Imagine Lithium Outlines Exploration Program for Jackpot Project and Closing of Convertible Note Financing
Vancouver, British Columbia--(Newsfile Corp. - August 26, 2026) - IMAGINE LITHIUM INC. (TSXV: ILI) (OTCQB: ARXRF) (the "Company" or "Imagine") is pleased to provide an exploration update on their 27,597 ha Jackpot Project. Imagine Lithium's Jackpot project comprises the Ruth Pegmatite claims and the Jackpot Deposit claims in the Georgia Lake Pegmatite Field, approximately 140 km northeast of Thunder Bay, Ontario (Figure 1). Total resources on the land package include 3.1 Mt indicated at 0.85% Li2O for 26.2 kt of Li2O and 5.3 Mt inferred at 0.91% Li2O for 49.5 kt of Li2O (Press release dated September 3, 2024).
Figure 1:Jackpot Project located next to Trans-Canada Highway, power, port, railroad, and workforce.
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A compilation of all project data collected from 2022 to 2025 indicates six key target zones across the property (Figure 2). The six target areas are selected where lithium in soil anomalies coincide with spodumene bearing pegmatite samples that are from bedrock or glacial float. The key target zones on the project are listed in order of exploration priority based on proximity to the Jackpot deposit:
- Jackpot South Zone - defined by soil anomaly and three boulder samples that returned 2.91% Li2O, 2.73% Li2O and 2.52% Li2O;
- Blay Lake Zone - defined by soil anomaly, two bedrock samples and one boulder sample that returned 4.31% Li2O, 2.48% Li2O and 1.42% Li2O, respectively;
- Newkirk SW Zone - defined by a cluster of spodumene pegmatite boulders that returned 3.59% Li2O, 3.49% Li2O, 2.63% Li2O and 1.74% Li2O;
- Cosgrave North Zone - defined by northern and southern dykes where two surface grab samples returned 1.84% Li2O and 3.92% Li2O, respectively;
- Jackpot West - north-south trending spodumene bearing pegmatite dyke up to 5 m wide and 40 m long in outcrop that returned 1.98% Li2O and 0.98% Li2O. A significant lithium in soils anomaly is also present north of this dyke;
- Jackpot Southwest Zone - defined by a large lithium in soil anomaly and two spodumene bearing boulders that returned 4.16% Li2O and 2.69% Li2O (Figure 2). This area has five barren pegmatite dykes that were identified by Pye (1965).
Figure 2:Exploration Potential of the Jackpot Project showing newly discovered zones with coincident lithium in soil anomalies.
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The Fall 2026 exploration program will focus on expanding resources at the Casino Royale deposit and conducting exploration drilling at the Ruth Pegmatite to update Imagine Lithium's mineral resource inventory.
In addition, several high-priority blind targets, including the Jackpot South and Blay Lake areas, will be advanced in preparation for a Winter 2027 drill program. Drilling will target large lithium-in-soil anomalies that coincide with spodumene-bearing pegmatites identified in bedrock at Blay Lake and in glacial boulders at Jackpot South.
The Cosgrave North Zone will also be advanced through bedrock stripping and diamond drilling to evaluate whether the dykes represent an upper, tantalum-bearing vein system overlying stacked albite-spodumene pegmatite dykes similar to those identified at the Jackpot and Casino Royale deposits.
The ongoing exploration program is designed to expand known mineralization and test newly identified targets:
- Expansion drilling at the Casino Royale deposit to grow existing resources;
- Drill test the Pegmatite 500 Extension that was discovered north of the Jackpot-Casino open pit trend during the 2025 field season;
- Drill test the Ruth Pegmatite that was stripped and channel sampled in the fall of 2025;
- Complete bedrock stripping in the Newkirk SW Zone to determine the bedrock source of spodumene pegmatite boulders in the area;
- Complete geological mapping in the Jackpot West and Jackpot Southwest Zones to delineate existing pegmatite dykes and make new discoveries;
- Prepare the Jackpot South, Blay Lake zone and Cosgrave North Zones for diamond drilling in the winter of 2027;
- Advance metallurgical optimization and preliminary engineering studies; and
- Initiate environmental baseline work and permitting preparations for future development.
Further to the news release dated July 29, 2026, it has closed a private placement offering of 7.0% secured convertible notes (the "Convertible Notes") for gross proceeds of $3,000,000.
The funds will be used for general corporate purposes, to continue advancing their newly discovered Ruth Pegmatite and expansion drilling on their Casino Royale lithium zone.
Convertible Notes will bear interest at 7.0% per annumand will mature 5 years from their issuance. The Company may repay all or a portion of the principal amount owing under the Convertible Notes at any time prior to maturity with 90 days prior notice, but at a premium of 10% of the principal amount owing plus any accrued and unpaid interest if the loan is paid early. The principal amount owing under each Convertible Note will be convertible into common shares, in multiples of $500,000 of the principal amount, at a conversion price of $0.05 per share in the first year, and for each year thereafter at a conversion price of $0.10 per share. The indebtedness owing under the Convertible Notes will be secured by a first ranking general security interest over all of the present and after-acquired assets of the Company.
Concurrent with the completion of the private placement, the investor will also be granted a right of first refusal with respect to any offtake arrangements regarding lithium produced, if any, by or on behalf of the Company from any mineral interest owned by the Company.
In connection with the closing of the private placement, The Company paid finders' fees of $180,000 through the issuance of 3,600,000 common shares to an eligible arms-length finder.
The shares will be subject to restrictions on resale for a period of twelve months and one day in accordance with applicable securities laws.
The financing, although conditionally approved by the TSX Venture Exchange (TSXV), is subject to final approval.
Qualified Person
Jason Arnold, P.Geo., President of DCX Geological Consulting reviewed and approved the technical content of this news release. Jason is a consultant for the company and is not an Independent Qualified Person as defined by the National Instrument 43-101 due to their position as a Director of the Company.
About Imagine Lithium Inc.
Imagine is a junior mining exploration company focused on seeking and acquiring world-class mineral projects. The company holds the Jackpot lithium property located in the Georgia Lake area about 140 km NNE of Thunder Bay, Ontario, is approximately 12 km by road from the Trans-Canada Highway (Hwy 11), and is in proximity to sources of power, railroads, and ports. The Jackpot Property consists of 322 mineral claims covering 27,597 hectares. The Property contains NI 43-101 compliant Mineral Resources of 3.1 Mt grading 0.85% Li2O in the indicated category and 5.3 Mt grading 0.91% Li2O in the inferred category, as well as several other known pegmatite showings.
ON BEHALF OF THE BOARD
Simone Sze Man Suen, President
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.
FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward -looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedarplus.ca).
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Source: Imagine Lithium Inc.
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