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Initiation: June 27, 2023

J Capital Research ("J Cap")  is a stock-research company. ​J Cap  has analyzed the U.S.- and Canadian-listed company American Lithium (“AMLI” or "LI") and is hereby publishing the outcome and the conclusions of our analysis, based on publicly available information. We may benefit from a decline in the price of AMLI shares, and, for this reason, there might be a conflict of interest.

• American Lithium (NASDAQ: AMLI, TSXV: LI) appears to have siphoned >$100 mln to parties we think are related, most of which appear undisclosed.
• Our review of official documents indicates that AMLI paid several million to companies controlled by the founder’s daughter, an optician.1
• AMLI bought assets from notorious promoter Jason Christopher Shull, who was later blocked by Canadian regulators from transacting in several listed
  companies.2
• Using official documents, we reveal many significant payments to controversial figures such as Talal Yassin, Edward Reisner, and Anders Nerell. All three have been implicated in promoting penny stocks embroiled in controversy, including in cannabis and mineral exploration.3
• AMLI is spinning out a uranium asset in Peru that we think will never be mined. Experts believe extracting the uranium, which is mixed with lithium, is very difficult to do safely, nor has this type of deposit ever been mined at scale.
• Regulators have not granted a mining permit to the Macusani asset, which is plagued by environmental problems and protests by the local community. We question whether the spinoff is designed to distance AMLI from social and environmental fallout.

• AMLI has paid large sums to marketing companies like Native Ads and Promethean Marketing that contract with penny-stock executives to pump their companies’ shares. Promethean’s owner was charged by the SEC in a “long-running fraudulent scheme."4 Native Ads uses sites it discreetly owns to promote the share prices of small cap stocks5 and was involved in promoting accused fraud Standard Lithium.6
• Don’t be fooled twice: the company founders have a long history of promoting stocks that surged in price then crashed: the ones we tracked dropped by an average of 87%.
• AMLI has just acquired 9.9% of Surge Battery Metals (NILI CA), which looks like another related party. Surge is a hugely loss-making company with significant board overlap.
• In November 2022, the Ontario Securities regulator ordered that company CFO Philip Gibbs be prohibited for one year from acting as a director of any reporting issuer because he had “misled investors.”7 Gibbs remains company CFO.
• The type of lithium deposit in AMLI’s marquee project, TLC, is laced through clay and has never been commercially exploited.

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1 Registration for 4286128 NEVADA CORP. https://www.bizapedia.com/nv/4286128-nevada-corp.html and for Big Smoky Holdings: https://www.bizapedia.com/nv/big-smoky-holdings-inc.html
See companies registered to people named Jana Campbell: https://www.bizapedia.com/people/janacampbell.html
2 https://www.lexology.com/library/detail.aspx?g=99c07389-19e4-4268-b047-edfaedb55f0e
3 See the report by Hindenburg https://hindenburgresearch.com/standard-lithium/ and ‘How Canadian Cannabis Venture Capitalists Stole Millions of Americans’ Private Medical Records’ https://www.huffpost.com/entry/how-canadian-cannabis-venture-capitalists-stole-millions_b_58af46b3e4b02f3f81e4452b
4 https://www.sec.gov/news/press-release/2021-148#:~:text=The%20complaint%20alleges%20that%20one,activities%20from%20the%20investing%20public.
5 https://greenshoe.substack.com/p/native-ads-when-stock-promotion-brilliance
6 https://hindenburgresearch.com/standard-lithium/
7 https://www.osc.ca/sites/default/files/2022-11/20221110_oscb_4545.pdf