SUDBURY, ON, Aug. 13, 2026 /CNW/ -- Frontier Lithium Inc. (TSXV: FL) (FRA: HL2) (OTCQB: LITOF) ("Frontier" or the "Company") is pleased to announce that it has entered into an amendment agreement (the "Amendment Agreement") with the lender and holder (the "Lender") of the Company's $3.35 million unsecured convertible loan (the "Convertible Loan"), to amend certain terms thereof. The proposed amendments include an 18-month extension of the maturity date and a revision to the conversion price to better reflect current market conditions, while preserving the existing principal amount and interest rate of the Loan. The extension provides Frontier with additional financial flexibility as it continues to advance the PAK Lithium Project (the "Project"), allowing management to preserve available capital for ongoing permitting, engineering and development activities associated with the planned mine and mill stage of the Project.
Pursuant to the terms of the Amendment Agreement, the Lender has agreed to amend the Convertible Loan on the following terms:
- Principal amount of the Convertible Loan is amended to include the original principal amount of $3.35 million, together with all accrued and unpaid interest as at August 25, 2026, being the original maturity date of the Convertible Loan, which is expected to be approximately $300,000 subject to the prevailing CORRA rate. Based on CORRA as of August 12, 2026, the new principal amount of the Convertible Loan would be $3,630,000;
- The maturity date of the Convertible Loan will be extended by 18 months to February 25, 2026;
- The interest rate remains unchanged at CORRA plus 3% per annum;
- The conversion price will be amended to $0.455 per common share; and
- All other terms and conditions of the Convertible Loan remain unchanged (collectively, the "Proposed Amendments").
The proposed amendments do not result in any additional proceeds being received by the Company. The Company believes the revised conversion price more appropriately reflects current market conditions while maintaining the long-term support of a significant shareholder.
Related Party Transaction
The Lender of the Convertible Loan is considered a "related party" of the Company under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101") and the policies of the TSX Venture Exchange (the "TSXV") as the Lender is an affiliate or associated entity of Mr. Reginald (Rick) F. Walker (Chairman of the Board of Directors of the Company). As such, the Convertible Loan is considered a "related party transaction" under MI 61-101 and the policies of the TSXV but is exempt from the formal valuation and minority approval requirements under subsections 5.5(a) and 5.7(1)(a) of MI 61-101 and Section 3.1 of TSXV Policy 5.9 because neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the Convertible Loan, as described herein, exceeds 25% of the Company's market capitalization.
The board of directors of the Company, with Mr. Walker abstaining from all deliberations and voting with respect to the Proposed Amendments, have determined that the Proposed Amendments are in the best interests of the Company and its shareholders.
The Proposed Amendments are contingent upon receipt of all necessary regulatory authorizations, including TSXV approval. A subsequent press release will be provided once these permissions are granted. As currently contemplated, the Proposed Amendments are intended to come into effect on August 25, 2026, pending receipt of all necessary approvals. No finder's fee applies to this transaction.
On Behalf of the Board of Directors
Trevor Walker
Chief Executive Officer
About Frontier Lithium
Frontier Lithium Inc. is a pre-production mining company with an objective to become a strategic and integrated supplier of premium spodumene concentrates as well as battery-grade lithium salts to the growing electric vehicle and energy storage markets in North America. The Company's PAK Lithium Project encompasses a large land position and resource in a premium lithium mineral district located in Ontario's Great Lakes region.
About the PAK Lithium Project
The PAK Lithium Project is a fully integrated critical minerals initiative in Ontario, developing North America's highest-grade known lithium resource. Operated as a joint venture between Frontier (92.5%) and Mitsubishi Corporation (7.5%), the Project is advancing, in parallel, a mine and mill, and downstream lithium conversion facility in Thunder Bay, Ontario, which are both key to supporting a secure domestic lithium supply for a clean energy transition. A 2025 Mine and Mill Feasibility Study, prepared by DRA and entitled National Instrument 43-101 Technical Report FS PAK Lithium Project, Mine and Mill, outlines a 31-year Project life with an after-tax net present value of $932 million at an 8% discount rate and an after-tax internal rate of return of 17.9%.These results are disclosed in a press release dated May 28, 2025, and the accompanying technical report was filed on July 9, 2025 on SEDAR+ ( www.sedarplus.ca ).
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.
Forward-looking statements are subject to both known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements and information are based on plans, expectations and estimates of management at the date the information is provided and are subject to certain factors and assumptions. The Company is making forward-looking statements, with respect to, but not limited to: the Proposed Amendments and the terms thereof, including any notice/announcements to be made in connection therewith; and the receipt of necessary approvals, including that of the TSXV.
Investors should continue to review and consider information disseminated through news releases and filed by the Company on SEDAR+. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
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.
SOURCE Frontier Lithium Inc.
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