Neo Lithium Announces Filing of Preliminary Short-Form Prospectus for Previously Completed Special Warrant Financing

TORONTO, March 4, 2021 /CNW/ - Neo Lithium Corp. ("Neo Lithium" or the "Company") NLC NTTHF NE is pleased to announce that it has filed and obtained a receipt for a preliminary short form prospectus (the "Preliminary Prospectus") in the provinces of Ontario, Alberta, British Columbia and Nova Scotia (the "Qualifying Jurisdictions") in connection with its private placement of 9,900,000 special warrants (the "Special Warrants") for gross proceeds of $30,195,000 (the "Offering") completed on February 10, 2021. The Preliminary Prospectus relates to the qualification for distribution of the 9,900,000 common shares in the capital of the Company (each, an "Underlying Share") underlying the Special Warrants. All unexercised Special Warrants will be deemed to be exercised for Underlying Shares for no additional consideration and without further action on the part of the holders on the earlier of (i) June 11, 2021 and (ii) the second business day after a receipt or deemed receipt is issued for a (final) short form prospectus by the securities regulatory authorities in each of the Qualifying Jurisdictions qualifying the Underlying Shares for distribution. No additional Special Warrants are being offered for sale in connection with the Preliminary Prospectus and no additional funds are to be received by the Company from the distribution of the Underlying Shares. The Offering was led by Stifel GMP, as lead underwriter and sole bookrunner, on its own behalf and on behalf of a syndicate of underwriters including Cormark Securities Inc., Canaccord Genuity Corp., Paradigm Capital Inc. and Eight Capital (together with Stifel GMP, the "Underwriters").

The Company plans to use the net proceeds from the Offering to fund development work at the 3Q Lithium Project located in Catamarca, Argentina and for working capital and general corporate purposes. More specifically, the Company intends to use the majority of the net proceeds to advance the construction of the concentration pond system at a commercial scale with a view to accelerating future production from the 3Q Project, as further described in the Preliminary Prospectus. As at the date of this press release the Company has a significant cash position of approximately C$59 million. The Company currently has 128,068,784 shares outstanding and including the future exercise of the Special Warrant deal the Company will have 137,968,784 shares outstanding.

The completion of the Offering was announced on February 10, 2021. A copy of the Preliminary Prospectus and of the press release announcing the completion of the Offering are each available under the Company's SEDAR profile at www.sedar.com.

In addition, and as previously announced by the Company, a subsidiary of Contemporary Amperex Technology Co., Limited ("CATL"), has provided notice of its intention to exercise its right to maintain its pro rata equity interest in the Company by subscribing for additional common shares of the Company pursuant to a contractual participation right under an investor rights agreement between CATL and the Company on substantially equivalent terms to the Offering.  The private placement with CATL is scheduled to close in March 2021 hereof and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including customary approval from the government of the People's Republic of China, the approval of the TSXV and any required securities regulatory authorities, and the execution of a subscription agreement.

About Neo Lithium Corp.

Neo Lithium Corp. has quickly become a prominent new name in lithium brine development by virtue of its high quality 3Q Project and experienced team. Neo Lithium is rapidly advancing its 100% owned 3Q Project - a unique high-grade lithium brine lake and salar complex in Latin America's "Lithium Triangle".

The 3Q Project is located in Catamarca Province, the largest lithium producing area in Argentina covering approximately 35,000 ha including a salar complex of approximately 16,000 ha.

Additional information regarding Neo Lithium Corp. is available on SEDAR at www.sedar.com under the Company's profile and at its website at www.neolithium.ca, including various pictures of ongoing work at the project.

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

Cautionary Statements Regarding Forward-Looking Statements

Forward-Looking Statements -- Certain information set forth in this news release may contain forward-looking statements. Such statements include but are not limited to, statements as to the intended use of proceeds of the Offering, receipt of regulatory approvals, including the approval of the TSXV, the intention of CATL to exercise its right to maintain its pro rata percentage holding of the Company, the deemed exercise of the Special Warrants, and the Company's intentions with respect to filing a (final) short form prospectus and obtaining a final receipt therefor (which also assumes that such receipt will be obtained prior to April 12, 2021). Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "is expected", "scheduled", "estimates" "intends", "anticipates", "believes", or variations of such words and phrases, or statements that certain actions, events or results "can", "may", "could", "would", "should", "might" or "will", occur or be achieved, or the negative connotations thereof. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, which could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. These risks include, without limitation, risks related to obtaining the approval of TSXV for the Offering, risks related to obtained a final receipt from the applicable securities regulatory authorities, failure to obtain adequate financing on a timely basis and on acceptable terms, political and regulatory risks associated with mining and exploration activities, including environmental regulation, risks and uncertainties relating to the interpretation of drill and sample results, risks related to the uncertainty of cost and time estimation and the potential for unexpected delays, costs and expenses, risks related to metal price fluctuations, the market for lithium products, and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended and undue reliance should not be placed on forward-looking statements.

SOURCE Neo Lithium Corp.