TSXV:NLC

Neo Lithium Announces NBDRC Approval for the Agreement with CATL and Provides Company Update

 Neo Lithium Corp. (" Neo Lithium " or the " Company ") (TSXV: NLC) (OTCQX: NTTHF) (FSE: NE2) is pleased to  announce that Contemporary Amperex Technology (SZSE: 300750), (together with its subsidiaries, "CATL") has informed the Company that it has received regulatory approval from the Ningbo Municipal Development and Reform Commission ("NBDRC") of the People's Republic of China ("PRC") in respect to the equity subscription agreement (the " Agreement "). For further information on the Agreement, please see the news release dated September 14, 2020 .

The remaining PRC regulatory approvals, including approval from the Ningbo Municipal Bureau of Commerce ("NBMOFCOM") and the State Administration of Foreign Exchange ("SAFE"), are pending.

Company Update

Argentina has eased certain restrictions due to the COVID-19 global pandemic and the number of daily infected cases has steadily decreased for three consecutive weeks. International and domestic travel have resumed, and the Company has been preparing for an active summer campaign at the 3Q Project. The Company has mobilized its engineering team to the lithium carbonate pilot plant in Fiambalá. The operations at the pilot plant will be re-starting in order to produce a larger sample of battery grade lithium carbonate with the updated process (see released from March 11 th , 2020). This updated process consumes less than 50% the fresh water when compared to the original process described in the prefeasibility study and uses less reagents. This updated process and its expected positive impact will be used in the final feasibility study.

The Company has also engaged Groundwater Insight to update the resource and reserve estimation with two new drill holes that were complete after the previous estimation was completed (see press release from May 8 th , 2019). These two new drill holes were completed in 2019 drilling campaign in the high grade zone and intercepted:

  • PB1-R-24: 1,128 mg/l Li 9,255 mg/L K, Mg/Li=1.60 and SO4/Li=0.18 over 137.6 m from 16 to 153.85m depth

  • PB1-R-25: 1,117 mg/L Lithium, 11,319 mg/L K, Mg/Li=1.59 and SO4/Li=0.1 over 178 m from 87 to 265m depth

Both drill holes extend beyond the previous estimations of resources and reserves. The new estimation will also be used in the final feasibility study.

The Company is in the final stages of engaging a major engineering company that will complete the final feasibility study, and will be announced soon after the final PRC approvals are obtained by CATL. Since much of the previous work has already been completed, it is estimated that the final feasibility will be completed between 6 to 9 months after the engineering company is engaged.

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. 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 located in the Catamarca Province, the largest lithium producing area in Argentina covering approximately 35,000 ha including a salar complex of approximately 16,000 ha.

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.

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.

SOURCE Neo Lithium Corp.

Cision View original content to download multimedia: https://www.newswire.ca/en/releases/archive/November2020/18/c7947.html

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