Imagine Lithium Outlines Exploration Program for Jackpot Project and Closing of Convertible Note Financing

Imagine Lithium Inc. announced the closing of a $3,000,000 private placement of 7.0% secured convertible notes. The financing was fully subscribed by a single arm's-length investor from the battery industry, who received a right of first refusal for any future lithium offtake arrangements. The funds are designated for general corporate purposes, specifically to advance the Ruth Pegmatite project and support expansion drilling at Casino Royale.

The transaction is conditionally approved by the TSX Venture Exchange and remains subject to final approval. Finder's fees of $180,000 were paid via the issuance of 3,600,000 common shares, which are subject to a 12-month and one-day resale restriction.

An exploration update outlines six key target zones based on soil anomalies and spodumene-bearing pegmatite samples. Fall 2026 plans include expansion drilling at Casino Royale and exploration drilling at Ruth Pegmatite. The Winter 2027 program targets high-priority blind zones: Jackpot South, Blay Lake, and Cosgrave North. Specific activities include testing the Pegmatite 500 Extension, bedrock stripping in the Newkirk SW Zone, and metallurgical optimization.

Qualified Person: Jason Arnold, P.Geo., President of DCX Geological Consulting (Note: Not independent per NI 43-101 due to directorship).

Imagine Lithium Inc. (ILI) has closed a financing previously announced on July 29, 2026, with terms consistent with prior disclosures. The company also confirmed its planned 2026-2027 drilling program, which was outlined in releases from October 2025 and January 2026.

The transaction includes the introduction of a battery industry investor holding an offtake right of first refusal. The conversion price is set at $0.05 in Year 1 and $0.10 in Year 2, which is significantly above the current trading price of $0.02. These terms are deep out-of-the-money, minimizing near-term dilution while guaranteeing future equity issuance if the stock appreciates.

Imagine Lithium Inc. is a junior mineral exploration company with no producing properties or revenue. Its flagship asset is the Jackpot Lithium Project, located in the Georgia Lake Pegmatite Field, approximately 140 km northeast of Thunder Bay, Ontario. The company holds a 27,597-hectare land package, which is 100% owned and was expanded by 45% in December 2025.

An NI 43-101 Mineral Resource report dated September 2024 outlined a pit-constrained cut-off grade of 0.30% Li2O. The resource includes 3.1 million tonnes of indicated material grading 0.85% Li2O, containing 26,200 tonnes of Li2O, and 5.3 million tonnes of inferred material grading 0.91% Li2O, containing 49,500 tonnes of Li2O.

Metallurgical testwork conducted by SGS demonstrated an 81.5% Li2O recovery rate, yielding a 6.0% Li2O spodumene concentrate with 0.76% Fe2O3. Further optimization is expected through dense-media separation and flotation. The project remains in the exploration and resource expansion phase, with no production timeline currently disclosed.