SUDBURY, ON, Nov. 29, 2022 /CNW/ - Frontier Lithium Inc. (TSXV: FL) (FRA: HL2) (OTCQX: LITOF) ("Frontier" or the "Company") has reported financial results for the three and six months ended September 30, 2022.

The financial statements and the related management's discussion and analysis have been filed on SEDAR and can be viewed under the company's profile on SEDAR.

Highlights for the quarter ended September 30, 2022 and recent developments:

• On July 25, 2022, the Company announced the results for four of the drill holes completed during the Phase XII drill program on the Spark pegmatite deposit. Subsequently on August 17, September 20, October 11, and November 16 of 2022, the Company announced the results for seventeen additional drill holes and one channel, completed during the Phase XII drill program on the Spark pegmatite deposit. The detailed results from this drilling have been released by the Company and are available on SEDAR (www.sedar.com). As of November 16, 2022, the Company has completed 14,641.1 metres of drilling in 45 holes and has reported analysis from 21 drill holes. The initial objective for the Phase XII drill program was focused on converting the inferred resource within the Spark deposit to the indicated category in preparation for a Pre-Feasibility Study on the PAK Lithium Project. The latter half of the program included geotechnical drilling for ground control and pit design purposes as well as step out drilling to define the eastern and western extents of the ore body.
• On October 11, 2022, the Company announced that it has elected to introduce a phased approach in the PFS currently being prepared by the Company through the advancement of a mine and mill development to initially produce premium spodumene concentrates in Phase 1. The Phase 2 plan would increase mine and mill production to feed a downstream refinery to produce lithium chemicals for the energy storage and electric vehicle battery market.
• Due to the proposed phase approach abovementioned and delays on receiving the assay results from the recent Phase XII drill program, the Company anticipates that the PFS will be completed in Spring of 2023.
• On November 10, 2022, the Company closed a bought deal prospectus offering and issued 10,465,000 units of the Company, including 1,365,000 units issued to underwriters for over-allotment option at a price of $2.20 per unit, representing total gross proceeds of $23.0 million (the "Offering").

The Offering was completed through a syndicate of underwriters co-led by RBC Capital Markets and Goldman Sachs Canada Inc. (the "Joint Bookrunners"), and included BMO Nesbitt Burns Inc., Canaccord Genuity Corp., Cormark Securities Inc. and Stifel Nicolaus Canada Inc. (collectively with the Joint Bookrunners, the "Underwriters"). The Underwriters received a cash commission equal to 5.5% of the gross proceeds of the Offering.

Each Unit consists of one common share of the Company and one-half of one common share purchase warrant of the Company totaling to 10,465,000 common shares and 5,232,500 warrants. Each warrant entitles the holder thereof to purchase one common share of the Company at a price of C$2.75 for a period of 36 months following the closing of the Offering.

The net proceeds of the Offering will be used by the Company to fund exploration and development activities at the PAK Lithium Project for work related to delivery of a potential definitive feasibility study, as well as general administration and corporate purposes.

The comparative figures for the three and six months ended September 30, 2021 have been restated. The restated comparative figures replace and supersede the corresponding information contained in the previously filed financial statements and management discussion and analysis of the Company which should no longer be relied upon.

For further information regarding the restatement of the comparative figures contained in the September 30, 2022 Unaudited Condensed Interim Financial Statements, please refer to the details in Note 13 of the quarter ended September 30, 2022 Unaudited Condensed Interim Financial Statements which are summarized as follows:

• Change in accounting policy
  During the year ended March 31, 2022, the Company changed its accounting policy for exploration and evaluation expenditures to expense them as incurred. Management considered that this change in accounting policy will result in clearer, more relevant and reliable financial information by reducing financial reporting complexity. Under the previous accounting policy, exploration and evaluation expenditures were capitalized.
• Related Party Disclosures
  It was determined that there were additional related party transactions in the prior year financial statements that had not been disclosed. The comparative disclosures in Note 11 have been revised accordingly.
• Prior period adjustment
  In the process of preparing the Company's unaudited condensed interim financial statements for the three months and six months ended September 30, 2022, management determined that there were clerical adjustments that needed to be made for the comparative period three and six months ended September 30, 2021.

About Frontier Lithium Inc.

Frontier Lithium is a preproduction business with an objective to become a strategic domestic supplier of spodumene concentrates for industrial users as well as battery-grade lithium hydroxide and other chemicals to the growing electric vehicle and energy storage markets in North America. The Company maintains the largest land position and resource in a premium lithium mineral district located in Ontario's Great Lakes region.

About PAK Lithium project

The PAK lithium project contains one of North America's highest-grade lithium resources. The project encompasses close to 27,000 hectares and remains largely unexplored; however, since 2013, the company has delineated two premium spodumene-bearing lithium deposits (PAK and Spark), located 2.3 kilometres apart. Exploration is continuing on the project through two other spodumene-bearing discoveries: the Bolt pegmatite (located between the PAK and Spark deposits), as well as the Pennock pegmatite (25 kilometres northwest of PAK deposit within the project claims). A 2021 preliminary economic assessment (National Instrument 43-101 technical report titled "NI 43-101 Technical Report, Pak Property, PAK, Red Lake Mining District, Ontario, Canada" by BBA E&C Inc., with an effective date of April 5, 2021) delivered a fully integrated lithium operation, including the mine and mill and the conversion plant for production of battery-quality lithium salts.

Forward-looking statements

Neither the 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. This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. 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 or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, 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 those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings available at sedar.com.