Mr. Trevor Walker reports

FRONTIER LITHIUM AND MITSUBISHI CORPORATION FORM JOINT VENTURE TO ADVANCE THE FIRST FULLY INTEGRATED LITHIUM OPERATION IN ONTARIO, CANADA

Frontier Lithium Inc. has entered into a definitive agreement with Mitsubishi Corp. to establish a joint venture partnership (JV) for the PAK lithium project mine and planned lithium chemicals conversion facility (collectively, the project). This JV partnership delivers immediate and near-term financing to aggressively advance the first fully integrated lithium mining and processing operation in Ontario.

Under the terms of the agreement, signed on March 2, 2024, Mitsubishi will acquire an initial 7.5-per-cent interest in the project for $25-million. Upon completion of the definitive feasibility study (DFS), Mitsubishi will have the right to increase its interest in the JV to 25 per cent through the purchase of additional shares at a price based on the net value of the project as shown in the DFS. Additionally, Frontier and Mitsubishi will work closely together to pursue project financing to finance the development capital costs of the project.

Transaction highlights:

• This strategic investment recognizes the size, high quality and strategic importance of the Frontier's PAK lithium project to the North American EV (electric vehicle) supply chain;
• Mitsubishi, a global conglomerate with a market cap of more than 13 trillion Japanese yen (JPY), and having a portfolio of large-scale mineral resource assets with world-class cost competitiveness and quality, makes its first step into upstream lithium production to contribute to the growing needs of the battery materials supply chain;
• The JV is structured to cover the equity financing for the planned mine and mill, while maintaining at least 75 per cent of future offtake;
• This long-term partnership supports the initial development of mining at the PAK lithium project, and future expansions downstream with chemical processing.

"Today marks a significant milestone for Frontier Lithium as we progress towards our goal of becoming a key lithium supplier to the North American EV battery materials supply chain. Mitsubishi's investment reflects confidence in Ontario's jurisdiction, the quality and scale of our asset, and Frontier's operational expertise," stated Trevor Walker, president and chief executive officer of Frontier Lithium. "We are honoured to welcome Mitsubishi to the PAK lithium project and know we will benefit from their integrity, fairness and impressive track record in co-developing major projects around the world. A strong, strategic and steadfast partner allows us to develop our world-class asset, and focus on the long-term value creation for shareholders, communities and all stakeholders."

Kota Ikenishi, general manager of the battery minerals office, Mitsubishi, added: "PAK is an outstanding lithium project, and we recognize its strategic value in ensuring a secure supply of lithium to North American markets. We are excited to build a long-term relationship with Frontier, and leverage our complementary skills and capabilities to deliver PAK into production."

This JV partnership delivers on the recent memorandum of co-operation signed between the governments of Canada and Japan to work more closely to establish sustainable and reliable global battery supply chains. This includes ensuring there are integrated, value-added investments in the upstream, mid-stream and downstream sectors, including the mining and processing of lithium and other critical minerals.

Transaction details

The key terms of the transaction are summarized below:

• Frontier will contribute all assets related to the project in exchange for a 92.5-per-cent interest in the JV and will serve as the manager of the JV.
• Mitsubishi will acquire an initial 7.5-per-cent interest in the JV for $25-million (tranche 1).
• Postcompletion of the DFS, Mitsubishi will have the right to acquire an additional 17.5-per-cent interest in the JV, to a total of 25-per-cent interest, at a price based on the net value of the project as shown in the DFS (tranche 2).
• Mitsubishi will work closely together with Frontier in arranging project financing to ensure the project is fully financed to production.
• Frontier will be the operator of the project and will be responsible for the development and delivery, and subsequent operation of the project.
• A project development committee will include representatives from both Frontier and Mitsubishi, and will be formed to review and recommend all significant project development decisions.
• Financing of tranche 2 is subject to certain terms and conditions precedent, including receipt of material permits and other customary approvals. Frontier anticipates these conditions to be satisfied in 2025.

The agreement contains terms, conditions, representations, warranties and indemnities customary for transactions of this nature. Closing of tranche 1 is subject to customary closing conditions.

Frontier's financial adviser is Goldman Sachs & Co. LLC, and its legal counsel in connection with the transaction is Osler, Hoskin & Harcourt. Mitsubishi's legal counsel in connection with the transaction is Stikeman Elliott.

Frontier invites its shareholders and the financial community for an investor call on Monday, March 4, 2024, at 7:30 a.m. Eastern Time. Investors can join the Zoom meeting on-line, with the meeting ID: 892 6757 3275, or dial in by their location:

• Canada: 1-780-666-0144;
• United States: 1-929-205-6099 (New York);
• Japan: 81-363-628-317.

About Frontier Lithium Inc.

Frontier Lithium is an exploration and development mining company with headquarters and assets in Northern Ontario, a Tier 1 mining jurisdiction. The company's PAK lithium project represents a high-grade, large-tonnage pure lithium resource in a new, premium lithium mineral district in Northwestern Ontario. Strategically located in the Great Lakes region near the United States border, Frontier is developing the first fully integrated lithium mining and processing operation in Ontario, with an aim to become Canada's lithium champion, and a significant supplier of spodumene concentrates and battery-grade lithium chemicals to the growing electric vehicle and energy storage markets across North America.

About the PAK lithium project

The PAK lithium project contains North America's highest-grade lithium resource and is the largest in Ontario by size. The claims encompass more than 26,000 hectares and remains largely unexplored, however, since 2013, the company has delineated two premium spodumene-bearing lithium deposits (PAK and Spark), located only 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 located 25 kilometres northwest of PAK deposit within the project claims. A 2023 prefeasibility study, titled "National Instrument 43-101 Technical Report PFS PAK Lithium Project," authored by BBA E&C Inc., delivered a 24-year project life, at a posttax net present value (NPV) (at an 8-per-cent discount) of $1.74-billion (U.S.) and internal rate of return of 24.1 per cent as per the press release disseminated on May 31, 2023, and filed on SEDAR+.

We seek Safe Harbor.