Nevada Lithium Resources Inc. provided an update on the proposed Hydraulic Borehole Mining mining method proposed to extract high-grade mineralized material at its 100% owned Bonnie Claire lithium project located in Nye County, Nevada. The Company is also pleased to announce the commencement of an updated Preliminary Economic Assessment on the Project. Highlights: Kinley Exploration LLC has provided a working model based on HBHM that successfully extracts mineralized slurry between 1500ft and 2500 ft at Bonnie Claire Model focuses on extraction of previously intersected high-grade mineralization, illustrated by Hole BC2303C, which intersected 4,154 ppm Li over 680ft (see the Company?s news release dated February 27, 2024), and currently open in several directions Operating production cost estimated to be USD $14.28/ton, based on continuous mining rate of 100 tons per hour per mining unit Confidence that HBHM can access depths greater than 2,500 feet, as high-grade mineralization has been intersected below this depth Economics to be incorporated in updated PEA to be released summer 2024 HBHM is a surface-based mining method that uses a high-pressure water jet to disaggregate the mineralized material and evacuate the resulting slurry back to surface.

Previous models at Bonnie Claire have used vertical primary production wells arranged in a honeycomb pattern. After processing, material was backfilled with concrete, to minimize surface disturbance. Further discussions between the Company, Kinley and GRE have suggested that mineralized material may behave in a plastic manner & flow toward the production wells during extraction, which should increase the efficiency of the method.

The current model combines an array of ?Jet Wells? arranged within the targeted resource section and a single ?Production Well? located outside the section, drilled and cased to the base of the section.

The proposed initial layout is outlined below. (1) Directionally drilled Production Well offset 280 feet from Mined section center; (32) ?Jet? Wells centered and spaced within a 280-foot diameter surveyed section; Jet Wells cased and cemented to 1,500 then mined 1,500 to 2500 feet; Production well drilled and cased to 2,500 feet; Mineralized material between Jet Wells, when excited will flow to intake Number of Jet Wells may be reduced in future based on caving and pilot findings The current mining application considered is to directionally drill a single large diameter Production Well centered under the targeted resource section to be mined (see image below).

The well is drilled with a 280-foot offset from center of the target section. Construction of the Production Well would be to case the well to within 20 to 60 feet of the projected bottom of the target section. The bottom section will then be mined out to open an initial cavity.

This directionally drilled well will be primarily vertical and turned under the center of the resource. Next a series of ?Jet? Wells will be drilled and cased to 1,500 feet in a mining pattern with engineered spacing to maximize the plastic flowing condition of the mineralized material between the wells.

These will be centered and patterned above the Production Well. These wells will be drilled vertically in a 280-foot diameter section. The Jet Wells will be pilot drilled to total depth, and then jetted to initiate caving into the Production Well for pumping to the surface.

A continuous hydraulic cutter, mounted on the intake of the Production Well will assist in slurrying the mineralized material. Lifting Mineralized Material to Surface Kinley has determined that the most economic lifting method for the targeted mining depth will be hydraulic airlift. This low energy method lifts by reverse flood pumping as slurry is lifted to surface with two-phase pumping.

Air is injected in the internal slurry stream reducing the density of the fluid, and the weight of the annular fluid causes flow down the annulus and a vacuum is created at the intake of the Production Well. Jetting Wells and Flow Kinley has modelled 32 Jet Wells at Bonnie Claire; this number may potentially be decreased once the rate of flow of the mineralized material to the intake has been determined based on velocity and caving characteristics. Based on continuous mining at 100 tons per hour, the entire cavity would take approximately 4.25 years to extract.

This work is completed without the requirement to move the Production Rig to a new operating platform location. This mining strategy and method assumes that the cavity will not stay open long term and will not require backfill with the caverns, such as pumped tailings from processing or cementing. Based on geotechnical advice, the Company has assumed that caving or flow of mineralized material to the intake will occur and lead to increased production.

Summary The factors applied to the modeled method are a combination of estimated parameters, experiences in similar resource projects, and discussions with Bonnie Claire?s advisor, Global Resource Engineering. Kinley estimates that the Production Mining unit and the Jet Mining unit can achieve a continuous mining rate of 100 tons per hour of mineralized material production with an operating cost of USD $14.28/ton based on the current detailed cost input estimates. Access to Depths > 2,500 ft The current HBHM model has focused on high grade mineralization that has been intersected between 1550 and 2500 ft.

High-grade material has been intersected down to 2780 in at least one hole (see the Company?s news release dated November 20, 2023), and the Company asked Kinley to comment on the application of the method at greater depths. Kinley has concluded that the Hydraulic Borehole Mining method can successfully access material deeper than 2,500 ft. Hydraulic Airlift pumping is commonly used in drilling industrial large diameter wells up to 5,000 feet in undersea mining and in dredging applications.

Therefore, hydraulic airlifting material from 3,000 ft is considered achievable with this mining strategy. Increased OPEX above that identified in the economic model would occur as depths past 2,500 feet are mined. However, the presence of high-grade lithium mineralization at Bonnie Claire below 2,500 ft suggests a favorable trade-off in increased revenues versus increased costs.

The Company will continue to study the impact of increasing the anticipated mining depth to include mineralization from 2,500 to 3,000 ft. Bonnie Claire Hydraulic Borehole Mining Pilot Kinley has recommended a pilot study to examine the practicality of HBHM at Bonnie Claire. The Pilot is based on a single well cased to 2,200 feet.