LithiumBank Announces Upsizing of Private Placement to $3M

NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES

CALGARY, Alberta, Oct. 13, 2023 (GLOBE NEWSWIRE) -- LithiumBank Resources Corp. (TSX-V: LBNK) (the “Company” or “LithiumBank”) is pleased to announce it has increased its previously announced (see news release dated October 10^th, 2023) non-brokered private placement (the “Offering”) of up to 2,000,000 units (“Units”) at a price of $1.00 per Unit to up to 3,000,000 Units, for aggregate gross proceeds of $3,000,000.

The net proceeds of the Offering will expand the company’s treasury to more than $9M that it will use to expedite further advancement of its portfolio of district scale direct brine lithium assets in Western Canada. LithiumBank intends to complete drilling and sampling to upgrade resources, as well as to conduct pilot plant testing to determine key performance indicators at its Boardwalk and Park Place Projects. Directors, officers, and consultants of the company are expected to purchase in excess of $1.2M of the Units subscribed for in the Offering.

The securities offered pursuant to the Offering will be subject to a statutory hold period of four months and a day from the date of issuance. The Offering is subject to certain conditions including, but not limited to, receipt of all necessary approvals including the approval of the TSXV.

Each Unit will consist of one common share in the capital of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $1.50 per Common Share for a period of 24 months from the date of issuance, subject to the policies of the TSX Venture Exchange (“TSXV”).

The Company expects to pay the following finders’ fees to certain eligible finders in connection with the Offering: (i) a cash commission of 6.0% of the gross proceeds raised under the Offering from investors introduced to the Company by the applicable finder; and (ii) such number of non-transferable common share purchase warrants of the Company equal to 6.0% of the Units sold under the Offering from investors introduced to the Company by the applicable finder.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.