Lithium Corporation announced that it has entered into a purchase agreement with Lincoln Park Capital Fund, LLC, a fund managed by Lincoln Park Capital, LLC for an equity line private placement of common shares for gross proceeds of $10,300,000 on January 25, 2021. The company has the right, in its sole discretion, to present the investor with a purchase notice directing the investor to purchase up to 100,000 shares per day, which increases to up to 150,000 shares in the event the price of the company's shares is not below $0.25 per share, up to 200,000 shares in the event the price is not below $0.35 per share and up to 250,000 shares in the event the price is not below $0.50. In each case, the investor's maximum commitment in any single purchase may not exceed $500,000. The issue price will be equal to 93% of the lesser of the lowest sale price of the company's shares on the purchase date, and the average of the three lowest closing sale prices for the company's shares during the twelve consecutive business days ending on the business day immediately preceding the purchase date. The company has the right, but not the obligation, to sell to the investor, and the investor is obligated to purchase up to $10,300,000 worth of common shares of the company, over the 36-month period commencing on the date that a registration statement is declared effective by the Securities and Exchange Commission. The company shall also have the right, but not the obligation, to sell to the investor up to $150,000 of common shares on the commencement date at the purchase price. The total number of shares to be issued cannot exceed that number which, together with the investor's then current stake, exceed 4.99% stake in the company. The company issued 1,375,779 shares as commitment shares to the investor. The company will issue securities pursuant to exemption from registration contained in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder.

On the same date, the company issued 380,952 common shares at a price of $0.42 per share for proceeds of $160,000 in its first tranche.