Neo Lithium Corp. (TSX-V: NLC) (OTCQX: NTTHF) (FSE: NE2) is pleased to announce that it has completed its previously announced bought deal private placement of special warrants for gross proceeds of $30,195,000. The Offering was led by Stifel GMP, as lead underwriter and sole bookrunner, on its own behalf and on behalf of a syndicate of underwriters including Cormark Securities Inc., Canaccord Genuity Corp., Paradigm Capital Inc. and Eight Capital

Pursuant to the Offering, the Company issued 9,900,000 Special Warrants at a price of $3.05 per Special Warrant. Each Special Warrant, subject to the Penalty Provision (as defined below) and subject to adjustments in certain circumstances, shall be deemed to be exercised for one common share in the capital of the Company without any required action on the part of the holders (including payment of additional consideration) on the date on which the earlier of the below occurs:

(i) the second business day following the date on which a final receipt is obtained from the Ontario Securities Commission, as principal regulator on behalf of the securities regulatory authorities in each of the qualifying jurisdictions, for a (final) short form prospectus qualifying the Underlying Shares for distribution; and

(ii) 4:59 p.m. (Toronto time) on June 11, 2021.

The Company has agreed to use its commercially reasonable efforts to qualify the Underlying Shares for distribution in Canada, and to obtain the Final Receipt therefor, on or prior to April 12, 2021. In the event the Qualification Date has not occurred on or before April 12, 2021, each Special Warrant shall thereafter entitle the holder thereof to receive, upon the exercise or deemed exercise thereof, as applicable, 1.1 Underlying Shares.

The Company plans to use the net proceeds from the Offering to fund development work at the 3Q Lithium Project located in Catamarca, Argentina and for working capital and general corporate purposes. More specifically, the Company intends to use the majority of the net proceeds to advance the construction of the concentration pond system at a commercial scale with a view to accelerating future production from the 3Q Project.

As consideration for the Underwriters services in connection with the Offering, the Company paid a cash commission of 6% of the gross proceeds of the Offering.

The Special Warrants and Underlying Shares are subject to a hold period under Canadian securities laws until June 11, 2021, unless the Final Receipt is obtained prior to that time. The Offering has been conditionally approved by the TSX Venture Exchange and remains subject to final acceptance by the TSXV.

As announced by the Company on February 9, 2021, a subsidiary of Contemporary Amperex Technology Co., Limited  has provided notice of its intention to exercise its right to maintain its pro rata equity interest in the Company by subscribing for additional common shares of the Company pursuant to a contractual participation right under an investor rights agreement between CATL and the Company on substantially equivalent terms to the Offering (including the Penalty Provision).  The private placement with CATL is scheduled to close within 45 days of the date hereof and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including customary approval from the government of the People’s Republic of China, the approval of the TSXV and any required securities regulatory authorities, and the execution of a subscription agreement.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the 1933 Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act, as amended, and application state securities laws.

About Neo Lithium Corp.

Neo Lithium Corp. has quickly become a prominent new name in lithium brine development by virtue of its high quality 3Q Project and experienced team. Neo Lithium is rapidly advancing its 100% owned 3Q Project – a unique high-grade lithium brine lake and salar complex in Latin America’s “Lithium Triangle”.

The 3Q Project is located in Catamarca Province, the largest lithium producing area in Argentina covering approximately 35,000 ha including a salar complex of approximately 16,000 ha.