Loyal Lithium Limited announced the completion and interpretation of a 19.2km Magnetotelluric Survey across 5 traverses to identify several areas of interest at the Scotty Lithium Project in Nevada, USA. Three traverses
within Target 2 are of most interest to the company as the interpretation implies a 3.6km sedimentary basin beneath the strong lithium-boron soils assay results recorded by Loyal in September 20222. The MT results in combination with Nevada Lithium's recent positive drilling results, just 1km the east, provides the company with confidence as drilling mobilisation commences. The implied Target 2 sedimentary basin is a great initial target for the Company, and additionally, the MT results also indicate further potential to the south and north of the project. These are now additional secondary targets for the Loyal Lithium. Further, the work conducted on the adjacent property gives us additional confidence, as Nevada Lithium's 2022 drilling campaign reported exceptional lithium-boron results, and their recent testwork has successfully produced battery grade lithium carbonate from core samples. A 19.2km Magnetotelluric Survey (MT) has been completed across 5 traverses at the Scotty Lithium Project, with the objective of to identifying the presence and extent of any sedimentary basin and major geological structures. This technique was successfully used at the adjacent Bonnie Claire Project (Nevada Lithium), where the MT survey identified sedimentary layers which have subsequently been confirmed via drilling to be lithium baring
sediments. The MT survey indicated several areas of interest, however the very low resistivity readings within Target 2 of the Scotty Lithium Project is of most interest due to the reading. size of basin and correlation with previous geochemical works such as soil samples assays and Nevada Lithium's 2022 drill results from just 1km east. The MT survey also identified a very large deep horizontal very low resistivity layer in the southern portion of the claims. This deep layer has never been sampled for lithium in brines or sediments and is now a secondary drill target for Loyal. The three MT traverses across Target 2 run perpendicular to the western basin margin across the entire width of LLI's claims. MT traverses indicate a very low resistivity layer which has been interpreted to be a potential lithium baring sedimentary basin of 3.6km. The sedimentary basin appears to start at surface and extends to a depth of 150m in the north and deepening to 500m in the south. The basin is interpreted to be at least 4km long with a width greater than 1km. The MT also suggests that the basin is open to the north and south. Nevada Lithium's 2022 drilling program clearly identified two layers of lithium on the adjacent claims. The shallow layer starts near surface and extends to 116m whereas the deeper layer appears to be reducing in width and depth as it approaches LLI's target 2 claims - 299-610m layer (310m) in the southwestern to a 250-439 m layer (189m) just 1km from LLI's target 2 claims. The drill holes suggest that the lower layer is thinning and reducing in grade to the west (1,043ppm), but higher grade and thicker towards the south-southwest. The upper layer is also suggested to be increasing in vertical thickness and increasing in lithium grade to the SSW. Loyal has claims both to the northwest, west and southwest of these recent drill holes. Therefore, the implied sedimentary basin has the potential to contain a significant tonnage in the north, but particularly in the south. BLM drilling permits have been received and the MT traverses will now fine-tune the drill hole locations. Boron generally precipitates very late in the evaporitic sequence and therefore correlates with being present in the shallowest portion of a basin, or at least near surface. In September 2022, LLI recorded strong lithium-boron values. via soil assays, with the strongest readings being in the very north of Target 2 which is the shallow portion of the implied sedimentary basin. The high boron values of >10,000ppm recorded by Nevada Lithium in their 2022 drilling program, were not in the shallower regions of the basin, but recorded at depth. This reflects the progressive infill of the eastern basin and implies that the target 2 sedimentary basin may have been present during the formation of the upper lithium layer and therefore has the potential to concentrate higher grades of lithium. Drilling permits were approved in January 2023 by the BLM in Tonopah, Nevada, and DGC-USA have been commissioned to manage the drill program. The MT traverses have fine tuned the drilling location and mobilisation will commence by the end of March 2023, subject to weather conditions. Boart Longyear have been engaged for the Sonic Drilling program. The following exploration milestones have been completed to confirm extensions of lithium (and boron) into the substrata on LLI's claims: Extensive Soils Program Complete: Strong soil assay results of up to 540ppm Li defined five targets, Target 2 has standalone exploration potential. Local Geological Partner Engaged: LLI's in-country geological partner DGC- USA is now actively assisting with site preparations and the drill program. Targeted Environmental Survey Complete: In early December 2022, an environmental survey was completed via consultants Knight and Levitt. Findings were submitted to the BLM to support the drilling notice. Regulatory Approval Received: A notice to conduct exploration was received from the Bureau of Land Management (BLM), in January 2023 Magnetotelluric (MT) geophysics survey and Interpretation completed: The MT survey and interpretation were completed in March with an implied 3.6km sedimentary basin target identified. A Drill program has been fine- tuned and the basin boundary has been defined to assist with potential maiden resource estimates. Drill and Drill Site Preparation Contractors Mobilising: Mobilisation to commence by the end of March with Boart Longyear sonic drill rig engaged.