Nevada Lithium Resources Inc. (CSE: NVLH) (OTCQB: NVLHF) (FSE: 87K) is pleased to announce that today it closed its non-brokered private placement offering of 38,530,000 Subscription Receipts (as defined below) at a price of $0.125 per Subscription Receipt for aggregate gross proceeds of $5,120,998.

Stephen Rentschler, CEO of Nevada Lithium stated, “We are very grateful for the overwhelming demand on this offering which included strong support from existing sophisticated shareholders as well as new strategic investors. The consolidation of this world-class asset greatly enhances the Company’s ability to negotiate with strategic investors and lithium end-users. We continue to advance the Bonnie Claire Project on multiple fronts and believe the Bonnie Claire Project is one of the most attractive global lithium assets remaining in junior developers’ hand.”

The Offering was undertaken in connection with the Company’s previously announced consolidation of 100% ownership interest of the Bonnie Claire Lithium project, which is currently jointly held by Iconic Minerals Ltd. and Nevada Lithium, by way of a court approved plan of arrangement. For further details regarding the Transaction, please refer to the press releases of the Company dated January 9, 2023 and January 23, 2023 available on SEDAR at www.sedar.com.

The Offering was comprised of: (A) concurrent non-brokered private placement financings completed by the Company and the Company’s wholly-owned subsidiary, 1396483 B.C. Ltd. whereby Nevada Lithium issued 14,780,000 Subscription Receipts at the Issue Price and Nevada MergeCo issued 23,750,000 Subscription Receipts at the Issue Price; and (B) the issue and sale of promissory notes of Nevada Lithium in the principal amount of $304,748. The Nevada Lithium Subscription Receipts were issued pursuant to and are governed by the terms of a subscription receipt agreement dated February 24, 2023. The Nevada MergeCo Subscription Receipts were issued pursuant to and are governed by the terms of a subscription receipt agreement dated February 24, 2023.

The Subscription Receipts issued pursuant to the Offering will automatically convert, without payment of any additional consideration or further action on the part of the holder thereof, as follows: (i) each Nevada Lithium Subscription Receipt will be converted into one unit, consisting of one common share of Nevada Lithium and one-half of one share purchase warrant of Nevada Lithium; and (ii) each Nevada MergeCo Subscription Receipt shall be converted into one unit, consisting of one common share of Nevada MergeCo and one-half of one share purchase warrant of Nevada MergeCo. Upon completion of the Transaction, each Nevada MergeCo Share and each Nevada MergeCo Warrant will be exchanged on a one-for-one basis for, respectively, Nevada Shares and Nevada Warrants. Following completion of the Transaction, Nevada Warrant will entitle the holder thereof to acquire one additional Nevada Share at a price of $0.20 until the date that is 24 months following the closing of the Transaction.

In connection with the issue and sale of the Promissory Notes, Nevada Lithium entered into debt conversion agreements with the holders of the Promissory Notes, providing for the conversion of the principal amounts owing under the Promissory Notes into Nevada Lithium Units upon closing of the Transaction.

PowerOne Capital Markets Limited and Primary Capital Inc. acted as finders in connection with the Offering. Eligible finders were paid a cash commission of 7% of gross proceeds sold be each finder, which will be payable upon closing of the Transaction and finder warrants, being equal to 7.0% of the number of Subscription Receipts sold by each finder. Each Finder Warrant will entitle the holder thereof to acquire one Nevada Lithium Unit at the Issue Price for a period of 24 months following closing of the Transaction.

The net proceeds from the Offering will be used for general corporate purposes following the completion of the Transaction.

The Offering constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 as certain officers and directors of the Company subscribed for Subscription Receipts pursuant to the Offering. The Company relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(b) and 5.7(1)(b) of MI 61-101 with respect to the insider participation in the Offering.

Bonnie Claire Project

The Bonnie Claire Project is located within Sarcobatus Valley, which is approximately 30 km (19 miles) long and 20 km (12 miles) wide. Quartz-rich volcanic tuffs containing anomalous amounts of lithium occur within and adjacent to the valley. Drill results from the salt flat include 2,054 ppm Li over  67.1 m (220 ft) in drill hole BC-1601 as well as a 475 m (1560 ft) vertical intercept that averaged 1153 ppm Li. Bonnie Claire is one the largest lithium resources in North America with a current NI 43-101 inferred mineral resource 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18,372 million kilograms of contained lithium carbonate equivalent, at a cut-off grade of 700 ppm Li. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.

The gravity low that characterizes the valley is approximately 20 km (12 miles) long, and the current estimates of depth to basement rocks range from 600 to 1,200 meters (2,000 to 4,000 feet). The current claim block covers an area of 74 km2 (28.6 mi2) with potential for brine systems and further sediment resources.

About Nevada Lithium Resources Inc.

Nevada Lithium Resources Inc. is a mineral exploration and development company focused on shareholder value creation through its core asset, the Bonnie Claire Lithium Project, located in Nye County, Nevada, where it currently holds a 50% interest. A recently completed NI 43-101 Preliminary Economic Assessment returned attractive investment metrics and the Company is actively advancing the Project towards Pre-Feasibility.