Ultra Lithium Amends Private Placement To Add Flow-Through Component Due To Strong Investor Demand

June 2, 2022

Vancouver, BC – Ultra Lithium Inc. (TSX-V:ULT, OTCQB: ULTXF and Frankfurt: QFB) (“Ultra Lithium” or the “Company”) announces that due to strong investor demand it has amended it’s previously announced $7,003,000  non-brokered private placement (the “Offering”) (see news release dated April 20, 2022) to include flow-through units.

The Company will raise $7,003,000 from the sale of:

  • Units of the Company (the “Units”) at a price of C$0.235 per Unit ; and
  • Flow-through units of the Company (the “FT Units”) at a price of C$0.25 per FT Unit for gross proceeds of up to $2 million

Red Cloud Securities Inc. is acting as a finder in connection with a portion of the Offering.

Each Unit will be comprised of one common share of the Company (each, a “Unit Share”) and one half of one common share purchase warrant (each whole warrant, a “Warrant”). Each FT Unit will consist of one common share of the Company to be issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) (each, a “FT Share”) and one half of one Warrant. Each Warrant will entitle the holder thereof to purchase one non-flow-through common share of the Company (each, a “Warrant Share”) at a price of C$0.30 for a period of 12 months following the closing date of the Offering.

The net proceeds from the sale of Units will be used to fund the exploration of the Company’s properties in Argentina, Canada and Nevada and for general working capital purposes.

As part of the Offering, Yahua intends to make a strategic investment of C$5 million in Units.

The Offering is subject to receipt of all necessary regulatory approvals including the TSX Venture Exchange. The Unit Shares, Warrant Shares and any common shares of the Company that are issuable from any finder’s warrants will be subject to a hold period of four months and one day in accordance with applicable securities laws.  Finder’s fees will be payable in accordance with the policies of the TSX Venture Exchange.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.

About Yahua Lithium

Founded in 1952, Yahua group is one of the earliest chemical companies established after the founding of the People’s Republic of China, currently has two main businesses, lithium industry and civil explosive industry. Yahua is a public company listed in Shenzhen Stock Exchange with the market cap of 34 billion RMB (approximately C$7 billion). It has more than 70 wholly-owned and holding subsidiaries, which are distributed throughout China, Hong Kong, New Zealand, Australia and other countries.

Yahua Lithium is one of the major suppliers of lithium salt products in the world and one of the largest lithium hydroxide suppliers for TESLA. It is specialized in the R&D, manufacturing, and trading of lithium products, with the capacity of 43,000 tons of lithium hydroxide and lithium carbonate. The products are widely used in battery, medicine, metallurgy, petrochemical, glass, nuclear industry and other industries. It has established long-term sales and purchase relationship with Zhenhua Materials, BTR, Xiamen Xiawu, BYD, Beijing Easpring Material Technology Co., Ltd, Ronbay Technology Battery and other domestic cathode materials leading enterprises, as well as Japan and South Korea’s well-known cathode materials enterprises, and supply indirectly through industrial chain to BMW, Volkswagen, Weilai and other global new energy automobile enterprises.

Qualified Person
The technical information contained in this news release has been reviewed and approved by Afzaal Pirzada, P.Geo., a qualified person, as defined by NI 43-101 who works as Vice President Exploration of the Company.

About Ultra Resources Inc.

Ultra Lithium Inc. is an exploration and development company with a focus on the acquisition and development of lithium, gold, and copper assets. The Company holds a brine lithium property in Argentina, and hard rock spodumene type lithium properties at the Georgia Lake / Forgan Lake area in northwestern Ontario, Canada, and a brine lithium property in the Big Smoky Valley, Nevada, USA. The Company also holds other gold and base metals properties in Argentina.

On behalf of the Board of Directors
Kiki Smith, CFO

For further information, please contact:
Kiki Smith, CFO
T: +1-778-968-1176
E: kiki@ultralithium.com
W: www.ultralithium.com
Or view the Company’s filings at www.sedar.com

Cautionary Statement Regarding “Forward-Looking” Information
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “plans”, “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Actual results and developments are likely to differ and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.