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Reaffirmation of partnership and strategy alignment after Joint Venture meetings in Madrid, resulting in the acceleration of technical and market related work on San Jose

Feasibility Study (focussed on the initial production of lithium carbonate) progressing well with Infinity to earn in to a 75% project interest, with further study updates expected shortly

The importance of the ability to produce Lithium Hydroxide was reinforced at the 10th Lithium Supply and Markets Conference (recently held in the USA) as attended by Infinity and major industry participants

Lithium hydroxide option study completed and Infinity to also progress towards lithium hydroxide Scoping Study in direct response to potential strategic investment and offtake requirements from industry players

Multiple players are investing to transform Europe into a significant producer of lithium-ion batteries, and Infinity remains well positioned and has the flexibility to be able to meet the growing requirements to take advantage of the currently open window for strategic investment

The availability of battery grade lithium chemical products remains in tight supply with many raw material suppliers investigating the viability of downstream processing facilities. Infinity remains well placed as a fully integrated lithium project with key infrastructure adjacent to site

Lithium prices are expected to remain robust and Infinity may review upgrades to its highly conservative long term pricing assumptions utilised (Scoping Study financial modelling assumptions at US$10k/t)

Infinity Lithium Corporation Limited (?Infinity? or ?the Company?) is pleased to provide an update and an outline of developments expected at San Jose.?

San Jose is 100% owned by Tecnología Extremeña Del Litio (TEL), which is a special purpose vehicle that was formed as part of the Joint Venture (JV) between Infinity and major Spanish construction and engineering group, Sacyr SA.

TEL has a Mining Licence Application (MLA) lodged with the Regional Government to create a vertically integrated mining and processing operation at San Jose which is targeting the production of battery-grade lithium products and will provide significant employment and economic benefits for the region.

Lithium Carbonate Feasibility Study Update

The JV developing San Jose remains committed to the current environmental permit process (AAU) and MLA as per the submission in Q4 2017, and the ongoing Feasibility Study (FS).? Continuing advancements in technical work towards the completion of the FS enables Infinity to earn a 75% interest in the project and for Sacyr/ Valoriza Mineria (VM) to then be a contributing partner for ongoing expenditure. Sacyr/ VM have the option to sell their remaining 25% stake to Infinity for an already agreed value or proceed in the JV with preferred contracting rights for construction.

Drilling and technical work (field) has now been completed. ?As outlined previously, a range of smaller pit designs have been created based on improvements in geotechnical understanding and therefore steeper wall angles for final pit designs. These are being assessed and integrated into a financial model. Infinity is confident that it can imminently report a pit which is substantially smaller in total surface area of disturbance yet deliver materially comparable economic outcomes whilst not requiring re-lodgement or amendment of the Mining licence Application (MLA) currently under review.

The Lithium Market and Lithium Hydroxide

The challenges in the production of battery grade lithium chemicals were highlighted recently as market analysis focused on historical capacity projections, nameplate capacity and actual effective capacity.? Production facilities that were shut down in the 1990s have been recommissioned with additional capacity achieved through bolt-on expansions, leading to production issues and low recoverability against nameplate capacity.

San Jose is a fully integrated lithium project that benefits from the first generation of specialist lithium battery chemicals producer experience.? The project will have a purpose designed processing plant utilising one source of feedstock, ensuring cross contamination issues and control of throughput risks are mitigated from the project?s inception.? Infinity further benefits from a plant designed and constructed specifically for the production of battery grade lithium chemical products.? Wave International completed the lithium hydroxide (LiOH) option study for Infinity and have industry leading experience in the detailed engineering and design of the next generation of LiOH plants.

The importance of the ability to produce LiOH was reinforced at the 10th Lithium Supply and Markets Conference (recently held in the USA) as attended by Infinity and major industry participants including cathode producers, battery manufacturers and electric vehicle (EV) manufacturers.? Several players are investing to transform Europe into a significant producer of lithium-ion batteries, and Infinity remains well positioned and has the flexibility to be able to meet the growing requirements to take advantage of the currently open window for strategic investment.

Managing Director and CEO, Adrian Byass commented \”We can see the market aligning now with opportunities for companies to invest in projects globally. It is increasingly important to have flexibility in meeting market demands and to recognise the window for investment is open currently\”.

The availability of battery grade lithium chemical products remains in tight supply with many raw material suppliers investigating the viability of downstream processing facilities.? Infinity remains well placed as a fully integrated lithium project with key infrastructure located adjacent to the project area.

Lithium Hydroxide Option Study & Scoping Study

Infinity recently announced (ASX announcement 8th June 2016) the outcome of a LiOH study to complement the existing lithium carbonate (Li2CO3) study at San Jose.? This study demonstrated that San Jose can produce LiOH if desired in response to evolving lithium-ion battery technologies.? Infinity expects to be in a position to progress the LiOH option study towards a LiOH scoping study to confirm the economic outcomes of the deviation in the process flow sheet in response to an evolving battery technology market.?

The LiOH opportunity has been progressed in direct response to potential strategic investment and offtake requirements, and reaffirmation through meetings at the 10th Lithium Supply & Markets conference that customers in cathode production and battery manufacturing are increasingly requiring LiOH for lithium-ion batteries with greater energy densities and therefore greater ranges for electric vehicles.

Regional Investment

Infinity recognises significant opportunities in the Extremadura region.? The region?s status as a \”priority objective\” region in the European Union (under the current 2014-2020 Financial Framework) allows preferential access to structural funds in terms of employment and business competitiveness. The world class lithium resource, its proximity to key infrastructure (allowing the viable implementation of downstream processing), and regional government?s desire to attract investment to the region provide an attractive backdrop for cathode production, battery manufacturing or other industry that can benefit in a synergistic way from a strategic partnership with Infinity and the utilisation of high quality outputs from the San Jose project.

Summary

Drilling is finished at San Jose, the FS work is underway and progressing towards completion (and satisfaction of earn in provisions), noting that San Jose is being developed in a JV between Infinity and Sacyr/Valoriza Mineria. The project has a Mining Licence Application (MLA) lodged and being reviewed by the relevant regional authorities.

The FS is to produce battery grade lithium carbonate (Li2CO3) on site. Test work has also demonstrated there is flexibility to adapt to produce lithium hydroxide (LiOH) and respond to changing market conditions.

Technical work indicates that there is the potential to create a significantly smaller surface footprint impact and deliver materially comparable economic benefits and Infinity will update the market as to the next round of progress in the coming weeks.

For further inquiries please contact;

Adrian Byass

CEO, Managing Director

T: +61 (0) 410 305 685

E: abyass@infinitylithium.com?

Competent Persons Statement

The information in this report that relates to Exploration Targets is based on the information compiled by Mr Jeremy Peters, FAusIMM CP (Mining, Geology). Mr Peters has sufficient relevant professional experience with open pit and underground mining, exploration and development of mineral deposits similar to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of JORC Code. He has visited the project area and observed drilling, logging and sampling techniques used by Infinity in collection of data used in the preparation of this report. Mr Peters is an employee of Snowden Mining industry Consultants and consents to be named in this release and the report as it is presented.

The information in this report that relates to the December 2017 and updates in May 2018, updated Mineral Resources is based on the information compiled by Mr Patrick Adams, FAusIMM CP (Geology). Mr Adams has sufficient relevant professional experience with open pit and underground mining, exploration and development of mineral deposits similar to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of JORC Code.? Mr Adams has not visited the project area and has relied on the documented (Peters, May 2017) drilling, logging and sampling techniques used by Infinity in collection of data used in the preparation of this report. Mr Adams is a Principal Geologist and a Director of Cube Consulting Pty Ltd and consents to be named in this release and the report as it is presented.

The information in this report that relates to Exploration Results is based on the information compiled or reviewed by Mr Adrian Byass, B.Sc Hons (Geol), B.Econ, FSEG, MAIG and an employee of Infinity Lithium Corporation Limited.? Mr Byass has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code.? Mr Byass consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Disclaimer

Forward-looking statements are statements that are not historical facts. Words such as ?expect(s)?, ?feel(s)?, ?believe(s)?, ?will?, ?may?, ?anticipate(s)? and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company?s prospects, properties and business strategy.? Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

About Infinity?s? Lithium Project

Infinity has partnered with the large Spanish company Sacyr and its wholly owned subsidiary Valoriza Mineria in an earn-in JV over a large, lithium-tin project (San Jose) in central Spain. Infinity can earn up to 75% of San Jose by completing a Feasibility Study within 4 years (approximately A$6 million in spend in staged increments of 50% and 75%).

San Jose is a highly advanced lithium project which is hosted in lithium-mica that hosts a JORC resource of lithium carbonate equivalent (LCE). A feasibility study completed in 1991 defined an open pit mining operation and a process flow sheet which produced lithium carbonate through acid-leach or sulphate calcine processing. This drilling, mining and processing study work highlights the advanced status and inherent advantages enjoyed by San Jose in relation to many other hardrock deposits. The Resource estimate for San Jose is shown below in Table 1;

Snowden Mining (2017) and Cube Consulting estimated the total Mineral Resource for the San Jose lithium deposit using Ordinary Kriging interpolation methods and reported above a 0.1%?Li cut-off grade. Full details of block modelling and estimation are contained in the ASX announcement dated 5 December 2017 and updated 23 May 2018.

Lithium (Li) mineralisation is commonly expressed as either lithium oxide (Li2O) or lithium carbonate (Li2CO3) or Lithium Carbonate Equivalent (LCE). Lithium Conversion:????????????????????????? 1.0% Li = 2.153% Li2O,????? 1.0%Li = 5.32% Li2CO3

The Resource was announced to the ASX on 5th December 2017 and updated 23 May 2018.? Infinity is not aware of any new information or data that materially affects the information included in this ASX release, and Infinity confirms that, to the best of its knowledge, all material assumptions and technical parameters underpinning the resource estimates in this release continue to apply and have not materially changed.

Scoping Study ? Cautionary Statement

Refer to ASX announcement 18th October 2017. The Scoping Study referred to in this announcement is a preliminary technical and economic investigation of the potential viability of the San Jose Lithium-Tin Project. It is based on low accuracy technical and economic assessments, (+/- 35% accuracy) and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage; or to provide certainty that the conclusions of the Study will be realised. Infinity confirms that all the material assumptions underpinning the production target, or the forecast financial information derived from the production target, in the initial ASX announcement continue to apply and have not materially changed. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Measured or Indicated Mineral Resources or that the Production Target or preliminary economic assessment will be realised.





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