Atlantic Lithium Limited Announces Initial Lithium Infill Drilling Results, Ghana

INFILL DRILLING RESULTS VALIDATE GRADE AND CONTINUITY

HIGHEST GRADE DRILL INTERSECTION REPORTED TO DATE

EWOYAA LITHIUM PROJECT, GHANA WEST AFRICA

SYDNEY, AUSTRALIA / ACCESSWIRE / December 15, 2021 / Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, "Atlantic Lithium" or the "Company"), the African focussed lithium exploration and development company, is pleased to announce initial infill drilling results at the Ewoyaa Lithium Project ("Ewoyaa" or the "Project") in Ghana, West Africa, where the Company recently announced an updated Scoping Study and increased JORC resource of 21.3Mt @ 1.31% Li₂O, resulting in a significant improvement in project economics and life of mine.

Figures and Tables referred to in this release can be viewed in the PDF version available via this link:

http://www.rns-pdf.londonstockexchange.com/rns/7138V_1-2021-12-15.pdf

HIGHLIGHTS:

• Initial infill drilling results received validate grade and continuity where drilled at the Project.
• Highest metal content intersection (lithium grade x meters) reported to date of 91.6m at 1.6% Li₂O from 8m in hole GDD0015.
• High-grade infill drilling results reported for diamond drilling ("DD") and reverse circulation ("RC") holes, including highlights at a 0.4% Li₂O cut-off and maximum 4m of internal dilution of:
  • GDD0015: 91.6m at 1.6% Li₂O from 8m
  • GDD0039: 67.7m at 1.36% Li₂O from 41m
  • GRC0425: 75m at 1.17% Li₂O from 68m
  • GDD0047: 62m at 1.4% Li₂O from 36m
  • GDD0022: 58.8m at 1.45% Li₂O from 34.1m
  • GRC0428: 66m at 1.26% Li₂O from 41m
  • GRC0426: 64m at 1.28% Li₂O from 74m
  • GDD0014: 52.3m at 1.3% Li₂O from 20.4m
  • GDD0016: 35.7m at 1.83% Li₂O from 58.3m
  • GDD0036: 44.5m at 1.43% Li₂O from 36.5m
  • GDD0044: 37.7m at 1.59% Li₂O from 50.3m
  • GDD0020: 36.5m at 1.64% Li₂O from 17m
  • GRC0454: 33m at 1.67% Li₂O from 107m
  • GDD0017: 43.4m at 1.23% Li₂O from 45.6m
  • GDD0048: 24.7m at 2.01% Li₂O from 14.5m
• 10,200m of infill drilling assay results reported herewith in 98 holes. Additional approximate 26,800m of infill, extensional and exploration drilling assay results remaining to report post completion of drilling activities for the year.
• Recently announced Scoping Study update (refer RNS of 7 December 2021) delivers exceptional financial outcomes for a 2Mtpa operation, producing an average c.300,000tpa of 6% Li₂O spodumene concentrate ("SC6") over an 11.4-year operation:
  • LOM revenues exceeding US$3.43bn, Post-tax NPV₈ of US$789m, IRR of 194% over 11.4 years
  • US$70m capital cost with industry-leading payback period of <1 year
  • C1 cash operating costs of US$249 per tonne of 6% lithium spodumene concentrate Free on Board ("FOB") Ghana Port, after by-product credits
  • Pre-tax NPV₈ of US$1.23bn and EBITDA of US$2.02bn for LOM
  • Average EBITDA of US$178m per annum
• Significant potential for resource upgrades; project metrics substantially improve with increased LOM beyond 12 years.

Commenting on the Company's latest progress, Vincent Mascolo, CEO of Atlantic Lithium, said:

"The infill drilling results received to date have confirmed mineralisation grade and continuity where tested within the Ewoyaa deposit.

"We have also received our highest metal content drill intersection to date with a broad 91.6m intercept of high-grade pegmatite at 1.6% Li₂O returned at the Ewoyaa Main deposit.

"The Company is targeting >80% resource conversion from inferred to indicated over the recently upgraded 21.3Mt @ 1.31% Li₂O resource, as well as a tonnage increase to over 24Mt in support of a 12-year mine life for future studies.

"Our resource continues to grow, and the upside of the Project is clear; as such, we expect that the Project metrics will improve beyond the current defined LOM. It is estimated by the Company that every additional year of production will add up to c. US$60m in post-tax NPV per annum. Given these fundamentals, we are very excited by the resurgence and exponential growth potential across the lithium supply chain and reaffirm to the market that Atlantic Lithium is ideally poised to benefit from the growing lithium market going forward."

Infill Drilling Results

Initial infill drilling results are reported herewith for approximately 10,200m of infill drilling in 98 holes at the Ewoyaa Lithium Project. On completion of drilling activities for the year, an additional approximate 37,000m of infill, extensional and exploration drilling was completed post reporting of the updated Mineral Resource Estimate ("MRE") of which 10,200m is reported herewith (refer RNS of 1 December 2021).

Multiple high-grade drill intersections have been returned in RC and DD infill drilling, with highlights reported in Table 1 and Figure 1 at a 0.4% Li₂O cut-off and maximum 4m of internal dilution (refer Appendix 1 for all reported intersections).

All sampling was completed at 1m sampling intervals at the drill site and submitted for analysis at Intertek laboratory with sample preparation completed in Ghana and sample analysis in Perth, Western Australia. All results passed internal and laboratory QA/QC protocols, providing confidence in the reported results.

Initial infill drilling results validate grade and mineralisation continuity where returned to date over the Ewoyaa Main, Ewoyaa_NE, Okwesi, Anokyi and Grasscutter_E deposits, providing confidence in future resource upgrades from inferred to indicated status.

Additionally, the Company has targeted further resource expansion and exploration drilling with assays pending over the Grasscutter West extension zone, Kaampakrom West target and depth extensions at Ewoyaa_NE, Okewesi, Anokyi and Grasscutter zones (refer Figure 2).

Approximately 26,800m of additional resource infill and exploration drilling assay results are pending.

For any further information, please contact:

Competent Persons

Information in this report relating to the exploration results is based on data reviewed by Mr Lennard Kolff (MEcon. Geol., BSc. Hons ARSM), Chief Geologist of the Company. Mr Kolff is a Member of the Australian Institute of Geoscientists who has in excess of 20 years' experience in mineral exploration and is a Qualified Person under the AIM Rules. Mr Kolff consents to the inclusion of the information in the form and context in which it appears.

Information in this report relating to Mineral Resources was compiled by Shaun Searle, a Member of the Australian Institute of Geoscientists. Mr Searle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Searle is a director of Ashmore. Ashmore and the Competent Person are independent of the Company and other than being paid fees for services in compiling this report, neither has any financial interest (direct or contingent) in the Company.

Information in this report relating to metallurgical results is based on data reviewed by Mr Noel O'Brien, Director of Trinol Pty Ltd. Mr O'Brien is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr O'Brien consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Notes to Editors:

About Atlantic Lithium

www.atlanticlithium.com.au

Atlantic Lithium (formerly "IronRidge Resources") is an AIM-listed lithium company advancing a portfolio of projects in Ghana and Côte d'Ivoire through to production.

The Company's flagship project, the Ewoyaa Project in Ghana, is a significant lithium pegmatite discovery on track to become West Africa's first lithium producing mine. The project is fully funded to production under an agreement with Piedmont Lithium for US$102m and set to produce a premium lithium product. A robust update Scoping Study indicates Life of Mine revenues exceeding US$3.4bn.

Atlantic Lithium holds a 560km² & 774km² tenure across Ghana and Côte d'Ivoire respectively, comprising significantly under-explored, highly prospective licenses.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

SOURCE: Atlantic Lithium Limited