American Lithium Reaches Definitive Agreement to Spin Out Macusani Uranium Deposit into an Independent Public Company - Seite 2

Through the Transaction, the Company aims to recognize the market value of the advanced, development stage Macusani Project for the benefit of its shareholders by creating an independent, well financed, uranium-focused, publicly traded company, International Uranium, which will drive this large-scale uranium project forward through feasibility and beyond. International Uranium will immediately benefit from the work done to date by American Lithium on the Macusani Project and in particular a highly robust PEA, advanced metallurgy and drill permits which have been filed for the next phases of drilling and are expected to be finalized shortly.   The Transaction will also enable American Lithium to better focus all its efforts on advancing its two premier lithium projects, TLC in Nevada, and Falchani in Peru.

Simon Clarke, Chief Executive Officer of the Company, stated, “We are pleased to move forward with spinning out this large-scale and advanced-stage uranium project for the benefit of our shareholders.   The Macusani Project is one of the world’s largest undeveloped uranium projects whose ease of extraction, “near surface” and high purity characteristics position it with the potential to be one of the lowest cost sources of uranium globally. With mounting concerns around energy security and climate change, Macusani is strategically located in the Americas, and we believe it can play a large role in the transition to zero emission base-load electricity generation that the world requires. To fully realize its potential and to provide maximum value to our shareholders we believe it needs to be in a stand-alone public company.”

Details of the Transaction

Pursuant to the terms of the Arrangement Agreement, the Transaction will involve the transfer of ownership of Macusani Uranium S.A.C., a Peruvian subsidiary of the Company, to International Uranium in consideration for receipt of the Consideration Shares. Immediately following receipt of the Consideration Shares, the Company intends to distribute (the “Distribution”) the Consideration Shares to its existing common shareholders on a pro rata basis. The Distribution will be conducted along with the Transaction under a plan of arrangement in accordance with the Business Corporations Act (British Columbia). The Company has not yet determined a record date for shareholders entitled to participate in the Distribution and will issue a further news release once such a determination has been made.