Atlantic Lithium Limited Announces Further Lithium Infill Drilling Results, Ghana

FINAL HIGH-GRADE INFILL DRILLING RESULTS RECEIVED EWOYAA LITHIUM PROJECT, GHANA WEST AFRICA

SYDNEY, AUSTRALIA / ACCESSWIRE / February 10, 2022 / Atlantic Lithium Limited (AIM: ALL, OTCQX: ALLIF, "Atlantic Lithium" or the "Company"), the fully-funded, African- focussed lithium exploration and development company on track to become West Africa's first lithium producing mine, is pleased to announce final high-grade infill drilling results from the December 2021 campaign 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 compliant Mineral Resource Estimate of 21.3Mt @ 1.31% Li₂O ("MRE" or the "Resource") resulting in a significant improvement in project economics and life of mine ("LOM").

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/2348B_1-2022-2-10.pdf

HIGHLIGHTS:

• Final programme of high-grade infill and extensional resource drilling assay results from the c. 37,500m drilling programme completed in December 2021 reported for diamond core ("DD") and reverse circulation ("RC") holes, including highlights at a 0.4% Li₂O cut-off and maximum 4m of internal dilution of:
  • GRDT0453: 30m at 1.5% Li₂O from 85.6m
  • GRC0574: 29m at 1.35% Li₂O from 150m
  • GRDT0479: 23m at 1.7% Li₂O from 114m
  • GRDT0505: 27.7m at 1.15% Li₂O from 53.8m
  • GRC0596: 21m at 1.47% Li₂O from 45m
  • GRC0600: 19m at 1.61% Li₂O from 42m
  • GRDT0476: 16.9m at 1.62% Li₂O from 130.1m
  • GRC0591: 15m at 1.76% Li₂O from 65m
  • GRC0616: 15m at 1.59% Li₂O from 249m
  • GRC0618: 15m at 1.54% Li₂O from 159m
  • GRC0590: 16m at 1.44% Li₂O from 194m
  • GRDT0481: 15m at 1.47% Li₂O from 97m
  • GRC0619: 17m at 1.28% Li₂O from 172m
  • GRC0593: 11m at 1.89% Li₂O from 122m
  • GRDT0467: 14.6m at 1.4% Li₂O from 65.2m
• Infill drilling results have confirmed grade and continuity across the Ewoyaa deposits and exploration drilling confirmed new mineralisation outside of the MRE at Kaampakrom West, Ewoyaa Sill and Grasscutter West targets.
• 11,852m of infill and extensional drilling assay results reported herewith in 73 holes, representing final assay results for the completed drill programme.
• Multiple high-grade drill intersections reported along eastern strike extension of the Grasscutter West deposit, outside of the MRE.
• Additional high-grade results received over the Ewoyaa Sill target and Kaampakrom West target, with good widths reported outside of the MRE footprint.
• Regional exploration auger drilling ongoing on site with six power auger rigs active; regional airborne geophysical survey awarded to New Resolution Geophysics, South Africa, and soil sampling surveys planned over newly granted Cape Coast license.
• Exploration and resource RC and DD expansion drilling planned to recommence in March 2022.
• 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 to extend the planned LOM; Project metrics substantially improve with an LOM beyond 12 years.

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

"Drilling results received confirm grade and continuity where tested across the Ewoyaa deposits, including a broad, high-grade intersection of 30m at 1.5% Li₂O at the Ewoyaa Northeast deposit, as well as new zones of mineralisation defined outside of the current Resource footprint.

"Multiple high-grade drill intersections have been returned over the eastern strike extension of the Grasscutter West deposit; all of which occur outside of the Resource and expected add further tonnes.

"Additional assay results received over the Ewoyaa Sill target continue to impress, with high-grade mineralisation and good widths occurring in flat lying structures favourable for tonnage addition and low strip ratio; also, outside of the Resource which is expected add further tonnes.

"The results reported herewith represent the final drilling results for the programme completed in December 2021, where the Company is targeting >80% resource conversion from inferred to indicated over the 21.3Mt @ 1.31% Li₂O JORC Resource, as well as a targeted 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; not only do we believe that Project metrics will improve significantly beyond the current defined mine life, however we also see further potential for substantial economic improvement due to the recent increases in spodumene concentrate pricing which have far exceeded our initial SC6 price modelling parameters.

"We believe these fundamentals continue to demonstrate Ewoyaa as an industry-leading asset; with the Company ideally positioned to benefit from the growing lithium market; we look forward to progressing the Project towards production and establishing Atlantic Lithium as a new player in the lithium supply chain."

Infill and Extensional Drilling Results

Final drilling results are reported herewith for 11,852m of infill and extensional drilling in 73 holes at the Ewoyaa Project. This represents the final drilling results for the c. 37,500m drilling programme completed post-reporting of the updated Mineral Resource Estimate ("MRE") of 21.3Mt @ 1.31% Li₂O (refer RNS of 1 December 2021).

Multiple high-grade drill intersections have been returned in Reverse Circulation ("RC") and Diamond core ("DD") infill and extensional 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 for RC and at 1m intervals or less at the core shed for DD, with samples 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.

Highlight drill sections are shown in Figure 2, Figure 3 and Figure 4 below for the Ewoyaa NE, Ewoyaa Sill and Grasscutter West extension deposits.

The multiple >15 lithium meters (Li₂O% x m) metal content intersections reported at the Grasscutter West extension target including GRC0596: 21m at 1.47% Li₂O from 45m, GRC0600: 19m at 1.61% Li₂O from 42m and GRC0616: 15m at 1.59% Li₂O from 249m bodes well for resource addition outside of the currently defined MRE, with mineralisation extended 150m eastwards and at depth (refer Figure 1 and Figure 4).

Drilling results validate grade and mineralisation continuity where returned to date over the Ewoyaa Northeast, Okwesi, Anokyi, and Grasscutter East deposits, providing confidence in future resource upgrades from inferred to indicated status.

New mineralisation has been intersected and high-grade assay results returned at the Kaampakrom West, Ewoyaa Sill and Grasscutter West extension targets where multiple drill intersections and high-grade results fall outside of the currently defined MRE (refer Figure 5).

Field teams have returned to site and six auger rigs have commenced drilling activities for both regional exploration and resource expansion targeting over the Mankessim, Mankessim South and Saltpond licenses.

Exploration and resource drilling programmes are planned to recommence in March 2022 to test new targets along strike and at depth, as well as diamond core drilling in support of geotechnical, hydrogeology and site investigation studies.

Planning is underway for airborne geophysical and grid soil geochemistry over the recently granted Cape Coast license (refer RNS of 19 November 2021).

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