IONGF: ION Energy Completes Maiden Exploration Program at Urgakh Naran; a surface brine sample assayed at 918 mg/l Li

By Steven Ralston, CFA

OTC:IONGF | TSXV:ION

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Headquartered in Toronto, ION Energy Limited IONGF ION is an early-stage junior exploration & development mining company, which is focused on prospective lithium brine properties in Mongolia. The targeted projects are situated in endorheic basins located in arid areas with high evaporation rates and low precipitation rates, which are highly conducive for the conventional method of lithium extraction via evaporation ponds. Also, the projects are situated in close proximity to China, the major global consumer of lithium minerals.

Currently, ION Energy controls approximately 111,500 hectares (about 275,600 acres) of prospective lithium properties through two exploration licenses granted by the Mineral Resource Authority of Mongolia (MRAM), namely the Baavhai Uul Lithium Brine Project (81,758 hectares) and the Urgakh Naran Lithium Brine Project (29,770 hectares).

Management Visits Baavhai Uul and Urgakh Naran Project Sites in Mongolia

In late April, ION Energy's management team visited Mongolia to observe the ongoing drilling program. The team included CEO Ali Haji, Advisory Board member Don Hains and technical advisor Dr. Mark King.

The team observed the prospectivity of the property in terms of geology and morphology, which have some parallels to Nevada playa basins and South American salars. Evidence of artisanal salt harvesting was observed which is indicative of the presence of brine.

In addition to gaining further insight on Mongolia and the prospectivity of the properties, the team also provided technical advice and training to the in-country exploration team.

Maiden Exploration Program at the Urgakh Naran Project

Between April and May 2022, ION Energy conducted the maiden exploration program at the Urgakh Naran Project, which was composed of:

• 72 (820.5m) auger drill holes

• 427 geochemical samples, including brine samples

• 8 TEM geophysical lines covering 88 line km

The exploration efforts were conducted by in-country exploration personnel, which include well-trained geologists and hydro-geologists as well as highly-skilled mine workers.

The auger drill program was conducted according to hydrological sampling standards; namely, the holes were drilled 2 meters into the water table, generally to a depth of 12m. After being bailed at least two times and after waiting 24 hours for the holes to refill, brine samples were collected every two meters. The assays results from the 72 drill holes and brine samples are expected in the upcoming weeks

Analysis of the TEM data will aid in the interpretation of the outline of the brine accumulations in terms of depth and breadth as well as stratigraphy. The analysis will help determine the locations for the placement of the planned monitoring wells, which are expected to be able to measure the flow rates and the average grades of the aquifer bodies below surface. Once the volume of the aquifer(s) is determined through the TEM data and the flow rates & average grades are measured, an early lithium resource indication can be calculated, though this process would not be NI 43-101-compliant.

Urgakh Naran - Significant Lithium Brine Discovery

On May 10, 2022, ION Energy reported that a brine sample assayed 918 mg/l Li. The sample was collected at surface from a shallow evaporation pool at the Urgakh Naran Lithium Project. This exceptional assay result for a surface sample collected in Mongolia.

Baavhai Uul - Update

Management plans to commence a hydrogeological sampling program at Baavhai Uul during the third quarter of 2022. This follows the 2021 exploration activities of completing 17 RC drill holes and 222 auger drill holes.

ION Energy Milestones

• August 3, 2017       ION Energy formed as a private company incorporated in Ontario

• February 15, 2019      Acquired the Baavhai Uul exploration license from Golden Hill LLC

• February 27, 2019      Signed Letter of Intent with Spirit Banner Capital in a Qualifying Transaction

• August 20, 2019      Entered definitive agreement with Spirit to complete business combination

• August 26, 2020      ION Energy completes private placement concurrent with business combination

• August 31, 2020      ION Energy began trading on the TSXV under the ticker ION

• Sept. 17, 2020      ION Energy listed on the Frankfurt Stock Exchange under the ticker 0K9

• October 2020      Conducted initial CSAMT geophysics survey at Li-11 (Baavhai Uul Project)

• January 2021      Conducted CSAMT geophysics survey at Li-8 (Baavhai Uul Project)

• January 14, 2021      ION Energy began trading on OTCQB Venture Market under ticker IONGF

• June-July 2021      Completed maiden exploration drilling program at Baavhai Uul Project

• Feb. 10, 2021      Acquired Urgakh Naran Lithium Salar Project (100%)

• Feb. 1, 2022      Entered into JV term sheet with Aranjin Resources (reciprocal exploration rights)

• June 2022      Completed maiden exploration program at Urgakh Naran Project

The fundamentals of the lithium market remain strong with a high level of investments in electric vehicles (EVs) by the major automobile manufacturers driving the demand for lithium.

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