SOURCE: Neo Lithium Corp.

December 12, 2016 08:00 ET

Neo Lithium Discovers Significant Extension of the High-Grade Northern Target at 3Q Project

TORONTO, ON--(Marketwired - December 12, 2016) -

  • Final geophysical results indicate extension of brine saturated and semi-saturated layers under the 3Q northern reservoir and adjacent alluvial cones;
  • The extensions of the brine layers at the northern target (including the northern reservoir and northern salar) significantly increase the width and depth of the 3Q Project.

NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES

Neo Lithium Corp. ("Neo Lithium" or the "Company") (TSX VENTURE: NLC) today announced the results of the final geophysical survey from Conhidro SRL on the Tres Quebradas (3Q) Project. Vertical Electrical Sounding (VES) was completed in thirty-five stations covering the entire 3Q Project and the alluvial cones surrounding the 3Q lithium brine northern reservoir. This geophysical technique attempts to detect the presence of brine at depth, which is highly conductive.

Results suggest that the brine bearing layers under the northern reservoir (with an average lithium concentration of 895 mg/l and potassium concentration of 7,694 mg/L (please refer to Neo Lithium's press release on July 20th, 2016 and the Company's current technical report)) extend down over 100 metres and also extend horizontally under the surrounding alluvial cones for approximately 2 km to the east and 1 km to the west (to the end of the survey lines). In other words, the results suggest a doubling in the surface footprint of the northern reservoir down to a depth of approximately 100 metres.

The initial geophysical survey results were reported by the Company on November 28, 2016. The results of the full survey suggest that the saturated and semi-saturated layers extend the northern target for approximately another 6 km to the south. In addition, these results suggest that the brine saturated layers go down to approximate 100 metres from the surface and the semi-saturated layers go down in certain areas as deep as approximately 300 metres (to the end of the resolution of the geophysical survey).

In summary, these results suggest the northern target's footprint (including the northern reservoir and northern salar) is approximately 20 km by 5 km and extends down to approximately 100 metres under the northern reservoir and as deep as 300 metres under some sectors of the 3Q salar.

"The final geophysical survey results on the 3Q Project are very impressive and encouraging," said Waldo Perez, CEO of Neo Lithium Corp. "These results indicate that the highest-grade lithium zone is extensive and deep, generating a much larger target than originally anticipated."

The Company is also proud to announce that the camp is operational under the most strict environmental standards. The camp runs on 16 solar panels that generate 10 KVA along with separate solar water heaters. The camp has zero discharge into the environment since all garbage and sewage is recycled.

Please visit the web site at http://www.neolithium.ca/maps-sections/ to see maps and sections of our geophysical survey results, and http://www.neolithium.ca/project-pictures/ to see updated pictures of the camp and exploration work.

About Neo Lithium Corp.

Neo Lithium Corp. is quickly becoming the most prominent new name in lithium brine exploration by virtue of its quality 3Q Project and experienced team. Already well capitalized, Neo Lithium is rapidly advancing its newly discovered 3Q Project -- a unique high-grade lithium brine reservoir and salar complex in Latin America's Lithium Triangle.

The 3Q Project is located in the Province of Catamarca, the largest lithium producer in Argentina. The Project covers approximately 35,000 ha and the salar complex within this area is approximately 160 km2. Recent exploration results indicate a high-grade lithium target (895 mg/l average lithium concentration) in the northern portion of the salar complex with a footprint extending for approximately 20 km by 5 km, and with the combined lowest magnesium and sulphate impurities in the industry. Low impurities are a key factor in traditional low cost evaporation techniques for final lithium carbonate production. Hot springs on the property with elevated lithium content are part of the recharge system of the salar complex. The technical team that discovered this unique salar complex is one of the most experienced in the modern era in lithium salars, having discovered and led the technical work, including resource definition and full feasibility study that established the Cauchari lithium salar as the third largest lithium brine resource in the world.

Additional information regarding Neo Lithium Corp. is available on SEDAR at www.sedar.com under the Company's profile.

Waldo Perez, Ph.D, P.Geo., the CEO and President of Neo Lithium Corp. is the Qualified Person who approved the scientific and technical disclosure in the news release, including verification of the test data underlying the conclusions of the geophysical testing. The geophysical survey was conducted by a reputable independent contractor, Conhidro SRL using CGEG DUK A2 equipment with stainless steel electrodes located at a maximum distance of 1300 metres.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has in no way approved nor disapproved the contents of this press release.

Forward Looking Statements -- Certain information set forth in this news release may contain forward-looking statements. Such statements include but are not limited to, statements as to the achievable concentrations of lithium from the 3Q's Project's brine, that test results are indicative of future results, geophysical survey results must be confirmed through drilling and pumping studies, the sufficiency and suitability of available land for pond construction, the suitability of brine from the 3Q Project for lithium carbonate production and the process therefor, and the future construction of pilot ponds and the timing therefor. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "is expected", "scheduled","estimates" "intends", "anticipates", "believes", or variations of such words and phrases, or statements that certain actions, events or results "can", "may", "could", "would", "should", "might" or "will", occur or be achieved, or the negative connotations thereof. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, which could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended and undue reliance should not be placed on forward-looking statements

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