Edison Lithium Provides Update on Spin-Out of Cobalt Assets

Vancouver, British Columbia, March 28, 2023 Edison Lithium Corp. (TSXV: EDDY, OTCQB: EDDYF; FSE: VV0) (“Edison” or the “Company”) further to the Company’s news release dated May 19, 2022, the Company is pleased to provide an update regarding the proposed spinout of its cobalt assets in northeastern Ontario, referred to as the Kittson Cobalt Property (the “Spin-Out”), into a newly incorporated subsidiary (“SpinCo”). The Company will continue to hold its interest in the Antofalla Salar and Pipanaco Salar lithium projects in Argentina.

It is proposed that the Spin-Out will be carried out by way of statutory plan of arrangement pursuant to the Business Corporations Act (British Columbia). Common shares of SpinCo (the “SpinCo Shares”) will now be distributed to shareholders of Edison on the basis of one SpinCo Share for every eight common shares of Edison held. There will be no change in Edison shareholders’ holdings in the Company as a result of the Spin-Out. If the Spin-Out is completed, shareholders will own shares in both companies, Edison and SpinCo.

The proposed Spin-Out will be subject to the terms of an arrangement agreement to be entered into between Edison and SpinCo, approval of shareholders at a meeting of Edison shareholders, approval of the British Columbia Supreme Court, and approval of the TSX Venture Exchange (the “Exchange”).

The Company intends to seek a listing of the SpinCo Shares on the Exchange, however no assurance can be provided that such a listing will be obtained. Listing will be subject to SpinCo fulfilling all of the requirements of the Exchange.

The Company expects the Spin-Out will increase shareholder value by allowing capital markets to ascribe value to the Kittson Cobalt Property independent of the Company’s lithium properties.

Nathan Rotstein, Chief Executive Officer of Edison comments, “We are always looking at opportunities to unlock shareholder value and spinning out the cobalt asset makes perfect sense. Cobalt is an essential mineral that has strong demand in rechargeable batteries for electric vehicles, mobile phones, and other electronic devices. The new entity will present a compelling opportunity for further investment in the heated battery metals space.”

Upon completion of the Spin-Out, SpinCo intends to undertake a private placement of up to 15,000,000 units (the “Units”) at $0.10 per Unit for gross proceeds of up to $1,500,000 (the “Private Placement”).  Each Unit will consist of one SpinCo Share and one warrant (a “Warrant”), each Warrant will be exercisable into one SpinCo Share at an exercise price of $0.12 per SpinCo Share, for a period of two years from the date of issuance. The Private Placement is expected to close concurrently with listing on the Exchange.  The SpinCo Shares and Warrants will be subject to a four-month statutory hold period expiring four months and one day from the closing date of the Private Placement.

Further details of the Spin-Out and Private Placement will follow by additional press releases. Timing of the Spin-Out and Private Placement will be based on prevailing market conditions. The particulars of the Spin-Out are not yet final and shareholders are cautioned that there can be no assurance that the Spin-Out will be completed on the terms described herein or at all.

About Edison Lithium Corp.

Edison Lithium Corp. is a Canadian-based junior mining exploration company focused on the procurement, exploration and development of cobalt, lithium, and other energy metal properties. The Company’s acquisition strategy is based on acquiring affordable, cost-effective, and highly regarded mineral properties in areas with proven geological potential. Edison is building a portfolio of quality assets capable of supplying critical materials to the battery industry and intends to capitalize on and have its shareholders benefit from the renewed interest in the battery metals space.

On behalf of the Board of Directors:

“Nathan Rotstein”
Chief Executive Officer and Director

For more information please contact:

Tel: 416-526-3217
Email: info@edisonlithium.com
Website: www.edisonlithium.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Disclaimer:This news release contains certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein, without limitation, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates” “believes”, “intends”, “estimates”, “potential” “possible”, and similar expressions, or statements that events, conditions, or results “will”, “may”, “could”, or “should” occur or be achieved. Forward-looking statements in this news release relate to, among other things, the Company’s exploration plans and the receipt of any regulatory or governmental approvals required to complete such exploration plans, the impact of exploration and results obtained therefrom, potential collaborations to develop claims in the Salar of Antofalla, the Warrant Extension and receipt of all necessary approvals in connection therewith. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, the ability to complete proposed exploration work, the results of exploration, continued availability of capital, and changes in general economic, market and business conditions, as well as the ability of the Company to obtain all required regulatory and governmental approvals. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these items. The Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws.

The Company seeks safe harbor.