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Neo Lithium Provides Operational Update

  • Lithium Carbonate Pilot Plant Now Fully Operational
  • First Batch of Technical Grade Lithium Carbonate Expected in July-August 2019
  • First Batch of Battery Grade Lithium Carbonate expected in September-October 2019
  • Geochemical Laboratory in Fiambalá Now Fully Operational
  • Drilling Season Ended Reaching a Depth of 280 Meters in The High-Grade Zone

TORONTO, May 21, 2019 (GLOBE NEWSWIRE) -- Neo Lithium Corp. (“Neo Lithium” or the “Company”) (TSXV:NLC; OTCQX:NTTHF; FSE:NE2) is pleased to provide an operational update for its wholly-owned Tres Quebradas lithium brine project ("3Q Project") in Catamarca Province, Argentina.

The Company’s lithium carbonate pilot plant, which was built by the Instituto de Investigaciones Tecnologicas from Universidad de Concepcion, Chile, was successfully reassembled at Neo Lithium’s Fiambalá facility. The pilot plant was tested, fine-tuned and commissioned to operate with concentrated brine from the salar, with a designed capacity to produce 50 tonnes of lithium carbonate per year.

The pilot plant includes a solvent extraction phase (SX-B) for Boron removal, a sulfation plant to remove calcium and a liming and carbonation phase to remove magnesium and any remaining calcium. The process is then completed with 3 stages of soda ash carbonation and drying. The Company has expanded its engineering staff and is planning to produce lithium carbonate at technical grade by August, and battery grade by September of the current year.

The Company is also pleased to announce the completion of its geochemical laboratory in Fiambalá and the engagement of Alex Stewart International Argentina SA to assist with setting up the equipment, protocols, and operating procedures.

“After completing a successful PFS, we are now fully engaged and focused in demonstrating that our technology is capable to produce battery grade lithium carbonate at very efficient levels,” stated Waldo Perez, President and CEO of Neo Lithium. “Producing battery grade lithium carbonate in our pilot plant is our ultimate goal, which will validate that the project is scalable and economically viable as we push forward with our objective to create and maximize shareholder value.”

Drilling Update

The 2019 summer drilling campaign focused on areas below the high-grade zone to expand this valuable resource. The northern sector of the 3Q project has a high-grade core that was drilled in previous campaigns down to only 100 meters. Drilling deeper is complicated due to the loose clastic units saturated in brine increases the risk of the hole collapsing prior to installing the filters.  This year the Company drilled two rotary wells, PB1-R-24 and PB1-R-25 much deeper than 100 meters. See location in the company web site.

http://www.neolithium.ca/project/default.aspx#section=maps

PB1-R-24 was drilled down to 160 meters depth and provided 1,128 mg/l lithium, thus expanding the high-grade zone significantly as reported in the press release of April 8th, 2019. 

PB1-R-25 was completed recently in May 2019, drilling down to 280 meters depth. The hole is located on the eastern border of the 3Q lake, an area where the reserve estimation assumed brine to be present to only 10 meters depth, however the hole encountered brine all the way from surface to 280 metres depth.  The well was finished in 8 inches metal screen from 100 metres deep to 265 metres and is blind with cement and clay pellets from surface down to 100 metres (to avoid entrance of brine from the lake). The well was pumped over 72 hours to collect 10 brine samples. Geochemical results are expected during Q2 2019.

About Neo Lithium Corp.

Neo Lithium Corp. has quickly become a prominent new name in lithium brine exploration by virtue of its high quality 3Q Project and experienced team. Already well capitalized, Neo Lithium is rapidly advancing its recently discovered 3Q Project - a unique high-grade lithium brine lake and salar complex in Latin America’s “Lithium Triangle”.

The 3Q Project is in Catamarca Province, the largest lithium producing area in Argentina. The project covers approximately 35,000 ha and the salar complex within this area is approximately 16,000 ha.

The technical team that has discovered the 3Q Project characterized this unique salar complex as one of the most experienced in lithium salars. For example, this team discovered and led the technical work, including resource definition and full feasibility study, that established the Cauchari lithium salar as one of the largest lithium brine resources in the world.

Additional information regarding Neo Lithium Corp. is available on SEDAR at www.sedar.com under the Company's profile and at its website at www.neolithium.ca, including various pictures of ongoing work at the project.

For further information, please contact:

Neo Lithium Corp.
Carlos Vicens
cvicens@neolithium.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has in no way approved nor disapproved the contents of this press release.

Cautionary Note Regarding Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements. Such statements include but are not limited to, statements as to lithium brine grades at depth being consistent with surface results, the potential for resource expansion at depth, the potential of the northern salar sediments, and deeper sediments, for hosting brine, the ability to proceed to scoping studies quickly, proceeding with continued work for additional economic studies the potential for production expansion in the Company’s assessment of the economic potential of the 3Q Project, that test results are indicative of future results, and the additional of additional independent directors. Generally, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “is expected”, “scheduled”, “estimates” “intends”, “anticipates”, “believes”, or variations of such words and phrases, or statements that certain actions, events or results “can”, “may”, “could”, “would”, ”should”, “might” or “will”, occur or be achieved, or the negative connotations thereof. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, which could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. These risks include, without limitation, risks related to failure to obtain adequate financing on a timely basis and on acceptable terms, political and regulatory risks associated with mining and exploration activities, including environmental regulation, risks and uncertainties relating to the interpretation of drill and sample results, risks related to the uncertainty of cost and time estimation and the potential for unexpected delays, costs and expenses, risks related to metal price fluctuations, the market for lithium products, competition for experienced directors in the junior mineral exploration and development sector, and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company’s disclosure record. Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended and undue reliance should not be placed on forward-looking statements.