Alpha Lithium Responds to Tecpetrol Announcement of Intention to Make Below Market Tender Offer

VANCOUVER, British Columbia, June 05, 2023 (GLOBE NEWSWIRE) -- Alpha Lithium Corporation (NEO: ALLI) (OTC: APHLF) (German WKN: A3CUW1) (“Alpha Lithium” or the “Company”) today responded to the June 2, 2023 announcement by Tecpetrol Investments S.L. (“Tecpetrol”) of its intention to make an unsolicited takeover bid offer to acquire all of Alpha Lithium’s issued and outstanding shares at $1.24 per share (the “Offer”).

Tecpetrol’s Offer price represents a discount to the current 10-day weighted average price of $1.27 per share and a premium of only 7.8% to the share price immediately prior to Tecpetrol’s May 22, 2023 announcement.

Alpha Lithium shareholders are not required to take any action in response to the Tecpetrol announcement at this time, as a potential Offer has only been announced, and not formally made.

The Alpha Lithium Board of Directors (the “Board”) has formed a special committee comprised of its four independent directors (the “Special Committee”). If a formal Offer is received, the Special Committee and the Board will thoroughly consider the Offer and related takeover bid circular with its financial and legal advisors, as well as actively investigate all possible alternatives to the Offer, including any competing offers. The Board will respond in detail and make a recommendation to the Company’s shareholders through a news release and a directors’ circular in accordance with applicable securities laws.

We wish to advise shareholders that Tecpetrol’s announcement appears to contain a number of misleading, factually inaccurate and incomplete statements, and therefore, should be viewed with significant skepticism and caution.

Tecpetrol first made an unsolicited non-binding offer on May 15, 2023, which was reviewed by the entire Board and rejected after determining the bid to be opportunistic with a low and declining premium to the share price, and not in the best interests of Alpha Lithium shareholders. Additionally, the non-binding offer was structured to preclude Alpha Lithium from engaging with other potential interested third parties who may appropriately value the Company’s unique and compelling assets (see May 23, 2023 news release).

Subsequently, on June 2, 2023, Tecpetrol announced its intention to take the same undervalued bid directly to shareholders via a formal takeover bid offer, from a subsidiary of Tecpetrol.

As indicated in Tecpetrol’s press release, Alpha Lithium has been involved in an ongoing and comprehensive process to explore the potential sale of its Tolillar asset. Tecpetrol was invited to participate in this process, but, rather than engage in constructive discussions, Tecpetrol refused to sign an industry-standard non-disclosure agreement and instead elected to disrupt an otherwise orderly sale process.