Atlas Lithium Corp (ATLX)

[HIFI]

Company can't release all 4 billion shares Read, Read, Read

The primary reason for the Authorized Increase is to have additional shares of common stock to reserve ("Reserve Shares") for issuance upon conversion of currently existing convertible debt of the Company ("Existing Debt"). Existing Debt transaction documents require the Reserve Shares to be a number up to 4 times in excess of the actual number of the shares at any point in time needed for conversion of such Existing Debt, and therefore the necessary number of Reserve Shares fluctuates with the price of the Company's common stock. Once the Existing Debt is converted into common stock or repaid , the Reserve Shares are cancelled .

A second reason for the Authorized Increase is to issue additional shares to pledge as collateral ("Collateral Shares") to secure the Company's obligations in transactions involving the pre-sale of graded polished diamonds . The Collateral Shares are issued in the Company's name and are deposited with an escrow agent . The necessary number of Collateral Shares fluctuates with the price of the Company's common stock. Upon delivery of the diamonds any unused Collateral Shares will be returned to the Company's treasury .

The Authorized Increase will not have any immediate effect on the rights of existing stockholders, but may have a dilutive effect our existing stockholders if additional shares are issued.

We are not increasing our authorized shares of Common Stock to construct or enable any anti-takeover defense or mechanism on behalf of the Company or for any planned merger or acquisition.

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