Imagine Lithium launches drill program, raises via convertible notes

Highlights Funding from key battery industry Company to explore vast 27,597 Ha land package 1,200m of drilling planned to expand current resources of 3.1 Mt inferred at 1.00% Li 2 O at Casino Royale 1,600 m of exploration drilling planned for newly discovered Ruth Pegmatitie Vancouver, British Columbia--(Newsfile Corp. - July 29, 2026) - IMAGINE LITHIUM INC. (TSXV: ILI) (OTCQB: ARXRF) (the " Company " or " Imagine ") is pleased to announce a 2,800 m drill program on the Jackpot Lithium project as well as 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. Imagine Lithium's Jackpot lithium 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 27,597 ha land package include 3.1 Mt indicated at 0.85% Li 2 O for 26.2 kt of Li 2 O and 5.3 Mt inferred at 0.91% Li 2 O for 49.5 kt of Li 2 O ( September 2024 - Imagine Lithium ). The results of this drill program will be used to upgrade Imagine Lithium's NI 43-101 compliant resources. Figure 1: Jackpot Project located next to Trans-Canada Highway, power, port, railroad, and workforce.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/2962/307042_504fb856d404193b_001full.jpg The private placement is fully-subscribed with one arm's length investor. Convertible Notes will bear interest at 7.0% per annum, and 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.

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. Simone Suen, President of Imagine, commented: "This funding opportunity represents a strategic investment from a key player in the battery industry and will be used to continue to develop the new and existing lithium resources on the property and add tonnes to the Jackpot Lithium project.

We are encouraged that the planned drilling will add to our resource inventory, putting Imagine in an excellent position to build upon our significant resources on the Project. Nearby infrastructure, ports and a skilled workforce highlight the near-term production potential of the Georgia Lake deposits." 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. Finders' fees may be payable on the private placement, subject to the policies of the TSX Venture Exchange.

The private placement is also subject to the Company receiving all necessary prior approvals from the TSX Venture Exchange. Qualified Person Jason Arnold, P.Geo., President of DCX Geological Consulting Inc. 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% Li 2 O in the indicated category and 5.3 Mt grading 0.91% Li 2 O in the inferred category, as well as several other known pegmatite showings. ON BEHALF OF THE BOARD Simone Sze Man Suen, President FOR FURTHER INFORMATION, PLEASE CONTACT: Telephone: +1-807-355-5405 Toll Free: 1-888-945-4770 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 ). To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307042 Newsfile Corp. July 29, 2026 - 4:00 AM PDT News by QuoteMedia www.quotemedia.com