Grounded Lithium Corp. announced the filing of preliminary economic assessment titled "NI 43-101 Technical Report: Preliminary Economic Assessment Kindersley Lithium Project - Phase 1 - dated August 9, 2023 and effective as of June 30, 2023 (the "PEA"), further to the news release dated July 26, 2023. The PEA addresses only the first phase of 11,000 tonnes per year of battery-grade lithium hydroxide monohydrate ("LHM") production from the Kindersley Lithium Project ("KLP").

The PEA independently assessed the economics of the KLP-Phase 1 based on a USD 25,000 realized sales price per tonne of LHM, the results of which include: After-tax net present value ("NPV") of USD 1.0 billion using an 8% discount rate and a capital investment of USD335 million, implying an after-tax profitability index ("PI") of nearly 4X. A PI of nearly 4X suggests a highly accretive project with torque to the upside if current spot prices for battery grade lithium material were modeled; After-tax internal rate of return ("IRR") of 48.5%; Economic resiliency under a range of key project variables such as price, capital intensity and operating costs. The PEA is based on the implementation of Koch Technologies Solutions' ("KTS") proprietary lithium extraction technology called Li-ProTM.

The Company is working with officials from KTS as well as others within the larger Koch Industries group to develop a field pilot plan with associated commercial terms. The Company will communicate efforts in this regard as they become finalized. The PEA presents data provided by several leading experts in their respective fields, namely Sproule Associates Limited, Grey Owl Engineering, Codeco - Vanoco Engineering Inc., Tundra Engineering Inc. and Fracture Modeling Inc. Project Summary. The economic analysis of the PEA is based on the following main assumptions: realized sales price of USD 25,000 per tonne of LHM; annual production of 11,000 tonnes peryear of LHM; commerciality of KTS' Li-Pro??

lithium extraction technology; minimal pre-filtering expenditures due to the absence of hydrocarbons and H2S; large diameter wellbores to mitigate pressure loss due to friction and permit installation of large volume electrical submersible pumps; and estimated operating and capital costs for the project based on the most current industry data available inclusive of recent strong inflationary pressures on facilities and labour. The PEA is a preliminary cost estimate and includes inferred mineral resources that are considered too geologically speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").