Arizona Lithium Completes Drilling at Prairie Pad #3 While Preparing for Lithium Production Expected in 2025

Jane Morgan Management

Perth, Australia – 7 November 2024 | Arizona Lithium Limited (ASX:AZL, AZLO, OTC:AZLAF) (“Arizona Lithium” or “the Company”) is pleased to announce the completion of exploration drilling at Pad #3 of the Prairie Lithium Project in Saskatchewan, Canada. This milestone positions the Company to advance towards production, with each well pad projected to produce 2,000 tonnes per annum (tpa) of Lithium Carbonate Equivalent (LCE).

Highlights:

• Successful Drilling at Pad #3: The final well on Pad #3 was drilled, targeting the Souris River and Dawson Bay formations. This well can be converted into a production or disposal well to support future operations at Pad #3.

• Progress Towards Production: The Prairie Lithium Project remains on track to begin lithium production by the end of 2025, with each pad in the PFS valued at approximately US$150 million Net Present Value (NPV).

• Prairie Lithium Project Focus: Following a court ruling that issued a preliminary injunction on exploration drilling approvals for the Big Sandy Project in Arizona, the Company has reconfirmed its primary focus on advancing Prairie towards commercial production.

Paul Lloyd, Managing Director of Arizona Lithium, commented: “This well drilled on Pad #3 represents the finality of our successful drilling program for 2024. Flow testing will continue across our wells on Pad #2 and Pad #3 as we finish up our remaining exploration field work for 2024. Given the speed of development at the Prairie Project we are confident in hitting our goal of production of Lithium products in 2025, which is now the Company’s primary focus. Following the decision made by the District Court at Big Sandy, the Company is considering the next steps in the process of obtaining drilling approvals after consulting with its US and Australian lawyers. 

“We are very proud of the efficiency and effectiveness of the Prairie drilling program this year. We have continued to develop the Prairie project during a difficult period in the lithium cycle. By spending $18.4 million dollars during the year, we have separated AZL from many other Companies in the Lithium industry. This has not gone unnoticed in the industry and has in fact drawn attention to a project with a world class resource, significant pilot and process testing and a pathway to production by the end of 2025. 

“Now that the subsurface work is complete, we look forward to adding shareholder value during the construction phase in 2025. 

We understand that all the value placed by the market on AZL, relates to the Prairie brine project and we will remain focused on production by the end of 2025. Big Sandy remains a core project and these small setbacks only strengthen our resolve to ultimately produce from Big Sandy. We look forward to working with the pro-business Trump administration when they take control of the White House in January 2026.”

Next Steps:

• Flow Testing and Analysis: Ongoing testing of Pad #2 and Pad #3 wells to optimise production capabilities.

• Construction Phase: Preparation for 2025 construction activities to support lithium production targets.

• Legal Evaluation: Continued assessment of legal proceedings related to the Big Sandy Project, ensuring alignment with U.S. regulatory standards.

Paul Lloyd
Managing Director
paul@arizonalithium.com

Jane Morgan
Investor and Media Relations
jm@janemorganmanagement.com.au

About Arizona Lithium Limited:

Arizona Lithium Limited is an Australia-based mineral exploration company. The Company is focused on the Big Sandy, Prairie Lithium and Lordsburg Projects in North America exploring for lithium. The Big Sandy lithium project is located on interstate I93 between Phoenix and Las Vegas. The project comprises 331 Bureau of Land Management (BLM) claims in Arizona, covering approximately 25 square kilometres (km2). The Lordsburg Lithium Project comprises about 291 BLM claims covering approximately 25 square kilometres and is located in the southwest corner of the state of New Mexico and is accessed along the I10 Interstate between Tucson and La Cruces close to the New Mexico, Arizona border. The Lordsburg Lithium Project lies within the playa lake system at the northernmost end of the Animas Valley, New Mexico. The Prairie Lithium project is located in southeast Saskatchewan and comprises over 390,000 acres of subsurface permits.

Jane Morgan
Jane Morgan Management
Investor & Media Relations
jm@janemorganmanagement.com.au