Frontier Lithium - Progressing Towards Becoming a Key North American Lithium Supplier

• Strong financial position with $18.6M cash balance as of Sept 30, 2023.
• Active exploration and development of PAK Lithium Project continuing.
• Published Pre-Feasibility Study in July outlining potential to be continent’s largest, lowest-cost lithium hydroxide producer.
• Strategic objective is to become key domestic lithium supplier for EV and energy storage markets.
• Experienced leadership team added key new appointments to drive growth.

About Frontier Lithium

Frontier Lithium Inc. is a Canadian mining company focused on the exploration and development of its PAK Lithium Project, located in Ontario's Red Lake mining district. With the largest proven premium lithium resource base and land package in North America, Frontier aims to establish fully integrated lithium production facilities to supply spodumene concentrates and battery-grade lithium chemicals to the rapidly growing electric vehicle and energy storage sectors in North America.

Financial Position and Capital Management

Frontier Lithium maintains a strong cash position, ending the third quarter of fiscal 2023 with a cash balance of $18.6 million. The company continues to prudently manage capital expenditures, directing funds towards ongoing exploration and development activities at its PAK Lithium Project while preserving runway. Its healthy cash reserves provide financial flexibility to advance PAK towards commercial production.

Progress at PAK Lithium Project

Throughout 2023, Frontier has continued to actively explore and develop its PAK Lithium Project in Northwestern Ontario. PAK encompasses close to 27,000 hectares, representing the largest lithium resource and land package in Ontario.

Drilling & Exploration

Frontier's Phase XIII drill program at PAK commenced in February 2023 and concluded during this reporting period. Through drilling the Bolt pegmatite zone between the project’s main PAK and Spark deposits, as well as extending the Spark deposit, the program yielded promising results in further defining and expanding PAK’s premium lithium resource.

In addition to drill-based exploration, Frontier undertook regional mapping initiatives across PAK during 2023. These activities uncovered new spodumene-bearing pegmatite zones outside of the project’s currently defined deposits, highlighting promising exploration upside at PAK.

Advancing Towards Commercial Production

In July 2023, Frontier published a Pre-Feasibility Study (PFS) for an integrated lithium mining and processing operation at PAK. The PFS outlines a 24-year project life, producing an average of 23,174 tonnes per year of lithium hydroxide monohydrate through an on-site chemical plant.

The PFS indicates PAK could become the largest and lowest-cost lithium hydroxide production facility in North America. With construction capital costs estimated at US$974M and operating costs of US$2,915 per tonne (not including co-product credits), PAK demonstrates robust economics to establish a strategic lithium operation.

Next Steps

Frontier remains focused on advancing PAK towards commercial operations on the path outlined in the PFS. The company is progressing a Definitive Feasibility Study for PAK, which will provide further precision on development plans and economics as it works towards a construction decision.

Frontier is also prioritizing engagement with potential off-takers, partners, and financing groups aligned to its strategic objectives within the North American EV supply chain.

Building a Premier Lithium Leadership Team

In 2022 and 2023, Frontier has focused on building a proven leadership team to steer the company through its next phase of growth towards lithium production.

Recent executive appointments include lithium industry veteran Greg Da Re as VP of Corporate Development and former Forsys Metals finance executive Erick Underwood as Chief Financial Officer.

Frontier’s leadership can leverage decades of experience across funding, developing, and operating mining and downstream lithium conversion facilities globally. With key skillsets onboard, the company is well-positioned to execute on its lithium production plans.

Market Outlook: Surging EV Demand Driving Lithium Investment

Frontier Lithium is strategically positioned to capitalize on surging lithium demand growth driven by the accelerating electric vehicle revolution and clean energy transition. As a domestic Canadian lithium developer, it can leverage unique access to the large and rapidly expanding North American EV supply chain.

With lithium prices surging in 2022 and demand from EV and battery manufacturers expected to accelerate, Frontier provides a compelling investment opportunity as it works towards unlocking a premium lithium production center at PAK feeding critical battery materials into the continent’s electric future.

Long-term Trends Driving Growth

The outlook for lithium demand and pricing remains positive, underpinned by inexorable global EV sales momentum. Lithium prices spiked to record highs in 2022 due to structural undersupply, with annual demand expected to grow over 5-fold by 2030. Key drivers include:

Rapid Electric Vehicle Adoption

• EV sales reaching over 6 million in 2022, rising over 80% year-over-year
• EV penetration accelerating globally, hitting 13% share of new car sales in key markets
• EV uptake creating unprecedented lithium demand growth from batteries

Limited Supply Growth

• Multi-year lags to bring new lithium projects online unable to meet demand
• Drawdown of existing inventory buffers further tightening markets

Supportive Policy Backing Decarbonization

• Government emissions reductions targets driving EV infrastructure investments
• U.S. Inflation Reduction Act includes $7,500 EV tax credit to spur adoption
• Canada implementing sales mandates and purchase incentives

Through its PAK Lithium Project, Frontier Lithium is distinctly leveraged to benefit from the powerful, long-term supply-demand dynamics in lithium-ion battery materials.

Investment Summary: Strategically Positioned Lithium Developer

As a fully integrated lithium developer in a Tier-1 mining jurisdiction, Frontier Lithium represents a unique exposure allowing investors to capitalize on the accelerating electric vehicle revolution.

Key investment highlights:

• Premier lithium resource base: Largest lithium deposit with proven high-purity reserves
• Strategic North American location with turnkey access to key markets
• Clear line-of-sight to production: PFS demonstrates 24-year operation at low costs
• Seasoned leadership team with lithium development expertise
• Strong backing: Ontario government support to drive domestic supply
• Compelling risk-reward: Undervalued relative to lithium development peers

For investors seeking leverage to surging battery materials demand from EVs while mitigating project execution risks, Frontier offers an attractive risk-adjusted value proposition.

As it advances PAK through permitting and towards a construction decision, the company is primed to unlock significant incremental value for shareholders driven by its world-class lithium assets.