Atlas Lithium Corp Announced as Co-Host of the Brazil Critical Minerals Summit 2026October 06, 2025 2:13 PM EDT | Source: IN-VR LimitedLondon, United Kingdom--(Newsfile Corp. - October 6, 2025) - The Net-Zero Circle by IN-VR is proud to announce that Atlas Lithium Corporation (NASDAQ: ATLX) has been confirmed as Co-Host of the Brazil Critical Minerals Summit 2026, taking place on *18-19 June 2026 in Belo Horizonte, Minas Gerais.Fully endorsed by Invest Minas and the Government of the State of ...

Atlas Lithium's Subsidiary Reports Outstanding Rare Earth Mineralization Across Two Project TypesAtlas Critical Minerals Reports Strong Results from Dual Deposit Strategy Covering Both Ionic Clay and Conglomerate-Hosted Rare Earth SystemsSeptember 22, 2025 8:00 AM EDT | Source: Atlas Lithium CorporationBoca Raton, Florida--(Newsfile Corp. - September 22, 2025) - Atlas Lithium Corporation (NASDAQ: ATLX) ("Atlas Lithium" or "Company"), a leading lithium development company, is pleased to announc ...

Core Insights - The 3rd Brazil Critical Minerals Summit will take place from June 17-19, 2026, in Belo Horizonte, Minas Gerais, focusing on investment and innovation in Brazil's critical minerals sector [1][2] - The event is co-hosted by Atlas Lithium and endorsed by Invest Minas, highlighting Brazil's strategic importance in the global critical minerals market [1][4] Industry Overview - Brazil is positioning itself as a global hub for strategic minerals, essential for the energy transition, with the summit serving as a platform for discussing opportunities and challenges in the mining sector [4][8] - The summit aims to attract international leaders, investors, and experts to foster discussions on the critical minerals industry [4][8] Event Highlights - Day 1 features a VVIP Icebreaker Reception for networking among influential mining companies and policymakers [3] - Day 2 includes discussions on Brazil's mining landscape, investment drivers, and a technology showcase for sustainable mining [6] - Day 3 focuses on securing global supply chains for EV and energy storage, ESG considerations, and the regulatory landscape [6] Company Profiles - Atlas Lithium Corporation is a key player in the lithium sector, with a focus on advancing its Neves Project, which has a 145% IRR and a $539 million NPV [9] - Invest Minas is the investment promotion agency for Minas Gerais, recognized for attracting foreign investment and promoting the critical minerals sector [8]

Core Insights - Atlas Lithium Corporation announced exceptional results from its subsidiary, Atlas Critical Minerals Corporation, highlighting high-grade rare earths and premium graphite concentrate [1][3][5] Company Developments - Atlas Critical Minerals Corporation reported grades of up to 28,870 ppm TREO and 23.2% TiO₂, along with a graphitic carbon concentrate of 96.6% [1][12] - The reports were prepared by SGS Canada Inc., confirming the strategic value of diversifying into critical minerals essential for electrification and defense applications [2][3] - Atlas Lithium holds a 30% ownership stake in Atlas Critical Minerals Corporation and is advancing its Neves Lithium Project towards production [10] Industry Context - The geopolitical landscape has made rare earth elements crucial for national security and technological sovereignty, emphasizing the need for diversified supply chains [4] - Brazil's stable geopolitical environment and substantial deposits of critical minerals provide a competitive advantage for Atlas Critical Minerals [8] Project Highlights - The Alto do Paranaíba Project in Brazil covers 27,734 hectares and has shown consistent high-grade mineralization for rare earths and titanium [6] - The Malacacheta Project has confirmed large-flake graphite mineralization with strong metallurgical results [8] - Atlas Critical Minerals controls over 218,000 hectares of mineral rights across various critical minerals, enhancing its strategic positioning [9]

Core Insights - Atlas Lithium Corporation has reported exceptional exploration results from its 100%-owned Salinas Project in Brazil, confirming high-quality lithium mineralization near the surface, which positions Salinas as the next growth frontier for the company [1][4][10] Salinas Project Overview - The Salinas Project covers 388 hectares (959 acres) in northern Minas Gerais, located 5 miles east of the Colina Project, which was acquired by Pilbara Minerals for approximately $370 million in August 2024 [2] - The project is situated about 100 kilometers (60 miles) north of Atlas Lithium's flagship Neves Project, in a region known for its lithium prospectivity within Brazil's Lithium Valley [2] Exploration Activities - Comprehensive exploration activities at Salinas have included systematic soil sampling, geological mapping, LIDAR surveys, and high-resolution aerial photogrammetry, successfully identifying multiple spodumene-rich pegmatite bodies [3] Initial Drilling Results - Initial drilling results at the Salinas Project have confirmed significant spodumene mineralization at a depth of only 23 meters, with 501 meters of diamond drilling completed to date [4][5] - Analytical results indicate Li₂O grades exceeding 2.0%, demonstrating strong geological potential for cost-effective open-pit mining [5] Strategic Growth Opportunity - The Salinas Project is viewed as a compelling growth opportunity that could significantly expand future production capacity, validating the company's strategic vision for regional growth [10] - The proximity of Salinas to Pilbara's Colina Project enhances its strategic importance [10] Neves Project Focus - While advancing the Salinas Project, the company remains committed to bringing its flagship Neves Project into production, which has demonstrated exceptional project economics [12][15] - The Neves Project's Definitive Feasibility Study (DFS) highlights include a 145% IRR, $539 million NPV, and an 11-month payback period, with a DMS plant capable of producing up to 150,000 tpa of lithium concentrate [13][17]

[Report Overview](index=1&type=section&id=Report%20Overview) [Company Information and Filing Details](index=1&type=section&id=Company%20Information%20and%20Filing%20Details) Atlas Lithium Corporation, a smaller reporting company, filed its Form 10-Q for the quarter ended June 30, 2025 - Filing Type: **Quarterly Report on Form 10-Q** for the period ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - Registrant: **ATLAS LITHIUM CORPORATION**, incorporated in Nevada[4](index=4&type=chunk) Filer Status | Status | Value | | :-------------------- | :---- | | Large accelerated filer | ☐ | | Accelerated filer | ☐ | | Non-accelerated filer | ☒ | | Smaller reporting company | ☒ | | Emerging growth company | ☐ | - Common Stock Outstanding: **19,582,473 shares** as of July 31, 2025[6](index=6&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) The report contains forward-looking statements subject to significant risks that could cause actual results to differ materially - Forward-looking statements are covered by safe harbor provisions and involve known and unknown risks, uncertainties, and important factors that may cause actual results to differ materially[10](index=10&type=chunk) - Factors that could cause future results to materially differ include unprofitable exploration efforts, market fluctuations, government regulations, competition, loss of key personnel, and general economic conditions[11](index=11&type=chunk) - Readers are cautioned not to place undue reliance on these statements, and the company does not plan to publicly update or revise any forward-looking statements[13](index=13&type=chunk) [PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the periods ended June 30, 2025 and 2024 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Total assets | $63,316,494 | $57,854,608 | +$5,461,886 | | Total liabilities | $37,073,178 | $35,843,367 | +$1,229,811 | | Total stockholders' equity | $26,243,316 | $22,011,241 | +$4,232,075 | | Cash and cash equivalents | $13,864,963 | $15,537,476 | -$1,672,513 | | Property and equipment, net | $45,319,972 | $38,855,071 | +$6,464,901 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Condensed Consolidated Statements of Operations and Comprehensive Loss Highlights | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net revenue | $31,805 | $182,788 | $56,980 | $374,108 | | Gross profit (loss) | $(18,223) | $91,002 | $(80,898) | $180,256 | | Total operating expenses | $6,104,233 | $9,637,166 | $15,865,115 | $22,903,626 | | Loss from operations | $(6,122,456) | $(9,546,164) | $(15,946,013) | $(22,723,370) | | Net loss attributable to Atlas Lithium Corporation stockholders | $(5,559,233) | $(9,171,360) | $(14,576,190) | $(22,134,827) | | Basic and diluted loss per share | $(0.31) | $(0.67) | $(0.84) | $(1.61) | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' Equity Changes (Six Months Ended June 30) | Metric | June 30, 2025 | June 30, 2024 | | :------------------------------------- | :------------ | :------------ | | Total Stockholders' Equity | $26,243,316 | $27,762,191 | | Common Stock Issued | 2,827,544 shares | 2,061,111 shares | | Additional Paid-in Capital | $183,186,939 | $151,964,718 | | Net Loss | $(16,493,267) | $(23,137,504) | - Issuance of common stock in connection with private offerings contributed significantly to additional paid-in capital[20](index=20&type=chunk)[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | | :------------------------------------- | :------------ | :------------ | :----- | | Net cash used in operating activities | $(8,306,993) | $(11,292,221) | +$2,985,228 | | Net cash used in investing activities | $(6,290,362) | $(16,777,111) | +$10,486,749 | | Net cash provided by financing activities | $12,923,132 | $30,140,298 | -$17,217,166 | | Cash and cash equivalents at end of period | $13,864,963 | $32,267,730 | -$18,402,767 | Notes to the Condensed Consolidated Financial Statements [NOTE 1 – Organization, Business and Summary of Significant Accounting Policies](index=11&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%2C%20BUSINESS%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - Atlas Lithium Corporation, incorporated in Nevada, focuses on mineral exploration in Brazil, with a special focus on the **Neves Lithium Project**[26](index=26&type=chunk)[29](index=29&type=chunk) - The company's financial statements are prepared under U.S. GAAP and consolidate its 100% owned subsidiaries and Atlas Critical Minerals Corporation (**30.11% equity**, consolidated as a variable interest entity)[27](index=27&type=chunk) - The company operates as a single reportable segment: **mining**, with revenue currently generated solely from its Quartzite project, while other mining projects are in the exploration phase[29](index=29&type=chunk)[32](index=32&type=chunk) [NOTE 2 – Composition of Certain Financial Statement Items](index=12&type=section&id=NOTE%202%20%E2%80%93%20COMPOSITION%20OF%20CERTAIN%20FINANCIAL%20STATEMENT%20ITEMS) Inventories Composition | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Materials and supplies | $395,445 | $321,085 | | Quartzite blocks and slabs | $49,805 | $171,727 | | Total | $445,250 | $492,812 | Property and Equipment, Net | Category | June 30, 2025 Net Book Value | December 31, 2024 Net Book Value | | :-------------------- | :--------------------------- | :------------------------------- | | Total fixed assets | $45,319,972 | $38,855,071 | - Intangible assets, net (primarily software) decreased to **$354,516** as of June 30, 2025, from $399,773 at December 31, 2024[38](index=38&type=chunk) Accounts Payable and Accrued Expenses | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Trade payables | $6,317,257 | $4,779,903 | | Payroll and social charges | $260,818 | $157,191 | | Taxes payable | $25,578 | $64,571 | | Total | $6,603,653 | $5,001,664 | - Operating lease liabilities totaled **$469,119** as of June 30, 2025, with a current portion of $168,667 and a non-current portion of $300,452[42](index=42&type=chunk) Convertible Debt | Creditor | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Due to Nanyang Investment Management Pte Ltd | $5,964,780 | $5,933,866 | | Due to Jaeger Investments Pty Ltd | $1,988,283 | $1,977,979 | | Due to Modha Reena Bhasker | $994,130 | $988,978 | | Due to Clipper Group Limited | $994,130 | $988,978 | | Total convertible debt | $9,941,323 | $9,889,801 | | Current portion | $81,918 | $81,918 | | Non-current portion | $9,859,405 | $9,807,883 | - Convertible debt has a **6.5% interest rate**, 36-month maturity, and a conversion price of **US$28.225/share**[47](index=47&type=chunk) Derivative Assets and Liabilities | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------- | :------------ | :---------------- | | Derivative assets - Non-Deliverable Forward | $427,222 | $0 | | Total derivative assets | $427,222 | $0 | | Derivative liability – conversion feature on convertible debt | $7,070 | $66,310 | | Derivative liability – restricted stock awards | $11,350 | $121,512 | | Derivative liability - Non-Deliverable Forward | $0 | $274,816 | | Total derivative liabilities | $18,420 | $462,638 | [NOTE 3 – Deferred Other Income](index=17&type=section&id=NOTE%203%20%E2%80%93%20DEFERRED%20OTHER%20INCOME) - On May 2, 2023, Atlas Brazil sold a **3% royalty interest** from 19 mineral rights to Lithium Royalty Corp for **$20,000,000 in cash**[60](index=60&type=chunk) - Deferred income will be recognized in profit and loss on a units-of-sale basis in accordance with the sales of spodumene produced[60](index=60&type=chunk) [NOTE 4 – Other Noncurrent Liabilities](index=17&type=section&id=NOTE%204%20%E2%80%93%20OTHER%20NONCURRENT%20LIABILITIES) - Other noncurrent liabilities, primarily tax refinancing programs and provisions for contingencies, amounted to **$31,425** as of June 30, 2025 (down from $33,962 at December 31, 2024)[61](index=61&type=chunk) [NOTE 5 – Stockholders' Equity](index=17&type=section&id=NOTE%205%20%E2%80%93%20STOCKHOLDERS'%20EQUITY) - The Company has **200,000,000 authorized shares** of common stock ($0.001 par value)[62](index=62&type=chunk) - During the six months ended June 30, 2025, **2,468,502 shares** of common stock were sold through an At the Market (ATM) Agreement, generating net proceeds of **$11.9 million**[64](index=64&type=chunk)[68](index=68&type=chunk) - **One share of Series A Preferred Stock** is outstanding, held by the CEO, granting **51% of total votes**[65](index=65&type=chunk) - In the six months ended June 30, 2025, **439,996 common stock options** were issued with a grant date fair value of **$3,066,772**, resulting in **$1,570,740** in stock-based compensation expense[70](index=70&type=chunk) - **75,000 common stock purchase warrants** were issued in the six months ended June 30, 2025, with a total grant date fair value of **$200,981**[72](index=72&type=chunk)[74](index=74&type=chunk) - During the six months ended June 30, 2025, **351,042 Restricted Stock Units (RSUs)** were granted, and **379,042 RSUs** vested, leading to **$3,389,533** in stock-based compensation expense[76](index=76&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk) - A derivative liability of **$11,350** was recognized as of June 30, 2025, for other stock incentives tied to market capitalization milestones for an officer[78](index=78&type=chunk) [NOTE 6 – Commitments and Contingencies](index=22&type=section&id=NOTE%206%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) Contractual Obligations (June 30, 2025) | Obligation | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | | :------------------------------------- | :------------ | :--------------- | :-------- | :-------- | :---------------- | | Lithium processing plant construction | $1,335,700 | $1,335,700 | $0 | $0 | $0 | - Lease commitments are detailed in Note 2[81](index=81&type=chunk) [NOTE 7 – Related Party Transactions](index=22&type=section&id=NOTE%207%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS) - Related parties include Jaeger Investments Pty Ltd (controlled by a former senior advisor) and RTEK International DMCC (controlled by former officers/directors)[83](index=83&type=chunk) - The Technical Services Agreement with RTEK International DMCC was **terminated by the Company on March 20, 2025**, due to alleged non-performance and breaches, with no expected early termination penalties[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - Jaeger Investments Pty Ltd purchased **$1,967,503 of convertible promissory notes** from the Company in November 2023[88](index=88&type=chunk) Related Party Outstanding Amounts and Expenses (June 30, 2025) | Related Party | Accounts Payable / Debt | Expenses / Payments (Six Months) | | :------------------------ | :---------------------- | :----------------------------- | | RTEK International DMCC | $0 | $29,294 | | Jaeger Investments Pty Ltd. | $1,988,283 | $64,467 | | Total | $1,988,283 | $93,761 | - Atlas Critical Minerals Corporation issued **1,365,387 shares** to Mr Fogassa and **438,168 shares** to other officers/directors for services[90](index=90&type=chunk)[91](index=91&type=chunk) [NOTE 8 – Risks and Uncertainties (Currency Risk)](index=25&type=section&id=NOTE%208%20%E2%80%93%20RISKS%20AND%20UNCERTAINTIES) - The Company operates primarily in Brazil, exposing it to currency risks from intercompany receivables/payables and the translation of foreign subsidiary financial results into U.S dollars[92](index=92&type=chunk)[93](index=93&type=chunk) - Changes in exchange rates affect the translation of income statement accounts (average rates), balance sheet assets/liabilities (end-of-period rates), and equity accounts (historical rates), impacting the foreign currency translation adjustment[93](index=93&type=chunk) [NOTE 9 – Subsequent Events](index=25&type=section&id=NOTE%209%20%E2%80%93%20SUBSEQUENT%20EVENTS) - **No material subsequent events** were identified between June 30, 2025, and the date the condensed consolidated financial statements were issued[94](index=94&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, and focus on lithium exploration in Brazil [Overview](index=26&type=section&id=Overview) - Atlas Lithium Corporation is a mineral exploration and development company focused on hard-rock lithium projects in Brazil's 'Lithium Valley', aiming to produce spodumene concentrate[98](index=98&type=chunk) - The company owns **53,942 hectares** for lithium in 95 mineral rights in Brazil, representing the largest portfolio among publicly listed companies[99](index=99&type=chunk) - Atlas Critical Minerals Corporation, an exploration stage company focused on other critical minerals, is consolidated due to Atlas Lithium's **30.11% equity interest**[100](index=100&type=chunk) [Operational Update](index=26&type=section&id=Operational%20Update) - SGS Canada Inc completed the Definitive Feasibility Study (DFS) for the Neves Project, demonstrating **robust project economics**[101](index=101&type=chunk) Neves Project DFS Key Economics | Metric | Value | | :------------------------------------- | :---------------- | | After-tax Internal Rate of Return (IRR) | 145% | | Payback Period | 11 months | | Capital Expenditure (core implementation) | $57 million | | Average Lithium Concentrate Production | 146,000 tons per annum | | Initial Life of Mine | ~7 years | | Projected Cash Costs | $489 per ton | - Brazil's Ministry of Mines and Energy granted a **mining concession** ('Portaria de Lavra') for a key mineral right within the Neves Project, providing perpetual ownership[102](index=102&type=chunk) - The modular dense media separation lithium processing plant was successfully transported to Minas Gerais for assembly[103](index=103&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) - Net loss for the six months ended June 30, 2025, decreased to **$16.4 million**, compared to $23.1 million for the same period in 2024[104](index=104&type=chunk) - The decrease in net loss was mainly due to the absence of exploration cost expenses (capitalized in 2025 vs **$3.2 million expensed in 2024**) and a **$5.4 million decrease** in stock-based compensation expense[106](index=106&type=chunk) - Partially offsetting the decrease was a **$1.6 million increase** in General and Administrative expenses, driven by a $1.7 million increase in payroll and $0.9 million in marketing activities[106](index=106&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had cash and cash equivalents of **$13.9 million** and working capital of **$7.9 million**[104](index=104&type=chunk)[108](index=108&type=chunk) - Net cash used in operating activities decreased by **$3.0 million (26%)** to $8.3 million for the six months ended June 30, 2025, primarily due to capitalized exploration expenses and increased accounts payable[105](index=105&type=chunk) - Net cash used in investing activities decreased by **$10.4 million (63%)** to $6.3 million, reflecting lower payments for the lithium processing plant and capitalized exploration costs[107](index=107&type=chunk)[111](index=111&type=chunk) - Net cash provided by financing activities increased to **$12.9 million**, driven by **$11.9 million** from common stock sales via the ATM Agreement and $1.4 million from subsidiary common stock sales[107](index=107&type=chunk)[111](index=111&type=chunk) - The company believes current cash and equivalents are sufficient for at least twelve months but may require additional equity or debt financing for future growth and project development[108](index=108&type=chunk) [Currency Risk](index=28&type=section&id=Currency%20Risk) - Operations primarily in Brazil expose the company to currency risks from intercompany transactions and the translation of foreign subsidiary financial results into U.S dollars[109](index=109&type=chunk)[110](index=110&type=chunk) - Changes in exchange rates affect the translation of income statement accounts (average rates), balance sheet assets and liabilities (end-of-period rates), and equity accounts (historical rates), impacting the foreign currency translation adjustment account[110](index=110&type=chunk) [Critical Accounting Policies and Estimates](index=29&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - The company's financial statements are prepared in accordance with U.S GAAP[112](index=112&type=chunk) - There have been **no significant changes** to the critical accounting estimates disclosed in the 2024 Form 10-K[112](index=112&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, this disclosure is not required - This item is not required for smaller reporting companies[113](index=113&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes - Disclosure controls and procedures were evaluated and deemed **effective** at a reasonable assurance level as of June 30, 2025[114](index=114&type=chunk) - **No material changes** in internal control over financial reporting occurred in the quarter ended June 30, 2025[115](index=115&type=chunk) - Management acknowledges that controls provide only **reasonable assurance** due to inherent limitations and resource constraints[116](index=116&type=chunk) [PART II - OTHER INFORMATION](index=30&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. LEGAL PROCEEDINGS](index=30&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The company reports no pending legal proceedings expected to have a material adverse effect - **No pending legal proceedings** are likely to result in a material adverse effect on the company's financial position, results of operations, or cash flows[119](index=119&type=chunk) [Item 1A. RISK FACTORS](index=30&type=section&id=Item%201A.%20RISK%20FACTORS) Key investment risks include potential U.S tariffs on Brazilian minerals and uncertainties in the Neves Project's viability - Investing in the company's common stock involves a **high degree of risk**[120](index=120&type=chunk) - New U.S tariffs and trade restrictions on Brazilian products (e.g, a threatened **50% tariff**) and potential sectoral tariffs on critical mineral imports could adversely affect the company's business[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - The economic viability of the Neves Project, despite a supportive Definitive Feasibility Study, faces risks such as significant, prolonged decreases in lithium market prices, operational delays, and more stringent regulations[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) [Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=31&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company issued 5,750 unregistered shares to a consultant for services, exempt under Section 4(a)(2) - On May 5, 2025, **5,750 shares of common stock** were issued to a consultant in exchange for consulting and professional services[129](index=129&type=chunk) - These sales were exempt from registration under **Section 4(a)(2)** of the Securities Act[129](index=129&type=chunk) [Item 3. DEFAULTS UPON SENIOR SECURITIES](index=31&type=section&id=Item%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities - **No defaults** upon senior securities were reported[130](index=130&type=chunk) [Item 4. MINE SAFETY DISCLOSURES](index=31&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) The company reported no mine safety disclosures - **No mine safety disclosures** were reported[131](index=131&type=chunk) [Item 5. OTHER INFORMATION](index=31&type=section&id=Item%205.%20OTHER%20INFORMATION) The CEO and a Board Member entered into Rule 10b5-1(c) plans for potential future sales of common stock - On June 13, 2025, CEO Mr Fogassa entered into a Rule 10b5-1(c) plan for the potential sale of up to **300,000 shares** of common stock[132](index=132&type=chunk) - On the same date, Board Member Mr Roger Noriega entered into a Rule 10b5-1(c) plan for the potential sale of up to **50,000 shares** of common stock[133](index=133&type=chunk) - Both plans are intended to satisfy Rule 10b5-1(c) conditions, with sales starting in September 2025 and expiring in March 2026[132](index=132&type=chunk)[133](index=133&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and technical reports - Key exhibits include the 2023 Stock Incentive Plan, CEO and CFO certifications, and the S-K 1300 Technical Report Summary for the Neves Lithium Project (Exhibit 96.1)[134](index=134&type=chunk) [Signatures](index=33&type=section&id=Signatures) The report is duly signed by the Chief Executive Officer and Chief Financial Officer on August 04, 2025 - The report was signed by Marc Fogassa (Chief Executive Officer and Chairman of the Board) and Tiago Miranda (Chief Financial Officer) on **August 04, 2025**[139](index=139&type=chunk)

Core Viewpoint - Atlas Lithium Corporation has completed a Definitive Feasibility Study (DFS) for its Neves Lithium Project, indicating strong financial metrics including a 145% internal rate of return (IRR), an 11-month payback period, and an after-tax net present value (NPV) of $539 million, positioning it as a low-cost producer in the lithium sector [1][12]. Financial Metrics - The Neves Project is projected to have operational production costs of $489 per tonne of lithium concentrate, making it one of the lowest-cost producers globally [1]. - Direct capital expenditures for the project are estimated at $57.6 million, which is the lowest among other announced projects in Brazil [2]. - The company has already invested approximately $30 million in acquiring and transporting the project's dense media separation (DMS) plant to Brazil [2]. Project Implementation and Technology - The project will utilize proven DMS technology, with a robust lithium recovery rate of 61.7%, producing high-quality, low-impurity lithium concentrate [3]. - The DFS has validated the project's strong economics, emphasizing its capital efficiency and low operating costs [3]. Regulatory and Operational Status - The Neves Project received its mining concession status ("Portaria de Lavra") from Brazil's Ministry of Mines and Energy on May 27, 2025, allowing for continuous mining operations [4]. - The project is located in the Araçuaí Pegmatite District, benefiting from favorable infrastructure and tax incentives that reduce the corporate tax rate from 34% to 15.25% [5][6]. Future Expansion Opportunities - Atlas Lithium is strategically positioned for future growth with its Salinas and Clear Projects, both of which are 100% owned by the company and have shown promising initial results [9][10]. - The Salinas Project is located near a previously owned lithium asset that was acquired for approximately $370 million, indicating its potential value [9]. Leadership and Management - Project implementation is being overseen by Eduardo Queiroz, who has over two decades of experience in managing large-scale mining projects [8]. - The company aims to create quality employment opportunities in the Vale do Jequitinhonha region, contributing to local society [7].

Core Insights - Atlas Lithium Corporation's subsidiary, Atlas Critical Minerals, reported high-grade near-surface rare earths mineralization with grades reaching 28,870 ppm TREO and 23.2% TiO₂, alongside graphite concentrate results of up to 96.6% [1][5][6] - The company holds over 575,000 acres of mineral rights in Brazil, which is known for its significant rare earth deposits and is home to the world's second-largest graphite reserves [1][8] - The strategic importance of critical minerals has been highlighted by recent investments, such as the U.S. Department of Defense's $400 million investment in MP Materials, emphasizing the growing demand for these resources [7][8] Company Overview - Atlas Lithium is advancing its wholly owned Neves lithium project in Minas Gerais, Brazil, which encompasses approximately 539 square kilometers of lithium mineral rights, making it the largest lithium exploration footprint in Brazil among publicly listed companies [10][12] - The company has a 30.1% ownership stake in Atlas Critical Minerals, providing shareholders with exposure to a broader range of critical minerals [1][12] Project Highlights - The Alto Paranaíba rare earths and titanium project is located in a proven rare earths region and is divided into three exploration blocks for operational efficiency [2] - Initial results from the graphite project in Minas Gerais indicate strong metallurgical performance, with conventional flotation techniques yielding graphite concentrates of up to 96.6% total graphite carbon [6][9]

[Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section outlines forward-looking statements, cautioning that actual results may differ materially due to various risks - The report contains forward-looking statements covered by safe harbor provisions, subject to known and unknown risks and uncertainties that may cause actual results to differ materially[11](index=11&type=chunk) - Factors that could cause future results to differ include unprofitable exploration efforts, market fluctuations, government regulations, competition, loss of key personnel, weather phenomena, litigation, and general economic conditions[12](index=12&type=chunk) - Forward-looking statements are based on current expectations and projections and speak only as of the report date; the company does not plan to publicly update or revise them unless required by law[13](index=13&type=chunk)[14](index=14&type=chunk) [PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) Part I presents unaudited condensed consolidated financial statements, management's discussion, market risk, and controls and procedures [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section provides unaudited condensed consolidated financial statements and comprehensive notes on accounting policies [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20March%2031%2C%202025%20%28Unaudited%29%20and%20December%2031%2C%202024) Balance sheets show increased total assets and equity from December 2024 to March 2025, driven by property and capital | Metric | March 31, 2025 (Unaudited) (USD) | December 31, 2024 (USD) | | :--------------------------------- | :------------------------- | :------------------ | | Cash and cash equivalents | $14,000,031 | $15,537,476 | | Total current assets | $14,677,236 | $16,242,384 | | Property and equipment, net | $43,170,531 | $38,855,071 | | Total assets | $60,799,545 | $57,854,608 | | Total current liabilities | $6,299,473 | $5,688,604 | | Total liabilities | $36,509,843 | $35,843,367 | | Total stockholders' equity | $24,289,702 | $22,011,241 | - Total assets increased by approximately **$2.9 million**, from **$57.85 million** at December 31, 2024, to **$60.80 million** at March 31, 2025[17](index=17&type=chunk) - Total stockholders' equity increased by approximately **$2.28 million**, from **$22.01 million** at December 31, 2024, to **$24.29 million** at March 31, 2025[17](index=17&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) Net loss decreased to $10.2 million in Q1 2025, primarily due to lower stock-based compensation and capitalized exploration costs | Metric | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net revenue | $25,175 | $186,707 | | Gross profit / (loss) | $(62,675) | $84,640 | | Total operating expenses | $9,760,882 | $13,266,460 | | Loss from operations | $(9,823,557) | $(13,181,820) | | Net loss | $(10,213,587) | $(13,184,196) | | Net loss attributable to Atlas Lithium Corporation | $(9,016,957) | $(12,963,467) | | Basic and diluted loss per share | $(0.55) | $(1.02) | - Net loss decreased by approximately **$2.97 million (22.6%)** from **$13.18 million** in Q1 2024 to **$10.21 million** in Q1 2025[19](index=19&type=chunk) - Basic and diluted loss per share improved from **$(1.02)** in Q1 2024 to **$(0.55)** in Q1 2025[19](index=19&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) Stockholders' equity increased from $22.01 million to $24.29 million, driven by common stock issuance and stock-based compensation | Metric | December 31, 2024 (USD) | March 31, 2025 (USD) | | :--------------------------------- | :------------------ | :------------------------- | | Common Stock Value | $16,015 | $17,499 | | Additional Paid-in Capital | $166,110,916 | $176,665,848 | | Accumulated Deficit | $(144,410,340) | $(152,953,340) | | Total Stockholders' Equity | $22,011,241 | $24,289,702 | - Issuance of common stock in connection with private offerings contributed **$7,118,449** to equity[23](index=23&type=chunk) - Stock-based compensation added **$4,911,330** to equity[23](index=23&type=chunk) - Net loss for the period reduced equity by **$10,213,587**[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024%20%28Unaudited%29) Net cash used in operating and investing activities decreased, while financing activities provided significant cash, leading to a $1.54 million net cash decrease | Cash Flow Activity | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used by operating activities | $(4,403,577) | $(6,103,264) | | Net cash used in investing activities | $(4,212,590) | $(6,055,535) | | Net cash provided by financing activities| $7,078,012 | $0 | | Net decrease in cash and cash equivalents| $(1,537,445) | $(12,020,462) | | Cash and cash equivalents at period end | $14,000,031 | $17,529,465 | - Net cash used in operating activities decreased by **$1.7 million**, mainly due to the capitalization of exploration expenses[26](index=26&type=chunk)[120](index=120&type=chunk) - Net cash provided by financing activities increased significantly to **$7.08 million** in Q1 2025, primarily from the sale of common stock (**$6.65 million**) and subsidiary common stock to noncontrolling interests (**$0.46 million**)[26](index=26&type=chunk)[125](index=125&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) These notes detail the company's organization, accounting policies, and composition of financial statement items [NOTE 1 – Organization, Business and Summary of Significant Accounting Policies](index=9&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%2C%20BUSINESS%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Atlas Lithium, incorporated in Nevada, focuses on mineral exploration in Brazil, with consolidated financial statements under U.S. GAAP - Atlas Lithium Corporation was incorporated on December 15, 2011, and shifted its focus to mineral exploration in Brazil on December 18, 2012[29](index=29&type=chunk) - The company's condensed consolidated financial statements include its 100% owned subsidiaries (Atlas Lithium Limited, Athena Mineral Resources Corporation, Brazil Mineral Resources Corporation) and its **30.51%** equity interest in Atlas Critical Minerals Corporation, which is consolidated as a variable interest entity (VIE)[30](index=30&type=chunk) [NOTE 2 – Composition of Certain Financial Statement Items](index=10&type=section&id=NOTE%202%20%E2%80%93%20COMPOSITION%20OF%20CERTAIN%20FINANCIAL%20STATEMENT%20ITEMS) This note details the composition and changes in key financial statement items, including inventories, property, leases, and derivatives [Inventories](index=10&type=section&id=Inventories) Inventories decreased to $417,776 at March 31, 2025, primarily due to a $65,556 write-down of quartzite blocks | Inventory Component | March 31, 2025 (USD) | December 31, 2024 (USD) | | :------------------ | :------------- | :---------------- | | Inventory in transit| $321,085 | $321,085 | | Quartzite blocks and slabs | $162,247 | $171,727 | | Loss on inventories revaluation | $(65,556) | $- | | Total | $417,776 | $492,812 | - An inventory write-down of **$65,556** was recorded as of March 31, 2025, to adjust quartzite blocks to their estimated net realizable value, impacting cost of revenue[38](index=38&type=chunk) [Property and Equipment](index=10&type=section&id=Property%20and%20Equipment) Net property and equipment increased to $43.17 million at March 31, 2025, due to Prepaid Assets (CIP) and capitalized exploration costs | Component | March 31, 2025 Net Book Value (USD) | December 31, 2024 Net Book Value (USD) | | :-------------------- | :------------------------------ | :------------------------------- | | Prepaid Assets (CIP) | $26,542,827 | $23,449,896 | | Mining rights | $6,655,771 | $6,558,161 | | Exploration costs | $5,532,338 | $4,496,976 | | Total fixed assets | $43,170,531 | $38,855,071 | - Exploration costs are capitalized if they relate to a commercially mineable ore body and provide a probable future benefit[39](index=39&type=chunk) [Intangible Assets](index=10&type=section&id=Intangible%20Assets) Intangible assets, primarily software costs, decreased slightly to $377,145 at March 31, 2025 | Metric | March 31, 2025 (USD) | December 31, 2024 (USD) | | :--------------- | :------------- | :---------------- | | Intangible assets, net | $377,145 | $399,773 | [Accounts Payable and Accrued Expenses](index=10&type=section&id=Accounts%20Payable%20and%20Accrued%20Expenses) Accounts payable and accrued expenses increased to $5.83 million at March 31, 2025, due to higher trade payables and payroll charges | Component | March 31, 2025 (USD) | December 31, 2024 (USD) | | :---------------------- | :------------- | :---------------- | | Trade payables | $5,560,549 | $4,779,903 | | Payroll and social charges | $209,224 | $157,191 | | Taxes payable | $59,867 | $64,571 | | Total | $5,829,640 | $5,001,664 | [Leases](index=11&type=section&id=Leases) Operating lease liabilities increased to $481,367 at March 31, 2025, with a current portion of $153,649 | Metric | Amount (USD) | | :--------------------------------- | :----- | | Lease liabilities at Dec 31, 2024 | $447,218 | | Increase/Decrease | $32,150 | | Unwinding of lease liabilities | $7,571 | | Lease payments | $(40,438) | | Foreign exchange | $34,866 | | Lease liabilities at Mar 31, 2025 | $481,367 | | Current portion | $153,649 | | Non-current portion | $327,718 | - The lease liabilities are discounted using an incremental borrowing rate of **6.5%**[45](index=45&type=chunk) [Convertible Debt](index=12&type=section&id=Convertible%20Debt) Total convertible debt increased to $10.08 million at March 31, 2025, with a 6.5% annual interest rate and $28.225/share conversion price | Lender | March 31, 2025 (USD) | December 31, 2024 (USD) | | :-------------------------- | :------------- | :---------------- | | Due to Nanyang Investment Management Pte Ltd | $6,045,402 | $5,933,866 | | Due to Jaeger Investments Pty Ltd | $2,015,158 | $1,977,979 | | Due to Modha Reena Bhasker | $1,007,567 | $988,978 | | Due to Clipper Group Limited| $1,007,566 | $988,978 | | Total convertible debt | $10,075,693 | $9,889,801 | | Current portion | $242,192 | $81,918 | | Non-current portion | $9,833,501 | $9,807,883 | - The convertible notes were issued on November 7, 2023, for **$10 million**, with a **6.5%** annual interest rate and a conversion price of **$28.225 per share**[48](index=48&type=chunk)[50](index=50&type=chunk) - The company recorded **$160,274** in interest expense and **$25,619** in accretion expense for the three months ended March 31, 2025[48](index=48&type=chunk) [Derivative Liabilities](index=12&type=section&id=Derivative%20Liabilities) Derivative liabilities significantly decreased to $65,030 at March 31, 2025, due to fair value changes and NDF reclassification | Derivative Type | March 31, 2025 (USD) | December 31, 2024 (USD) | | :------------------------------------------ | :------------- | :---------------- | | Derivative assets - Non-Deliverable Forward | $66,785 | $- | | Derivative liability – conversion feature | $24,677 | $66,310 | | Derivative liability – restricted stock awards | $40,353 | $121,512 | | Derivative liability - Non-Deliverable Forward | $- | $274,816 | | Total derivative liabilities | $65,030 | $462,638 | - The fair value of the embedded conversion feature on convertible debt decreased from **$66,310** to **$24,677**, resulting in a **$41,633 gain** recognized in Q1 2025[53](index=53&type=chunk)[54](index=54&type=chunk) - The company uses Non-Deliverable Forward (NDF) contracts to mitigate foreign currency exchange-rate fluctuations, with unrealized gains of **$76,395** recognized in Other Comprehensive Income (OCI) for the period ended March 31, 2025[59](index=59&type=chunk)[60](index=60&type=chunk)[66](index=66&type=chunk) [NOTE 3 – Deferred Other Income](index=14&type=section&id=NOTE%203%20%E2%80%93%20DEFERRED%20OTHER%20INCOME) Atlas Brazil sold a 3% gross revenue royalty interest for $20 million, with an option for an additional $5 million royalty purchase - On May 2, 2023, Atlas Brazil sold a **3%** gross revenue royalty interest from 19 mineral rights in Brazil to Lithium Royalty Corp. for **$20,000,000** in cash[64](index=64&type=chunk) - The Royalty Agreement includes an option for LRC to purchase additional royalty interests for **$5,000,000**[67](index=67&type=chunk) [NOTE 4 – Other Noncurrent Liabilities](index=15&type=section&id=NOTE%204%20%E2%80%93%20OTHER%20NONCURRENT%20LIABILITIES) Other noncurrent liabilities, including tax programs and contingencies, increased to $49,151 at March 31, 2025 | Metric | March 31, 2025 (USD) | December 31, 2024 (USD) | | :------------------------ | :------------- | :---------------- | | Other noncurrent liabilities | $49,151 | $33,962 | [NOTE 5 – Stockholders' Equity](index=16&type=section&id=NOTE%205%20%E2%80%93%20STOCKHOLDERS%27%20EQUITY) This note details stockholders' equity components, including authorized stock, preferred stock, common stock transactions, options, and RSUs [Authorized Stock](index=16&type=section&id=Authorized%20Stock) The company had 200,000,000 authorized common shares; 1,169,751 shares were sold via ATM in Q1 2025 for $6.6 million net - The company has **200,000,000** authorized shares of common stock (**$0.001** par value)[70](index=70&type=chunk) - During the three months ended March 31, 2025, **1,169,751** shares were sold under the ATM Agreement for **$6.6 million**, net of commissions and fees[72](index=72&type=chunk) [Series A Preferred Stock](index=16&type=section&id=Series%20A%20Preferred%20Stock) One Series A Preferred Stock share, held by the CEO, grants 51% of total votes, voting with common stockholders - One share of Series A Preferred Stock is outstanding, held by the CEO and Chairman, Mr. Fogassa[73](index=73&type=chunk) - The Series A Preferred Stock grants its holder **51%** of the total votes on all matters, voting as a single class with common stockholders[73](index=73&type=chunk) [Common Stock Options](index=17&type=section&id=Common%20Stock%20Options) In Q1 2025, 439,996 common stock options were issued, resulting in $804,047 stock-based compensation expense | Metric | March 31, 2025 | March 31, 2024 | | :------------------------------------ | :------------- | :------------- | | Options Issued | 439,996 | 429,996 | | Grant Date Fair Value of Issued Options (USD) | $3,066,772 | $13,447,502 | | Stock-based compensation expense (USD) | $804,047 | $3,315,822 | - The weighted-average exercise price for outstanding and vested options at March 31, 2025, was **$0.0243**, significantly lower than **$1.6879** at March 31, 2024[79](index=79&type=chunk) [Common Stock Purchase Warrants](index=18&type=section&id=Common%20Stock%20Purchase%20Warrants) In Q1 2025, 75,000 common stock purchase warrants were issued, resulting in $200,981 stock-based compensation expense | Metric | March 31, 2025 | | :------------------------------------ | :------------- | | Warrants Issued | 75,000 | | Total Grant Date Fair Value of Warrants (USD) | $200,981 | | Stock-based compensation expense (USD) | $200,981 | - No common stock purchase warrants were issued during the three months ended March 31, 2024[83](index=83&type=chunk) [Restricted Stock Units ("RSUs")](index=19&type=section&id=Restricted%20Stock%20Units%20%28%22RSUs%22%29) In Q1 2025, 310,911 RSUs were granted, 319,911 vested, and 5,000 forfeited, with $2,896,938 in stock-based compensation expense | RSU Activity | Number of RSUs (Q1 2025) | | :----------------------- | :----------------------- | | Outstanding at Jan 1, 2025 | 572,476 | | Granted | 310,911 | | Vested | (319,911) | | Forfeited | (5,000) | | Outstanding at Mar 31, 2025 | 558,476 | - Stock-based compensation expense from RSU activity for Q1 2025 was **$2,896,938**, compared to **$2,891,703** in Q1 2024[88](index=88&type=chunk) [Other stock incentives measured at fair value through profit or loss](index=19&type=section&id=Other%20stock%20incentives%20measured%20at%20fair%20value%20through%20profit%20or%20loss) As of March 31, 2025, a $40,353 derivative liability existed for stock incentives tied to market capitalization milestones - Outstanding obligations to issue common stock based on market capitalization milestones are classified as liability-classified awards and measured at fair value through profit or loss[89](index=89&type=chunk) | Metric | March 31, 2025 (USD) | December 31, 2024 (USD) | | :------------------------------------ | :------------- | :---------------- | | Derivative liability | $40,353 | $513,757 | | Shares obligated if conditions met | 160,145 | 127,535 | [NOTE 6 – Commitments and Contingencies](index=20&type=section&id=NOTE%206%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) As of March 31, 2025, Atlas Lithium had $1,138,911 in contractual obligations for lithium plant construction, due within one year | Obligation | Total (USD in thousands) | Less than 1 Year (USD in thousands) | | :-------------------------------- | :------------------- | :------------------------------ | | Lithium processing plant construction | $1,138,911 | $1,138,911 | | Total | $1,138,911 | $1,138,911 | - The majority of payments for lithium processing plant construction obligations are due upon delivery[92](index=92&type=chunk) [NOTE 7 – Related Party Transactions](index=20&type=section&id=NOTE%207%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS) This note details related party transactions, including a convertible note with Jaeger Investments and a terminated technical services agreement - The company terminated its Technical Services Agreement with RTEK International DMCC on March 20, 2025, due to alleged non-performance and breach of exclusivity, disagreeing with RTEK's prior termination notice[98](index=98&type=chunk)[99](index=99&type=chunk) - Jaeger Investments Pty Ltd., a related party, holds **$2,015,158** in convertible debt as of March 31, 2025[102](index=102&type=chunk)[103](index=103&type=chunk) - Atlas Critical Minerals issued **1,333,469** shares of its common stock to Mr. Fogassa and **144,125** shares to other officers/directors in Q1 2025 as stock-based compensation[104](index=104&type=chunk)[105](index=105&type=chunk) [NOTE 8 – Risks and Uncertainties](index=22&type=section&id=NOTE%208%20%E2%80%93%20RISKS%20AND%20UNCERTAINTIES) The company faces currency risk from its Brazil operations, affecting intercompany transactions and foreign subsidiary financial results - Operating primarily in Brazil exposes the company to currency risks from intercompany receivables/payables and the translation of foreign subsidiary financial results into U.S. dollars[108](index=108&type=chunk)[109](index=109&type=chunk) - Changes in exchange rates affect the foreign currency translation adjustment account in shareholders' equity[109](index=109&type=chunk) [NOTE 9 – Subsequent Events](index=22&type=section&id=NOTE%209%20%E2%80%93%20SUBSEQUENT%20EVENTS) No material subsequent events were identified between March 31, 2025, and the issuance date of these financial statements - No material subsequent events were identified between March 31, 2025, and the issuance date of the condensed consolidated financial statements[110](index=110&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) This section provides an overview of Atlas Lithium's business, operational progress, Q1 2025 financial results, liquidity, and currency risks [Overview](index=23&type=section&id=Overview) Atlas Lithium is a mineral exploration and development company focused on hard-rock lithium projects in Brazil - Atlas Lithium is a mineral exploration and development company focused on hard-rock lithium projects in Minas Gerais, Brazil, aiming to produce spodumene concentrate[113](index=113&type=chunk) - The company holds **53,942 hectares** for lithium across **95** mineral rights in Brazil, claiming the largest portfolio among publicly listed companies[114](index=114&type=chunk) - Atlas Lithium owns approximately **30.51%** of Atlas Critical Minerals Corporation, an exploration stage company focused on other critical minerals, whose results are consolidated[115](index=115&type=chunk) [Operational Update](index=23&type=section&id=Operational%20Update) In Q1 2025, Atlas Lithium made significant operational progress, including hiring a Project Manager, shipping its DMS plant, and advancing its DFS - In January 2025, a Project Manager Officer and VP of Engineering with extensive mining industry experience was hired[116](index=116&type=chunk) - The modular DMS lithium processing plant, designed to produce up to **150,000 tons** of lithium concentrate per annum, was shipped from South Africa and arrived in Brazil in early March 2025[117](index=117&type=chunk) - Significant progress was made on the Definitive Feasibility Study (DFS) in partnership with SGS Canada Inc. and on permitting additional mining pit areas. All permits for the Neves Project's DMS plant assembly, mining, processing, and sales are secured[118](index=118&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Net loss decreased to $10.2 million in Q1 2025, primarily due to lower stock-based compensation and capitalized exploration costs | Metric | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net loss | $(10.2) million | $(13.2) million | | General and administrative expenses | Increased by $1.7 million | | | Stock-based compensation expense | Decreased by $2.0 million | | | Exploration cost expenses | $0 (capitalized) | $3.2 million | - The decrease in net loss was mainly driven by reduced stock-based compensation and the capitalization of exploration expenses, which were expensed in the prior year[119](index=119&type=chunk)[121](index=121&type=chunk) - General and administrative expenses increased due to team expansion and higher marketing/investor relations service costs[121](index=121&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Atlas Lithium had $14.0 million in cash and $8.3 million in working capital, with financing activities providing $7.1 million | Metric | March 31, 2025 (USD) | December 31, 2024 (USD) | | :--------------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $14.0 million | $15.5 million | | Working capital | $8.3 million | $10.6 million | - Net cash used in operating activities decreased by **$1.7 million** to **$4.4 million** in Q1 2025, mainly due to capitalizing exploration expenses[120](index=120&type=chunk) - Net cash provided by financing activities was **$7.1 million** in Q1 2025, primarily from **$6.6 million** in common stock sales via the ATM Agreement and **$464,000** from subsidiary common stock sales[122](index=122&type=chunk)[125](index=125&type=chunk) [Currency Risk](index=25&type=section&id=Currency%20Risk) The company's Brazil operations expose it to currency risks, affecting intercompany transactions and foreign subsidiary financial results - Operations primarily in Brazil expose the company to currency risks from intercompany receivables/payables and the translation of foreign subsidiary financial results into U.S. dollars[123](index=123&type=chunk)[124](index=124&type=chunk) - Changes in exchange rates affect the foreign currency translation adjustment account in shareholders' equity[124](index=124&type=chunk) [Critical Accounting Policies and Estimates](index=26&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Financial statements are prepared under U.S. GAAP, requiring management to make estimates and assumptions affecting reported financial figures - Financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates and assumptions that impact reported financial figures[126](index=126&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not required for smaller reporting companies, so no specific disclosures are provided - The information for this item is not required for smaller reporting companies[127](index=127&type=chunk) [Item 4. Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management evaluated disclosure controls and procedures as effective, with no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=26&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2025 - Disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of March 31, 2025[128](index=128&type=chunk) [Changes in Internal Control over Financial Reporting](index=26&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2025 - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2025[129](index=129&type=chunk) [Limitations of the Effectiveness of Controls and Procedures](index=26&type=section&id=Limitations%20of%20the%20Effectiveness%20of%20Controls%20and%20Procedures) Controls and procedures provide reasonable assurance due to inherent resource constraints and management judgment - Controls and procedures, no matter how well designed, can only provide reasonable assurance due to resource constraints and the application of management judgment[130](index=130&type=chunk) [PART II - OTHER INFORMATION](index=27&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) Part II covers legal proceedings, risk factors, unregistered equity sales, defaults, mine safety, and exhibits [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The company reported no material legal proceedings - There are no material legal proceedings to report[133](index=133&type=chunk) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20RISK%20FACTORS) Investing in the company's common stock involves high risk, including potential adverse effects from tariffs and trade policy changes - Investing in the company's common stock involves a high degree of risk, and investors should carefully consider all risk factors[134](index=134&type=chunk) - Tariffs, trade restrictions, and changes in international trade policy, such as those potentially arising from Section 232 analysis on critical mineral imports, could adversely affect the company's business, financial condition, and results of operations[135](index=135&type=chunk) - An escalating global trade war or retaliatory trade measures could decrease demand for the company's minerals and impact the markets in which it operates[135](index=135&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) In Q1 2025, the company issued 40,000 common stock options and 75,000 common stock purchase warrants, exempt from registration - On January 1, 2025, **40,000** common stock options were issued to directors as compensation[139](index=139&type=chunk) - On January 29, 2025, **75,000** common stock purchase warrants were issued to certain investors in connection with equity financing activities[139](index=139&type=chunk) [Item 3. Defaults Upon Senior Securities](index=27&type=section&id=Item%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities - There were no defaults upon senior securities[136](index=136&type=chunk) [Item 4. Mine Safety Disclosures](index=27&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) The company reported no mine safety disclosures - There were no mine safety disclosures[137](index=137&type=chunk) [Item 5. Other Information](index=27&type=section&id=Item%205.%20OTHER%20INFORMATION) The company reported no other information - There is no other information to report[138](index=138&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including CEO and CFO certifications and Inline XBRL documents | Exhibit Number | Description | | :------------- | :-------------------------------------------------------------------------------- | | 31.1* | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | | 31.2* | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | | 32.1** | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | | 101.INS* | Inline XBRL Instance Document | | 104* | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signatures](index=29&type=section&id=Signatures) The report was signed by Marc Fogassa, CEO and Chairman, and Tiago Miranda, CFO, on May 9, 2025 - The report was signed by Marc Fogassa, Chief Executive Officer and Chairman of the Board, and Tiago Miranda, Chief Financial Officer, on May 9, 2025[145](index=145&type=chunk)

Project Development - Atlas Lithium Corporation is focused on the development of its hard-rock lithium project in Minas Gerais, Brazil, known as "Lithium Valley," which includes 85 mineral rights totaling approximately 468 km[17][20]. - The company aims to produce lithium concentrate at its Neves Project, with a processing plant designed to produce 150,000 tons of lithium concentrate per annum, which was successfully shipped to Brazil in March 2025[25][26]. - The Minas Gerais Lithium Project has confirmed the presence of hard-rock lithium-bearing pegmatites, with individual pegmatite bodies ranging from several meters to over 50 meters thick[23][28]. - The government of Minas Gerais granted priority status for environmental permitting of the Neves Project, expediting the process and resulting in the grant of the operating license on October 26, 2024[40]. - The company has identified six promising exploration targets within the Neves Project through geological mapping and soil geochemistry work[29][33]. Financial Performance - The company has an accumulated deficit of approximately $144.4 million as of December 31, 2024, and expects to continue incurring losses unless projects enter commercial production[60]. - The company has generated limited revenues from operations and has historically funded operations through equity and debt issuances, not cash flows from operations[58]. - The company has incurred losses in each of the past three years and has negative cash flow from operating activities[59]. - For the year ended December 31, 2023, costs associated with exploration activities were significantly higher than in prior years, contributing to a substantial increase in net loss compared to the previous year[79]. - The ability to access capital markets is critical; any inability to do so may limit the company's operations and growth[76]. Capital and Financing - On March 28, 2024, the company entered into a Securities Purchase Agreement with Mitsui & Co., Ltd., agreeing to sell 1,871,250 shares for aggregate net proceeds of $29.6 million[61]. - The company issued 2,062,973 shares of common stock during the year ended December 31, 2024, to raise capital[77]. - The company intends to finance operations through the issuance of equity and/or debt securities until profitability is achieved, which may dilute existing stockholders' ownership[118]. Operational Risks - The company faces significant risks related to mining, exploration, and compliance with government regulations, which could impact its financial condition[57]. - The company relies on third-party contractors for drilling and construction, and any inability to hire and retain these contractors could adversely affect operations[54]. - The company faces challenges in hiring and retaining third-party contractors for drilling and construction, which may impair its business plan and exploration activities[91]. - The company relies on third-party consultants for technical requirements, which poses operational and financial risks if they fail to meet obligations[86]. - The mining operations are subject to significant regulatory risks, including extensive environmental laws that could increase compliance costs and impact future operations[94]. Market Conditions - In 2023, lithium prices decreased by approximately 75% to 85% from their high in January 2023, with battery-grade lithium carbonate prices dropping from around CNY ¥100,000 per ton to approximately CNY ¥75,000 per ton by the end of the year, representing a decrease of about 25%[107]. - The company’s future revenues and profitability are highly dependent on the demand for lithium-based products and the development of new applications for lithium batteries[106]. - The development of non-lithium battery technologies could adversely affect the company’s prospects and future revenues[105]. - The company’s operations in Brazil are heavily regulated, and any significant changes in mining legislation could alter business prospects[109]. - The perception of Brazil's political environment and environmental policies may impact investor interest and the company's ability to sell its minerals[110]. Governance and Management - The Chief Executive Officer, Marc Fogassa, holds more than 50% of the voting securities, concentrating control and potentially limiting other stockholders' influence on corporate decisions[119]. - The company is classified as a "controlled company" under Nasdaq rules, which may make its common stock less attractive to some investors[121]. - The costs of operating as a public company are substantial, with management required to devote significant time to compliance with various regulations[123]. - A material weakness in internal control over financial reporting was identified as of December 31, 2023, which could adversely affect the company's financial reporting accuracy[126]. External Factors - Geopolitical tensions, including the war in Ukraine and conflicts in the Middle East, may disrupt global markets and adversely impact the company's operations and financial condition[130]. - The company may face adverse effects from tariffs and changes in international trade policy, particularly regarding exports from Brazil[128]. - A resurgence of the COVID-19 pandemic could lead to restrictions that may negatively impact the company's business operations[129]. - The company faces significant risks including competitive pricing pressures, ability to obtain working capital financing, and potential changes in management[120]. - The company’s common stock price has been volatile, and significant sales of shares by stockholders could cause the stock price to fall[57].