Analyst Maintains Buy Rating on Lithium Co. With $19 Target Following Operational Permit Receipt
Research Report

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Disclosures for H.C. Wainwright & Co., Atlas Lithium Corp., October 29, 2024

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H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer. I, Heiko F. Ihle, CFA , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies. None of the research analysts or the research analyst’s household has a financial interest in the securities of Atlas Lithium Corporation (including, without limitation, any option, right, warrant, future, long or short position). As of September 30, 2024 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Atlas Lithium Corporation. Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report.

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H.C. Wainwright & Co. analyst Heiko F. Ihle, in a research report published on October 29, 2024, maintained a Buy rating on Atlas Lithium Corp. (ATLX:NASDAQ) with a target price of US$19.00. The report follows Atlas's receipt of its operational permit for the Neves Project from Brazil's Minas Gerais government.

Ihle emphasized the significance of the permit, stating, "Following receipt of this permit, the company has now obtained all necessary authorizations to assemble and operate its processing plant and develop open-pit mining at one of its lithium deposits." He added, "We view receipt of this permit as a significant milestone for continued de-risking of the company."

The analyst highlighted progress at the company's Salinas Project, noting, "Atlas announced that it discovered spodumene-rich pegmatites at its Salinas Project, which is located 60 miles north of the Neves Project." He emphasized the strategic location, stating the project is "just five miles east of Latin Resources Ltd.'s significant lithium deposit at the Colina Project."

Regarding upcoming catalysts, Ihle noted, "We continue to expect the release of Atlas Lithium's DFS and updated MRE for Das Neves. We anticipate this study to help unlock additional shareholder value and ultimately provide greater insight into the economic potential of the site."

H.C. Wainwright's valuation methodology is based on a DCF model. Ihle explained, "Our DCF yields a project NAV of US$529.5M when utilizing our unchanged 15% discount rate." He added, "We then account for the value of the firm's other business interests and exploration assets before applying our 0.45x NAV multiple to account for the project's development-stage nature."

The share price at the time of the report of US$10.25 represents a potential return of approximately 85% to the analyst's US$19.00 target price.