Frontier Lithium Inc. Announces Positive Preliminary Feasibility Study for the PAK Lithium Project, Northwestern Ontario

Frontier Lithium Inc. (TSXV:FL) (“Frontier” or “the Company”) is pleased to release the results of a Preliminary Feasibility Study (“PFS”) for the PAK Lithium Project located approximately 175 kilometers north of Red Lake, Ontario.  Included with this PFS is the announcement on the updated Mineral Resource Estimate for the PAK Lithium Project.

The results of the PFS (see tables 1-5 below) include a pre-tax net present value at a 8 percent discount rate of $448 million with a pre-tax internal rate of return of 46.5 percent and a post-tax NPV at a 8 percent discount rate of $301 million with a post-tax IRR of 38.3 percent.

The PFS is based on an updated mineral resource estimate completed by Todd McCracken, P.Geo,  outlined in the National Instrument 43-101 technical report update as reported in Table 6.

Highlights from the PFS, with the base-case premium technical grade lithium concentrate of 7.2% Li2O (TG_SC7.2)  price of $1,250 (U.S.) per tonne, chemical grade lithium concentrate of 6.6% Li2O (CG_SC6.6) price of $750 (U.S.) per tonne and an exchange rate of $1.25 USD/CAD, are as follows (all figures in Canadian dollars unless otherwise stated):

• Life of Mine Revenue is 1,859 million

• Pre-production Capital is $147 million with a contingency of 10% included within the initial capital. Pre-production is for a 2 year period.

• Sustaining Capital $37 million for the Life of Mine (“LOM”).

• Pre-tax NPV (8% discount rate) of $448 million and internal rate of return of 46.5%.

• Post-tax NPV (8% discount rate) of $301 million and internal rate of return of 38.3%.

• Pre-tax Cash Flow of $1,013 million over 16 year LOM.

• Post-tax Cash Flow of $700 million over 16 year LOM.

• Positive Cash-flow is realized in year 2 of production.

• 5.8 million tonnes of mill feed averaging a combined 2.00% Li2O.

• 11.5 year open pit operation, 4.5 year underground operation.

• Mill operates at average tonnage of 1,090 tonnes per day.

• Total production of 1.14 million tonnes of technical grade concentrate of 7.2% Li2O

• Total production of 115,500 tonnes of chemical grade concentrate of 6.6% Li2O

“The compelling PFS results display the PAK Lithium Project’s ability to firstly become a high margin, low cost producer of a unique premium low-iron spodumene concentrate which is in very high demand by the global lithium market. In addition, an additional by-product output of chemical grade concentrate is produced which could also be further upgraded as required by the lithium battery market” comments Trevor Walker, President and CEO of Frontier Lithium. “Despite the strong PFS results, I see room to further optimize the resource and engineering designs and have already transitioned to feasibility level work. This significant milestone also sets the path forward to strategically expand the resource, support ongoing lithium compound testwork, progress our discussions with potential offtake, as well as furthering collaboration agreements with our neighboring First Nation communities.”

Table 1

1)  For the sole purpose of this resource estimation, Li2O equivalent was determined based on lithium and tantalum grades, prices ($400 per tonne of 6% spodumene concentrate and $150 per kg of 30% tantalite concentrate) and their respective recovery ratio (78.5% recovery for lithium and a 50% recovery for tantalum from bulk pegmatite). No credit was included for rubidium, cesium or any of the other elements contained for the purpose of this estimate

2)  Li2O content in the CIZ is predominantly associated with lithian micas and without metallurgical testing not deemed recoverable, therefore, not included in the Li2O contained and subsequently the Li2O equivalent calculation for the purpose of this report.

3)  The UIZ and LIZ are technical/ceramic-grade lithium zones (high-grade lithium with low inherent iron (0.1% Fe2O3 from whole rock analysis). The iron content of spodumene contained within the LIZ increases as the contact with iron-rich metasedimentary country rocks are approached, but it has been noted that a concentration below 0.1% wt.% Fe2O3 is maintained to within about 1 meter of the pegmatite-metasediment contact.

4)  Calculation is based on 6,307m of drilling in 32 holes with an average depth of 160m to a maximum depth of 360m vertical in the deposit, 294m of production drilling for 68 blast holes for the 300 tonne UIZ bulk sample in 2015, and 32 channels covering 216m at surface.

5)  Mineral Resources are not Mineral Reserves having no demonstrated economic viability. Results are presented undiluted and in situ.

6)  Measured, Indicated and Inferred Resources were evaluated from drill hole and channel sample results using a block model approach (krig interpolation) with Surpac software.

7)  (Calculations used metric units (meters, tonnes and ppm). Results were rounded to reflect their estimated nature. Tonnes are rounded to reflect the accuracy of the estimation. Grades reported in percent were rounded to two decimals while grades reported in part per million (ppm) were rounded to the closest integer.

Table 7 Reserve Table

The Mineral Resources for PAK Lithium Project disclosed in this news release have been estimated by Mr. Todd McCracken, P.Geo., an employee of WSP Canada Inc and independent of Frontier. By virtue of his education and relevant experience, Mr. McCracken is “Qualified Person” for the purpose of National Instrument 43-101. The Mineral Resource has been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves, (November 2014). Mr. McCracken, P.Geo., has read and approved the contents of this press release as it pertains to the disclosed Mineral Resource estimate.

Qualified Persons and 43-101 Disclosure

Garth Drever, P.Geo, Vice President Exploration for Frontier Lithium Inc. is a Qualified Person as defined by NI 43-101 and has reviewed and approved the contents of this news release.  Mr. Drever has been involved with all aspects of the PAK Lithium project since 2013.

Todd McCracken, P.Geo, Principal, Manager – Mining , at WSP Canada is an independent Qualified Person as per National Instrument 43-101, and is responsible for the estimation of the PAK Lithium Project mineral resource. Mr. McCracken has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

Johnny Canosa P.Eng., Sr. Mining Engineer for Nordmin Engineering Ltd., is an independent Qualified Person as defined by NI 43-101 and has reviewed and approved the contents of this news release. Mr. Canosa is responsible for Financial Analysis, Open Pit Mine Planning, Operating and Capital Costs.

Roy Levesque P.Eng., Sr. Mining Engineer for Nordmin Engineering Ltd., is an independent Qualified Person as defined by NI 43-101 and has reviewed and approved the contents of this news release. Mr. Levesque is responsible for Underground Mine Design, Mine Planning and Scheduling.

Kurt Boyko, P.Eng., Consulting Specialist – Mechanical for Nordmin Engineering Ltd., is an independent Qualified Person as defined by NI 43-101 and has reviewed and approved the contents of this news release. Mr. Boyko is responsible for process plan design.

About Frontier Lithium Inc.

Frontier’s goal is to become a low-cost, fully integrated lithium and tantalum producer through development of the PAK lithium deposit in Ontario, Canada. Frontier maintains a tight share structure with management ownership exceeding 30% of the Company. The initial target market is the glass-ceramic industry which consumes roughly one-third of global lithium supply and is currently faced with monopolistic conditions, coupled with major lithium producers increasingly directing output toward supporting battery manufacture.

Ceramic/glass customers prefer to source technical-grade (low-iron) spodumene concentrate in excess of 7% lithium oxide (Li2O), if available, to avoid lower grade petalite concentrates, or paying much higher prices for battery grade lithium compounds.

The PAK lithium deposit remains open in all directions and Company Management is working towards developing a viable operation. The Company is currently completing a pre-feasibility study to assess the economic viability and technical feasibility of producing lithium concentrates. Frontier’s goal is to first establish a viable technical grade spodumene concentrate operation. A possible second stage of investment and longer term prospect is to further process a combination of some of PAK’s output to produce the higher purity lithium compounds required for lithium battery technologies used in the electrification of transportation and electric grid storage applications.

About the PAK Lithium Project

The PAK Lithium Project lies close to the boundary between two geological sub-provinces of the western Superior geologic province in northwestern Ontario and hosts a rare metals pegmatite deposit. The deposit is an LCT (lithium- cesium- tantalum) type pegmatite. These types of pegmatites have been the principal source of hard rock lithium, tantalum, rubidium and cesium ores mined in the world but there are comparatively few commercially-viable deposits.

Frontier is actively exploring its 100% owned project which contains the Pakeagama Lake pegmatite. The PAK deposit has a current Measured and Indicated Resource of 8.5 million tonnes of 1.78% Li2O and an Inferred Lithium Resource of 1.9 million tonnes of 2.01% Li2O which has a technical/ceramic grade spodumene with low inherent iron (below 0.1% Fe2O3).

The deposit now has a known 500m strike length with an estimated true width varying from 10m to 125m with a sub-vertical orientation. The resource remains open to depth and along strike to the northwest and southeast.

Company Contact Information
Trevor R. Walker
President & CEO
2736 Belisle Drive Val Caron, ON. P3N 1B3 CANADA
T. +001 705.897.7622
F. +001 705.897.7618

Media Requests
Joseph Mansourian
Manager, Investor Relations
2736 Belisle Drive Val Caron, ON. P3N 1B3 CANADA
T. +001 705.618.0070
F. +001 705.897.7618

Additional information regarding Frontier Lithium is available on SEDAR at www.sedar.com under the Company’s profile and on its website at www.frontierlithium.com, including various pictures of ongoing work at the project.

Neither the 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.

Forward-looking Statements

Neither the 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. This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company’s registered filings what are available at https://www.sedar.com

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