Prairie Lithium Converts Mineral Exploration Permits into 21-Year Mineral Leases, Demonstrating the Government of Saskatchewan’s Commitment to Advancing Lithium Development

EMERALD PARK, Saskatchewan--(BUSINESS WIRE)--PRAIRIE LITHIUM CORPORATION (“Prairie Lithium” or the “Company”) has converted two crown mineral exploration permits with a combined area of 6,795 acres, into 21-year mineral leases. To the Company’s knowledge, the mineral leases SML001 and 002 are the first crown mineral leases issued for lithium by the province. This is important because leases are required before companies are allowed to produce a resource at commercial scale production rates. This achievement illustrates the progress Prairie Lithium has been making towards readying its resource for deployment of direct lithium extraction technology (DLE) on its lithium-rich brine resource in Saskatchewan.

Conversion to a lease is only possible when a Company has met the minimum work requirement expenditure associated with an exploration permit. Prairie Lithium’s conversion of mineral permits to 21-year mineral leases is a direct result of the exploration work undertaken in 2021 to better understand the distribution of lithium in the Duperow Aquifer in Southeast Saskatchewan. The exploration program included drilling a new well (14-33-002-12 W2M) and re-completing a well at (01-02-001-12 W2M). Representative fluid samples were collected from eight separate zones in the well at 14-33 and three separate zones in the well at 01-02. In addition to collecting fluid samples, the 14-33 well was flow-tested for overall productivity because long-term sustainable production of brine will be necessary for project viability.

The permit to lease conversion allows Prairie Lithium the opportunity to advance their research and development at a meaningful scale in the field at the appropriate time. Prairie Lithium intends to scale-up and deploy DLE technologies that will maximize the long-term value of its resource. In parallel to its own DLE technology development, the Company is also actively assessing external DLE technologies to ensure that it is utilizing the most cost effective DLE process for long-term production of its resource. The Company acknowledges that DLE technologies are not yet ready to be commercially deployed. The permit to lease conversion will allow Prairie Lithium the opportunity to test DLE technologies on its resource in real world conditions.

Additionally, Prairie Lithium continues to advance their exploration program in 2022, securing Panther Drilling and Independent Well Services Ltd. to perform re-entry work on one of the newly acquired wellbores mentioned in the Company’s previous press release on Sept. 21, 2022. This well is being completed to measure lithium concentrations across Prairie Lithium’s main target intervals within the Duperow Formation and to understand the productivity across these intervals to ensure a sufficient volume of lithium-rich brine can be produced for long term development. The workover and flow testing are expected to be completed by Dec. 1, 2022.

About Prairie Lithium:

Prairie Lithium is a private lithium resource and technology developer situated in the heart of the resource-rich Williston Basin in Saskatchewan, Canada. For more information about the Company, please visit www.prairielithium.ca or contact [e-mail].

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Prairie Lithium’s business and affairs. Such statements include, but may not be limited to, those with respect to: (i) Prairie Lithium’s ability to produce both lithium carbonate and lithium hydroxide from the lithium solution extracted using its Lithium Ion Exchange (Plix) technology; (ii) Prairie Lithium’s land holdings containing brine with the expected lithium concentrations; (iii) Prairie Lithium’s anticipated exploration and project development activities; (iv) Prairie Lithium’s continued expertise in brine hydrochemistry and hydrogeology; (v) the potential for the lithium extraction industry in Saskatchewan, a continued stable legal regime governing the industry in Saskatchewan, and continued support from all levels of government; (vi) price of battery grade lithium and future global demand; and (vii) use of proceeds from the private placement.

These statements are based on expectations, and are subject to uncertainty and changes that may cause actual results to differ materially. Although Prairie Lithium believes that expectations represented in such statements are reasonable, there can be no assurance that these expectations will prove correct. Since forward-looking statements address future events and conditions, they involve inherent risks and uncertainties. Actual results could differ from those anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the lithium industry in general, operational risks in relation to the Company's activities, the uncertainty of estimates and projections relating to production, health, safety and environmental risks, constraint in the availability of services, commodity price and exchange rate fluctuations, changes in legislation impacting the lithium battery industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

All of the forward-looking statements made in this press release are qualified by these cautionary statements. Readers are cautioned not to place undue reliance on such forward-looking statements. This information is provided as of the date of this press release, and Prairie Lithium assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities legislation.