Mr. Garry Flowers reports

INTERNATIONAL BATTERY METALS (IBAT) AND US MAGNESIUM SIGN AGREEMENT TO INSTALL WORLD'S FIRST MODULAR DIRECT LITHIUM EXTRACTION (DLE) PLANT

International Battery Metals Ltd. has signed an agreement with U.S. Magnesium LLC for the installation of its first-of-its-kind, patented modular direct lithium extraction (DLE) plant installed at a brine resource. The mobile facility is co-located at U.S. Magnesium's existing operations outside Salt Lake City, Utah. International Battery's plant will process brine produced from lithium-containing waste magnesium salts. The resulting lithium chloride product will provide feed for high-purity lithium carbonate production by U.S. Magnesium.

Modular, transportable design: In the past month, International Battery initiated most of the equipment set-up, including pipe and utility tie-ins and other installation activities of its patented modular extraction plant at the U.S. Magnesium site. Initial testing of critical equipment is under way. International Battery anticipates that full commissioning and start-up will be completed within the next three months, with commercial lithium production to follow shortly thereafter.

"Our commercial operations with U.S. Mag will advance a productive lithium extraction operation," said Garry Flowers, chief executive officer of International Battery. "Given current lithium demand, supply dependence on China and permitting challenges, our expected commercial operations are coming at an ideal time to produce lithium at scale in the U.S."

International Battery's patented modular plant was fabricated in Lake Charles, La., before being recently transported to U.S. Magnesium.

Independently verified: International Battery's technology has been validated by an independent review by SLR International Corp., a global leader in environmental and engineering services, and Greg Mehos & Associates LLC, an independent testing agency. The technology has been proven effective with diverse brine resources, including lithium-containing oil-field-produced brines, where it holds great promise based on a large-volume test with Galvanic Energy in the Smackover formation in Arkansas. The technology also has been proven effective with subterranean brine resources in Alberta, Saskatchewan, Michigan, Ohio, Oklahoma, California, Texas; salars in Chile and Argentina; and geothermal brine in Germany.

Commercial operations will serve growing lithium demand from automakers for electric vehicle batteries as well as energy storage batteries to support growing electricity demand and to balance the grid from increased renewable energy integration.

Designed for sustainability: International Battery's first-of-its-kind patented modular, mobile lithium extraction plant also has been independently verified to extract more than 97 per cent of available lithium from brine. Further, laboratory and field tests have demonstrated that the plant's effective proprietary selective absorbent maximizes lithium uptake and minimizes brine-based impurities. Due to the plant's advanced water recovery rate, International Battery's technology is highly protective of sensitive water resources. International Battery has demonstrated that the technology can extract lithium from subterranean brine sources and return the lithium-depleted brine to the same subsurface aquifer in a closed recycling loop. This work has been verified from natural brines in Canada, the United States, Argentina, Chile, Mexico and Europe. Other than the use of acid and base for pH control, International Battery's compact lithium extraction process does not introduce chemicals into the brine. This unique patented technology promises faster delivery of lithium chloride while ensuring minimal environmental impact.

Small footprint, high yield: Another benefit is that the modular, easily transportable technology can operate within a three-acre site -- a significantly smaller footprint than other types of lithium production facilities. The modular, compact design optimizes plant construction and operating costs. Engineering reviews have determined that the International Battery DLE plant design capacity is capable of initially producing up to 5,000 metric tonnes per year, depending on the characteristics of brine resources, such as lithium concentration and brine salt composition. The modular plant also can be expanded to accommodate larger capacity as demand requires.

The modular DLE operations position International Battery to emerge as a key supplier for growing U.S. lithium demand, providing an alternative to China and other global suppliers. This proven technology will produce at commercial scale with a smaller footprint -- both in size of the facility and in terms of environmental impact.

"International Battery Metals' patented modular extraction technology will be the basis of future lithium extraction from brine resources around the world. It is the fastest technology to deploy and commence commercial operations," said Dr. John Burba, founder, chief technology officer and director of International Battery Metals. "Furthermore, its inherent efficiency and environmental protective characteristics make IBAT's technology superior to existing DLE operations. We are very excited about the placement of our first plant on a resource and the expected commencement of commercial operations."

The agreement provides International Battery with royalties from U.S. Magnesium based on lithium sales as well as payments for equipment operations based on lithium prices and performance.

About International Battery Metals Ltd.

International Battery is an advanced technology company focused on the development of environmentally responsible methods of extracting lithium compounds from brine. International Battery has developed a patented modular direct lithium extraction (DLE) plant that allows for rapid deployment to a resource holder's production site. International Battery is working with resource holders of oil field brines, brine aquifers and industrial customers with brine byproducts. International Battery believes the modular design of its DLE plant provides significant initial costs savings to customers and the proprietary DLE technology lowers operating costs by selectively extracting lithium from the brine while efficiently removing contaminants.

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