NASDAQ: ATLX

Minas
Gerais Lithium Project

Minas Gerais Lithium Project (“MGLP”) comprises 85 mineral rights totaling approximately 468 km2,
representing our most material property. In particular, we are focused on the Neves Project (as defined below), which is a part of
MGLP. The Neves Project is depicted in Figure 1.

Figure
1: Neves Project mineral rights.

We
are primarily focused on advancing and developing our hard-rock lithium project located in the state of Minas Gerais, Brazil. Our Minas
Gerais Lithium Project is currently our largest undertaking and primary focus. This project is located in northeastern Minas Gerais,
Brazil along the Eastern Brazilian Pegmatite Province (“EBP”) that extends more than 850 kilometers across eastern Minas
Gerais. The EBP has been surveyed by the Brazilian Geological Survey and is known for the presence of hard rock formations known as pegmatites
which contain lithium-bearing minerals such as spodumene and petalite. Pegmatites are igneous bodies derived during the final stages
of crystallization of a larger parent igneous intrusion, most commonly a granitic rock. They are distinctive for their very coarse-grained
crystalline texture, and in some instances, complex composition with unusual minerals and rare elements. Commercially productive lithium
mineralization along the EBP is centered around the Araçuaí mining district, which is host to the majority of Brazil’s
commercial lithium production and reported mineral reserves.

Because
of the region’s long mining history, basic local infrastructure near our mineral properties ranges from adequate to robust, with
access to hydroelectric power and water supplies, and a well-established road network with direct access to commercial ports. Basic goods
and services, industrial suppliers and a skilled and semi-skilled labor force are also generally available from the surrounding communities
where we operate.

Since
initiating exploration at MGLP in early 2021, we have confirmed the widespread presence of hard-rock lithium-bearing pegmatites across
our property portfolio.

We
believe that we can increase our value by continuing our exploration work and quantification of our lithium mineralization, as well as
by expanding our exploration campaign to new, high-potential areas within our portfolio of mineral rights. Our commercial goal
is to enter production of lithium concentrate, a product which is highly sought after in the battery supply chain.

2025, we received our modular dense media separation lithium processing plant (“DMS Plant”), which was manufactured in
South Africa. It was designed to produce approximately 150,000 tons of lithium concentrate per annum (“tpa”).

DMS Plant represents a cornerstone of our Neves Project, and was designed to deliver high-quality lithium concentrate to the global market
for electric vehicles (EVs) and renewable energy storage systems (ESS). With worldwide lithium demand growing, we are positioned to emerge
as a key contributor to the sustainable energy transition. This milestone marks a significant step in our progression toward becoming
the next lithium producer in Brazil’s resource-rich Lithium Valley.

During the fourth quarter of 2025, we made strong
progress in the procurement process for the project tasks and other contracted work (collectively referred to herein as “work items”)
needed for the implementation of the Neves Project. Examples of such work items include assembly of our dense media separation plant and
earth works. We have generally received multiple competing bids for each of the relevant work items, including 19 bids for one work item.
Our supplier selection criteria are based on technical qualification and experience, and with these conditions met, then best price and
terms.

Geology

EBP is considered to be one of the world’s largest geologic belts of granite and related pegmatite intrusive bodies, encompassing
more than 150,000 km2 and with more than 90% of the belt located in eastern Minas Gerais. Pegmatites are igneous rocks that
form during the final stages of a granitic magma’s crystallization. They are readily identifiable by their exceptionally coarse
crystalline texture, with individual crystals averaging one centimeter or more in size. Most pegmatites have a simple mineral composition
common to granitic rocks, however some may also contain lithium minerals of commercial interest such as spodumene which can contain up
to 3.73% Li (8.03% Li2O2), and petalite with up to 2.09% Li (4.50% Li2O2).

MGLP area encompasses multiple areas of mineralized pegmatites, in general occurring as series of sub-parallel elongate tabular bodies,
referred to as ‘pegmatite dike swarms,’ hosted in metamorphic shists. Individual pegmatite bodies range from several meters
to more than 50 meters thick and from tens of meters up to approximately one kilometer in lateral strike length. They are primarily composed
of minerals such as quartz, feldspar and mica, with localized concentrations of spodumene and petalite. Individual feldspar and spodumene
crystals can reach up to two meters in length but typically are more homogeneously distributed and range in size from one to a few centimeters
in length.

Neves
Project

At
our Neves Project, the focus is on the delineation of the four confirmed pegmatite bodies with spodumene mineralization, designated as
Anitta 1 through 4. Complementing the four confirmed mineralized pegmatites are six new and promising target areas designated by our
geology team within our Neves Project.

Figure
2: Neves Project location within Lithium Valley.

Through
geological mapping and soil geochemistry work, six promising exploration targets have been identified within the Neves Project, as shown
in the map below.

Raw
Materials

We
do not have any material dependence on any raw materials or raw material supplier. All of the raw materials that we need are available
from numerous suppliers and at market-driven prices.

Government
Regulation

Mining
Regulation and Compliance

Mining
regulation in Brazil is carried out by the National Mining Agency (“ANM”), a federal entity with offices in each state in
Brazil. We are required to file for exploration licenses for each mineral right that we own with the ANM office of the state in which
such mineral right is located. The applications for such licenses must contain, among other things, a project for the exploration work
to be undertaken. If approved, we have three years (subject to extension to up to an additional three years) to conduct exploration activities
in accordance with the approved plan and prove the existence of the mineral and quantify a deposit. Once exploration is completed, ANM
requires a final exploration report which, if approved, allows for the application of an extraction license. Extractions requests require
detailed economic viability studies. We have been issued exploration licenses for our key areas for lithium. We believe that we maintain
a good relationship with ANM.

Environmental
Regulation and Compliance

Environmental
regulation in Brazil is carried out by state-level agencies, which may have multiple offices, including one for each region of the state.
For each mineral right that we own, after sufficient
exploration work has been conducted, we can apply for operational permitting towards mining by filing any such paperwork with the local
office of the environmental agency that has the applicable geographical jurisdiction. We believe that we maintain a good relationship
with the offices of the environmental agency and believe that our methods of monitoring are adequate for our current needs.

On October 26, 2024, we received
the operating license for our Neves Project in the state of Minas Gerais, Brazil, following the completion of the environmental permitting
and licensing process.

On August 14, 2025, the
Minas Gerais state agency responsible for permitting applications issued an extensive technical report recommending approval
of the Company’s expansion permit application.

current environmental regulations state that for the duration of mining operations and for a period of five years after all mining operations
have ceased, we would still be required to perform any necessary recuperation work.

Environmental,
Social and Governance

We
are committed to Environmental, Social, and Corporate Governance (“ESG”) causes. We believe that our efforts make a difference
in the communities in which we operate. The list below highlights our recent initiatives to develop the communities in which we operate:

Support
with donations of machines and equipment for works carried out by local governments:

○
Use
of our water truck for the works to improve access to local communities;

○
Improvements
in the Neves community pavement;

○
Use
of our earth moving equipment for a mobile phone tower in the community of Neves;

○
Use
of our water truck for supplying communities and wetting roads;

○
Donation
of asphalt emulsion to improve main roads in Araçuaí;

○
Donation
of new water pipes to replace old pipes in communities surrounding the access route to the development; and

○
Supply
of culverts for drainage work in access roads used by the community and the development.

Road
improvements and gravel:

○
Improving
road access to a municipal school and the São José das Neves community;

○
Improving
road access to Comunidade Cardoso´s hill;

○
Improving
road access to Neves Community;

Infrastructure

○
Construction
of accommodation for teachers at the Calhauzinho Community State School;

○
Construction
of the sidewalk, accessibility ramp, recreation yard and improvement of the canteen at the municipal school of the São José
das Neves community;

○
Construction
of the support house, kitchen and courtyard of the São José das Neves Community Church;

○
Renovation
and painting of the São José das Neves Community Church in partnership with the outsourced company Eco Sondagens;

○
Construction/revitalization
of 14 small water storage dams for local residents;

Professional
development

○
Developed
trainee plan for the inclusion of women students in the mining technician course;

○
Agreement
with Instituto Técnico Educacional Polivalente de Araçuaí-ITEP to offer internship positions at Atlas to the
institution’s best students;

○
o
Partnership with SESI/SENAI/FIEMG to offer technical and professional courses using rooms on the 1st floor of our building in Araçuaí
for face-to-face classes after it becomes operational;

Social

○
Donation
of basic food baskets to the Association of Parents and Friends of Exceptional Children of Araçuaí;

○
Organization
of a Christmas charity event for children from Neves, São José das Neves, Calhauzinho and Aguada Nova with distribution
of gifts and sneakers for the children;

○
Sponsorship
of traditional festivals in the communities of Neves, São José das Neves; and

○
Sponsorship
of a local organization focused on developing social programs and including children in sports, offering classes in Araçuaí
and other municipalities in the Jequitinhonha Valley.

current efforts are focused on hiring workers from communities near our project areas. Many of these communities have high levels of
unemployment, and we believe that we are making a positive contribution by hiring local personnel at wages that are above the regional
monthly wages.

Form
and Year of Organization

We
were incorporated in the State of Nevada on December 15, 2011, under the name Flux Technologies, Corp. From inception until December
18, 2012, we were focused on the software business, which business was discontinued. We operated with the name “Brazil Minerals,
Inc.” until September 26, 2022, when we changed our name to “Atlas Lithium Corporation.” In January 2023, we completed
a public offering of shares of our common stock and on January 10, 2023 began trading on the Nasdaq Capital Market under the ticker symbol
“ATLX.”

Available
Information

We
maintain a website at www.atlas-lithium.com. We make available free of charge, through the Public Filings section of the Investors tab
on our website, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those
reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after such material
is electronically filed with, or furnished to, the Securities and Exchange Commission (the “SEC”). The information on our
website is not, and shall not be deemed to be, a part hereof or incorporated into this or any of our other filings with the SEC.

addition, the SEC maintains a website at www.sec.gov which contains reports, proxy and information statements filed electronically by
us with the SEC.

Employees

As of the date of this Annual Report, we have 64
employees, out of which 75% are unionized, with certain employees represented by a private federation of employees in the extractive
industries of the state of Minas Gerais (the “Employee Federation”) and the remainder represented by a labor union.
Representation by the Employee Federation is legally mandatory for all extractive enterprises with respect to their non-management
workers under labor laws. We have collective bargaining agreements adopted by the Employee Federation and labor union since March
2024 and December 2025, respectively, which set forth standard working conditions and employee benefits. We believe that we maintain a good relationship with our
employees, the federation and the labor union.