American Lithium to Secure Water Rights for Continued Development of TLC Lithium Project, Nevada

American Lithium to Secure Water Rights for Continued Development of TLC

Lithium Project, Nevada

VANCOUVER, British Columbia, July 27, 2020 -- American Lithium Corp. (TSXV: LI) (OTCQB: LIACF) (Frankfurt: 5LA1)

(“American Lithium” or the “Company”) a leading lithium exploration and development operator is pleased to announce the

signing of a letter of intent to acquire a 100% interest in certain privately held lands and the accompanying 1,176 acre-feet of

water rights (the “LOI”). The acquisition of the water rights will allow American Lithium to continue advancing its flagship TLC

project, near Tonopah, Nevada, by guaranteeing a supply of water for any planned future development.

The water rights come from a 326-acre farm whose water rights are part of the same hydrographic basin as the TLC Project,

Basin 137-a, or ‘Big Smoky Valley – Tonopah Flat’. The purchase of the farm is a critical step in securing the required makeup

water for the innovative patent-pending lithium recovery process for TLC’s unique lithium bearing claystones. Work to date has

identified a pit-constrained resource (at 400 ppm cut-off) of 1.107 billion tonnes measured and indicated (“M+I”) plus 362 Mt

inferred containing 5.37 million tonnes lithium carbonate equivalent (“LCE”) M+I and 1.76 million tonnes LCE inferred (see

American Lithium news release dated May 20, 2020).

In addition, ongoing metallurgical processing and testing by McClelland Laboratories Inc. has shown highly encouraging

results in simplifying the process for recovering lithium, that the lithium is consistently highly leachable throughout the project

and that average extraction grades of 87% lithium can be achieved in minutes of leach contact time without the use of

agitation or heat (see American Lithium news release dated June 17, 2020).

Pursuant to the LOI, American Lithium has paid a deposit to an arm's length vendor of $15,000, to allow for a due diligence

period until August 31, 2020. On completion of satisfactory due diligence, the Company will complete a definitive purchase

wherein transfer of the property interest and the water rights will be finalized through payment of $1.3 million USD, over a four-

year period.

Michael Kobler, CEO of American Lithium, stated, “the goal of the lithium recovery process that is and continues to be

developed for the TLC project is to be as water efficient as is practically possible. That said, there is makeup water required,

and our goal with this purchase is to supply all the makeup water for the project. Our vision of resource and water conservation

within the TLC project fits in with this acquisition. Our target is to have minimal impact on the land and water of the area

around the project, and our efficient lithium recovery process and water rights are aligned with this goal.”

About the TLC Property

The TLC sedimentary lithium discovery is an exploration and development project located 12 kilometres northwest of Tonopah,

Nev., and easily accessible by paved highway. Work to date has identified a 5.3-million-tonne measured and indicated lithium

carbonate equivalent resource, with an additional 1.7 million tonnes inferred, placing the Company's resource amongst a

handful of potential lithium deposits in Western North America capable of development. TLC is near surface, relatively flat-lying

and a free-digging lithium sedimentary deposit that the company expects to advance through an early-stage economic study in

2020. Just south of the Crescent Dunes solar energy plant, the project is favourably located for future production given the

immediate access to some of the cheapest electricity in Nevada.

About American Lithium Corp.

American Lithium is actively engaged in the acquisition, exploration and development of lithium deposits within mining-friendly

jurisdictions throughout the Americas. The Company is currently exploring and developing the TLC project located in the highly

prospective Esmeralda lithium district in Nevada. TLC is close to infrastructure, 3.5 hours south of the Tesla Gigafactory, and

in the same basinal environment as Albemarle's Silver Peak lithium mine, and several advancing deposits and resources,

including Ioneer Ltd.'s (formerly Global Geoscience) Rhyolite Ridge and Cypress Development Corp.'s Clayton Valley project.

The technical information within this news release has been reviewed and approved by Bruce Kienlen, P.Geo., a consultant to

the Company and a qualified person under National Instrument 43-101.

Please watch our corporate video at https://www.americanlithiumcorp.com/our-company/ and review our informative short

project update videos and related background information at https://www.americanlithiumcorp.com/projects/tlc-nevada/.

For more information, please contact the Company at [email protected] or visit our website at

www.americanlithiumcorp.com. Follow us on Facebook, Twitter and LinkedIn.

On behalf of the Board,

American Lithium Corp.

Michael Kobler, Chief Executive Officer

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture

Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements

Statements in this release that are forward-looking information are subject to various risks and uncertainties concerning the

specific factors disclosed here.  Information provided in this release is necessarily summarized and may not contain all

available material information.  All such forward-looking information and statements are based on certain assumptions and

analyses made by American Lithium management in light of their experience and perception of historical trends, current

conditions and expected future developments, as well as other factors management believes are appropriate in the

circumstances.  These statements, however, are subject to a variety of risks and uncertainties and other factors that could

cause actual events or results to differ materially from those projected in the forward-looking information or statements. 

Important factors that could cause actual results to differ from these forward-looking statements include those described

under the heading “Risks Factors” in American Lithium's most recently filed MD&A.  The Company does not intend, and

expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except

as required by law.  Readers are cautioned not to place undue reliance on forward-looking information or statements.