Frontier Lithium - Poised to Capitalize on Surging Lithium Demand with High-Grade PAK Project in Northwest Ontario

About Frontier Lithium

Frontier Lithium Inc. is a Canadian mining company focused on becoming an integrated supplier of lithium products for the electric vehicle and battery storage markets in North America. The company is developing its flagship PAK Lithium Project located in northwestern Ontario. PAK contains the highest grade lithium resource in North America at 2.0% Li2O and is the second largest resource by size. Frontier Lithium maintains the largest land package in a premier lithium region of Ontario's Great Lakes. Since 2013, the company has delineated two premium spodumene-bearing lithium deposits at PAK, with active exploration ongoing to further expand resources. A 2023 pre-feasibility study outlines PAK’s potential as a long-life, large-scale, cost-competitive lithium mining and chemical conversion operation. Frontier Lithium is listed on the TSX Venture Exchange and headquartered in Sudbury, Ontario.

Bolt Pegmatite Expands as Deep as 220 Metres Below Surface

Frontier Lithium announced results from the remaining drill holes and channel samples at the Bolt pegmatite, concluding its 2023 maiden drill program. The Bolt pegmatite is located between Frontier’s Spark and PAK spodumene-bearing lithium deposits. Prior to this year, the Bolt pegmatite had only been mapped and sampled at surface exposures.

Key highlights from the drilling include:

• Drill hole PL-122-23 extended the pegmatite zone down to 220 metres depth with a true width of up to 65 metres. It intersected 86.5 metres of continuous pegmatite averaging 0.92% Li2O, including intervals of 1.27-1.40% Li2O.
• Drill hole PL-113-23 intersected two pegmatite zones 14.8 metres and 22.1 metres wide, averaging 1.38% and 1.39% Li2O respectively. It included intervals of 2.09-2.17% Li2O.
• Drill hole PL-115-23 intersected 21.6 metres of continuous pegmatite averaging 1.94% Li2O, including intervals of 2.32-2.50% Li2O.

The drilling has confirmed that the Bolt pegmatite extends over 600 metres along strike, with widths up to 75 metres. It remains open at depth and appears to have a wide central mineralized zone that continues down dip, providing opportunities for further exploration.

Overall, Frontier’s first-ever drilling program at Bolt has delivered promising results, confirming the presence of wide, high-grade lithium mineralization that persists to depth. The company stated that early assessments show consistent distribution of spodumene-bearing pegmatite, which is positive for future resource estimation.

Advancing Towards Pre-Feasibility at PAK Lithium Project

The Bolt pegmatite is part of Frontier’s flagship PAK Lithium Project located in northwestern Ontario. PAK contains North America’s highest grade lithium resource at 2.0% Li2O and is the second largest by size at 9.8 million tonnes of lithium oxide.

Frontier’s recent exploration work, including the drilling at Bolt, is aimed at expanding resources and advancing PAK towards a pre-feasibility study. Earlier this year, the company announced a positive Preliminary Economic Assessment for an open-pit mine and concentrator producing spodumene concentrate. The project was shown to have strong economics including an after-tax NPV of US$974 million and 34% IRR.

In 2023, Frontier has been focused on infill and step-out drilling at Spark and PAK to upgrade the resource model. Metallurgical test work and early engineering studies are also underway as part of the pre-feasibility study. Environmental baseline studies have been completed and community consultations are in progress.

The pre-feasibility study is expected to be finalized in early 2024, positioning PAK for a potential construction decision by the end of next year. Frontier is aiming to become a fully integrated lithium chemicals supplier in North America, with a planned conversion plant to produce lithium hydroxide from PAK spodumene concentrates.

Major Expansion Potential Along Strike and at Depth

Despite over 10 years of exploration at PAK, the project remains largely under-explored with significant resource expansion potential. The Spark, PAK and Bolt pegmatite deposits are situated along a 5 kilometre corridor that remains largely untested. Recent drilling and sampling also suggests the potential for additional pegmatite discoveries nearby, including the Pennock pegmatite located within the project’s boundaries.

Additionally, drilling to date has only tested the PAK pegmatites to about 300 metres vertical depth. However, lithium pegmatites in the region are known to extend well below 500 metres depth. Frontier sees substantial expansion potential by testing PAK and the other pegmatites at depth. The company has the largest land package in the region to support this growth.

Surging Lithium Demand Presents Strong Outlook

Frontier Lithium is well-positioned to capitalize on the rapidly growing lithium market, driven by surging electric vehicle sales and battery manufacturing expansions. Lithium prices have risen more than 500% since 2021 due to tight supplies struggling to keep up with demand. Major automakers and battery companies in North America are actively looking to secure domestic lithium sources.

As a low-risk mining jurisdiction in close proximity to the US industrial heartland, PAK has clear advantages over alternative supplies from remote locations. With continued resource growth and successful pre-feasibility study, Frontier could potentially be among the first new lithium projects to reach production in the mid-2020s to serve rising regional demand.

The company also stands to benefit from its strategic direction towards fully integrated production. Converting PAK concentrates into lithium chemicals should allow Frontier to capture additional margin compared to peers focused solely on mining.

Key Investor Takeaways

In summary, key points for investors on Frontier Lithium include:

• Advancing PAK Lithium Project towards pre-feasibility in 2023 and potential production by 2025 to capitalize on strong lithium market fundamentals
• Exploration success at Bolt and elsewhere demonstrates PAK's resource growth potential
• Integrated strategy to produce lithium chemicals provides upside compared to peers
• Well-positioned as a future low-cost, local lithium supplier to auto and battery manufacturers in North America
• Strong long-term outlook supported by surging EV demand and constrained global lithium supplies

With drilling ongoing and pre-feasibility study nearing completion, 2023 is a pivotal year for Frontier Lithium as it progresses PAK towards development. Successful results could prove transformational for the company and its valuation in the year ahead.

Conclusion

Frontier Lithium is poised to become a key new supplier of lithium to support the booming electric vehicle industry in North America. With exploration success continuing to expand resources at its PAK Lithium Project, and pre-feasibility study on track for 2023, Frontier has a clear pathway towards production by the middle of this decade. As lithium demand surges, investors have an opportunity with Frontier Lithium to position themselves in this rapidly growing market. With its high-grade resource, expansion potential, and strategic American location, PAK is one of the most promising emerging lithium projects in North America today.