Frontier Lithium PFS Demonstrates Pre

Mr. Trevor Walker reports:

SUDBURY, ON, May 31, 2023 /CNW/ - Frontier Lithium Inc. (TSXV: FL) ("Frontier" or "the Company") is pleased to release the strong results of a Pre-Feasibility Study ("PFS") for a proposed mine-to-lithium hydroxide chemical/hydromet plant facility ("Integrated Project") in the Great Lakes Region of North America. The PFS assumes a hydromet plant that would convert spodumene concentrate feedstock sourced from a vertically integrated spodumene open-pit mining and milling facility at the Company's PAK Lithium Project, located north of Red Lake, Ontario. The PFS demonstrates pre-tax NPV of US $2.59 billion discounted at 8%. The PFS confirms that the 100% owned Project could be the continent's largest and lowest-cost producer of lithium hydroxide able to supply the rapidly growing electric vehicle industry in North America.

PFS Highlights:

"Surging global demand for unique premium low-iron spodumene concentrates and high-margin, low-cost lithium chemicals presents an opportunity for Frontier Lithium to establish itself as a leading producer. The outstanding PFS results further emphasize this, underscoring the project's ability to meet the market's needs. The project's phased approach, highlighted in the study, ensures efficient resource utilization and minimizes upfront capital expenditure, positioning us for long-term success in the North American electric vehicle market." comments Trevor Walker, President and CEO of Frontier Lithium. "Building upon the PFS results, we are committed to further optimizing the project through definitive feasibility level work. This crucial step allows us to unlock additional value and fine-tune our operational plan to maximize efficiency and profitability. We are confident that this milestone paves the way for strategic resource development and facilitates deeper discussions with potential offtake partners. We are dedicated to establishing mutually beneficial collaborations and supporting infrastructure upgrades in close cooperation with our First Nation community partners. This commitment to sustainable and inclusive development reflects our respect for the environment, local communities, and our shared goal of creating a prosperous future together."

EXECUTIVE SUMMARY

Frontier's Project is uniquely positioned to benefit from its highly favorable location in the Great Lakes Region of North America. Northern Ontario is endowed with exceptional infrastructure, a deep local talent pool, low-cost and low carbon energy, and proximity to an emerging local Electric Vehicle manufacturing market. The PFS reflects more conservative costing assumptions than prior studies, with recent inflationary pressures having a substantial impact on both capital expenditures and operating costs. These cost impacts are partially offset using lithium pricing assumptions based on the more positive outlook incorporated in the consensus estimates described herein. Summary results of the PFS are shown below.

The results of the PFS (see tables 1-5 below) include a pre-tax net present value at an 8 percent discount rate of US$2.59 billion with a pre-tax internal rate of return of 28.6 percent and a post-tax NPV at an 8 percent discount rate of $1.74 billion with a post-tax IRR of 24.1 percent.

The PFS is based on an updated mineral resource estimate completed by Todd McCracken, P.Geo, outlined in the National Instrument 43-101 technical report update as reported in Table 6.

Commodity Price Assumptions from the PFS are, base-case premium technical grade lithium concentrate of 7.2% Li2O (TG_SC7.2) price of US$3,000 per tonne, chemical grade lithium concentrate of 6.6% Li2O (CG_SC6.0) price of US$1,350 per tonne; lithium hydroxide price of US$22,000 per tonne; lithium carbonate US$20,500 per tonne and an exchange rate of $1.30 USD/CAD.

Table 1: Project Economics Summary

ITEM

VALUE

UNITS

Physicals

Total Tonnes Mined

103.4

Mt

Total Mill Feed Processed

22.1

Mt

Average Mill Feed Grade

1.55

% Li2O

Technical Grade @ 7.2% Concentrate Tonnes

765,000

tonnes

BG Lithium Hydroxide Tonnes Produced

313,000

tonnes

BG Lithium Carbonate Tonnes Produced

184,000

tonnes

LCE

459,000

tonnes

Financial Analysis

Commodity Price Assumptions:

Technical Grade Concentrate (TG) 7.2%

3,000

US$/tonne

Chemical Grade Concentrate (CG) 6%

1,350

US$/tonne

Battery Grade Lithium Hydroxide

22,000

US$/tonne

Lithium Carbonate

20,500

US$/tonne

Exchange Rate

1.3

CAD$ : 1 US$

Pre-Tax NPV 8%

2,588

US$M

Pre-Tax IRR

28.6 %

%

Pre-Tax Payback, from start of mill production

4.9

years

Life of Mine

24

years

After-Tax NPV 8%

1,739

US$M

After-Tax IRR

24.1 %

%

After-Tax Payback

4.91

years

Pre-Tax Unlevered Free Cash Flow

8,078

US$M

After-Tax Unlevered Free Cash Flow

5,982

US$M

LOM Direct Income and Mining Taxes

2,560

US$M

Capital Costs

Initial Capital, Direct Cost Estimate

301

US$M

Initial Capital Indirect Costs and Contingency

167

US$M

Total Initial Capital Costs

468

US$M

Expansion Capital, Direct Cost Estimate

363

US$M

Expansion Capital Indirect Costs and Contingency

214

US$M

Total Expansion Capital Costs

576

US$M

LOM Sustaining Capital

73

US$M

LOM Sustaining Capital, Indirect Costs and Contingency

17

US$M

Total LOM Sustaining Capital

90

US$M

Reclamation and Closure Costs (included Salvage Value)

16

US$M

LOM Total Capital

1,151

US$M

Operating Costs

LOM Operating Costs

3,392

US$M

Open Pit Mining

5.60

US$/t mined

Site Processing

21.29

US$/t milled

Site Support Costs

20.17

US$/t milled

Chemical Plant Processing

85.99

US$/t milled

Subtotal Operating Cost

153.71

US$/t milled

Concentrate Transport & Losses

15.03

US$/t milled

Total Operating Cost

168.74

US$/t milled

PFS Overview

1. LITHIUM CHEMICALS FOR THE NORTH AMERICAN ELECTRIC VEHICLE MARKET

2. A PHASED APPROACH

3. GROWING REGIONAL DEMAND

4. OPPORTUNITIES FOR FURTHER UPSIDE

Table 2 – Economic Assumptions and Parameters

Parameters

Unit

Value

Physicals

Convert to wet conc.

%

1.09

Li Hydroxide Conc. Yield from SC 6%

%

60 %

Li Carbonate Conc. Yield from SC 6%

%

40 %

Exchange Rate

Exchange

US$/CA$

0.77

Exchange

CA$/ US$

1.30

Discount Rate

Discount Rate

8 %

Commodity Prices

Technical Grade (TG) 7.2%

US$/tonne

3,000

Chemical Grade (CG) 6%

US$/tonne

1,350

BG LiOH

US$/tonne

22,000

BG Li2CO3

US$/tonne

20,500

Recovery

TG Plant recovery

%

76 %

CG Plant recovery

%

78 %

Factor for Chem Conc to Li Hydroxide

%

16.86 %

Lithium Hydroxide Recovery

%

88 %

Factor for Chem Conc to Li Carbonate

%

14.84 %

Lithium Carbonate Recovery

%

88 %

Operating Costs

TG Concentrate transport

US$/t conc

69

CG Concentrate transport

US$/t conc

69

Chemical Plant Processing Costs

US$/t conc

539

Table 3 – Project Economics

Pre-Tax NPV

Discount Rate

CA$M

US$M

0 %

10,501

8,078

5 %

5,057

3,890

8 %

3,365

2,588

10 %

2,582

1,986

15 %

1,326

1,020

PRE-TAX IRR

28.6 %

Payback Period (yrs.)

4.9

Post-Tax NPV

Discount Rate

CA$M

US$M

0 %

7,776

5,982

5 %

3,438

2,645

8 %

2,261

1,739

10 %

1,712

1,317

15 %

821

632

POST-TAX IRR

24.1 %

Payback Period (yrs.)

4.9

Table 4 – Capital Requirement Summary

Capital Costs

CA$M

US$M

Initial Capital, Direct Cost Estimate

392

301

Initial Capital Indirect Costs and Contingency

217

167

Total Initial Capital Costs

608

468

Expansion Capital, Direct Cost Estimate

472

363

Expansion Capital Indirect Costs and Contingency

278

214

Total Expansion Capital Costs

749

576

LOM Sustaining Capital

95

73

LOM Sustaining Capital, Indirect Costs and Contingency

23

17

Total LOM Sustaining Capital

117

90

Reclamation and Closure Costs

21

16

LOM Total Capital

1,496

1,151

Capital Requirements

Initial Capital (CA$M)

Expansion Capital (CA$M)

Initial Capital (US$M)

Expansion Capital (US$M)

PAK - Infrastructure

0.38

-

0.29

-

PAK - Mobile Fleet

18.58

-

14.29

-

Spark - Infrastructure

-

0.34

-

0.26

SC 7.2 Concentrator

157.92

-

121.48

-

SC 6.0 Concentrator

-

74.27

-

57.13

Tailings Material Handling Pipeline

1.20

-

0.92

-

Tailings Management Facility

21.97

-

16.90

-

Site Preparation - Civil Work Mine & Mill

34.90

-

26.85

-

Site Roads and Permanent Access Road

33.83

-

26.02

-

Water Treatment Plant

21.52

-

16.56

-

Utilities

22.47

-

17.29

-

Electrical Power - Substation & Distribution

22.22

-

17.09

-

Building Facilities

48.24

17.82

37.10

13.71

Airstrip

0.28

-

0.22

-

Site - Mobile Fleet

0.61

-

0.47

-

Industrial Control Systems

2.13

-

1.64

-

Insurance

5.45

-

4.19

-

Chemical Plant/Erection/Commissioning

-

379.23

-

291.72

Mine and Site Indirect Costs

-

-

-

-

Owners Costs

18.27

-

14.05

-

EPCM

27.40

-

21.08

-

Other associated indirect costs

17.22

-

13.24

-

Mill Indirect Costs

-

-

SC 7.2 Concentrator

53.17

-

40.90

-

SC 6.0 Concentrator

-

30.38

-

23.37

Chemical Plant

-

125.37

-

96.44

SUB-TOTAL CAPITAL COSTS

507.74

627.42

390.57

482.63

Contingency

-

-

-

-

Mine and Site

58.24

-

44.80

-

SC 7.2 Concentrator

42.22

-

32.48

-

SC 6.0 Concentrator

-

20.93

-

16.10

Chemical Plant

-

100.92

-

77.63

TOTAL CAPITAL COSTS

608.20

749.27

467.85

576.36

Table 5 –Operating Costs/Tonne LCE

Operating Costs

CA$/LCE

US$/LCE

Total Chemical Operating Cost

9,663

7,433

Table 6 - 2023 PAK Mineral Resource Statement (Open Pit)

Cut- off

Resource Category

Commodity

Geologic Zone

Tonnes (t)

Li2O (%)

Ta2O5 (ppm)

Cs2O (%)

Rb2O (%)

0.6% Li2O

Measured

Lithium

Upper Intermediate Zone (UIZ)

325,200

3.43

59

0.03

0.14

Lithium

Lower Intermediate Zone (LIZ)

1,019,400

1.73

105

0.04

0.29

Lithium

Total Lithium Zone

1,344,600

2.14

94

0.04

0.25

Lithium / Tantalum / Rubidium

Bulk Pegmatite

1,344,600

2.14

94

0.04

0.25

0.6% Li2O

Indicated

Lithium

Upper Intermediate Zone (UIZ)

255,400

2.91

75

0.04

0.21

Lithium

Lower Intermediate Zone (LIZ)

3,819,900

1.88

99

0.04

0.30

Lithium

Total Lithium Zone

4,075,300

1.94

97

0.04

0.29

Tantalum / Rubidium

Central Intermediate Zone (CIZ)

544,100

1.11

113

0.08

0.63

Lithium / Tantalum / Rubidium

Bulk Pegmatite

4,619,400

1.72

99

0.04

0.33

0.6% Li2O

Measured + Indicated

Lithium

Upper Intermediate Zone (UIZ)

580,600

3.20

65

0.03

0.17

Lithium

Lower Intermediate Zone (LIZ)

4,839,300

1.85

100

0.04

0.30

Lithium

Total Lithium Zone

5,419,900

1.99

96

0.04

0.29

Tantalum / Rubidium

Central Intermediate Zone (CIZ)

544,100

1.11

113

0.08

0.63

Lithium / Tantalum / Rubidium

Bulk Pegmatite

5,964,000

1.81

98

0.04

0.32

0.6% Li2O

Inferred

Lithium

Upper Intermediate Zone (UIZ)

74,200

2.77

96

0.04

0.25

Lithium

Lower Intermediate Zone (LIZ)

528,900

1.86

79

0.02

0.23

Lithium

Total Lithium Zone

603,100

1.97

81

0.02

0.23

Tantalum /Rubidium

Central Intermediate Zone (CIZ)

77,400

1.21

153

0.08

0.51

Lithium / Tantalum / Rubidium

Bulk Pegmatite

680,500

1.75

89

0.03

0.26

Table 7 - 2023 Spark Mineral Resource Statement (Open Pit)

Cut-Off

Resource

Tonnes (t)

Li2O (%)

Ta2O5 (ppm)

Cs2O (%)

Rb2O (%)

Nb2O5(ppm)

SnO2 (ppm)

Classification

0.65% Li2O

Indicated

18,828,000

1.52

112

0.02

0.26

84

61

Inferred

29,746,000

1.34

116

0.03

0.26

77

74

Mineral Resource Estimate Notes

1.

Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards (2014). Mineral resources that are not mineral reserves do not have demonstrated economic viability. This estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

2.

Mineral Resources are reported at various cut-off grades based on mining method and a 6.0% spodumene concentrate prices of US$1,350 /tonne and an exchange rate of 1.3.

3.

Appropriate mining costs, processing costs, metal recoveries, and inter ramp pit slope angles were used by BBA to generate the pit shell.

4.

Rounding may result in apparent summation differences between tonnes, grade, and contained metal content.

5.

Tonnage and grade measurements are in metric units.

6.

A bulk density factor of 2.74 was applied to the pegmatite and 2.70 was applied to the aplite.

Table 8 – Mineral Reserve Summary

Category

Area

Li2OCut-off Grade%

Diluted Tonnage (t)

Diluted Li2O Grade %

Probable Mineral Reserve

PAK

0.65

4,041,000

1.79

Probable Mineral Reserve

Spark

0.65

18,028,000

1.50

Probable Mineral Reserve

Overall Total

0.65

22,069,000

1.55

Conclusions and Next Steps

The PFS results demonstrate the potential for Frontier Lithium to become a major North American lithium chemicals producer on a fully integrated spodumene mine to lithium hydroxide and carbonate chemical plant basis. The Company will now concentrate on the following initiatives to drive the Project forward:

Due Diligence

All scientific and technical information in this release has been reviewed and approved by Todd McCracken , P.Geo., Director – Mining & Geology – Central Canada , BBA E&C Inc., the qualified person (QP) and Garth Drever , P.Geo., VP Exploration for Frontier Lithium Inc. the qualified person (QP) under the definitions established by National Instrument 43-101. Under Frontier's QA/QC procedures, all drilling was completed by Chenier Drilling Ltd. of Val Caron, ON using thin-walled BTW drill rods (4.2 cm core diameter) and a Reflex ACT III oriented core system. Using the Reflex system, the drill core was oriented and marked as it was retrieved at the drill. The core was boxed and delivered to the Frontier core shack where it was examined, geologically logged and marked for sampling. The core was photographed prior to sampling. Using a rock saw, the marked sample intervals were halved with one halve bagged for analysis. Sample blanks along with lithium, rubidium and cesium certified reference material was routinely inserted into the sample stream in accordance with industry recommended practices. Field duplicate samples were also taken in accordance with industry recommended practices. The samples were placed in poly sample bags and transported to Red Lake by Frontier employees and then shipped to AGAT Laboratories Ltd. (AGAT) in Mississauga, ON for quantitative multi-element analysis. AGAT is an ISO accredited laboratory. The core is stored on site at the Pakeagama Lake exploration camp.

Qualified Persons and 43-101 Disclosure

The following Qualified Persons as defined by NI 43-101 have been involved in the preparation of the study and have approved this press release:

Garth Drever, Graeme Goodall for Frontier Lithium Inc.

Todd McCracken, P. Geo., Shane Ghouralal, P. Eng., Joanne Robinson, P. Eng., David Willock, P. Eng., and Bahareh Asi, P. Eng. for BBA E&C

Andy Holloway, P. Eng. for Halyard Engineering Inc.,

Ian Ward, P. Eng. for Ian Ward consulting Services Inc.,

Ron DeGagne, P. Geo. for Environmental Application Group.,

Darlene Nelson, P. Eng. for WSP Canada Inc.

About Frontier Lithium Inc.

Frontier Lithium is a preproduction business with an objective to become a strategic domestic supplier of spodumene concentrates for industrial users as well as battery-grade lithium hydroxide and other chemicals to the growing electric vehicle and energy storage markets in North America. The Company maintains the largest land position and resource in a premium lithium mineral district located in Ontario's Great Lakes region.

About PAK Lithium Project

The PAK lithium project contains North America's highest-grade lithium resource and is the second largest in North America by size. The project encompasses close to 27,000 hectares and remains largely unexplored; however, since 2013, the company has delineated two premium spodumene-bearing lithium deposits (PAK and Spark), located 2.3 kilometres apart. Exploration is continuing on the project through two other spodumene- bearing discoveries: the Bolt pegmatite (located between the PAK and Spark deposits), as well as the Pennock pegmatite (25 kilometres northwest of PAK deposit within the project claims). A 2023 Mineral Resource Estimate titled "National Instrument 43-101 Technical Report for the PAK Lithium Project" by BBA E&C Inc., with an effective date of February 28, 2023, was filed on Sedar.com.

Forward-looking Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact constitute forward-looking statements. Forward looking statements contained in this news release include, but are not limited to, statements with respect to: estimated mineral resources, estimated capital costs to construct mine facilities, estimated operating costs, the duration of payback periods, estimated amounts of future production, estimated cash flows, net present value (NPV) , and statements that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those expressed in the forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties. Risk factors that could cause actual results to differ materially from those in forward looking statements include: market prices for commodities, increases in capital or operating costs, construction risks, availability of infrastructure including roads, regulatory and permitting risks, exploitation and exploration successes, continued availability of capital and financing, financing costs, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings available at sedar.com.