Frontier Lithium Inc. announce a definitive agreement with Mitsubishi Corporation to establish a joint venture partnership ("JV") for the PAK Lithium Project mine and planned lithium chemicals conversion facility (collectively the "Project"). This JV partnership delivers immediate and near-term financing to aggressively advance the first fully integrated lithium mining and processing operation in Ontario. Under the terms of the agreement, signed on March 2, 2024, Mitsubishi will acquire an initial 7.5% interest in the Project for CAD 25 million.

Upon completion of the definitive feasibility study ("DFS"), Mitsubishi will have the right to increase its interest in the JV to 25% through the purchase of additional shares at a price based on the net value of the Project as shown in the DFS. Additionally, Frontier and Mitsubishi will work closely together to pursue project financing to fund the development capital costs of the Project. Transaction Highlights: This strategic investment recognizes the size, high quality and strategic importance of the Frontier's PAK Lithium Project to the North American EV supply chain; Mitsubishi, a global conglomerate with a market cap of more than JPY13 trillion and having a portfolio of large-scale mineral resource assets with world-class cost competitiveness and quality, makes its first step into upstream lithium production to contribute to the growing needs of the battery materials supply chain; The JV is structured to cover the equity funding for the planned mine and mill while maintaining at least 75% of future off-take; This long-term partnership supports the initial development of mining at the PAK Lithium Project, and future expansions downstream with chemical processing.

The key terms of the Transaction are summarized below: Frontier will contribute all assets related to the Project in exchange for a 92.5% interest in the JV and will serve as the manager of the JV. Mitsubishi will acquire an initial 7.5% interest in the JV for CAD 25 million ("Tranche 1"). Post completion of the DFS, Mitsubishi will have the right to acquire an additional 17.5% interest in the JV to a total of 25% interest at a price based on the net value of the Project as shown in the DFS.("Tranche 2").

Mitsubishi will work closely together with Frontier in arranging project financing to ensure the Project is fully funded to production. Frontier will be the operator of the Project and will be responsible for the development and delivery and subsequent operation of the Project. A Project Development Committee will include representatives from both Frontier and Mitsubishi will be formed to review and recommend all significant project development decisions.

Funding of Tranche 2 is subject to certain terms and conditions precedent, including receipt of material permits and other customary approvals. Frontier anticipates these conditions to be satisfied in 2025. The agreement contains terms, conditions, representations, warranties, and indemnities customary for transactions of this nature.

Closing of Tranche 1 is subject to customary closing conditions. Frontier's financial adviser is Goldman Sachs & Co. LLC and its legal counsel in connection with the transaction is Osler, Hoskin & Harcourt.

Mitsubishi's legal counsel in connection with the transaction is Stikeman Elliott.