Li-FT Power - 50,000m Drilled, Upcoming Resource Estimate at Yellowknife Lithium Project

• Li-FT Power is focused on exploring and developing hard rock lithium deposits in Canada
• The company has drilled 50,000 meters at its Yellowknife lithium project in the last 10 months with respectable grades and widths
• Li-FT Power believes lithium prices will recover and $20-25k/tonne lithium carbonate prices would make many projects economically viable
• An initial resource estimate for Yellowknife is expected later this year; metallurgical testing is underway
• The company is well-funded after a recent $10M raise and is advancing work to stay on track for permitting timelines

About Li-FT Power

Li-FT Power (TSXV:LIFT) is a Canada-based mineral exploration company dedicated to the exploration and development of lithium pegmatite projects. As the world shifts towards cleaner energy solutions and the demand for lithium-ion batteries continues to surge, Li-FT Power is well-positioned to contribute to the global lithium supply chain.

The company's primary focus is on its flagship project, the Yellowknife Lithium Project, situated in the Northwest Territories, Canada. This project showcases excellent potential for the discovery and development of high-quality lithium resources. In addition to the Yellowknife Lithium Project, Li-FT Power holds three early-stage exploration properties in Quebec, Canada, demonstrating promising prospects for buried lithium pegmatites.

Li-FT Power's portfolio also includes the Cali Project, located within the Little Nahanni Pegmatite Group in the Northwest Territories. This project further enhances the company's ability to tap into the growing demand for lithium.

With a strong focus on sustainable exploration practices and a commitment to contributing to the clean energy transition, Li-FT Power is diligently working towards becoming a significant player in the global lithium market. The company's experienced management team and strategic location in Canada, a stable and mining-friendly jurisdiction, position Li-FT Power to create long-term value for its shareholders while playing a crucial role in the future of clean energy.

Interview with Chief Executive Officer, Francis MacDonald

Yellowknife Hard Rock Lithium Project

Over the past 10 months, Li-FT Power has completed approximately 50,000 meters of drilling at Yellowknife. The drill results to date have shown "respectable" grades and widths according to CEO Francis MacDonald.

"To date in the last 10 months we've drilled about 50,000 meters," said MacDonald. "You can see what the grades and widths are and I think they're all pretty respectable."

The company is currently conducting metallurgical testing on the Yellowknife material. An initial resource estimate is expected later this year, which will provide the first look at the size and scale of the lithium mineralization.

Expanding the Resource

While 50,000 meters is a significant amount of drilling, Li-FT Power believes there is potential to further expand the resource. The drill results so far have not fully defined the edges of the mineralized system.

"The game plan right now is to increase the resource," explained MacDonald. "We want to make sure that we're getting as much of a resource as we can into an economic study just to really show how big this can be."

Demonstrating the scale of the resource will be key for the company as it looks to attract potential strategic partners or offtake agreements. Large lithium resources are coveted assets in the current market environment.

Lithium Market Outlook

Lithium prices have pulled back from their 2022 highs, which has put pressure on lithium stocks. However, Li-FT Power remains bullish on the medium and long-term outlook.

"I think it's just a matter of time," said MacDonald regarding a lithium price recovery. "The reality is we don't need $80,000/tonne lithium carbonate. If we had a steady $20-25,000/tonne lithium carbonate, that would make a lot of good projects economic."

Many forecasts still predict robust lithium demand growth this decade as global EV adoption accelerates. Higher cost supply may be shaken out at lower prices, but quality projects in safe jurisdictions should be well-positioned.

Well-Funded to Advance

Li-FT Power is well-capitalized to continue advancing Yellowknife after raising $10 million in March. These funds will be used for metallurgical work, an environmental baseline study this summer to support permitting, and some initial work at the company's earlier-stage Quebec project.

The company expects the $10 million to provide sufficient funding through the end of the year. In the meantime, it will focus on desk work to showcase the value of Yellowknife to the market and potential partners.

Conclusion

Li-FT Power offers speculative exposure to a promising hard rock lithium project in Canada. With 50,000 meters of drilling complete and an initial resource on the way, the company is positioned to demonstrate the scale of Yellowknife to the market. If lithium prices and sentiment improve as many expect, Li-FT could attract strategic interest as a potential future supplier. Investors should monitor the upcoming resource estimate as a key catalyst.

The Investment Thesis for Li-FT Power

• Quality hard rock lithium asset in a stable jurisdiction (Canada)
• Significant drilling (50,000m) already completed with encouraging results
• Pending initial resource estimate will demonstrate size/scale
• Fully-funded to keep advancing project and begin permitting process
• Exposure to strengthening lithium fundamentals and improving sentiment
• Potential for strategic investment/partnership as resource grows

Macro Thematic Analysis

The interview with Li-FT Power's CEO highlights several key themes in the lithium industry. Firstly, it underscores the growing importance of geopolitical considerations in the lithium supply chain. As MacDonald notes, Korean battery manufacturers are nervous about their current reliance on China and are seeking alternative suppliers to remain compliant with US regulations like the Inflation Reduction Act.

This could bode well for lithium projects in North America as automakers strive to localize their supply chains. MacDonald mentions recent investments by Asian companies in Canadian lithium projects as evidence of this trend.

Another key theme is the volatility of the lithium market. Lithium prices soared to record highs in 2022 but have since pulled back significantly. MacDonald argues that lithium's boom-bust cycles are likely to continue, but that prices do not need to return to extreme levels for projects to be economically viable.

As MacDonald explains, "The reality is we don't need $80,000/tonne lithium carbonate. If we had a steady $20-25,000/tonne lithium carbonate, that would make a lot of good projects economic." This suggests that while the industry may face near-term headwinds, the medium and long-term outlooks remain robust as demand growth is expected to outpace supply.

Perhaps the most telling quote is MacDonald's assertive statement that:

"I think the time is now to be really focusing on lithium because it's a niche market. Things are getting built out. There will be a maximum amount of lithium that people will need, and you want to make sure that you've captured some of that market."

In his view, the lithium market is approaching an inflection point as rapid demand growth begins to clash with finite supply. Companies that can navigate the current volatility and stay on track with exploration, permitting and development may be well-positioned for outsized gains in a tighter future market.