Atlantic Lithium Ltd (AIM:ALL) Final Assay Results and New High-Grade pegmatites

Final Resource Drilling Results Received

New Mineralised Pegmatites Confirmed

Ewoyaa Lithium Project Ghana, West Africa

Atlantic Lithium Limited (AIM: ALL, OTC: ALLIF, ASX: A11 “Atlantic Lithium” or the “Company”), the funded African-focussed lithium exploration and development company targeting to deliver Ghana’s first lithium mine, is pleased to announce final assay results from the resource and exploration drilling programme completed at the Ewoyaa Lithium Project (“Ewoyaa” or the “Project”) in Ghana, West Africa .

HIGHLIGHTS:

Ø Final assay results received for a further 10,052m of exploration and infill diamond core (“DD”) drilling and reverse circulation (“RC”) drilling completed at the Ewoyaa Project, part of the now completed resource evaluation and exploration RC and DD programme.

Ø Newly reported assay results confirm new mineralised pegmatites at the Grasscutter North, Kaampakrom North and Assan targets, outside the currently defined 30.1Mt @ 1.26% Li₂O Ewoyaa JORC (2012) Compliant Mineral Resource Estimate (“MRE” or the “Resource”).

Ø Multiple high-grade drill intersections reported at the Kaampakrom North, Grasscutter North, Anokyi and Grasscutter West targets, including highlights of:

o  GRC0825: 36m at 1.23% Li₂O from 42m

o  GDD0102A: 22.2m at 1.62% Li₂O from 73.3m

o  GRC0837: 20m at 1.6% Li₂O from 44m

o  GDD0103: 15.1m at 1.24% Li₂O from 55.4m

o  GRC0842: 12m at 1.55% Li₂O from 93m

o  GRC0839: 13m at 1.35% Li₂O from 99m

o  GRC0850: 12m at 1.24% Li₂O from 96m

o  GRC0341: 12m at 1.03% Li₂O from 134m

o  GRC0844: 7m at 1.69% Li₂O from 162m

o  GRC0872: 8m at 1.48% Li₂O from 34m

Ø All assay results now reported for the total approximate 47,000m drilling programme completed.

Ø Resource upgrade targeted for Q1 2023; to inform Definitive Feasibility Study (“DFS”) targeted for completion mid-2023 .

Ø Recently announced processing plant FEED engineering contract (refer RNS of 13 December 2022) awarded to Primero to optimise the Project’s flow sheet, identify long lead items, maximise the Project’s long-term profitability, reduce execution risk and ultimately support the advancement of the Project towards becoming a financially and operationally robust lithium-producing mine.

Ø Recently announced Pre-Feasibility Study (refer RNS of 22 September 2022) delivers exceptional financial outcomes for a 2Mtpa operation, producing an average c. 255,000tpa of 6% Li₂O spodumene concentrate (“SC6”) over a 12.5-year operation:

o  LOM revenues exceeding US$4.84bn, Post-tax NPV₈ of US$1.33bn, IRR of 224% over 12.5 years

o  US$125m capital cost with industry-leading payback period of <5 months

o  C1 cash operating costs of US$278 per tonne of 6% lithium spodumene concentrate Free on Board (“FOB”) Ghana Port, after by-product credits

o  Average Life of Mine (“LOM”) EBITDA of US$248m per annum

o  18.9Mt at 1.24% Li₂O Maiden Ore Reserve

o  Average annualised US$1,359/dry metric tonne SC6 pricing used

Commenting on the Company’s latest progress, Lennard Kolff, Interim Chief Executive Officer of Atlantic Lithium, said:

“Drilling continues to deliver high-grade drill intersections outside the current MRE.

“This last batch of results has delivered multiple near-surface drill intersections in new pegmatites defined outside of the resource footprint at the Kaampakrom North and Grasscutter North targets including highlights of 36m at 1.23% Li₂O from 42m and 20m at 1.62% Li₂O from 44m.

“Drilling has also returned high-grade, near-surface results at the Assan target approximately 3km north-east of the northern-most current pit design including highlights of 6m at 1.49% Li₂O from 66m and 6m at 1.44% Li₂O from 45m, demonstrating further potential within the mineralised pegmatite swarm.

“We have now reported all assay results for the approximate 47,000m drilling programme, with a Resource upgrade targeted for Q1 2023 and a DFS targeted for completion mid-2023.

“ W ith the Pre-Feasibility Study delivered, the Mining Licence application submitted, the FEED engineering contract awarded and the funding agreement with our partner Piedmont Lithium in place, we feel the Company is ideally positioned to benefit from the ongoing lithium demand expected over the coming years.”

New Drilling Results:

All remaining assay results have been received for an additional 10,052m of RC and DD drilling from the completed drill programme at the Ewoyaa Project. Multiple high-grade drill intersections are reported for exploration drilling results outside of the currently defined Resource at the Kaampakrom North, Grasscutter North and Assan targets as well as infill and metallurgical holes within the current MRE (refer Table 1, Appendix 1 and Appendix 2).

Table 1: Drill intersection highlights at greater than 8 Li x m, reported at a 0.4% Li₂O cut-off and maximum of 4m of internal dilution.

Exploration drilling results fall outside the current 30.1Mt at 1.26% Li₂O Resource on newly defined pegmatites at the Kaampakrom North, Grasscutter North and Assan targets and demonstrates further resource scale potential at the Ewoyaa Project (refer Figure 1, Figure 2 and Figure 3).

Exploration drilling results confirm near-surface mineralisation on newly defined pegmatites within trucking distance of the currently defined mine design. Furthermore, new drilling results demonstrate a further 3km strike extension of prospective lithium pegmatite vein swarms towards the north-east of the current project footprint (refer Figure 1). 

Sample preparation was completed by Intertek Ghana and assay by Intertek Perth with all reported results passing QA/QC protocols, providing confidence in reported results.

Figure 1: Location of reported assay results with highlight drill intersections.

Figure 2: Cross-section A-A’ showing assay results received for GRC0825 and GRC0823 at the Kaampakrom North target.

Figure 3: Cross-section B-B’ assay results received for GRC0837 and GRC0839 at the Grasscutter North target.

 Competent Persons

Information in this report relating to the exploration results is based on data reviewed by Mr Lennard Kolff (MEcon. Geol., BSc. Hons ARSM), Chief Geologist of the Company. Mr Kolff is a Member of the Australian Institute of Geoscientists who has in excess of 20 years’ experience in mineral exploration and is a Qualified Person under the AIM Rules. Mr Kolff consents to the inclusion of the information in the form and context in which it appears.

Information in this report relating to Mineral Resources was compiled by Shaun Searle, a Member of the Australian Institute of Geoscientists.  Mr Searle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Searle is a director of Ashmore. Ashmore and the Competent Person are independent of the Company and other than being paid fees for services in compiling this report, neither has any financial interest (direct or contingent) in the Company. Mr Searle consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

The reported Ore Reserves have been compiled by Mr Harry Warries.  Mr Warries is a Fellow of the Australasian Institute of Mining and Metallurgy and an employee of Mining Focus Consultants Pty Ltd.  He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’ of December 2012 (“JORC Code”) as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia.  Mr Warries gives Atlantic Lithium Limited consent to use this reserve estimate in reports.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

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