UNITED LITHIUM SIGNS NON-BINDING LOI TO ACQUIRE 100% OF THE BERGBY LITHIUM PROJECT

Vancouver, BC — December 6, 2020 – United Lithium Corp. (CSE: ULTH; OTC: ULTHF; FWB: 0UL) (“ULTH” or the “Company”), is pleased to announce it has signed a non-binding Letter of Intent (the “LOI”) with Leading Edge Materials (TSX-V: “LEM”) contemplating the potential acquisition by the Company of 100% of the Bergby Lithium project (the “Proposed Transaction”).

The Bergby lithium project, located in central Sweden, 25km north of Gavle, was staked by the LEM in 2016 and covers three exploration permits for a total of 1903Ha (the “Project”).  A prospecting campaign with mapping and sampling identified a lithium-mineralized spodumene pegmatite boulder field and outcrops. The discovery was followed up with two separate drilling campaigns totaling 1525m of drilling in 33 drill holes to a maximum depth of 131.1m over an approximate 1500m strike length with intersections of high-grade lithium mineralizations

The LOI contemplates payment of the following consideration by the Company upon completion of the Proposed Transaction:

  • payment of $250,000 in cash on the closing date of the Transaction (the “Closing Date”);
  • issuance of $500,000 worth of common shares in the capital of ULTH (each, a “ULTH Share”) at an issue price equal to a 20% discount to the 10-day volume weighted average trading price of ULTH on the Canadian Securities Exchange (“CSE”) as of December 8, 2020 (the “Deemed Price”);
  • issuance of 400,000 common share purchase warrants (the “Warrants”) with each Warrant entitling LEM to acquire, for a period of 36 months, one ULTH Share at an exercise price equal to the Deemed Price;
  • payment of an additional $250,000 in cash on the date that is 6 months following the Closing Date;
  • grant to LEM of a 2% net smelter returns royalty on the Project which shall be subject to a buyback right in favour of ULTH for $1,000,000;
  • subject to LEM acquiring certain additional mineral claims in the region of the Project before March 21, 2021 (the “Bonus Date”), the issuance of an additional number of common share purchase warrants (“Bonus Warrants”) calculated as $250,000 divided by the 10-day volume weighted average trading price of the Purchaser Shares on the CSE as of the date immediately preceding the Bonus Date (the “Bonus Price”) with each Bonus Warrant entitling the Company to acquire, for a period of 36 months, one ULTH Share at an exercisable price equal to the Bonus Price; and
  • commitment to exercise reasonable commercial efforts to spend $1,000,000 on exploration work on the Project within 18 months from the Closing Date.

The ULTH Shares to be issued pursuant to the Proposed Transaction shall be subject to an escrow restriction whereby 20% of such shares shall be released after each subsequent four (4) month period following the Closing Date.

Upon completion of the Proposed Transaction, LEM will, at its sole cost, make available to ULTH the part-time services of its Chief Geologist to provide geological support in exploring the Project for a period of 12 months following the Closing Date.

Filip Kozlowski, CEO of LEM states, “The Project was discovered by LEM in 2016 as one of few hard-rock lithium deposits in Sweden with potential. Previous work clearly shows potential for further exploration and expansion of the discovery. Having two other significant projects in our portfolio has limited our capacity to give the Project the proper attention it deserves, and it is therefore pleasing to sell this project to a dedicated lithium-explorer such as United Lithium Corp. and share the potential upside of future committed exploration work on the project through the shares and warrants we receive as part of the transaction. The proceeds from the sale of the Project will enable the LEM to focus on our advanced Woxna and Norra Kärr projects.”

Michael Dehn, President and CEO of ULTH, iterated, “We approached Leading Edge Materials on the Project as we felt it geologically resembles spodumene and petalite rich pegmatites found in and around the Tanco Li-Ta-Cs Mine in Manitoba. Given that the property has excellent logistics including being approximately 130 km from Stockholm’s Arlanda International Airport, and close to the European market where we see increasing demand of lithium for the battery industry, as well as traditional use in pharmacology, military application, nuclear reactors, glasses and ceramics, lubricants and space vehicle for carbon absorption/oxygen release, we feel that the Project can add value to both our shareholders and Leading Edge Material’s shareholders relatively rapidly.”

LEM and ULTH have agreed to a 60-day exclusivity period during which they will negotiate exclusively with each other with a view to settling a definitive agreement. There can be no assurances that any component of the Proposed Transaction will proceed, nor can there be any assurance as to the final definitive terms thereof.

ON BEHALF OF THE BOARD OF DIRECTORS
Michael Dehn
Chief Executive Officer

Investor Relations
(604) 259-0889
ir@unitedlithium.com

Forward-Looking Statements Caution. This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward-looking, including all statements in regard to planned exploration activities and the Company’s potential ability to exercise the option to earn an interest in the Vapor Project or the Harry Project, respectively. 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 forward-looking statements; in this regard, there is a risk that the Company may never earn an interest in the Vapor Project or the Harry Project, respectively, due to its failure to meet the option exercise conditions or for other reasons, including but not limited to, defects in regard to mineral title and inability to maintain contractual relations or to receive governmental approvals. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking statements except as required under the applicable laws.

The CSE does not accept responsibility for the adequacy or accuracy of this release.

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