Lancaster Resources Receives BLM Drilling Approval for Alkali Flat Lithium Brine Project

VANCOUVER, British Columbia, May 15, 2024 (GLOBE NEWSWIRE) -- Lancaster Resources Inc. (CSE:LCR) (OTCQB:LANRF) (FRA:6UF0) (“Lancaster”) announces that the United States Department of the Interior Bureau of Land Management (“BLM”) has provided Lancaster with approval for the Plan of Operations regarding the Alkali Flat Lithium Brine Phase 1 drill program. This follows permit approval granted by the New Mexico Mining and Minerals Division (“MMD”), as announced on April 30, 2024.

"The BLM approval of our Plan of Operations application is further proof of Lancasters’ vision of providing sustainable and minimal impact critical minerals for the energy transition,” says Andrew Watson, Lancaster's VP Engineering & Operations. "We are rapidly progressing to drilling our maiden exploration well at Alkali Flat and showing the significant potential lithium brine deposit in the subsurface aquifers identified by our 2023 geophysics program."

Pursuant to BLM regulations 43 CFR 3715, the Plan of Operations submitted to the BLM in September 2023 has been formally approved. This approval includes the potential to drill up to three wells on the playa allowing for an expedited regulatory process pending results of the maiden well in Q2 2024. In addition to the approval are conditions for access, safety, and protecting the environment that the BLM and Lancaster have worked very closely on. Lancaster intends to meet or exceed all requirements to ensure the safety and protection of the environment and all stakeholders.

As previously released, Lancaster must submit a financial assurance instrument, such as a letter of credit, for USD $63,783 to be jointly held by the BLM and MMD. Once the financial assurance is received and approval from the New Mexico Office of the State Engineer is received, Lancaster will be able to access and drill on the playa.

The Alkali Flat Lithium Project targets a closed-basin brine deposit in a playa lake setting. The project is conveniently situated next to a major rail line and interstate highway, providing excellent access. The Drill Permit area lies about 8 miles north of the renowned 15MW Lightning Dock Known Geothermal Resource Area (KGRA).

Closed basin brine deposits contain an estimated 58% of the world’s lithium resources. The only location of lithium production currently active in the United States is the brine operation at Clayton Valley, Nevada.

Qualified Person

Andrew Watson, P.Eng., a qualified person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release. Mr. Watson is the VP, Engineering and Operations for Lancaster.