Grounded Lithium Provides Positive Operational Update on Recent Lithium Test Well and Associated Concentration Results

News provided by

Dec 13, 2022, 06:00 ET

CALGARY, AB, Dec. 13, 2022 /PRNewswire/ - (TSXV: GRD) (OTCQB: GRDAF) - Grounded Lithium Corp. ("GLC" or the "Company") is pleased to announce results from recent field activities. GLC drilled the second ever dedicated lithium well (the "4-15 Well") in the Province of Saskatchewan during the summer of this year. Completion work, along with extensive analysis and interpretation of the completion results ensued over the last several months. This was combined with other associated field work with respect to lithium concentration testing on both the 4-15 Well and third-party wells in the surrounding area. The Company has been diligent in advancing operational results to determine the extent and economic potential of our Kindersley Lithium Project ("KLP"). The Company has also commissioned an updated technical report pursuant to National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") (the "Technical Report"). The Company materially added to the KLP land base as well as securing additional key data since the publishing of the inaugural KLP NI43-101 Technical Report and will communicate results of our new Technical Report once finalized.

4-15 Well Deliverability Results

GLC drilled the 4-15 Well in seven days from spud to rig release demonstrating a critical component of an economic project. Shallow depth directly correlates into reduced drilling days which in turn directly correlates to minimized capital costs and enhanced project economics. Seven inch casing was cemented in place into the top of the Duperow formation at 966 meters and then the rig further drilled out to a total depth of 1,145 meters. The well provided 179 meters of open hole with 107 meters of net pay greater than 3% porosity through that interval. The 4-15 Well completion provides critical fluid delivery information and lithium concentrations to assess economic potential of a lithium from brine operation. During production testing, we delivered brines free of hydrocarbons and sour gas impurities, either of which could result in an increase in the capital costs associated with above-ground infrastructure. At various points during the production testing staff collected a number of brine samples which were tested through controlled third-party laboratories and demonstrated concentrations between 74 and 81 mg/l of elemental lithium.

The Company utilized an electric submersible pump ("ESP") to assess well deliverability. The ESP for this test ran at its maximum flow capability with clear and continuous strong pressure support from the reservoir. The comprehensive flow and pressure data acquired provided key information for detailed three-dimensional reservoir flow modeling based on rock properties, such as thickness, porosity and permeability. Data for this comprehensive analytical process came not only from the 4-15 Well itself but also numerous wells and their associated properties from the surrounding area. The observed well performance and pressure measurements were linked to the rock properties within the model allowing for accurate depiction of future well performance under different drilling, completion and equipping strategies.

Stemming from this detailed assessment, we anticipate the optimal well design for production operations features a short up to 700 meter horizontal or directional section, at minimal incremental costs, upon entering the targeted Duperow zone, to deliver well productivity rates of up to 29,000 bbls/d. Dolomotized reservoirs with this quality of porosity and permeability do not require costly fracture stimulations to enhance productivity. Despite a robust maximum flow parameter, based on best practices in reservoir exploitation we target a more conservative producing well flow rate of 18,000 bbls/d of brine. At these brine production rates, taking into consideration modest price forecasts for battery grade lithium feedstock, lithium from brine projects are expected to achieve a compelling economic proposition. These well parameters, together with a detailed assessment of capital and operating costs, will be included in our preliminary economic assessment ("PEA") on the KLP anticipated to be completed in Q2 2023.

Area Concentration Testing

Additional brine samples from an existing well in the surrounding area were taken in the late summer, following the same stringent custody of control procedures implemented during the 4-15 Well testing. Officials from two separate and industry respected laboratory testing organizations maintained constant control over the sampling exercise and delivered the samples to facilities in Calgary, Alberta for further assessment. Multiple tests were conducted by the two independent organizations to confirm results. Lithium concentrations averaged 72 mg/l. This second well is operated by an oil and gas producer who granted rights under contract to take necessary samples for testing. This well is a candidate for future production should capital be deployed to maximize its operational deliverability of brine, and a suitable commercial arrangement can be reached with the third-party oil and gas company. Lastly, we look to test additional third-party wells within the area as the opportunity arises.

"The information collected from our inaugural well and other concentration testing clearly confirms our expectations from the Kindersley area and supports the essence of our investment thesis," commented Gregg Smith, President & CEO. "We can partner strong lithium concentrations with high brine deliverability, resulting in a very economic project. These key parameters will factor significantly into our PEA for the KLP which is underway. We have remained true to our guiding geologic principles of grade, depth, porosity and thickness and are very comforted that our initial drilling results on the play are consistent with our modeling, providing the corporate conviction to advance the project to future milestones."

About Grounded Lithium Corp.

GLC is a publicly traded lithium brine exploration and development company that controls 2.9 million tonnes of lithium carbonate equivalent of inferred resource over our focused land holdings in Southwest Saskatchewan. GLC's multi-faceted business model involves the consolidation, delineation, exploitation and ultimately development of our opportunity base to fulfill our vision to build a best-in-class, environmentally responsible, Canadian lithium producer supporting the global energy transition shift. U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on https://www.otcmarkets.com/.

Qualified Persons

Scientific and technical information contained in this press release has been prepared under the supervision of Doug Ashton, P.Eng, Idi Ishaya, P.Eng, Patou Zeleke, P.Eng and Thomas Jerome, P. Geo, each of whom are a qualified person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Forward-Looking Statements

This press release may contain forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws. The opinions, forecasts, projections and statements about future events of results, are forward looking information, forward-looking statements or financial outlooks (collectively, "forward-looking statements") under the meaning of applicable Canadian securities laws. These statements are made as of the date of this press release and the fact that this press release remains available does not constitute a representation by GLC that the Company believes these forward-looking statements continue to be true as of any subsequent date. Although GLC believes that the assumptions underlying, and expectations reflected in, these forward-looking statements are reasonable, it can give no assurance that these assumptions and expectations will prove to be correct. Such statements include, but are not limited to, statements regarding communicating the results of the Technical Report, the drilling days, capital costs and project economics correlated with well depth, the optimal well design for project operations and the expected costs of same, well productivity rates, the economic proposition of lithium from brine projects, the PEA, the anticipated timing of completion of the PEA, deploying capital to maximize operational deliverability of brine, reaching a commercial arrangement with the third party oil and gas company to allow for future production of the existing well, testing additional third party wells within the KLP, achieving project milestones, and GLC's vision of becoming a best-in-class, environmentally responsible, Canadian lithium producer supporting the global energy transition

Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: GLC's expectation that our operations will be in Western Canada, unexpected problems can arise due to technical difficulties and operational difficulties which impact the production, transport or sale of our products; geographic and weather conditions can impact the production; the risk that current global economic and credit conditions may impact commodity prices and consumption more than GLC currently predicts; the failure to obtain financing on reasonable terms; the risk that unexpected delays and difficulties in developing currently owned properties may occur; the failure of drilling to result in commercial projects; unexpected delays due to the limited availability of drilling equipment and personnel; the failure to reach suitable commercial arrangements with third parties; the risk that reservoir flow modelling may not prove to accurately depict future well performance; and the other risk factors detailed from time to time in GLC's periodic reports. GLC's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

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 news release.

SOURCE Grounded Lithium Corp