Zinnwald Lithium plc provided an operational and corporate update on its activities. Zinnwald Lithium is making significant progress in the development of its Zinnwald Lithium Project in Germany. Infill and Resource Delineation Drill Programme The successful fundraise completed at the end of March 2023 has enabled the Company to significantly accelerate its resource delineation drilling activities.

The Company has now doubled the number of drill rigs and, since April, an additional 6,815 m of diamond core drilling across 28 drill holes have been completed taking the total to 16,883 m across 56 drill holes at the Zinnwald Mining license during this drill campaign. It is anticipated that an additional 27 drill holes will be required to complete the programme over the coming months. The objectives of the programme are to: Increase drillhole and data density in parts of the deposit to further optimise the geological model to support Bankable Feasibility Study ('BFS') level mine planning, metallurgical and geotechnical engineering workstreams; Generate additional geological and geometallurgical data to support inclusion of the mineralised Albite Granite (Type 2) lithology in order to upgrade the existing Mineral Resource Estimate ('MRE');Improve resolution of the extents of the Type 1 (high grade Greisen mineralisation); andImprove confidence in available existing historical drillhole data.

Following completion of the drilling programme, anticipated during Third Quarter 2023, the results will be used to update the geological and mineralisation models with the objective of producing an updated MRE later in 2023. SRK Consulting (UK) ('SRK') has been commissioned to complete the MRE. The Albite Granite or also previously called the "Greisenised Granite" or "Type 2" is recognised as a mineralised alteration halo surrounding the higher-grade Greisen type mineralisation ("Type 1").

Here the Albite Granite contains disseminated zinnwaldite mineralisation that can be laterally and vertically extensive, reaching up to 80m (vertical) thickness in places. In the 2019 NI43-101 Technical report, the potential in situ mineral inventory of Albite Granite was estimated at 214 Mt at a Li grade of 0.37 % Li2O (1,700 ppm Li). One of the objectives of the ongoing drilling programme is to better delineate and quantify this style of mineralisation for possible inclusion in the updated MRE.

The Company anticipates that the inclusion of Albite Granite mineralisation will increase the Zinnwald Lithium Projects Mineral Resource base. This will also serve to better align the Project's metrics with other known zinnwaldite deposits as well as strengthen the Company's operational and production capacity. Here, the inclusion of the Albite granite will also allow consideration of higher productivity mining methods, such as AVOCA or Sublevel Stoping that will drive productivity and simplify operational planning.

Key insights from results of the current drill programme are: The Greisens, which host the strongest levels of Li mineralisation, trend along a North West-South East axis across the granite cupola. There are further opportunities for expansion to the west, south towards the national boundary, and in particular to the South East where high-grade mineralisation remains open. Intersections in Albite Granite lithology continue to yield consistent and extensive mineralised intervals including up to 92.3 m with average grade of 0.48% Li2O in (ZGLi-045), supporting the Company's strategy of planning for high productivity mining methods.

Shorter drill spacing in the deposit will be used to provide the Company with a sufficient information basis to support detailed mine planning, geotechnical and hydrogeological work in the upcoming phase. The Company has a robust working model for the deposit, demonstrated by new logging and assay results from the ongoing drilling programme which are consistent with the geometries of the mineralisation and expected grades. Significant drill intersections and assay results from the current drilling campaign include: ZGLi 045/2023: 158 m (156.0 m - 314.0 m) at average grade 0.56% Li2O (383.7 ppm Sn).

Within this lies a high-grade interval of 65.7 m (156.0 m - 221.7 m) with an average Li grade 0.68% Li2O (517.9 ppm Sn). ZGLi 036/2022in the north of the deposit: 81.7 m (158.7 m - 240.4 m) at average grade 0.46% Li2O (76.9 ppm Sn). ZGLi 031/2022in the central part of the deposit: High-grade interval of 12.9 m (79.9 m - 92.8 m) with an average Li grade 0.70% Li2O (963.9 ppm Sn).

81.1 m (129.9 m - 211.0 m) at average grade 0.55% Li2O (205.4 ppm Sn). ZGLi 042/2023: High-grade interval of 24.6 m (85.4 m to 110.0 m) with an average Li grade 0.78% Li2O (1,463.7 ppm Sn). 66.4 m (188.5 m to 254.9 m) at average grade 0.42% Li2O (246.8 ppm Sn).

The results of the infill drilling campaign continue to validate and support the geological model in line with the Company's expectations. Other critical work areas that the Company is focusing on include the hydrogeological testing and modelling, which represents an essential piece of work for both technical planning as well as EIA permitting requirements. It is planned to conduct further geotechnical and hydrogeological drill holes later in the year.

The Company is supported by a group of consultants in this effort, including SRK, Geologische Landesuntersuchung Freiberg GmbH ('GLU'), Fugro, and CSA Global. To fully understand the impact of a new mineral resource, which would potentially comprise new ore feed characteristics, sampling from larger diameter drill core has been completed across the deposit, supported by SRK, with the aim to produce a representative bulk sample for confirmatory metallurgical testing. This sample was taken in First Quarter of this year and is currently being used for test work by Metso in Finland.