Li-FT Power Closes $10.1 Million in Flow-Through Financing

• Li-FT Power closed a $7.1 million public offering of flow-through shares at $6.05 per share
• Also closed a concurrent $3.0 million non-brokered private placement of flow-through shares at $4.35 per share
• Proceeds will fund exploration at the flagship Yellowknife Lithium Project in the Northwest Territories to incur eligible flow-through expenses by Dec 31, 2025
• Li-FT is focused on acquiring and exploring lithium pegmatite projects in Canada
• The financings position Li-FT to aggressively explore and develop its prospective lithium projects to capitalize on strong demand fundamentals for lithium

About Li-FT Power

Li-FT Power is a Canadian mineral exploration company focused on the acquisition, exploration and development of lithium pegmatite projects in Canada. The company's flagship asset is the Yellowknife Lithium Project located in the Northwest Territories. Li-FT also holds three early-stage lithium exploration properties in Quebec with excellent potential for discovery of buried lithium pegmatites, as well as the Cali Project located in the Little Nahanni Pegmatite Group in the Northwest Territories.

Li-FT's mission is to become a leading lithium explorer and developer in stable Canadian jurisdictions to supply the rapidly growing electric vehicle and battery storage markets. With a strong technical team and prospective project portfolio, Li-FT is well positioned to deliver value for shareholders.

Successful $10.1 Million Flow-Through Financing

On March 27, 2024, Li-FT Power announced the closing of a $7.1 million marketed public offering of flow-through common shares at a price of $6.05 per share. The financing was led by Canaccord Genuity Corp. on behalf of a syndicate of agents. The flow-through shares qualify as such under the Income Tax Act (Canada), providing tax benefits to investors.

In addition, the company concurrently closed a $3.0 million non-brokered private placement of flow-through shares at a price of $4.35 per share. No finder's fees were paid related to the private placement.In total, the company raised gross proceeds of $10.1 million through the issuance of flow-through shares via the public offering and private placement. The flow-through structure provides capital to the company while giving investors exposure to tax deductions equal to the amount invested.

Use of Proceeds

Li-FT Power intends to use the proceeds from the flow-through share offerings to incur eligible "Canadian exploration expenses" that will qualify as "flow-through critical mineral mining expenditures" as defined in the Income Tax Act (Canada). These qualifying expenditures will be incurred at the company's flagship Yellowknife Lithium Project in the Northwest Territories on or before December 31, 2025.

The Yellowknife project spans over 14,000 hectares and is located in a well-established mining district near the city of Yellowknife. The project is notable for its large, high-grade lithium-bearing pegmatite occurrences that have seen minimal historic exploration. Li-FT will utilize the flow-through proceeds to conduct extensive drilling to delineate mineral resources, as well as geophysical and geochemical surveys to generate new drill targets across the district-scale property.

Spending the flow-through funds by the end of 2025 ensures that investors are able to receive their tax deductions in a timely manner. The company will renounce the qualifying expenditures in favor of the flow-through share subscribers effective December 31, 2024.

Lithium Market Outlook

Lithium is a critical metal used in the rapidly growing rechargeable battery industry, particularly for electric vehicles and renewable energy storage. Demand for lithium is expected to grow significantly over the coming decade as global efforts to decarbonize energy and transportation systems accelerate.

In recent years, surging demand and supply chain disruptions have caused lithium prices to increase substantially, incentivizing the development of new sources of supply. Benchmark Mineral Intelligence forecasts that lithium demand could increase six-fold by 2032, potentially outpacing supply and creating a structural deficit.

Canada is favorably positioned to become a leader in responsible lithium production given its substantial geological endowment, well-developed mining industry, and initiatives to support critical mineral supply chains. Exploration and development companies like Li-FT Power stand to benefit from this macro backdrop as they advance quality lithium projects in stable jurisdictions.

Highly Prospective Project Portfolio

Li-FT Power's flagship Yellowknife Lithium Project is a large, underexplored land package with the potential to host a district-scale spodumene pegmatite field. The property is notable for high-grade (>1.5% Li2O) spodumene-bearing pegmatite occurrences that have seen minimal exploration to date. Occurrences are expressed at surface across 5 x 5 km areas, indicating the potential for sizeable deposits.

In addition to Yellowknife, Li-FT holds the Cali Project (960 hectares), also in the Northwest Territories, and three early-stage projects in Quebec: Rupert (155,000 hectares), Pontax (5,596 hectares), and Lac Astrid (12,284 hectares). All projects are in favorable mining jurisdictions and have potential for the discovery of lithium-bearing pegmatites.

With a market capitalization of approximately C$55 million, Li-FT Power represents a compelling investment opportunity in the lithium exploration and development space. The company's prospective asset base, experienced management team, and strong financial position differentiate it from its peers. As Li-FT advances its projects, the company is well positioned to deliver meaningful share price appreciation.

Upcoming Catalysts

Looking ahead, Li-FT Power is planning an aggressive exploration program at the Yellowknife Lithium Project utilizing the recently closed flow-through funding. Exploration activities will include drilling to delineate maiden mineral resources at advanced targets and district-scale geophysical and geochemical surveys to define additional pegmatite targets for follow-up.

The company is targeting a mineral resource estimate for Yellowknife in 2025 that, if successful, could be a major catalyst for the stock. In addition, Li-FT will conduct reconnaissance exploration programs at its Quebec properties to refine pegmatite targets for more advanced exploration. Positive exploration results from these programs could provide steady news flow and act as share price catalysts.

With $10.1 million in flow-through funding and additional hard dollars on the balance sheet, Li-FT is well capitalized to execute on its exploration plans through 2025. The company may also look to opportunistically grow its project portfolio in favorable Canadian jurisdictions.

Conclusion

Li-FT Power offers investors exposure to the high-growth lithium industry through its prospective early-stage exploration projects in Canada. With its flagship Yellowknife Lithium Project and a pipeline of quality exploration properties in the Northwest Territories and Quebec, Li-FT has the potential to delineate an attractive lithium resource base that would position the company to create significant value for shareholders.

The company's strong financial position, experienced technical team, and aggressive exploration plans differentiate it from other lithium explorers. With multiple near-term catalysts on the horizon, including extensive drilling at Yellowknife, Li-FT Power is an attractive investment opportunity for investors bullish on lithium and the electric vehicle revolution.

As with any early-stage explorer, Li-FT Power carries significant exploration and development risk and will require additional capital to advance its projects longer-term. However, the company's prospective assets, first-mover advantage in the Northwest Territories, and potential for near-term share price catalysts make it a compelling speculative play in the battery metals space.

Investors should monitor Li-FT's progress closely as it executes its flow-through funded exploration programs and delivers results over the coming 12 months. Positive drill results, particularly from the Yellowknife project, could be a major catalyst for the stock.