American Lithium Corp. (TSX-V:LI) (OTCQB:LIACF) (Frankfurt:5LA1) is pleased to announce the successful precipitation of high purity, fertilizer-quality potassium sulfate (“SOP”-sulfate of potash) by-product from the Company’s Falchani Project. Testing confirms that in addition to producing high quality lithium compounds, SOP can be produced to potentially supply Peru with its domestic needs. Testing was completed at Australian Nuclear Science and Technology Organisation Minerals Business Unit laboratories in Sydney, Australia. The SOP produced by ANSTO from Falchani mineralization is 45% potassium and 20% sulfur and falls within the specification parameters of SOP marketed by various producers and traders of K-based fertilizers.

Highlights:

• ANSTO’s work to date validates the ability to produce high quality SOP at Falchani, while continuing to refine flowsheet options and realizing the lithium and by-product value contained within the deposit.
• As part of the SOP production validation test work, the cesium and rubidium extracted in the upfront acid leach have been separated from lithium and work is on-going to realize the significance of these two critical elements.
• Once all by-products are validated, ANSTO will optimize the Falchani flow sheet to maximize the precipitation of lithium carbonate while enabling significant by-product production.
• The existing Falchani PEA will be updated for these by-products and associated revenue implications.
• Recent shortages of fertilizers in Peru, with imports of SOP rising to over 60,000 tonnes per year, highlight the strategic importance of developing significant domestic sources of supply.

Dr. Laurence Stefan, COO of American Lithium, states, “The strategic importance of the ability to produce significant amounts of SOP from Falchani cannot be overstated. This by-product will not only provide an additional potential revenue stream at Falchani, but more importantly will also provide a major source of domestic SOP for Peru with the potential to largely reduce the country’s dependence on imported overseas fertilizers. Falchani has the potential to ultimately make Peru self-sufficient for the SOP fertilizers required to produce the high-value crops, fruit and vegetables that are major exports for Peru. At the same time, the Company continues to refine its flowsheet to maximize its ability to extract Cesium and Rubidium, also critical minerals and potential by-products to further enhance the Falchani project.”

The current test work program at ANSTO builds on previous programs which have demonstrated the ability to produce battery grade lithium carbonate from the Falchani mineralization. This latest program has pursued to modify the baseline flowsheet to allow the recovery of SOP, and cesium and rubidium by-products.

The definition of the SOP, and cesium and rubidium recovery circuits has been performed with a ~20 kg sample of representative / bulk Falchani feed material. In the baseline flowsheet for Falchani, potassium alum is crystallized from the resultant pregnant leach solution. This potassium alum is the feed material for the SOP, and cesium and rubidium recovery circuits and does not impact the downstream purification and lithium carbonate precipitation circuits.

About Peru SOP requirements & Falchani Potential

Peru imports the entire amount of SOP needed for its agricultural sector, mainly for high-value crops that play a very important role in the balance of Peruvian agricultural exports. The fertilizer crisis generated by the war in Ukraine has exacerbated shortages in the fertilizer market, its transport, distribution and increased fertilizer prices to unprecedented levels and is linked to accelerating the sharp price increase of fruit, vegetables, livestock feed etc., in the country. The large amounts of SOP that American Lithium could potentially produce from Falchani could cover the SOP needs of Peru when compared with pre-pandemic requirements, with the possibility of Peru becoming a net fertilizer exporter at full capacity.

Qualified Person

Mr. Ted O’Connor, P.Geo., a Director of American Lithium, and a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.

Completion of Acquisition of Highly Prospective concessions near Falchani in Southern Peru

The Company has also completed its recently announced acquisition of additional highly prospective concessions (14,243 hectares) in Southern Peru near to its existing Projects. In consideration for the additional concessions, the Company has paid US$400,000 and issued 2,250,000 common shares to an arms-length vendor. The shares issued are subject to restrictions on resale until October 22, 2022 in accordance with applicable securities laws.

About ANSTO Minerals

ANSTO Minerals is an international mining consultancy group located in Sydney, Australia, with an experienced team of 60+ engineers, metallurgists, chemists, and scientists who have been providing consulting services and process development services to the mining and minerals processing industries for well over 35 years. ANSTO Minerals has world-leading expertise in uranium ore processing, rare earth processing, zirconium/niobium/hafnium processing, base metals processing, lithium processing (brines and hardrock), and radioactivity control and management.

About American Lithium

American Lithium, a member of the TSX Venture 50, is actively engaged in the acquisition, exploration and development of lithium projects within mining-friendly jurisdictions throughout the Americas. The Company is currently focused on enabling the shift to the new energy paradigm through the continued exploration and development of its strategically located TLC lithium claystone project in the richly mineralized Esmeralda lithium district in Nevada as well as continuing to advance its Falchani lithium and Macusani uranium development projects in southeastern Peru. Both Falchani and Macusani have been through preliminary economic assessments, exhibit strong additional exploration potential and are situated near significant infrastructure.