Drilling Confirms Significant Lithium Discovery at the Scotty Lithium Project, Nevada, USA

Loyal Lithium Limited (ASX: LLI) (Loyal or the Company) is thrilled to confirm the discovery of a significant lithium basin at the 100% owned Scotty Lithium Project in Nevada, USA. The average lithium grade of the drillholes measures 1,120ppm with a 700ppm cut-off, starting near the surface (9m deep) and spans a 3.6km² area with an average thickness of 108m. Drilling and geophysics data will be utilised for a 3D model and for the creation of an Exploration Target. The basin's 5.7km western edge offers the potential for cost-effective mining due to its alluvial fan rocks, providing excellent accessibility for surface mining. Nevada Lithium’s (CSE:NVLH) neighbouring Bonnie Claire Project has successfully produced battery- grade lithium carbonate from its sedimentary basin drill cores. The Scotty Lithium Project occurs within close proximity to all-weather roads and power infostructure, and is strategically located just 40km north of Beatty, 220km from Las Vegas, and 330km from Tesla’s Nevada Gigafactory.

Highlights:

• Drilling assays have confirmed the presence of a mineralised lithium basin at the 100% owned Scotty Lithium Project, with an average grade of 1,120ppm lithium at a 700ppm lithium cut-off-grade.
• The drilling assays returned spectacular results with a peak lithium value of 4,007ppm.
• Drilling results and geophysical data will now be used to create a 3D model and robust Exploration Target.
• The 5.7 km long western basin edge on Loyal Lithium’s claims (implied from magnetotellurics¹) consists of alluvial fan rocks that may accommodate mining/processing infrastructure and enable access to the basin for a traditional and relatively low-cost surface mining solution.
• Nevada Lithium’s (CSE:NVLH) neighbouring Bonnie Claire Project, recently produced a sample quantity of battery grade lithium carbonate⁶ from the contiguous sedimentary basin drill core of the Bonnie Claire Project where drilling has found lithium only 1 km to the east of Loyal Lithium’s claims^3,4,5.
• Scotty Lithium is located 40km north of the mining town of Beatty, 220km from Los Vegas and 330km from Tesla’s Nevada Gigafactory with existing all-weather roads and power infrastructure within close proximity.

Loyal Lithium’s Managing Director, Mr Adam Ritchie, commented:

"The Scotty Lithium Project continues to deliver with spectacular drilling assay results confirming strong lithium mineralisation, representing significant resource potential.”

“With the support of a 5.7km western edge, the sedimentary basin could potentially be accessed via traditional mining solutions from surface. The neighbouring Bonnie Claire Project has recently completed pilot plant test work to produce a high-grade lithium carbonate from the adjoining sedimentary clay”.

“Nevada lithium is alive, and the Scotty Lithium Project has shown its potential to play a significant role in the emerging North American lithium supply chain.”

Figure 1: Scotty Lithium Project –Mineralised Sedimentary Basin - MT traverses projected to the horizontal

Project and Exploration Program Overview

The Scotty Lithium Project is located 220 km northwest of Las Vegas, NV and is contained within the Sarcobatus Flat, a known lithium-bearing sediment basin. Nevada Lithium’s (CSE:NVLH) neighbouring Bonnie Claire Project is also contained within the same basin. Early this year, Nevada Lithium purchased Iconic Minerals Ltd. who in 2021 completed a PEA on the resource at the Bonnie Claire project.⁸