontier is fully funded through PAK's development stages and aims to become a top five lithium supplier for North America's surging EV industry.

About Frontier Lithium

Frontier Lithium Inc. (TSX-V: FL) is a Canadian exploration and development company focused on becoming a significant supplier of spodumene concentrates and battery-grade lithium hydroxide in North America. With headquarters and assets located in Northern Ontario, Frontier is advancing the largest and highest-grade premium lithium resource in the region. The company aims to fully integrate mining and processing operations to serve the rapidly growing electric vehicle (EV) battery market.

Frontier Receives $2 Million Grant from Ontario Government for Lithium Processing

Frontier recently announced receiving $2 million in funding from the Northern Ontario Heritage Fund Corporation (NOHFC). The grant will enable Frontier to construct a facility to demonstrate advanced processes for converting lithium salt production by-products into reusable reagents. This testing could optimize reagent regeneration, recycling, energy efficiency and waste minimization for the company’s operations.

The NOHFC funding, announced at Frontier’s future headquarters, underscores the strategic importance of the company’s PAK Lithium Project. Frontier’s fully integrated mining and processing aims to supply EV battery manufacturers in Ontario and across North America. The grant builds on $363,000 previously awarded by NOHFC in 2021 to test lithium hydroxide production.

The support reflects Frontier’s alignment with provincial and federal strategies for developing domestic critical minerals resources. Building up domestic lithium supply chains is a priority for Canada to meet expected EV demand growth.

Optimizing By-Product Conversion to Achieve Closed-Loop Production

A key focus of Frontier’s processing enhancements is mitigating disposal risks and costs associated with by-products like sodium sulfate. The company aims to convert by-products into reusable reagents for closed-loop lithium production. This could minimize environmental impacts and improve project economics.

The planned test facility will demonstrate new techniques to achieve Frontier’s goals of reagent recycling, zero-waste processing, and energy efficiency. The experiments are expected to generate data to optimize full-scale commercial operations.

Strategically Positioned to Supply Rising North American Lithium Demand

Frontier Lithium is well positioned to become a major lithium chemicals producer for North America’s booming EV supply chain. The company’s PAK Lithium Project is located close to the U.S. border in northwestern Ontario’s “lithium corridor”. Frontier is advancing PAK as the first fully integrated lithium mining and processing operation in Ontario.

PAK encompasses almost 27,000 hectares, making it the largest lithium resource in the province. A 2023 pre-feasibility study outlined a 24-year operation, producing technical and battery-grade lithium concentrates. Frontier aims to ramp up production to eventually supply about 5% of projected lithium demand in North America by 2030.

Advancing the High-Grade PAK Lithium Project

Frontier’s flagship asset is the PAK Lithium Project, located in northwestern Ontario near the Manitoba border. Exploration since 2013 has delineated two premium quality spodumene-bearing lithium deposits at PAK – the Spark and PAK deposits, along with Bolt and Pennock pegmatites.

The project encompasses North America’s largest and highest concentration lithium resource. The deposits have significant expansion potential, with active exploration ongoing. A 2023 pre-feasibility study outlined a 24-year operation with robust economics.

Some key PAK Lithium Project highlights:

• $1.74 billion after-tax NPV, 24.1% IRR over 24 years per 2023 PFS
• Probable reserves of 22 million tonnes at 1.55% Li2O
• Expected to be one of lowest-cost producers (bottom quartile costs)
• Strategically located near U.S. border in mining-friendly jurisdiction

PAK’s premium quality spodumene concentrate is highly sought after by lithium converters. The concentrate’s high lithium content and low impurities support efficient processing into lithium chemicals.

Integrated Operations to Optimize Economics and ESG Performance

A key part of Frontier’s strategy is integrating mining and processing operations at PAK. This aims to maximize project efficiencies, economics, and environmental performance.

Frontier plans to mine spodumene ore and process it into technical and battery-grade lithium concentrate on site. This avoids shipping lower-value concentrates long distances for processing like most peers.

Integrated operations are expected to provide multiple potential benefits:

• Higher revenues – capturing additional value from producing finished lithium products
• Lower costs – eliminating transport costs for concentrates
• Reduced carbon emissions – avoiding long-distance concentrate transport

The NOHFC-funded test facility will support optimization of PAK’s integrated operations. Testing innovative techniques to convert by-products into reusable reagents will be a key focus.

Major Exploration Upside at PAK

Despite already containing North America’s largest lithium resource, PAK remains underexplored. Less than 50% of the project’s 27,000 hectare area has been drill tested so far. This points to major resource expansion potential to further strengthen PAK’s production profile.

Frontier’s exploration throughout 2023 continued discovering new mineralized pegmatites within PAK’s claims. Two new discoveries – Bolt and Pennock – are located near the main PAK and Spark deposits. Both show promising lithium grades that warrant delineation drilling.

In addition to new discoveries, current resources at PAK and Spark have significant expansion potential. These deposits remain open along strike and at depth. Just 10-20% of the total PAK property package has been explored to date.

Conclusion

With development of PAK accelerating, Frontier Lithium is positioned to capitalize on surging lithium demand from North America’s booming EV industry. PAK encompasses the largest and highest-grade lithium resource on the continent. Integrated operations aim to maximize margins and strategic advantages.

Upcoming catalysts for Frontier include:

• PAK pre-feasibility study update incorporating integrated operations
• Ongoing exploration results highlighting resource expansion potential

Supportive government grants, a clean balance sheet, and Ontario’s productive mining environment further derisk Frontier’s growth plans. PAK’s development into a cornerstone North American lithium operation appears primed to deliver substantial value appreciation.