Frontier Lithium Inc. (TSX-V: FL) (FRA: HL2) (OTCQX: LITOF) is pleased to announce the successful closing of Tranche 1 of the joint venture partnership with Mitsubishi Corporation (Tokyo Stock Exchange: 8058:JP). This joint venture for the PAK Lithium Project marks a significant milestone in advancing the first fully integrated lithium mining and processing operation in Ontario, Canada.

Through the joint venture partnership, as initially announced on March 4, 2024, Mitsubishi has acquired an initial 7.5% interest in the Project for CAD $25 million. This strategic investment underscores the confidence in the size, quality, and strategic importance of the Project to the North American EV supply chain.

Frontier plans to utilize the funding from Mitsubishi to progress the Project towards a vertically integrated Definitive Feasibility Study (DFS), which is expected to be completed in 2025.

Trevor Walker, President, and CEO of Frontier Lithium emphasized the significance of the milestone achieved today as the company advances its mission to become a leading lithium supplier within the North American EV battery materials supply chain. “Mitsubishi’s investment underscores their trust in Ontario’s jurisdiction, as well as the caliber and scale of the PAK Lithium Project” stated Trevor Walker. “We warmly welcome Mitsubishi and are honored to have a strategic, and reliable partner enabling us to focus on generating long-term value for shareholders, communities, and all stakeholders.”

Transaction Details

The joint venture is structured to facilitate the majority of equity funding for the planned mine and mill, with Frontier being able to reduce its share of development costs for the whole project, while maintaining at least 75% of future off-take optionality. This partnership aligns with the recent Memorandum of Cooperation signed between the governments of Canada and Japan to encourage value-added investments that will help establish sustainable and reliable battery supply chains between our two countries.

Key points of the joint venture transaction:

• Frontier has contributed all assets pertaining to the Project in exchange for a 92.5% stake in the JV and has assumed the role of JV manager.
• Following the completion of the DFS, Mitsubishi will have the option to increase its interest in the JV up to a 25% interest at a valuation based upon, among other things, the net asset value of the Project outlined in the DFS (“Tranche 2”).
• Mitsubishi will collaborate closely with Frontier in securing debt financing to ensure full funding for the Project’s production.
• The completion of Tranche 2 investment is contingent upon certain preconditions, such as obtaining material infrastructure permits and other customary approvals. Frontier expects these conditions to be met in 2025.

About Mitsubishi Corporation

Mitsubishi Corporation is a global integrated business enterprise that develops and operates businesses together with its global network of around 1,800 group companies. Mitsubishi has eight Business Groups that operate across virtually every industry: Environmental Energy, Materials Solution, Mineral Resources, Urban Development & Infrastructure, Mobility, Food Industry, Smart-Life Creation and Power Solution. Through these eight Business Groups, Mitsubishi’s current activities have expanded far beyond its traditional trading operations to include project development, production and manufacturing operations.

About Frontier Lithium

Frontier Lithium Inc. is an exploration and development mining company with headquarters and assets in Northern Ontario, a Tier1 mining jurisdiction. The Company’s PAK Lithium Project represents a high-grade, large tonnage, pure lithium resource in a new, premium lithium mineral district in northwestern Ontario. Strategically located in the Great Lakes region near the United States border, Frontier is developing the first fully integrated lithium mining and processing operation in Ontario with an aim to become Canada’s lithium champion and a significant supplier of spodumene concentrates and battery-grade lithium chemicals to the growing electric vehicle and energy storage markets across North America.

About the PAK Lithium Project

The PAK Lithium Project contains North America’s highest-grade lithium resource and is the largest in Ontario by size. The claims encompass more than 26,000 hectares and remains largely unexplored; however, since 2013, the Company has delineated two premium spodumene-bearing lithium deposits (PAK and Spark), located only 2.3 kilometres apart. Exploration is continuing on the project through two other spodumene bearing discoveries: the Bolt pegmatite (located between the PAK and Spark deposits), as well as the Pennock pegmatite located 25 kilometres northwest of PAK deposit within the project claims. A 2023 Pre-Feasibility Study titled “”National Instrument 43-101 Technical Report PFS PAK Lithium Project”” authored by BBA E&C Inc., delivered a 24- year project life, at a post-tax NPV(8%) of US$1.74 billion and internal rate of return of 24.1% as per the press release disseminated on May 31, 2023, and filed on www.sedarplus.ca.