Bandeira

Bandeira is the Company’s priority near-term production asset. As such, this deposit is currently the most densely drilled and accounts for ~70% of the total global mineral resource estimate of 60.1Mt. The latest mineral resource estimate announced in April 2024 is as follows:

• Measured & Indicated Resource: 23.7Mt grading 1.34% Li₂O (787,176 LCE)
• Inferred Resource: 18.3Mt grading 1.37% Li₂O (617,320 LCE)
• This mineral resource estimate is based on 233 drill holes, or 50,760 metres, drilled between April 2022 and March 2024. As of October 2024, an additional 9,500metres have been drilled at Bandeira, representing excellent growth and optimization potential for the Project.

For full details, see the press release here: Mineral Resource Update

In May 2024, Lithium Ionic completed a robust Feasibility Study (FS) for the Bandeira Project, providing strong economic justification for advancing towards production. The FS confirmed the project's potential for a long-term, sustainable operation, positioning it as one of the next significant lithium producers in Brazil.

Feasibility Study Highlights:

• 14-year mine life producing an average of 178,000 tonnes of high-quality spodumene concentrate (5.5% Li₂O) per year.
• Post-tax Net Present Value (NPV) of US$1.3 billion at an 8% discount rate, with an impressive 40% Internal Rate of Return (IRR).
• Capital Expenditure (CAPEX): US$266 million, reflecting a low capital intensity relative to comparable projects globally.
• Operating Expenditure (OPEX): US$444 per tonne of spodumene concentrate, placing the project in the first quartile of global lithium production costs.

This Feasibility Study underscores the technical simplicity and robust economics of the Bandeira Project, marking an important step forward in Lithium Ionic’s journey toward near-term production.

For more details, see the full Feasibility Study press release HERE

The full length technical report can be found HERE^CA1

The permitting process for the Bandeira Project is progressing efficiently at both the Federal and State levels, reflecting our experienced team’s ability to navigate Brazil’s regulatory framework.

Federal Level (Mining Rights): The Final Exploration Reports (RFP) were approved by Brazil’s National Mining Agency (ANM) on September 10, 2024. This approval allowed Lithium Ionic to submit both the Mining Concession application and the Economic Viability Study (PAE). These approvals represent key milestones in the Federal-level permitting process.

State Level (Environmental): At the State level, overseen by the Minas Gerais State Secretariat for the Environment and Sustainable Development (SEMAD), the Company is advancing towards the granting of the Concomitant Environmental and Installation License (Licença Ambiental Concomitante - LAC), which would allow construction and mine pre-development to begin.

Following LAC approval, Lithium Ionic is expected to proceed with the remaining step at the Federal level, granting of the Mining Concession, as well as the Operating License (Licença de Operação - LO) at the State level.

Lithium Ionic's ability to meet these critical milestones is a testament to the company's expertise and Brazil’s mining-friendly regulatory environment, positioning the Bandeira Project for successful development.