Mr. John Wisbey reports

INTERNATIONAL LITHIUM CORP. UPDATES ON LEPIDICO ARBITRATION DETERMINATION

On Dec. 24, 2025, International Lithium Corp. received the arbitration determination for Lepidico's dispute with Jiangxi Jinhui Lithium Co. Ltd. in China. Lepidico Chemicals Namibia Pty. Ltd. (Lepidico Namibia) was the party involved in the arbitration. The dispute dates back to events prior to Lepidico's acquisition of TSX Venture Exchange-quoted Desert Lion Energy Inc. in 2019.

International Lithium structured the deal announced on Sept. 9, 2025, to buy Lepidico Mauritius as an option precisely because it wanted to wait and see the outcome of the arbitration decision. Lepidico Mauritius owns 80 per cent of Lepidico Namibia, which, in turn, owns the entire Karibib lithium, rubidium and cesium project.

The arbitration took place at the Singapore International Arbitration Centre (SIAC) as provided for in the contract between the parties. It is understood that the case was referred to arbitration at the direction of the State Administration of Foreign Exchange (SAFE), a Chinese state body and regulator under the People's Bank of China. The contract between the parties was under Ontario law. There were no Canadians on the arbitration tribunal. A tribunal of three arbitrators was appointed. The presiding arbitrator and a co-arbitrator were both professors who are nationals of and resident in China; the second co-arbitrator was a Singaporean national. The arbitration determination was issued in Chinese, with an English translation. This differs from the Singapore court system, where all proceedings and judgments are conducted in English.

The outcome was unfavourable to Lepidico Namibia and resulted in a determination in favour of Jinhui.

International Lithium currently holds an option, is a secured creditor and believes in the future of the Karibib project. International Lithium's board is considering various courses of action and expects to make further announcements in due course.

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 minerals 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.