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Neo Lithium is receiving a strategic investment from a leading Chinese battery manufacturer and technology company

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Contemporary Amperex Technology or CATL, which specializes in the manufacturing of lithium-ion batteries for electric vehicles and energy storage systems, and battery management systems, will be subscribing, through a subsidiary, to approximately 10.2 million shares of Neo Lithium, priced at $0.84 per share, for gross proceeds of approximately $8.6 million.

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Additional Information:

Company: Neo Lithium
Website: http://www.NeoLithium.ca
Stock Symbol: TSXV: NLC
Date Published: Sep 14, 2020
Transcript: Available

Video Transcript:

I’m Megan Edwards for Investmentpitch Media

Neo Lithium is receiving a strategic investment from a subsidiary of Contemporary Amperex Technology, a leading Chinese battery manufacturer and technology company.

Contemporary Amperex Technology or CATL, which specializes in the manufacturing of lithium-ion batteries for electric vehicles and energy storage systems, and battery management systems, will be subscribing, through a subsidiary, to approximately 10.2 million shares (1,217,502 shares) of Neo Lithium, priced at $0.84 per share, for gross proceeds of approximately $8.6 million ($8,582,702).

This investment is subject to approval by the TSX Venture Exchange and the customary approval of the People’s Republic of China.

The shares are trading at $0.77.

The funds will be used to strengthen the company’s financial position and financing strategy and move the company forward on its wholly owned Tres Quebradas Lithium or 3Q Project.

The 3Q Project is located in the Catamarca Province, the largest lithium producing area in Argentina covering approximately 35,000 hectares including a salar complex of approximately 16,000 hectares.

The company completed a positive Pre-Feasibility Study in May 2019 and going forward, the company together with the technical assistance of CATL, will finish the Definitive Feasibility Study in order to define the precise financing requirements for the 3Q Project.

The DFS will evaluate the economic feasibility for a project with a nameplate production capacity of approximately 20,000 metric tons of battery quality lithium carbonate, with expansion capacity up to 40,000 metric tons per year of battery quality lithium carbonate.

Following this private placement, Neo Lithium will continue to fully control 100% of its offtake and the 3Q Project.

Waldo Perez, CEO, stated: "We are delighted to receive an endorsement from a globally recognized, leading industry player such as CATL as we continue to further advance our strategic objectives at the 3Q Project. As we have said many times, we believe it's extremely important to have a strategic partner with unique knowledge of the expected end market demand, before concluding the DFS. We are confident that CATL will help us define the battery grade quality and certification of the final product to highest levels."

CATL, headquartered in Ningde, China, with more than 26,000 global employees, is a global leader in the development and manufacturing of lithium-ion batteries, with businesses covering R&D, manufacturing and sales of battery systems for new energy vehicles and energy storage systems.

In 2019, the company's EV battery sales volume reached 40.25 GWh worldwide, reportedly making it the world leader in annual EV battery consumption volume.

Changdong Li, of CATL, commented: "CATL is very pleased to complete this strategic investment in Neo Lithium. We believe that the 3Q Project is an attractive development project that may benefit from our expertise and know-how in the battery manufacturing and technology space."

Constantine Karayannopoulos, Vice Chairman, added: "We are thrilled to welcome CATL as a strategic investor in Neo Lithium and to have them join our share register alongside many of our other long-term supportive shareholders. The investment by CATL, which comes at a premium to market price, is a positive sign of support for the 3Q Project and our management team. CATL is a large and well respected leader in the battery space with extensive experience, which bodes extremely well as our team continues to forge ahead."

For more information, please visit the company’s website www.NeoLithium.ca, or contact Carlos Vicens, CFO, at cvicens@neolithium.ca.

Investor Relations is handled by Ali Mahdavi of Spinnaker Capital Markets, who can be reached at 416-962-3300 or by email at info@neolithium.ca.

I’m Megan Edwards for Investmentpitch Media