ACME Lithium Inc. announced that it has received through its operator, GeoXplor Inc., an exploration summary and hydrological evaluation report from Reno, Nevada based Confluence Water Resources LLC for ACME's Phase 1 and Phase 2 programs at its Clayton Valley lithium brine project in Esmeralda County, Nevada. ACME's Clayton Valley Nevada lithium brine project is contiguous to the northwest of the only operating lithium brine operation in North America, Albemarle Corporation's Silver Peak lithium deposit and facility which has been in production since 1966. ACME's neighboring Project is comprised of 119 claims totaling approximately 2,230 acres.

Confluence has estimated an inferred lithium carbonate equivalent (LCE) resource of approximately 302,900 metric tons (units rounded) over a 40-year extraction period. The estimate is based on an assessment of potential extractable brine volume which could be pumped from the Project over time. The estimate of inferred elemental lithium is approximately 56,902 metric tons (units rounded).

A factor of 5.323 was assigned to convert elemental lithium to LCE based on industry wide common conversion factors. The inferred resource estimate is based on geophysical surveys completed over approximately 55% of the Project's 119 unpatented placer mining claims and the results from testing in three drill holes. Chemical analyses suggest the lithium brine system at the Project has geothermal chemical affinities.

Pumping in other parts of Clayton Valley can also be detected in the ACME water level trend data. Aquifer thickness, hydraulic parameters and lithium grades of the lower gravel aquifer at the Project are similar to the values reported at other projects in Clayton Valley. Lateral continuity in the deep lower gravel aquifer is further validated by geophysical patterns and transient water level data measured at the Project.

This data provides further evidence of an inferred brine resource at the Project and justification for the inferred resource classification. The objective of ACME's multi-year exploration program was to determine the potential for lithium enriched brines to exist within the Project area and, if discovered, examine the potential volume of the brine body that potentially could be extracted from the Project through pumping wells. Considering the objectives, the following exploration work was successfully completed as part of last year's Phase 2 program: Drilling of DH-1A exploration borehole.

DH-1A was drilled to a depth of 1,940 feet below ground surface (bgs) to document the potential vertical extent of the lithium bearing brine aquifer discovered at the DH-1 location and potential vertical extent of other aquifers if encountered through additional downhole geophysics, zonal brine sampling and testing. The borehole was completed with a Vibrating Wire Piezometer (VWP) arrangement which was installed to be used to monitor vertical and lateral response to pumping and long-term water level changes in the basin. Drilling and completion of the first test well -TW-1. TW-1 was drilled and installed to a depth of 1,818 feet bgs with perforated casing extending across the extent of the lithium brine aquifer discovered in DH-1 and DH-1A.

TW-1 captures approximately 550 feet of potential ore-grade lithium brine aquifer hosted in the lower gravel unit (LGU). The intent of the well was to complete necessary groundwater testing to examine the hydraulic properties of the brine aquifer and potential concentration of elemental lithium from the extracted brine. Completion of a 10-day constant rate pumping test from TW-1. The data generated from the test was used to estimate hydraulic conductivity, transmissivity, and storativity of the lithium brine aquifer penetrated.

Hydraulic parameters were subsequently used in forward looking hydrogeological simulations to model the potential volume of extractible lithium brine which could be extracted within the ACME project area over time. The inferred resource was estimated assuming the following: The deposit has potential direct connectivity to a larger regional resource as indicated from the water level trend analysis and geophysical surveys. The composite concentration of lithium in the LGU aquifer based on the average concentration of dissolved lithium from the TW-1 pumping test is approximately 96 mg/L. An estimate of Transitional Storage Reserve (TSR) was prepared based on the results of ACME Phase 1 and Phase 2 exploration programs. TSR is estimated to be 33,000 Acre Feet based on the geometry of the brine body in the LGU at the Project and a Specific Yield of 6%.

Brine body geometry was assessed using the result of geophysical surveys and Phase 1 and 2 drill results. Specific Yield was analyzed using core samples collected from DH-1. From the TSR, the total extractable brine volume from the LGU aquifer over a 40-year period is estimated to be approximately 473,000 Acre Feet or 11,825 Acre Feet per year assuming a Perennial Yield of 22,000 Acre Feet. The results from additional forward simulations using data generated from the TW-1 pumping test indicated that a deep, large diameter well in the LGU could potentially yield up to 1000 gallons per minute (gpm).

The estimate of extractable elemental lithium based on total extractable volume from TSR over 40 years is approximately 56,900 Metric Tons (units rounded). A factor of 5.323 was assigned to convert elemental lithium to lithium carbonate equivalent (LCE) based on industry wide common conversion factors. The inferred LCE is estimated to be approximately 302,900 Metric Tons (units rounded).