American Battery Tech Firm Verifies Existence of Lithium Below Depths of 1,400 Feet at Tonopah Flats Lithium Project

ABTC, an integrated firm specializing in battery materials technology, has achieved a significant milestone by successfully reaching a core drilling depth of 1,430 feet, marking one of the deepest lithium sampling points in Smoky Valley. This accomplishment is part of the company's third drill program aimed at advancing its Tonopah Flats Lithium Project. Presently, this drill initiative has completed four out of the eight planned holes, which are integral to the infill and step-out drilling sampling effort. The results will contribute to the progression of the project's domestic resource, ultimately enhancing its 'measured and indicated' resource classification.

Scott Jolcover, Chief Mineral Resources Officer, expressed his pride in the Tonopah team's achievement, noting that they have successfully identified the Upper, Middle, and Lower Siebert geological formations within a single borehole. This achievement represents a substantial advancement as the previous record for drill depth was 825 feet. Four drill holes in the ongoing eight-hole program have penetrated depths exceeding 1,400 feet, revealing claystone and shallow alluvium gravels at the top of the holes. The company is eagerly awaiting the assay results.

In a move towards comprehensive assessment, ABTC has sent the collected samples to Paragon Geochemical, a highly regarded, fully accredited geochemical laboratory located in Sparks, Nevada. Paragon Geochemical will conduct third-party characterization assessments, with results anticipated within 60-120 days. This strategic step will offer valuable insights into the mineral assays and geochemical analyses.

The primary objective of the current drill program is to expand the lithium mineralization zone through step-out drilling, as well as confirming mineralization presence between these step-out holes with infill drilling. The Tonopah Flats Lithium Project is situated on 517 unpatented lode claims encompassing over 10,340 acres. ABTC holds complete ownership of the mining lode claims, which encompass the Tonopah Flats claims. The company retains rights to all locatable minerals without any associated royalties. Beginning with surface sampling in the summer of 2021, the company has proceeded with multiple subsurface drilling programs, covering approximately 65% of its claims and totaling over 12,000 feet of exploration at depths of up to 1,430 feet.

The success of these initial exploration initiatives led to the development and publication of the company's third-party Qualified Person (QP) audited SK-1300 compliant Inferred Resource Report in February 2023. This report highlighted the project's significance, indicating that it houses one of the largest known lithium resources in the United States, boasting around 15.8 million tons of economically accessible lithium on a carbonate equivalent basis (LCE).

Furthermore, ABTC has made substantial progress in its proprietary extraction methods. The company has developed in-house processes that utilize selective leach extraction, offering a lower-cost and lower-impact solution compared to conventional lithium extraction methods. The company's commitment extends to ongoing geological mapping, sampling, drilling, and geochemical analysis, as well as conducting proprietary extraction trials. These efforts are geared towards refining the understanding of the resource and quantifying the performance of the internally developed lithium extraction and manufacturing operations.

In recognition of its pioneering work, ABTC, in collaboration with DuPont and the University of Nevada, Reno, secured a $4.5 million grant from the U.S. Department of Energy (DOE) in 2021. This grant supported the building and operation of a multi-ton-per-day demonstration-scale system, aimed at expediting the commercialization and scaling of critical battery-grade lithium manufacturing technology. Building on this momentum, the company was awarded an additional grant through the Bipartisan Infrastructure Law in October 2022. Valued at $115 million, this grant will facilitate the construction of a commercial-scale primary lithium hydroxide manufacturing facility.