FRONTIER LITHIUM ANNOUNCES PROPOSED AMENDMENTS TO CONVERTIBLE LOAN

Frontier Lithium Inc. announced an amendment to a $3.35 million unsecured convertible loan held by a related-party lender, identified as an affiliate of Chairman Rick Walker. The amendment increases the principal to $3.63 million to include accrued and unpaid interest, while extending the maturity date by 18 months to February 25, 2027. The conversion price is revised downward to $0.455 per common share to better reflect current market conditions.

No new capital is raised through the transaction, which is exempt from formal MI 61-101 valuation and minority approval requirements as it falls below the 25% market capitalization threshold. The amendment is contingent on TSX Venture Exchange approval and is intended to take effect on August 25, 2026.

Frontier Lithium Inc. (FL) has implemented a standard liquidity management amendment, a common practice for pre-revenue exploration and development-stage companies. The move defers immediate repayment and adjusts the conversion price to align with the current trading range, thereby reducing the likelihood of immediate dilution upon conversion.

The transaction does not introduce new capital, change the company's operational trajectory, or alter the project's fundamental economics. It remains fully consistent with historical debt management practices and the company's cash burn profile.

The market impact is expected to be minimal, as the terms are incremental and the conversion price of $0.455 sits just below the current share price of $0.46. This structure offers limited immediate upside for lenders while preserving existing shareholder equity for the near term.

Frontier Lithium Inc. (FL) is developing the PAK Lithium Project in northwestern Ontario, structured as a joint venture with Mitsubishi Corporation, with Frontier holding a 92.5% interest and Mitsubishi 7.5%. The project encompasses an upstream mine and mill, along with a planned downstream lithium conversion facility in Thunder Bay, targeting an integrated North American battery supply chain.

A 2025 Mine and Mill Feasibility Study outlines a 31-year mine life, producing 200,000 tonnes per year of 6% Li2O spodumene concentrate. Key financial metrics from the DFS include an after-tax NPV of $932 million at an 8% discount rate, an after-tax IRR of 17.9%, and a competitive C1 cost of $602 per tonne of concentrate. The project has been selected as Ontario's first participant under the "One Project, One Process" (1P1P) framework to streamline provincial permitting.