Edison Lithium : FY2022 Q3 Management's Discussion & Analysis

EDISON LITHIUM CORP.

(formerly Edison Cobalt Corp.)

MANAGEMENT'S DISCUSSION & ANALYSIS

For the nine months ended June 30, 2022 and 2021

(Expressed in Canadian dollars)

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EDISON LITHIUM CORP.

(formerly Edison Cobalt Corp.)

MANAGEMENT'S DISCUSSION AND ANALYSIS

This Management's Discussion and Analysis ("MD&A") is intended to help readers understand the significant factors that affect the performance of Edison Lithium Corp. and its subsidiaries (the "Company") and those that may affect future performance. The MD&A has been prepared as of August 29, 2022, and should be read in conjunction with the Company's interim condensed consolidated financial statements for the three and nine months ended June 30, 2022, and the audited consolidated financial statements for the year ended September 30, 2021, and the related notes thereto prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations issued by the International Financial Reporting Committee ("IFRC"). The Company's significant accounting policies are set out in Note 2 of the June 30, 2022, interim condensed consolidated financial statements. All dollar amounts are expressed in Canadian dollars (the presentation currency of the Company) unless otherwise indicated. Additional information relating to the Company is available on SEDAR at www.sedar.com.

Forward-Looking Statements

Certain statements contained in this document constitute "forward-looking statements". When used in this document, the words "may", "would", "could", "will", "intend", "plan", "propose", "anticipate", "believe", "forecast", "estimate", "expect" and similar expressions, as they relate to the Company or its management and operations, are intended to identify forward-looking statements. Such statements reflect the Company's current views and beliefs with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company does not intend, and does not assume any obligation, to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or development except as may be required by law or regulation.

INTRODUCTION

Edison Lithium Corp. (the "Company") was incorporated on November 8, 2009, under the Business Corporations Act (British Columbia). The Company's primary business activity is mineral property exploration and development. On August 3, 2011, the Company's common shares were listed for trading on the TSX Venture Exchange ("TSX-V"). On September 5, 2018, the Company's name was changed from Power Americas Minerals Corp. to Edison Cobalt Corp. Effective July 30, 2021, the Company's name was changed from Edison Cobalt Corp. to Edison Battery Metals Corp. and subsequently to Edison Lithium Corp. The Company's shares are traded on the TSX-V under the symbol EDDY, on the Frankfurt Stock Exchange under the symbol VV0 and on the U.S. Over the Counter Market under the symbol PWMRF. The Company's head office and registered and records office is located at Suite 820 - 1130 West Pender Street, Vancouver, BC, V6E 4A4 Canada. The Company maintains a business office at 120 Carlton Street, Suite 219, Toronto, ON, Canada.

On November 24, 2021, the Company changed its name to Edison Lithium Corp. The TSX-V approved the name change and the Company's common shares commenced trading on November 25, 2021, under the new name, continuing to trade under the symbol of EDDY.

Proposed Spin-Out

On May 19, 2022, the Company's Board of Directors unanimously approved a proposed spin-out of its cobalt assets into a newly incorporated subsidiary ("SpinCo"). The Company will continue to hold its interest in the Antofalla Salar and Pipanaco Salar lithium projects in Argentina.

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The proposed SpinCo will be carried out by way of statutory plan of arrangement ("Arrangement") pursuant to the Business Corporations Act (British Columbia). Common shares of the SpinCo ("SpinCo Shares") will be distributed to the shareholders of the Company on the basis of one SpinCo Share for every one common share held in the Company. There will be no change in Company's shareholders' holdings in the Company as a result of the Spin Out. If the Spin-Out is completed, shareholders will own shares in both companies - the Company will be focused on its Argentinian lithium brine projects and SpinCo will be focused on cobalt exploration in Canada. The proposed spin- out is expected to increase shareholders' value by allowing capital markets to ascribe value to the Kittson Cobalt Property independent of the Company's lithium projects.

The proposed spin-out will be subject to the terms of the Arrangement between the Company and SpinCo, the approval of shareholders at a meeting of shareholders of the Company, the approval of British Columbia Supreme Court and the approval of the TSX-V.

In connection with the spin-out, the Company intends to undertake a private placement ("Private Placement") of up to 60,000,000 subscription receipts ("Subscription Receipts") priced at $0.05 per Subscription Receipt in order to raise gross proceeds of up to $3,000,000 (the "Escrowed Proceeds"), which will be held in escrow subject to the satisfaction or waiver of certain customary escrow release conditions (the "Escrow Release Conditions"). Each Subscription Receipt will entitle the holder thereof to receive, upon conversion and without any further action on the part of such holder or payment of any additional consideration, one unit of SpinCo (a "Unit"), with each Unit comprised of one (1) SpinCo Share and one common share purchase warrant (each, a "Warrant"). Each Warrant shall be exercisable into one (1) SpinCo Share at an anticipated exercise price of $0.08 per SpinCo Share, for an exercise period of two years. The conversion of the Subscription Receipts will be subject to the satisfaction or the Escrow Release Conditions, including the closing of the Arrangement and the listing of the SpinCo Shares on the Exchange, on or prior to a date to be determined (the "Outside Date"). Upon the satisfaction or waiver of the Escrow Release Conditions, the Escrowed Proceeds will be released to SpinCo. Upon receipt thereof, SpinCo is expected to use the Escrowed Proceeds to fund exploration of the Kittson Cobalt Property and for general working capital, including, potential future acquisitions. In the event that the Escrow Release Conditions are not satisfied prior to the Outside Date, the Escrowed Proceeds will be returned pro rata to each holder.

ACQUISITION OF RESOURCE VENTURES S.A.

On June 15, 2021, The Company announced that it has entered into a Definitive Purchase and Sale Agreement (the "Agreement") to acquire Resource Ventures S.A. ("ReVe"), an Argentina corporation that either owns or controls the rights to over 148,000 hectares (365,708 acres) of prospective lithium brine claims in the province of Catamarca, Argentina. The claims are principally located in the two geologic basins known as the Antofalla Salar and the Pipanaco Salar in South America's Lithium Triangle.

On July 2, 2021, the Company acquired ReVe and a 100% equity interest in its properties for a purchase price of $1,250,000 paid by the issuance of 10,000,000 common shares of the Company at a deemed price of $0.125 per share. The Company issued 500,000 common shares of the Company as a finder's fee at a deemed price of $0.125 per share. A consulting fee of $300,000 was also incurred with a company controlled by one of the former shareholders of ReVe.

Salar de Antofalla ("Antofalla"), Argentina

Located less than 20 km west of Livent's producing lithium operation (fka FMC Corporation, Livent is Argentina's largest lithium producer) in northern Catamarca Province, the Antofalla Salar hosts one of the largest lithium- bearing basins in the region. It is over 130 km long and varies between 5 km and 20 km across.

In 2018, ReVe secured TEM geophysical studies conducted by Quantec Geoscience Argentina S.A., including 187 sounding points conducted across 36.4 km of line scans covering approx. 15,655 hectares (38,683 acres) of claims in the northern area of its claims in the Antofalla Salar - all of which indicated the presence of prospective brines down to a depth of approx. 500 meters, which was the intended depth limit of the surveys. Brine in the basin could

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extend to even greater depths than the TEM scans revealed. ReVe's assets in and around the Antofalla Salar are made up of approximately 107,000 hectares (264,397 acres) of semi-contiguous claims in the northern and southern parts of this salar, offsetting either side of Albermarle's holdings in the center of this salar. The Company's initial emphasis in Argentina will focus on developing its properties at Antofalla.

Salar de Pipanaco ("Pipanaco"), Argentina

ReVe's claims in the Pipanaco Salar consist of over 41,000 hectares (101,311 acres) of core areas in this salar, which is located approximately 50 km due west of Catamarca city. These properties are in the very early stages of exploration with minimal surface samples having been collected to date. This salar is at a much lower altitude than Antofalla and was drilled more than ten years ago in a program for the federal government of Argentina to identify new sources of fresh water. Based on those drilling reports, the Company believes that these Pipanaco holdings, which are located at only 700-750 meters above sea level, could represent a favorable site for a lithium extraction facility or a potash mine, as well as being a potential location to create a regional lithium processing facility located less than a two-hour drive from Catamarca city. The Company's claims in the Pipanaco salar, while only early stage exploration, may prove to be strategic for a potential regional lithium processing facility located less than 50 km from Catamarca city.

Thomas Edison Mine and Kittson Cobalt Property, Northeastern ON

On January 23, 2017, the Company entered into an option agreement to acquire a 100% interest in the Kittson Cobalt Property ("Kittson Property"). The Kittson Property is comprised of five unpatented mining claims totalling 68 units having a combined area of approximately 1,090 hectares.

Under the terms of the Option Agreement, to earn a 100% interest in the Kittson Property the Company was required to pay $1,280,000 by a combination of common shares and cash. The Company paid $1,250,000 of the purchase price through the issuance of 6,250,000 common shares at a deemed price of $0.20 per common share, and $30,000 in cash. The Kittson Property is subject to an underlying 2% Net Smelter Return royalty, of which 1.5% may be purchased by the Company for $1,000,000.

On January 22, 2019, the Company announced that it had completed its 2018 Exploration program on the Kittson Cobalt Project. A total of 360 prospecting samples were collected during this program, highlighting >1% Cobalt. This included the initial prospecting samples collected from the recently acquired historic Edison mine which returned up to 6.13 % cobalt. A new zone, North Kittson was also discovered approximately 500 meters north of the historic Kittson mine with prospecting samples returning up to 2.18 % cobalt and, significantly, up to 7.83 g/t gold.

Geological mapping also confirmed that the Shakt-Davis and Edison mines are hosted on the same east-west trending fracture zone and that this fracture zone extends for over 1.5 kilometers. A full 34% of the prospecting samples collected along this fracture returned over 0.1% cobalt and 16% returned more than 1% cobalt.

A total of 2,620 metres (21 holes) were completed during the program. This drilling represented the first exploration on the historic Edison mine in over 100 years. Highlights include 0.34% cobalt over 2.65 metres including 0.98% cobalt over 0.35 meters in hole ED-18-010 and 0.46% cobalt over 2.05 meters in hole ED-18-015.

The drill program successfully intersected the fracture zone that hosts the Edison mine mineralization. The fracture zone was much wider than was observed at surface, ranging from 7 to 30 metres wide (drilled core length) hosting several 0.1-2.0 metre quartz-carbonate veins surrounded by intense carbonate alteration. Fracture and vein controlled cobalt mineralization in the form of smaltite and erythrite (cobalt bloom) occurred throughout this zone with values as high as 1.24% Cobalt over 0.35 meters.

In November 2019, the Company completed a soil sampling program and whole rock geochemistry study on the 2018 drill core from the historic Edison Mine. A total of 798 soil samples were collected and 200 drill core samples submitted for whole rock geochemistry.

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Properties

Argentine Properties

Management and a local Argentine geologist, visited the Company's properties at the Antofalla salar (Catamarca), in December 2021. The claims that were visited were LEXI 29 and 30, as geophyics had been conducted in both areas. There was positive communication with the community of Antofalla that the Company was in the area assessing the claims. The LEXI 29 property is located on the eastern edge of the Antofalla salar and covers an area of 5000 hectares (50 sq. km.). Access to the claim area was reached without problem, since it passes the road that joins Antofagasta de la Sierra with Antofalla. Two TEM geophysical lines were carried out in LEXI 29, in which volcanic rock bodies can be observed covering part of the salar as well as fluvial material. LEXI 30 property is 760 hectares in size, and geophysics data indicates it is potentially favorable for lithium in brine.

The Company's management made another visit to Argentina in February 2022 with the aim of advancing and streamlining the paper work required to advance the LEXI claims to drilling stage and building the local team. A new team of lawyers have been hired, and they have performed indepth assessments of the actual paper work that has been filled at the Catamarca Ministry of Mines, for each of the Edison Lithium claims. The purpose of this exercise was to determine the remaining claims that require environmental work and surveying (mensura). The aim is to increase the number of claims that can be included in the future drilling program.

Canadian Properties

For the 2022 fiscal year, the Company will continue to undertake exploration work on the Kittson property to determine whether future action on the property is warranted. The Company is committed to spending over $300,000 on the Kitson property in 2022, and it has planned geophysics surveys for the summer, specificatlly Induced polarization (IP), and high-resolution magnetic (MAG) and time-domain electromagnetic (TDEM) survey.

The Company is planning to complete 21-line kilometers of Alpha IP™, along 7 profiles over the entire project area with penetration up to 900 m for the longest lines, at roughly 3.0 km length. The plan is to use 100 m station spacing for high definition of targets. The MAG-TDEM survey will be conducted at 50m spacing. The aim of the geophysics survey campaign is to identify diabase dykes and sills at depth that may be associated with cobalt (or silver) mineralization, and determine drilling targets.

The Company is also actively conducting due diligence on new opportunities.

Share capital:

At June 30, 2022, the Company has a total of 115,181,311 outstanding and issued common shares (September 30, 2021 - 114,881,311).

Nine months ended June 30, 2022

On November 10, 2021, the Company granted 2,000,000 options to directors and officers and 1,900,000 options to consultants of the Company, which entitle the holders to purchase one common share for each option held at a price of $0.18 per share up to November 10, 2026. The Company determined the fair value of the share-based compensation to be $504,818 using the Black Scholes option pricing model with the following assumptions: share price - $0.14; exercise price - $0.18; expected life - 5 years; expected volatility - 162%; risk free interest rate - 1.56%, and dividend - nil.

On November 22, 2021, the Company issued 300,000 shares for gross proceeds of $36,000 pursuant to the exercise of 300,000 share purchase warrants.

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