Ms. Simone Suen reports

IMAGINE LITHIUM OUTLINES EXPLORATION PROGRAM FOR JACKPOT PROJECT AND CLOSING OF CONVERTIBLE NOTE FINANCING

Imagine Lithium Inc. has provided an exploration update on its 27,597-hectare Jackpot project. Imagine Lithium's Jackpot project comprises the Ruth pegmatite claims and the Jackpot deposit claims in the Georgia Lake pegmatite field, approximately 140 kilometres northeast of Thunder Bay, Ont. Total resources on the land package include 3.1 million tonnes indicated at 0.85 per cent lithium oxide for 26,200 tonnes of Li2O and 5.3 Mt inferred at 0.91 per cent Li2O for 49,500 tonnes of Li2O (press release dated Sept. 3, 2024).

A compilation of all project data collected from 2022 to 2025 indicates six key target zones across the property. The six target areas are selected where lithium-in-soil anomalies coincide with spodumene-bearing pegmatite samples that are from bedrock or glacial float. The key target zones on the project are listed in order of exploration priority based on proximity to the Jackpot deposit:

• Jackpot South zone -- defined by soil anomaly and three boulder samples that returned 2.91 per cent Li2O, 2.73 per cent Li2O and 2.52 per cent Li2O;
• Blay Lake zone -- defined by soil anomaly, two bedrock samples and one boulder sample that returned 4.31 per cent Li2O, 2.48 per cent Li2O and 1.42 per cent Li2O, respectively;
• Newkirk SW zone -- defined by a cluster of spodumene pegmatite boulders that returned 3.59 per cent Li2O, 3.49 per cent Li2O, 2.63 per cent Li2O and 1.74 per cent Li2O;
• Cosgrave North zone -- defined by northern and southern dikes where two surface grab samples returned 1.84 per cent Li2O and 3.92 per cent Li2O, respectively;
• Jackpot West -- north-south-trending spodumene-bearing pegmatite dike up to five metres wide and 40 metres long in outcrop that returned 1.98 per cent Li2O and 0.98 per cent Li2O; a significant lithium-in-soil anomaly is also present north of this dike;
• Jackpot Southwest zone -- defined by a large lithium-in-soil anomaly and two spodumene-bearing boulders that returned 4.16 per cent Li2O and 2.69 per cent Li2O; this area has five barren pegmatite dikes that were identified by Pye (1965).

The fall 2026 exploration program will focus on expanding resources at the Casino Royale deposit and conducting exploration drilling at the Ruth pegmatite to update Imagine Lithium's mineral resource inventory.

In addition, several high-priority blind targets, including the Jackpot South and Blay Lake areas, will be advanced in preparation for a winter 2027 drill program. Drilling will target large lithium-in-soil anomalies that coincide with spodumene-bearing pegmatites identified in bedrock at Blay Lake and in glacial boulders at Jackpot South.

The Cosgrave North zone will also be advanced through bedrock stripping and diamond drilling to evaluate whether the dikes represent an upper, tantalum-bearing vein system overlying stacked albite-spodumene pegmatite dikes similar to those identified at the Jackpot and Casino Royale deposits.

The continuing exploration program is designed to expand known mineralization and test newly identified targets:

• Expansion drilling at the Casino Royale deposit to increase existing resources;
• Drill test the Pegmatite 500 extension that was discovered north of the Jackpot-Casino open-pit trend during the 2025 field season;
• Drill test the Ruth pegmatite that was stripped and channel sampled in the fall of 2025;
• Complete bedrock stripping in the Newkirk SW zone to determine the bedrock source of spodumene pegmatite boulders in the area;
• Complete geological mapping in the Jackpot West and Jackpot Southwest zones to delineate existing pegmatite dikes and make new discoveries;
• Prepare Jackpot South, the Blay Lake zone and the Cosgrave North zones for diamond drilling in the winter of 2027;
• Advance metallurgical optimization and preliminary engineering studies; and
• Initiate environmental baseline work and permitting preparations for future development.

Further to the news release dated July 29, 2026, it has closed a private placement offering of 7.0 per cent secured convertible notes for gross proceeds of $3-million.

The funds will be used for general corporate purposes and to continue advancing its newly discovered Ruth pegmatite and expansion drilling on its Casino Royale lithium zone.

Convertible notes will bear interest at 7.0 per cent per annum and will mature five years from their issuance. The company may repay all or a portion of the principal amount owing under the convertible notes at any time prior to maturity with 90 days prior notice, but at a premium of 10 per cent of the principal amount owing plus any accrued and unpaid interest if the loan is paid early. The principal amount owing under each convertible note will be convertible into common shares, in multiples of $500,000 of the principal amount, at a conversion price of five cents per share in the first year and for each year thereafter at a conversion price of 10 cents per share. The indebtedness owing under the convertible notes will be secured by a first-ranking general security interest over all of the present and after-acquired assets of the company.

Concurrent with the completion of the private placement, the investor will also be granted a right of first refusal with respect to any offtake arrangements regarding lithium produced, if any, by or on behalf of the company from any mineral interest owned by the company.

In connection with the closing of the private placement, the company paid finders' fees of $180,000 through the issuance of 3.6 million common shares to an eligible arm's-length finder.

The shares will be subject to restrictions on resale for a period of 12 months and one day in accordance with applicable securities laws.

The financing, although conditionally approved by the TSX Venture Exchange, is subject to final approval.

Qualified person

Jason Arnold, PGeo, president of DCX Geological Consulting, reviewed and approved the technical content of this news release. Mr. Arnold is a consultant for the company and is not an independent qualified person as defined by the National Instrument 43-101 due to his position as a director of the company.

About Imagine Lithium Inc.

Imagine is a junior mining exploration company focused on seeking and acquiring world-class mineral projects. The company holds the Jackpot lithium property located in the Georgia Lake area about 140 kilometres north-northeast of Thunder Bay, Ont., is approximately 12 kilometres by road from the Trans-Canada Highway (Hwy. 11), and is in proximity to sources of power, railways and ports. The Jackpot property consists of 322 mineral claims covering 27,597 hectares. The property contains National Instrument 43-101-compliant mineral resources of 3.1 million tonnes grading 0.85 per cent Li2O in the indicated category and 5.3 Mt grading 0.91 per cent Li2O in the inferred category, as well as several other known pegmatite showings.

We seek Safe Harbor.