Acquisition of Option to Buy Lepidico's Interest in Karibib Lithium, Rubidium and Cesium Project in Namibia - Update

The most recent news release, dated October 28, 2025, provides an update on the company's option agreement to acquire Lepidico's interest in the Karibib Lithium Project in Namibia. International Lithium Corp. (ILC) confirms that the CAD$510,000 loan to Lepidico (Canada) Inc. has now been fully drawn down. This loan is part of the consideration for the option. The option allows ILC to purchase 100% of Lepidico (Mauritius) Ltd., which holds an 80% interest in the Karibib project, for CAD$975,000. The loan principal and accrued interest will be deducted from the purchase price if the option is exercised. The option expires on the later of November 30, 2025, or 30 days after the outcome of a key arbitration is known.

This news is a procedural update and confirms the company is moving forward with the terms of the option agreement announced on September 9, 2025. While the potential acquisition of the Karibib project is highly material and could be transformative for ILC, this specific announcement is routine. It shows progress but does not remove the primary risk factor: the deal's contingency on the outcome of an arbitration between Lepidico Namibia and Jiangxi Jinhui Lithium Co. Ltd.

The market had already reacted to the initial announcement of the option agreement in September/October, with the stock price rising from $0.02 to a high of $0.06. This update simply confirms a mechanical step in the process. The net cash outlay for ILC to exercise the option is reduced to approximately CAD$465,000 (plus contingent payments and minus accrued interest on the loan), which is a positive detail, but the fundamental risk of the arbitration remains. Therefore, the impact is positive as it shows commitment to the deal, but it is routine as it was an expected step.

Reviewing the historical news shows a company in transition. It has been divesting non-core assets (like Avalonia in Ireland) to generate cash and is now attempting a significant strategic pivot towards Southern Africa. This Karibib option is the centerpiece of that strategy. However, the company's history of multiple private placement extensions and its extremely low cash balance (CAD$95k as of March 31, 2025) highlight a persistent struggle to fund operations. The successful completion of the recently announced CAD$1 million financing and the receipt of the final CAD$1 million payment for Avalonia are critical for the company's solvency and its ability to execute this transaction.

International Lithium Corp. is a junior mineral exploration company focused on lithium and other rare metals. Historically, its flagship project was the Raleigh Lake Lithium and Rubidium project in Ontario, Canada. This project is 100% owned, royalty-free, and has a Preliminary Economic Assessment (PEA) completed in December 2023.

The company is currently attempting a major strategic pivot. If the option is exercised, the Karibib Lithium, Rubidium, and Cesium Project in Namibia will become its new flagship. ILC would acquire an 80% interest in this project, which is significantly more advanced than Raleigh Lake, having reached the Definitive Feasibility Study (DFS) stage under the JORC Code in 2020. ILC states this acquisition would allow it to "leapfrog" its development timeline by several years.