Mr. John Wisbey reports

UPDATE ON ECONOMICS OF RALEIGH LAKE PROJECT IN ONTARIO

International Lithium Corp. has noted the upturn in lithium prices from their low in June, 2025, and wishes to give guidance and clarification to the wider investor community for what this means for International Lithium's Raleigh Lake project. The financial projections and assumptions in this release are already in the public domain as they were included in the company's previously published disclosures.

Since June 30, 2025, the price of lithium carbonate, the main lithium benchmark, has risen from $8,535 (U.S.) per tonne to $19,747 (U.S.) on Jan. 8, 2026, a rise of 131 per cent, while the price of spodumene concentrate containing 6 per cent lithium oxide (SC6) in the same period has risen from $630 (U.S.) to $1,800 (U.S.) per tonne, a rise of 185 per cent. The source for these prices is LithiumPriceBot on X. The rise in SC6 has well outperformed even silver since June, 2025. Obviously, the low in June, 2025, followed a very difficult previous 2.5 years for lithium prices. At the present exchange rate of $1 (U.S.) to $1.3880 (Canadian), that means a SC6 price measured in Canadian dollars of $2,498.40 (Canadian) per tonne.

When International Lithium published the technical report for its preliminary economic assessment (PEA) for Raleigh Lake on Jan. 18, 2024, International Lithium's board and management had the foresight to request and publish some sensitivity analyses of the results as any NPV (net present value) or IRR (internal rate of return) calculation is critically dependent on the commodity sale price assumption. The relevant table in the technical report (lithium only) is Table 22-6 shown below, and the sensitivity to the SC6 price assumption at the time of the technical report on Raleigh Lake was as per that table.

Interpolating this table linearly between the two numbers modelled in the PEA for the spodumene SC6 price of $2,100 (Canadian) per tonne and $2,500 (Canadian) per tonne would mean that using, as an input, the spot price on Jan. 8, 2026, of $2,498.40 (Canadian) per tonne the net present value and internal rate of return for the lithium only at the Raleigh Lake project calculated in the same way as in the table below and subject to the same disclaimers would give the following numbers using a discount rate of 8 per cent per annum.

We believe that these are helpful numbers to publish now to put the lithium price recovery into context as far as ILC's Raleigh Lake project is concerned. We would stress that the medium term price assumption for a commodity sale price is generally not the same as the current spot price. We have not considered or consulted with the consultants who wrote the report on what the appropriate medium term price might be as at today. We would also stress that prices can go down as well as up, and that costs may have varied since the PEA was completed in January 2024. It should be noted that the Maiden Resource Estimate at Raleigh Lake in April 2023 also quantified a rubidium resource there. The PEA was for lithium only, and did not include sales of rubidium or cesium or other minerals.

Separately, the company can report that International Lithium has filed for the appropriate permissions to turn various mining claims at Raleigh Lake into a mining lease, and this process is now well under way. International Lithium is in the process of planning the work it wishes to carry out this year at Raleigh Lake given the improvement in the economics. This includes attempting to complete a PEA for the rubidium there despite the challenges of robust pricing assumptions for rubidium chemicals.

Note: A copy of the report, "The Raleigh Lake Project, NI 43-101 Technical Report -- PEA," is on the company's website and was filed on SEDAR+ on Jan. 18, 2024.

Babak Vakili Azar, PGeo, is a qualified person as defined by National Instrument 43-101 and has verified the disclosed technical information and has reviewed and approved the contents of this news release.

About International Lithium Corp.

International Lithium has exploration activities in Ontario, Canada, with intentions to expand into southern Africa. It has projects at various stages, ranging from definitive feasibility study at Rubicon in Namibia (note that International Lithium currently has an option only and is treating this as historic information at this point and not a current resource for International Lithium) to preliminary economic assessment at Raleigh Lake to predrilling at Wolf Ridge. The primary target metals in Canada are lithium, rubidium and copper. There are three projects (two in Ontario and one in Ireland) in which International Lithium has sold its share but where the company stands to receive future payments from either a resource milestone being achieved or from a net smelter royalty. In Namibia, the Karibib project contains lithium, rubidium and cesium.

While the world's politicians remain divided on the future of the energy market's historic dependence on oil and gas and on net zero, there is, in any scenario, an ever-increasing and significant demand for electricity driven by AI (artificial intelligence) and data centres and by a likely unstoppable momentum toward electric vehicles and grid-scale electricity storage. All of these contribute to rising demand for lithium, copper and other metals. Rubidium is also a critical metal, strategic for high-precision clocks, space technology and improving the performance of certain types of solar panels. International Lithium has seen the politically driven, increasingly urgent push by the United States, Canada, the European Union and other major economies to safeguard their supplies of critical metals and to become more self-sufficient. The company's Canadian and southern African projects, which contain lithium, rubidium, cesium and copper, are strategic in this regard.

The company's key mission for the next decade is to generate revenue for its shareholders from lithium and other critical minerals while also contributing to the creation of a greener, cleaner planet and less polluted cities.

This includes optimizing the value of International Lithium's existing projects in Canada as well as finding, exploring and developing projects that have the potential to become world-class deposits. The company announced that it regards southern Africa as a key strategic target market, and, in addition to Namibia, it has applied for and hopes to receive EPOs (exclusive prospecting orders) in Zimbabwe. The board hopes to make further announcements on the portfolio developments over the next few weeks and months.

The company's interests in various projects now consist of the following, and, in addition, the company continues to seek other opportunities.

The company's primary strategic focus at this point is on the Raleigh Lake project, comprising lithium and rubidium, and the Firesteel copper project in Canada, as well as obtaining EPOs and mineral claims in Zimbabwe. The Karibib projects in Namibia, including further development of the EPL (exclusive prospecting licence) there, will be a high priority if International Lithium decides to remain involved.

The Raleigh Lake project now encompasses 32,900 hectares (329 square kilometres) of mineral claims in Ontario and represents International Lithium's most significant project in Canada. To date, drilling has occurred on less than 1,000 hectares of the company's claims. A preliminary economic assessment was published for International Lithium's lithium at Raleigh Lake in December, 2023, with a detailed economic analysis of International Lithium's separate rubidium resource still pending. Raleigh Lake is 100 per cent owned by International Lithium, free from any encumbrances and royalties. The Raleigh Lake project boasts excellent access to roads, rail and utilities.

A continuing goal has been to remain a well-financed, strategically run company that turns International Lithium's aspirations into reality. Following the disposal of the Mariana project in Argentina in 2021, the Mavis Lake project in Canada in 2022 and the Avalonia project in 2025, International Lithium has continued to generate sufficient cash inflows to advance its exploration projects.

With increasing demand for high-technology rechargeable batteries used in electric vehicles, energy storage and portable electronics, lithium has been dubbed the new oil. It is a key part of a green, sustainable economy. By positioning itself on projects with significant resource potential and solid strategic partners, International Lithium aims to become a preferred lithium and critical minerals resource developer for investors and to continue building value for its shareholders throughout the 2020s, the decade of battery metals.

We seek Safe Harbor.