Lancaster Resources Inc. reported results from its geochemical sampling program on its Alkali Flat Lithium Project in New Mexico (the "Property"). The samples were taken in March 2023 to assess the distribution of lithium and lithium pathfinder elements over a broad portion of the Property. The geochemical results of lithium values in the 143 sediment samples taken ranged from 69.6 ppm Li to 149.5 ppm Li, and the Mean was 113.8 ppm Li.

The results show several zones of notably high lithium concentrations in the sediments found in the northern and eastern part of the Property. These results line up with the sediment analysis reported by Arizona Lithium Ltd. from its adjacent Lordsburg Lithium Project. The source of the lithium at Alkali Flat has not been determined as of this date, however, three potential sources of lithium have been identified in the project area: Eruptive volcanic rocks associated with the Steins caldera dated at 34.4 Ma (million years before present) and the Muir caldera eruptive center near Lordsburg, New Mexico dated at 35.3 million years; Alkaline intrusive rock formations and associated pegmatites in the area near Lordsburg; and Geothermal groundwater system at the Lightning Dock KGRA (Known Geothermal Resource Area) located six miles south of Alkali Flat.

The sediment geochemical sampling program was undertaken on behalf of Lancaster by Rodney Blakestad, J.D., C.P.G. A total of 143 sediment samples were obtained to assess the distribution of lithium and other elements in the near surface sediments of the Property. Samples were obtained using battery powered auger drills to obtain representative samples between 10 to 20 inches (25-51 cm) below surface. Sediment samples were obtained on a grid system over the Property.

Samples were collected at intervals of 1,200 feet (366 m) on lines oriented east-west. The east-west lines were spaced 2,400 feet (732 m) apart from north to south. A total of 143 samples were taken, including 14 samples from an earlier test-case sediment sample program, and 20 samples obtained for a sediment depth profile assessment.

Two sample pits were excavated with hand tools to a depth of one meter in the playa. From the sidewall of those pits, representative samples were obtained over each 10 cm interval from surface to 100 cm depth.