American Lithium Corp. announced the results of its updated Preliminary Economic Assessment ("PEA") for the Falchani Lithium ("Falchani") project located in Puno, southwestern Peru. This independent, updated PEA was completed by DRA Global following the updated mineral resource estimate recently completed by Stantec Consulting Services Ltd. The updated PEA demonstrates that with low initial capex, the Falchani project has the potential to become a substantial, low -cost, long-life producer of high purity Lithium Carbonate with the potential to also produce Sulfate of Potash ("SOP") and Cesium Sulfate by-products alongside LCE. The PEA base case envisions 32 years of mining followed by 11 years of stockpile processing over the potential life of mine ("LOM"). The PEA alternative case is identical, but with added production of high purity SOP and Cesium sulfate as by-products from Years 6-43 alongside the initial expansion. All dollar figures are in US currency.· Simple drill, blast, truck and shovel open pit mining of the near-surface, high-grade (>2,700 ppm Li) resource the scalable, long-life, lithium project producing approximately 23 ktpa LCE over Years 1-5, expanding to 45 ktpa LCE production for Years 6-10 years followed by Phase 3 expansion producing ~84 ktpa for Years 11-32 when mining ceases. Rehandling of the <2,700 ppm Li stockpile allows production to continue for Years 33-43, averaging 44.8 ktpa over this period. Average LOM Production of approximately 61,400 tpa of 99.5% LCE for 43 years. Targeted >2,700 ppm Li grade pit-constrained resource supports mining for 32 years and processing <2,700 ppm Li stockpile for an additional 11 years. LOM Strip Ratio (Waste:Ore) of 0.60:1 after accounting for processed stockpile material Sulfuric acid leaching using industry standard techniques and flowsheet produces high purity lithium carbonate to enable the production of battery grade LC. Sulfate of Potash is an important fertilizer product for specialty crops, especially those grown in Peru (ex. avocado,
blueberries, grapes & coffee) with a growing global market. SOP production from Falchani has the potential to satisfy Peru's domestic needs with additional export possibility. Cesium is used in high-pressure, high-temperature offshore oil and gas drilling and is used in infrared detectors, optics, photoelectrical cells, scintillation counters and spectrometers. Isotopes of cesium are atomic clocks necessary for aircraft guidance systems, global positioning satellites, and internet and cell phone applications. Cesium sulfate produced at Falchani can be further refined by third parties into desired end-products. The NPV for the project is most sensitive to LCE/metal selling price, but relatively far less sensitive to operating costs, capital costs and main reagent costs. IRR is most sensitive to capital costs and LCE/metal selling price. Based on the analysis completed by DRA Global, the Falchani Project is highly amenable for development by conventional open pit, drill-blast, truck and shovel operation. The Base Case and Alternative Case have identical LOM production plans and schedules.