NeoLithica and Conductive Energy Form a Joint Venture to Advance Commercial Development of Peace River Lithium Project in Alberta

CALGARY, AB, March 23, 2022 /CNW/ - NeoLithica Ltd. ("NeoLithica") and Conductive Energy Inc. ("Conductive") are pleased to announce they have entered into a strategic Joint Venture Agreement (the "Agreement") between NeoLithica and Conductive's wholly-owned Canadian subsidiary LiEP Resources ("LiEP") to integrate its proprietary and patented LiEP System into NeoLithica's commercial production operations to produce 20,000 tonnes of LCE (lithium carbonate equivalent) annually.

NeoLithica is developing its flagship Peace River Project in NW Alberta, where it owns extensive mineral tenure encompassing 1,005 square miles of permits overlying highly prospective aquifers stretching between the Town of Peace River south to the City of Grande Prairie.

LiEP Resources has developed deep technical expertise in direct lithium extraction ("DLE") and is providing its proven and proprietary DLE ion-exchange technologies and refining processes (the "LiEP System") to the project.

Under the Agreement, the parties will commission and operate a Demonstration Pilot in Q3 2022 at a production site selected by NeoLithica. Upon a successful completion of the Demonstration Pilot, a jointly held company will proceed to a staged development of a battery-grade lithium carbonate production operation, anticipated to start in late 2024.

Agreement Highlights:

NeoLithica and LiEP will accelerate joint development in several stages, including:

1. Optimize the Operating Conditions: NeoLithica is in the process of providing LiEP with sampled brine for pre-deployment analysis. This stage of development is designed to optimize the operating conditions of the LiEP System in advance of building the Demonstration Pilot;
   
   
2. Demonstration Pilot: After completing construction of the mobile LiEP System pilot plant, the facility will be transported to a well site in order to conduct a pre-commercial demonstration of the LiEP DLE system and its ability to rapidly and efficiently extract lithium from brine;
   
   
3. Refining of Concentrate into Battery-Grade Lithium Carbonate: After completion of the demonstration pilot program, the extracted lithium concentrate will be polished and refined using LiEP's advanced proprietary technologies and processes into merchantable battery-grade Lithium Carbonate at 99.5% purity. Samples of the high purity product will be available for evaluation by buyers for potential off-take purchase commitments.

Upon conclusion of the above development activities, the Peace River Project will undergo further engineering studies to progress to final investment decision to construct, equip and operate a commercial battery-grade lithium carbonate production operation.

Haafiz Hasham, President and CEO of Conductive Energy, remarked, "We look forward to implementing our proven technologies and broad expertise to help accelerate the commercialization of the Peace River Project in Alberta. We hope to demonstrate the incredible potential for Alberta, and Canada, to produce the highest grade of lithium products to help address the supply constraints this critical electric metal will face over the next five to ten years. NeoLithica has a passionate and dedicated team, and we are excited to work with them to bring this project to fruition"

"We are incredibly excited and honoured to be working with Conductive and LiEP to incorporate their proprietary LiEP System technologies and processes within our Peace River Project," said Barry Caplan, President and CEO of NeoLithica. "The collaboration between NeoLithica and LiEP will accelerate the integration of their innovative technologies and processes into our commercial production plans to meet the goal of contributing to a lithium supply chain in the province and country. Alberta is well positioned to lead the clean energy transition already underway in Canada."

About NeoLithica Ltd.

NeoLithica is a lithium development company with mineral tenure holdings in excess of 360,000 hectares (1,315 square miles) in northwest Alberta, Canada. NeoLithica will combine its high-value mineral tenure over significant lithium brines aquifers with LiEP's innovative technologies and process expertise, to produce battery-grade lithium products in one of the top resource development jurisdictions in the world.

For information about NeoLithica, visit www.neolithi.ca 

About LiEP Resources Ltd.

LiEP Resources Ltd. is a wholly owned subsidiary of Conductive Energy Inc. Conductive is a lithium technology company that has developed an extraction and refining process for lithium bearing brine resources. The company, through its subsidiaries, is currently deploying technology on multiple projects across North America.  

For information about Conductive Energy, visit www.conductive.energy

SOURCE NeoLithica Ltd.

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