Arizona Lithium Secures A$11 Million in Non-Dilutive Cash from Sale of Non-Core Acreage at Prairie Lithium Project

Arizona Lithium Limited ("Arizona Lithium") is pleased to announce the successful completion of a non-dilutive cash raise of A$11 million through the sale of non-core mineral title and data at its Prairie Lithium Project in Saskatchewan, Canada. The sale to Homestead Energy Inc. enables the Company to focus on the development of its core lithium assets while preserving shareholder value.

Highlights:

• A$11 Million Cash Proceeds: Arizona Lithium has secured A$11 million from the sale of approximately 40,000 acres of Crown Mineral Title and 11,600 net acres of Freehold Mineral Title to Homestead Energy Inc.
• Non-Dilutive Funding: The transaction allows Arizona Lithium to raise funds without issuing new shares.
• Focus on Core Development: The divested acreage represents a small portion of Arizona Lithium’s 390,000 net acres at the Prairie Lithium Project, allowing the Company to concentrate on advancing its core project areas towards commercial production in 2025.
• Strategic Partner: Homestead Energy Inc., a Saskatchewan-based oil and gas company, has taken on the purchased mineral title and data, assuming all associated environmental and end-of-life liabilities.

Paul Lloyd, Managing Director of Arizona Lithium, commented: “The sale of non-core acreage and data is an effective and efficient capital management tool as it provides $11 million to the Company without diluting shareholders. The land component of the transaction is only a small part of our existing 390,000 net acres we held prior to the transaction. Proceeds from the transaction will be used to advance the development of our core acreage and undertake more work towards the stated goal of commercial production at the Prairie Lithium Project in 2025."

Transaction Details:

• Three Agreements Executed: The sale was completed through three separate agreements:
  • A conveyance agreement for the mineral titles.
  • A licence agreement granting Homestead Energy a royalty-free, perpetual licence to the data.
  • An escrow agreement to manage the transfer of funds and documents.
• Proceeds Allocation: Funds from the sale will be used to accelerate development activities at the Prairie Lithium Project, focusing on areas that align with the Company’s goals to become a significant lithium producer.