H3N Lithium Ionic Corp

Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) (“Lithium Ionic” or the “Company”) is pleased to announce the receipt of a non-binding Letter of Interest (“LOI”) from the Export-Import Bank of the United States (“EXIM”) to provide up to US$266 million in debt financing for its 100%-owned flagship Bandeira Lithium Project (“Bandeira” or the “Project”), located in Minas Gerais, Brazil. This funding represents 100% of the capital expenditure (“CAPEX”) outlined in the May 2024 Feasibility Study, marking a pivotal milestone as the Company accelerates toward construction and production within the next 2 years.

EXIM LOI Highlights:

• Up to US$266 million in debt financing for Bandeira Project development, covering the entire CAPEX outlined in the May 2024 Feasibility Study.
• Maximum repayment term of 15 years.
• EXIM, the official export credit agency of the United States, plays a pivotal role in supporting U.S. exporters and strengthening supply chains.
• The LOI reflects the Project’s alignment with EXIM’s China and Transformational Export Program (CTEP), which emphasizes critical minerals essential for energy security and electrification.
• EXIM’s support underscores the critical role of the Bandeira Project in bolstering the United States’ energy security and supporting the global battery supply chain.
• Lithium Ionic will now work with EXIM to complete the due diligence process and secure a definitive financial agreement.

Blake Hylands, P.Geo., CEO of Lithium Ionic, commented, “This Letter of Interest from EXIM is a major achievement for Lithium Ionic, providing a clear pathway to fully fund the development of the Bandeira Project. Securing this support demonstrates the viability of the Project, reflects the strength of our Project and team, and the growing recognition and importance of Brazil’s Lithium Valley in the global move towards electrification. We extend our sincere appreciation to the US Southern Command (SOUTHCOM) and the US State Department for their direct interest in the Project and for reaffirming its strategic value to the security of the United States, Canada, and partner nations. With this backing, we are a major step closer to achieving our goal of becoming Brazil’s next major lithium producer.”

While the Bandeira Project covers only approximately 1% of its ~17,000-hectare land holdings in the Lithium Valley, it represents the cornerstone of Lithium Ionic’s growth strategy. In May 2024, a robust Feasibility Study demonstrated a 14-year mine life, average annual production of 178,000 tonnes of high-quality 5.5% Li2O spodumene concentrate (24.2k tpa LCE), and competitive on-site operating costs of US$444 per tonne. The study demonstrated a low CAPEX of US$266 million, delivering a post-tax NPV of US$1.3 billion and an IRR of 40%. Bandeira has access to excellent infrastructure, including low-cost hydroelectric power, established transport networks, and proximity to international markets via nearby ports, significantly contributing to its cost efficiency and competitiveness.

The LOI reflects the culmination of extensive effort, collaboration, and expertise from Arlington Innovation Partners, BMO Capital Markets, and the Ervin Graves Strategy Group, who have all played an instrumental role in reaching this important milestone for the Bandeira Project.

EXIM’s funding commitment to the Company is conditional upon Lithium Ionic completing the application for funding, satisfactory due diligence by EXIM and EXIM’s customary approval process of a final financial commitment.

On behalf of the Board of Directors of Lithium Ionic Corp.

Blake HylandsChief Executive Officer, Director

About Lithium Ionic Corp.

Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in Brazil. Its Itinga and Salinas group of properties cover ~17,000 hectares in the northeastern part of Minas Gerais state, a mining-friendly jurisdiction that is quickly emerging as a world-class hard-rock lithium district. Its Feasibility-stage Bandeira Project is situated in the same region as CBL’s Cachoeira lithium mine, which has produced lithium for +30 years, as well as Sigma Lithium Corp.’s Grota do Cirilo project, which hosts the largest hard-rock lithium deposit in the Americas.

Investor and Media Inquiries:

+1 647.316.2500info@lithiumionic.com

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the mineralization and prospectivity of the Company’s mineral properties, the Company’s ability to obtain a definitive binding commitment from EXIM, the LOI, the Company’s ability to finance the Project, the economic viability of Bandeira, the development of the Company’s mineral properties, the Company’s exploration program and other mining projects and prospects thereof, the Company’s ability to obtain the requisite permitting and the Company’s future plans. Such statements and information reflect the current view of the Company. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

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