Vancouver, British Columbia--(Newsfile Corp. - May 10, 2023) - Hertz Lithium Inc. (CSE: HZ) (FSE: QE2) (the "Company") is pleased to announce that it has exercised its option (the "Option") to obtain a worldwide, remuneration-bearing, license to utilize the patent rights related to the Penn State Research Foundation's (the "PSRF") Novel Process for Extraction of Lithium from Alpha-Spodumene (the "Technology"). The Company acquired the Option pursuant to an option agreement with the PSRF dated August 30, 2022, as amended on November 15, 2022 (the "Option Agreement"). Now that the Company has exercised the Option, the Company and the PSRF have entered negotiations related to a licence agreement. It is anticipated the license agreement will require that the Company pay the PSRF mutually agreed to royalty and milestone payments based on revenue, if any, generated by the Company from the Technology. Further, the Company and the PSRF are in discussions to further develop and scale-up the technology.

Kal Malhi, CEO and Director of the Company notes, "We are thrilled at the opportunity to work with Penn State University and further develop their innovative technology for an improved technology for extracting lithium from hard rock sources. As many new hard rock lithium deposits are being discovered to meet the demand for lithium, we aim to work with Penn State University's patent pending process to develop improved lithium extraction technologies for hard rock resources across the world."

The Technology is designed to be a novel process for the extraction of lithium from spodumene. Lithium is one of the critical elements with widespread applications in next-generation technologies, including energy storage, electric mobility and cordless devices.^[1] Due to its unique applications, lithium cannot be substituted in most applications; therefore, a steady increase of 8-11% in annual demand is anticipated.^[2] Meeting such a rising demand for lithium requires prospecting and processing all viable resources. Two primary sources of lithium are ores (e.g., spodumene mineral) and brine sources. Lithium rich clay sources are considered secondary sources. Additional sources can comprise disposed lithium batteries and other recycled products. Spodumene mineral is the major source of high-purity lithium, however, current technologies do not allow leaching of lithium from spodumene, and therefore most of the methods of lithium extraction from spodumene are focused on modifying the crystal structure of concentrated spodumene mineral using conventional heating (roasting) at 950-1100 degrees Celsius. However, such high-temperature roasting processes are very energy intensive and have been the bottleneck of the economic extraction of lithium from ores. Thus, there is a need for more energy-efficient and environmentally friendly methods for a high-yield extraction of lithium. The Technology is designed to satisfy these needs.

The Technology begins with taking spodumene concentrate, introducing sodium hydroxide, and then proceeding with conventional or microwave roasting which transforms the spodumene into a soluble phase. Next, the water leaching is used to recover water-soluble lithium and remove unwanted chemicals. A final acid leach and purification results in 90% recovery of lithium.

Update on Lucky Mica Project

The Company is also pleased to announce that it has commenced field explorations and project development plans at its Lucky Mica Property (the "Property") in Maricopa County in Arizona, USA. The 2023 work program is to consist of concurrent field exploration targeted with systemically mapping and geochemical sampling the extent of additional known pegmatite outcrops at the Property. The work is to be complimented by and acquisition of valuable remote sensing, hyperspectral and radiometric data as well as reinterpretation of the existing magnetics data to support structural interpretations as to the controls on pegmatite emplacement. Follow up work is to include trenching and channel sampling over defined targets to better understand any potential resource volume and grade of the known pegmatite bodies. Drilling is contemplated in the fall of 2023 and will be contingent upon success through the preceding stages of evaluation.

Patriot Lithium (ASX:PAT), an ASX listed lithium explorer in\s conducting exploration work on their Wickenburg Project which surrounds Hertz Lithium's Lucky Mica Property and is achieving positive exploration results. https://www.investi.com.au/api/announcements/pat/429e2a44-656.pdf.

For more information about the Property and the recommended work program, see the technical report prepared by Lee R. Beasley, CPG, MSc, titled "NI 43-101 Technical Report, Lucky Mica Project, Arizona," with an effective date of November 8, 2022, as filed on the Company's profile on www.sedar.com. https://hertzlithium.com/project/.

About Hertz Lithium Inc.

Hertz Lithium Inc. is a British Columbia based mineral exploration company primarily engaged in the acquisition and exploration of mineral properties. The Company currently has one material mineral property, the Lucky Mica Project, located in the Arizona Pegmatite Belt in the Maricopa County of Arizona, USA, which is in the exploration stage. The Company is also working with the PSRF in the development of a novel lithium extraction technology. https://hertzlithium.com.

For further information, please contact Mr. Kal Malhi or view the Company's filings at www.sedar.com.

On Behalf Of the Board of Directors

Kal Malhi
Chief Executive Officer and Director
Phone: 604-805-4602
Email: kal@bullruncapital.ca
https://hertzlithium.com

The Canadian Securities Exchange has not in any way passed upon the merits of the matters referenced herein and has neither approved nor disapproved the contents of this news release.

Cautionary Statement Regarding "Forward-Looking" Information

This news release includes certain statements that may be deemed "forward-looking statements." All statements in this new release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

[1] Meshram, P., Pandey, B. D., & Mankhand, T R. (2014) "Extraction of lithium from primary and secondary sources by pre-treatment, leaching and separation: A comprehensive review. Hydrometallurgy," 150, 192-208.; Martin, G., Rentsch, L., Hoeck, M, & Bertau, M (2017). "Lithium market research-global supply, future demand and price development." Energy Storage Materials, 6, 171-179.
[2] Baylis, R, 2013, January. "Evaluating and forecasting the lithium market from a value perspective." In Roskill presentation, 5 the Lithium Supply and Markets Conference, Las Vegas (pp. 29-31); ENTR, E (2014). "Report on Critical Raw Materials for the EU Ares" (2015), 1819503.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/165539