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Ultra Lithium Upsizes Second Tranche of Offering to $5M

Ultra Lithium Inc. has upsized the second tranche of its previously announced non-brokered private placement for aggregate gross proceeds to the company of up to $8.6-million.

The second tranche will raise up to $5-million from the sale of 27,777,778 units at a price of 18 cents per unit (increased from the previously announced 15 cents per unit). As part of the second tranche, Zangge Mining Co. Ltd. (formerly Zangge Holdings Co. Ltd.) intends to increase its strategic investment to $4.14-million. Zangge will participate in the private placement through its wholly owned subsidiary Zangge Mining Investment (Chengdu) Co. Ltd.

Weiguo Lang, chief executive officer of Ultra Lithium, commented: "Zangge's agreement to increase their strategic investment reflects Zangge's strong commitment to Ultra Lithium. We look forward to a very productive relationship following Zangge's recent signing of an exclusive co-operation agreement for exploration and development of Ultra Lithium's 100-per-cent-owned Laguna Verde brine lithium project in Catamarca province, Argentina (see news release dated Feb. 9, 2022)."

Each unit will be composed of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share of the company at a price of 25 cents 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 finance the exploration of the company's properties in Argentina, Ontario and Nevada, and for general working capital purposes.

The closing of the offering is subject to receipt of all necessary regulatory approvals, including from the TSX Venture Exchange. The unit shares, warrant shares and any common shares of the company that are issuable from any finders' warrants will be subject to a hold period of four months and one day in accordance with applicable securities laws. Finders' fees will be payable in accordance with the policies of the TSX Venture Exchange.

About Zangge Mining Co. Ltd.

Zangge, a lithium and potassium producer listed on the Shenzhen Stock Exchange with a market capitalization of about $8-billion (U.S.), is headquartered in Golmud of Qinghai province of China. Currently, Zangge has the mining rights of 724 square kilometres in Qarhan brine lake. It has been developing and utilizing the brine lake for 20 years, and has become the biggest private potash producer in China with an annual production output of two million tons of potassium chloride.

Zangge entered the lithium industry in 2017, using its proprietary, advanced and proven adsorption technology to extract lithium from brine. In 2020, Zangge completed construction of its lithium processing facility in Golmud, Qinghai, China, and is producing 10,000 tons of lithium carbonate annually. The current Zangge's production line has been in continuous operations for three years without the need to change and/or add reagents at all and with almost-zero-pollutant leakage to the atmosphere and ground. The company is one of only three companies in the world with industrialized adsorption lithium extraction technology.

Since as early as 2007, the core technical team of Zangge has been engaged in technology research and development and industrialized construction for brine lithium extraction, and has positioned itself as a adsorption lithium extraction technology leader in the global lithium industry.

About Ultra Lithium Inc.

Ultra Lithium 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 hardrock 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, United States. The company also holds other gold and base metal properties in Argentina.

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