Lithium ION Energy - Leveraged Lithium Exposure in Mongolia & Consolidation Potential in Canada

• Lithium ION Energy has two lithium assets in Mongolia and two early-stage lithium assets in Canada's Northwest Territories. The company is positioning itself to serve both the Asian and North American electric vehicle markets.
• In Mongolia, the company is seeking third-party validation of its assets to demonstrate commercial viability. This could set the stage for new strategic partnerships or investments.
• In Canada, the company plans exploration work including channel sampling and some initial drilling at its Bliss Lake claims located near Yellowknife. Success could position the assets as consolidation targets for larger players active in the region.

About Lithium ION Energy

Lithium ION Energy is a lithium exploration and development company focused on two assets in Mongolia and two early-stage lithium pegmatite projects in Canada's Northwest Territories. The company is positioning itself to serve both Asian and North American electric vehicle supply chains. In Mongolia, the company is advancing the Urgakh Naran lithium brine project located 50km from rail infrastructure leading to China. The company also holds the Baavhai Uul lithium clay project. In Canada, recent acquisitions have secured the 5,798 hectare Bliss Lake lithium pegmatite project 10km from Yellowknife and the 900 hectare Little Nahanni project near other active lithium pegmatite explorers.

For investors, Lithium ION Energy offers leveraged exposure to further lithium discoveries in Mongolia, a largely unexplored jurisdiction, combined with earlier stage assets in Canada's Northwest Territories. Strategic partnerships, investments, or consolidations could also boost shareholder value as the company seeks to advance and derisk its portfolio over the coming year.

Interview with President & CEO, Ali Haji

Mongolia - Validating Commercial Potential

Lithium ION Energy's Mongolian lithium portfolio consists of the Baavhai Uul lithium brine project, and the Urgakh Naran brine project. The company positioned early as the first explorer focused on Mongolia's lithium potential. Recent work, especially at Urgakh Naran, has outlined significant lithium mineralization. However, further validation from third-party experts and potential strategic partners will be key to demonstrating commercial viability.

The 20,000-hectare Urgakh Naran project is located just 30km by road from the Mongolia-China border crossing and 50km from rail infrastructure leading into China. Initial sampling in 2022 returned grades up to 918 mg/L lithium at surface, comparable to some of the top lithium brine projects globally.

The scale of the project and grades encountered suggest strong economic potential. However, as first movers in Mongolia's lithium sector, further validation is required to give investors confidence. Lithium ION Energy suggests experts from established lithium producers assessing and endorsing the project could provide this validation. Additionally, potential strategic investments or partnerships could also accelerate things. State-owned enterprises from France, China, and India have recently shown interest in Mongolia's lithium potential.

At the Baavhai Uul project, Lithium ION Energy has over 80,000 hectares, one of the largest exploration licenses in Mongolia, highly prospective for lithium brine. The average grade is 426ppm lithium, with the max grade being 811ppm. The large contiguous land package has seen only early-stage exploration to date. It could warrant more attention should the company shore up its balance sheet.

For the company, delivering third-party validation of one or both projects could be a gamechanger in the near-term. It could shore up the market's confidence in Mongolia's lithium potential and Lithium ION Energy's position as a first mover. Additionally, strategic partnerships and the potential for further government investments focused on critical mineral development make Mongolia an intriguing lithium jurisdiction to watch.

Canada - Consolidation Potential

In Canada, Lithium ION Energy has adopted a fast follower strategy focused on consolidation potential. The company recently acquired two projects, one located near Yellowknife adjacent to other explorers and one located near active lithium pegmatite projects in southern Northwest Territories. Due to the early stage of these projects, near-term exploration results will dictate next steps.

The 5,798 hectare Bliss Lake project is located close to Highway 4 and just 10km from Yellowknife. It lies directly between the city and Li-FT Power's 'Road Access Group' where numerous lithium bearing pegmatites have been identified and sampled with over 1% Li2O. Satellite imagery has revealed numerous surface pegmatite outcrops that have not yet seen sampling. Through modest flow-through financing, Lithium ION Energy plans channel sampling and potentially some exploratory drilling in early 2024 once snow cover recedes. Results would be quickly disseminated given proximity to infrastructure.

Successful early results could bring the company onto the radar of Li-FT Power or other nearby explorers. The Bliss Lake claims cover a vast area with confirmed pegmatite outcrops that has seen almost no modern exploration. As such, it could become a consolidation target. Early data readouts could also help validate the quality of the acquisition.

The company has also recently acquired two claims, identified as the Little Nahanni project. The Little Nahanni claims total approximately 900 hectares and are in an area of pegmatites first identified in 1961.

In Canada, the recipe for near-term shareholder success likely relies on early positive results from focused exploration efforts. Bliss Lake provides the greatest opportunity to generate a meaningful data set that could position the company as a takeout target or partner in the Yellowknife lithium district currently anchored by Li-FT Power.

Conclusion

Lithium ION Energy has positioned itself well with lithium exposure in Mongolia, an underexplored region drawing increasing attention. The company's Mongolian projects check many boxes when compared to proven lithium jurisdictions. However, as first movers, there is still a discount applied due to perceived jurisdictional risk and early-stage status. Validation from third party technical experts and potential strategic investors could narrow this gap rapidly and increase investor confidence.

In Canada, the company has optionality on projects that could quickly yield exploration results. Positive early drilling and sampling could position these as consolidation targets as the Northwest Territories emerges as a lithium exploration hot spot. As lithium demand forecasts continue rising month-over-month, exposure to new discoveries could reward shareholders in a tight lithium market.

With disciplined exploration and staged project advancement while maintaining a low operational burn rate, Lithium ION Energy boasts solid leverage to the growing global lithium trend. Strategic partnerships and support remain key near-term catalysts across all projects to unlock the full potential of this uniquely positioned lithium explorer now actively advancing assets in two of the industry's most promising jurisdictions.