Lithium Ionic Corp. Expands Private Placement to $15 Million Following Strong Investor Interest

• Company increased non-brokered private placement to $15 million from previously announced smaller offering due to strong investor demand
• Each unit priced at $0.70 includes one common share plus warrant exercisable at $0.90 for 24 months
• Proceeds will fund exploration and development activities across Brazilian lithium properties covering 14,668 hectares
• First tranche expected to close September 29, 2025, subject to regulatory approvals including TSX Venture Exchange
• Properties located in Minas Gerais state, an emerging world-class hard-rock lithium district with established mining operations

Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FSE: H3N) is a Canadian mining company focused on exploring and developing lithium properties in Brazil. The company's flagship assets include the Itinga and Salinas projects, which collectively span 14,668 hectares in the northeastern region of Minas Gerais state. This area represents a mining-friendly jurisdiction that is rapidly establishing itself as a significant hard-rock lithium district. The company's strategic positioning places its projects in proximity to established operations, including CBL's Cachoeira lithium mine with over 30 years of production history and Sigma Lithium Corp.'s Grota do Cirilo project, which hosts the largest hard-rock lithium deposit in the Americas.

Use of Proceeds for Brazilian Lithium Properties

The Company plans to use the aggregate net proceeds of the Upsized Offering for exploration and development of its Brazilian properties and general corporate purposes. The timing of this funding aligns with the growing global demand for lithium, driven by the electric vehicle revolution and energy storage requirements. Brazil's emergence as a significant lithium jurisdiction provides strategic advantages including established mining infrastructure, skilled workforce, and favourable regulatory environment.

The company's properties benefit from their location within an established lithium district where neighbouring operations validate the geological potential and provide infrastructure advantages. The proximity to CBL's producing Cachoeira mine offers valuable insights into local geology and operational considerations, whilst the presence of Sigma Lithium's major deposit demonstrates the scale potential within the region. This geographical clustering effect often reduces development risks and costs through shared infrastructure and services.

The funding will enable advancement of exploration programmes designed to define and expand the resource base across both the Itinga and Salinas projects. With 14,668 hectares under control, the company has significant exploration upside potential in a proven geological setting. The proceeds will also support environmental and permitting activities necessary for project advancement, as well as general corporate purposes including working capital and administrative expenses during the development phase.

Timeline and Regulatory Requirements for Closing

The first tranche of the Upsized Offering is scheduled to close on or about September 29, 2025 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange ("TSXV"). This timeline provides near-term funding certainty for the company's operational plans whilst allowing sufficient time for regulatory review processes. The TSX Venture Exchange approval represents a standard requirement for listed companies conducting private placements.

The structured approach with a first tranche closing allows the company to access initial funding quickly whilst potentially completing additional tranches as investor demand warrants. This flexibility provides management with options to optimise the final size and timing based on market conditions and operational requirements. The regulatory approval process typically involves review of subscription documentation, use of proceeds, and compliance with exchange policies.

The September 29 target date positions the company to have funding available for the upcoming exploration season, allowing field programmes to commence without delay. Early access to capital enables management to secure equipment, personnel, and services ahead of peak demand periods, potentially reducing costs and ensuring programme execution. The regulatory framework provides investor protection through oversight whilst maintaining reasonable timelines for capital raising activities.

Looking Ahead

The successful upsizing of this private placement demonstrates market confidence in Lithium Ionic's Brazilian lithium strategy and positions the company for accelerated development activities. Key upcoming milestones include completion of the first tranche closing, commencement of expanded exploration programmes across the company's property portfolio, and advancement of permitting activities necessary for project development. The enhanced financial position provides flexibility to pursue additional opportunities within the emerging Brazilian lithium district whilst maintaining focus on the core Itinga and Salinas projects. Investors should monitor progress on exploration results, resource definition activities, and strategic partnerships that could further advance the company's position in this rapidly developing lithium jurisdiction.

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