Advantage Achieves Key Milestone With Filing Of Preliminary Economic Assessment (PEA) Report And Confirms Cauchari Project Development On Track

The PEA report provides support for Advantage Lithium to proceed with development plans for  20ktpa capacity stand-alone Lithium Carbonate plant located at its Cauchari Joint-Venture project (“Cauchari JV”) in the province of Jujuy, Argentina. The PEA report was completed by WorleyParsons Chile S.A. (“WorleyParsons”), a leading integrated independent engineering services firm with extensive experience in the design and construction of Lithium brine projects in Argentina and Chile.

Key Points:

• US$ 830 Million after-tax NPV at 8% discount rate and IRR of 24.0 % for 20,000 TPY production of lithium carbonate. (Pre-Tax NPV – $1,321 Million)
• Pre- Production CAPEX estimate of US$ 401 million for a 20,000 TPY operation
• OPEX of US $3,667 /tonne of lithium carbonate average after production ramp-up
• Processing facilities design based on proven solar evaporation technology and conventional lithium brine processing, leveraging JV partner Orocobre’s project development experience
• Mine life of 25 years including a 3-year ramp up for 20,000 TPY production scenario based on conversion factors applied to 3Mt resource published in May 2018
• Cauchari resource conversion to Measured and Indicated well underway with DFS to commence imminently with completion scheduled in Q2 2019, both fully funded by the AAL/Orocobre Joint Venture
• The resource is open to the south and at depth, with potential to add significant tonnage with additional exploration, including in the deep sand unit

David Sidoo, CEO and Founder commented “We are very pleased that we have advanced our Cauchari JV from exploration through to a completed PEA in just over a year.  The positive  results first summarized in our news release of August 14 are now backed up with an independent study report that reflects the rapid advancement of the project engineering supported by Worley Parsons.

As reported previously, this clearly confirms the potential of Cauchari JV as a robust project with operating costs expected to be in the lower quartile of the industry cost curve. Advantage is progressing on schedule with our Phase III drilling and well testing programs aimed at improving our resource status to Measured and Indicated as an input to our dynamic production model. The results from this work are required to support resource to reserve conversion and to achieve our target Definitive Feasibility Study (“DFS”) which will commence in early October  and planned for  completion   by Q2 2019.”

Economic Analysis Results –  Updated

The economic results have been updated to reflect an improvement in the tax regime in Argentina with lower tax rates that were not reflected in the initial  PEA announcement of August. The updated results show a slight improvement in Project Value, shown below reported against discount factors, with 8% selected as the base case:

The PEA data takes into account royalties applicable to the Cauchari Project.

The economic analysis is based on brine grades and lithium volume estimated from the company’s published Inferred Mineral Resource only.  Mineral resources that are not mineral reserves do not have demonstrated economic viability.  There is no certainty that the Cauchari project evaluation envisioned by the PEA will be realized.  The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.

The information contained in this news release relating to the PEA has been compiled by the WorleyParsons, Santiago, Chile team.  The information has been reviewed and approved by Marek Dworzanowski, of WorleyParsons. Marek Dworzanowski is a “Qualified Person” as the term is defined in National Instrument 43-101 and is independent of Advantage.  WorleyParsons has reviewed and approved the presentation of the PEA information in this news release.

To find out more about Advantage Lithium Corp. please contact Investor Relations at (604) 343-3760 or email info@advantagelithium.com

ADVANTAGE LITHIUM CORP.

About Advantage Lithium Corp.

Advantage Lithium Corp. is a resource company specializing in the strategic acquisition, exploration and development of lithium properties and is headquartered in Vancouver, British Columbia. The common shares of the company are listed on the TSX Venture Exchange (TSX-V:AAL), and the company is also traded on the OTCQX Best Market in the U.S. (OTCQX: AVLIF). The company has acquired a 100% interest in five projects in Argentina and has acquired a 75% interest in a sixth, called Cauchari. The Cauchari project is located just 20 km south of Orocobre’s flagship Olaroz Lithium Facility.

Further information about the Company can be found at www.advantagelithium.com.

Cautionary Statement:

Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “is expected”,”intends”, or “has the potential to”.  Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Advantage that involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. The forward-looking statements included in this press release are made as of the date of this press release and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

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.

For further information: David Sidoo, President, Tel: 604.343.3760, Fax: 604.683.1585, Email: info@advantagelithium.com