Lithium and Magnesium Identified in Botswana

Highlights:

• Lithium identified in every sample from the regional surface samples in Makgadikgadi Pans.
• Significant grades of magnesium also found in some samples.

Arkle is pleased to announce the results of the analyses of the preliminary regional sampling from part of its 937 sq. km licenses in the Makgadikgadi Salt Pans in Botswana. Lithium was identified in all 20 samples. Despite the lower grades of lithium in this first pass sampling, it is normal for lithium to fluctuate in these environments, so the Directors believe locating higher lithium levels in other parts of the Pan in Arkle's expansive license is highly plausible. The key point is that Lithium has been detected in all samples and that higher levels may be found in other areas.

There are also significant grades of magnesium that may be economically extracted as an additional product under a new process of Direct Lithium Extraction (DLE). The DLE process is potentially more efficient, environmentally friendly and cost effective than traditional extraction methods. The high levels of magnesium detected in all of the samples, including 8 samples that were over 1% magnesium content, creates a compelling potential magnesium deposit which will also guide further exploration work on the Pan.

Next steps will be preparation for shallow drilling to access brines down to a depth of 30m to obtain a bulk sample analyses for Direct lithium Extraction. The results are shown in Table 1:

Table 1

Li - Lithium, Mg - Magnesium

The current results are from the second stage of a three-part exploration of Arkle's ground.

Stage 1 - already reported, revealed brines at an average depth of 1 metre over the block.

Stage 2 - the results reported today are from small samples to see if the brines contained lithium.

Stage 3 - is an extensive drilling campaign to evaluate the grade of contained lithium and, as a consequence of today's magnesium results an additional focus on magnesium.

It should be noted that recent advances in the extraction of metals from brines, Direct Lithium Extraction (DLE) has the potential to make production more efficient and also allows magnesium extraction using membranes which may be significantly cheaper than historic production methods. This offers an additional stream of future revenue at low additional costs.

Demand for magnesium is strong and expected to grow globally by 7% each year. Magnesium alloys are significantly lighter then steel or aluminium so ideal for batteries, EV's and aircraft use. It is designated a 'Critical Material' by the United States Administration. China currently dominates global production.

John Teeling, Chairman, commented: "I am very pleased to report these results. We expected to find Lithium traces in the brines, and we have in all samples. The grades in these samples from one part of the pans near the edge are low, but lithium grades can vary significantly over an area and remember we have access to 937 sq. kms of ground.

"What is seriously interesting is the widespread presence of good grades of magnesium above 1%. Modern extraction methods make Magnesium an asset. Eight of 20 samples have grades above 1%. Also within the licence on the edge of the pan is mapped ultrabasic rock. Ultrabasic rocks are known to contain a very high magnesium content which may be the source of the high levels of magnesium noted in the brines.

"It is important to note that explorations for brines is cheaper than hard rock. Holes are typically less than 30 metres deep. The ground is flat, and access is easier.

"We now need to plan and execute a defined grid drilling programme."