American Salars Lithium Inc. announced that it has in place the necessary drill permits for a resource expansion and production diameter drill program at American Salars Candela II Lithium Brine Project located in the Incahuasi Salar, Salta Province, Argentina. The 400 Meter drill holes will test the additional depth from 200-400 meter zone that appeared highly prospective for lithium in the MT Survey data collected in 2023. The diameter of the production well is 20cm - 30cm in diameter and will provide the company's first production ready well at the project.

The Candela II Lithium Brines Project contains a National Instrument 43-101 mineral resource estimate ("MRE") completed by WSP Australia Pty. Ltd. This NI 43-101 resource report estimates the project to contain lithium metal of 86,000 tonnes which equates to 457,500 tonnes of in-situ lithium carbonate equivalent (LCE). According to SunSirs Commodity Data Group, Lithium Carbonate (Li2CO3) spot prices increased to CNY 118,350 or CAD 22,777.65 per tonne up 20% in 2024.

Ekosolve Ltd., a leading Direct Lithium Extraction ("DLE") lithium processor has conducted extraction efficiency tests on 200 litres of brine from the Candela II project at its University of Melbourne pilot plant and achieved a 93.2% lithium extraction rate. Professor Kathryn Mumford commented that this extraction efficiency can be further improved. Dr. Carlos Sorentino Chief Technical Officer of Ekosolve Ltd. commented that the 173ppm lithium assayed from hole 5 on Candela II was ideal for the process and the solvents used are regenerated after collecting more than 99% on each pass with these brines.

The project is a 3,000 hectare (30 sqkm) established resource ideally situated for direct lithium extraction (DLE). The Candela II concession is contiguous to and close in proximity to multiple major lithium companies including: Ganfeng, Allkem (now Arcadian Plc) on the Incahuasi Salar. The company anticipates upcoming drilling and pumping tests on the Candela II project to expand and further define a NI43-101 compliant indicated and measured mineral resource estimate.