Li-FT Announces Closing of $7 Million Brokered Flow-Through Financing

Vancouver, British Columbia--(Newsfile Corp. - November 3, 2022) - Li-FT Power Ltd. (CSE: LIFT) (FSE: WS0) ("Li-FT" or the "Company") is pleased to announce that it has closed its previously announced brokered private placement of 428,400 common shares of the Company issued on a "flow-through" basis (each a "FT Share") at a price of $16.34 per FT Share for aggregate gross proceeds of $7,000,056 (the "Offering"). The FT Shares will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation Act (Québec)).

The Offering was led by Canaccord Genuity Corp. on behalf of a syndicate of agents (collectively, the "Agents").

The gross proceeds of the Offering will be used by the Company to incur eligible "Canadian exploration expenses" (as defined in the Income Tax Act (Canada)) that qualify as "flow-through critical mineral mining expenditures" (as proposed to be defined in the Income Tax Act (Canada)) (the "Qualifying Expenditures") related to the projects of the Company in Québec, primarily being the Company's Rupert project. The Company will renounce the Qualifying Expenditures to the subscribers of the FT Shares with an effective date no later than December 31, 2022, and in the aggregate amount of not less than the total amount of the gross proceeds raised from the issuance of the FT Shares.

The FT Shares issued in the Offering are subject to resale restrictions under applicable Canadian securities legislation until March 4, 2023. The FT Shares have not been and will not be registered under the United States Securities Act of 1933, as amended ("U.S. Securities Act") or any state securities law and may not be offered or sold in the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The Company also announces it has entered into a loan agreement with an arm's length third party for a $300,000 unsecured principal amount loan to fund its short-term non-flow through expenditures. The loan will bear interest at a rate of 3% per annum and has a maturity date of April 30, 2023.

About Li-FT

Li-FT is a mineral exploration company engaged in the acquisition, exploration, and development of mineral properties, specifically lithium pegmatite projects located in Canada. The Company currently holds a 100% interest on the Rupert Project, which is a 155,000 hectare greenfield lithium pegmatite exploration initiative, and has recently signed an option agreement for a 15,323 hectare project with 70% interest on the Pontax Property. On September 21, 2022, the Company additionally entered into an option agreement for a 18,535 hectare property with a 100% interest on the Lac des Montages Project. All properties are located in the James Bay region in Quebec, Canada.

For further information, please contact:

Julie Hajduk
Chief Executive Officer
Tel: (604) 609-6185
Email: [email protected]
Website: www.li-ft.com

Cautionary Statement Regarding Forward-Looking Information

Certain statements included in this press release constitute forward-looking information or statements (collectively, "forward-looking statements"), including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "should" and similar expressions to the extent they relate to the Company or its management. These statements relate to, among other things, the use of proceeds of the Offering, the tax treatment of the FT Shares as well as the renunciation (and timing thereof) of the Qualifying Expenditures. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. This press release contains forward looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors.

Forward-looking statements are not a guarantee of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Factors that could cause the actual results to differ materially from those in forward-looking statements include the continued availability of capital and financing, and general economic, market or business conditions, including the effects of COVID-19. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, there can be no assurance that the statements will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. Readers should not place undue reliance on the Company's forward-looking statements.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America.

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

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