Acceleration Across Portfolio Positions Delta Lithium to Capitalize on Lithium Demand Surge

• Delta Lithium plans to start mining lithium at its Mount Ida project in Western Australia in Q4 2023, with shipping of concentrate to commence in 2024.
• Over 200,000 meters of drilling have been completed at Mount Ida to date. A revised resource estimate is expected by the end of September 2023.
• Exploration results at the Yinnetharra project reveal significant lithium mineralization over a large area, with over 100 pegmatite targets identified so far.
• Major strategic investors including Itochu, Hancock Prospecting and MinRes have validated Delta Lithium through equity investments totaling around A$30 million.
• Multiple potential share price catalysts are anticipated over the next 6-12 months including off-take agreements, permits, construction updates, drilling results and scoping studies.

Australian lithium developer Delta Lithium is rapidly advancing an expanded portfolio of wholly owned lithium projects in Western Australia’s premier mining jurisdictions. As exploration delivers outstanding results and development activities intensify, Delta Lithium has set its sights on becoming a globally significant lithium producer.

Near-term catalysts across the company’s core projects point to an exciting 12 months ahead as Delta Lithium makes the transition from explorer to developer status. Well-positioned to ride the lithium-ion battery growth wave, Delta Lithium offers investors exposure to a clear development pathway towards first production and cash flow.

Flagship Asset Advancing Swiftly Through Development Stages

Delta Lithium’s flagship project is the 100% owned Mount Ida lithium project, located around 240km north of Kalgoorlie in Western Australia’s gold-rich and infrastructure-rich Eastern Goldfields region. The site has an extensive history of small-scale gold mining activity between 1890 and 2008. Importantly, Mount Ida retains an active mining permit stemming from this previous gold production. The most recent mining took place just over a decade ago, providing a clear pathway to fast-track recommencement of mining operations. Lithium-cesium-tantalum (LCT) style rare metal pegmatites were first discovered during gold exploration drilling in 2018 by previous owners Red Dirt Metals. Delta Lithium acquired the project in 2021 and has aggressively pursued resource definition and development studies.

Over 1,000 drill holes for approximately 200,000 metres have been completed over the past 18 months under Delta Lithium’s stewardship. This systematic drilling has substantially expanded the resource base and confirmed Mount Ida’s potential to host a globally significant hardrock lithium deposit. An initial JORC resource estimate in 2021 of 12.7Mt @ 1.4% Li2O and 170ppm Ta2O5 provided confirmation. While predominantly in the Inferred category, this established an excellent base with significant upside remaining.

Recent drilling results from a Phase 3 program continue to deliver exceptional thick, high-grade lithium intercepts near the surface. For example, hole 22MID029 intersected 26m @ 1.5% Li2O from 39m, including 7m @ 2.1% Li2O. Such impressive widths and grades strengthen the potential for low-cost, high-margin open-pit mining at Mount Ida. Consistently coarse, high-quality spodumene through drilling also bodes well for producing premium lithium concentrate. With the extensive resource drill-out now complete, Delta Lithium anticipates releasing an upgraded JORC resource by late Q3 2022. Significant growth from the initial 12.7Mt is expected, with increased volumes in the higher confidence Indicated and Measured categories.

Delta Lithium is also finalizing a scoping study examining the potential economics of a 1-2Mtpa lithium concentrate operation at Mount Ida. This will provide crucial preliminary financial analysis to inform development decisions. According to Delta Lithium Executive Director David Flanagan, the first production from Mount Ida remains on track for 2023. The company has budgeted A$25 million to fund initial site establishment activities including camp accommodation, bypass road construction and water infrastructure. A proposed offtake agreement with leading Japanese trading house Itochu Corporation will anchor plans. Binding supply terms for Mount Ida concentrates are targeted for completion in Q3 2022.

Itochu’s 9.9% equity stake in Delta Lithium, cemented via an A$15 million subscription in mid-2021, delivers strong third-party endorsement of the quality and potential of the project.

Broad Portfolio Provides Massive Upside

Beyond the flagship Mount Ida project, Delta Lithium’s second major asset is the 100% owned, 575km2 Yinnetharra project in Western Australia’s Gascoyne region. Yinnetharra lies around 200km south of the world-leading Pilgangoora lithium deposits, operated by Pilbara Minerals and Mineral Resources.

A review of limited historical drilling data highlighted widespread LCT pegmatite outcrop present across the expansive tenure. However, prior to Delta Lithium’s arrival, no systematic exploration had been completed. Since acquiring Yinnetharra in August 2021, Delta has dramatically accelerated its activity. Over 285 drill holes for ~67,000 metres have been completed within the first year, delivering outstanding results.

Significant lithium mineralization has been discovered in most of the outcropping pegmatites tested so far. However, drilling has focused on only a small portion of the project area, at the 2km by 2km Melinda prospect. Two parallel east-west pegmatites have been defined at Melinda, remaining open along strike and at depth. Exceptional results include 36m @ 1.3% Li2O and 59m @ 1.1% Li2O. Delta Lithium sees clear potential for Yinnetharra to host a world-class lithium deposit comparable to Pilgangoora. Over 100 outcropping pegmatite targets have already been identified across the wider 575km2 landholding.

Systematic exploration will continue across Yinnetharra during 2023 and 2024. An initial JORC resource focused on Melinda is possible within 12 months. Environmental and heritage surveys will also progress. Additional drilling is planned in 2023 at the Jamieson prospect, just 15km north of Melinda. Reconnaissance sampling revealed high-grade lithium-bearing pegmatites grading up to 4% Li2O at surface. Within just 12 months of acquiring Yinnetharra, Delta has completed over 67,000 metres of drilling. This demonstrates strong technical expertise and a clear capacity to deliver results. The aggressive work rate points to steady news flow over the coming 6-12 months.

Rapid Development Timeline Catalyzed by Strategic Advantages

The swift exploration progress mirrors Delta Lithium’s determination to expedite both Mount Ida and Yinnetharra towards production decisions, capitalizing on strong lithium demand growth forecasts.

Delta Lithium possesses several key characteristics:

• Projects located in Western Australia, a Tier-1 lithium jurisdiction with established infrastructure to facilitate timely development. The state accounts for the majority of current and planned global lithium supply.
• Clear pathway to first production from Mount Ida by 2023 given advanced permitting status. Initial cash flow can help fund portfolio expansion.
• Outstanding early drilling success at Yinnetharra revealing similarities to world-class Pilgangoora lithium deposits. Massive upside remaining across the 575km2 project area.
• Strong cash position of approximately A$50 million as of July 2022 to fast-track activities. Additional growth capital is accessible from supportive strategic investors.
• Strategic investments and partnerships secured from major industry players including Itochu, Hancock Prospecting and MinRes totalling around A$30 million.
• Executive Chairman David Flanagan brings extensive experience discovering, evaluating, financing and building mines into production.
• Tight capital structure with only 135 million shares on issue. Founders and management hold approximately 25% of the company.

Delta Lithium offers attractive leveraged exposure to the surging lithium demand required for the global energy transition. Over the next 12 months, numerous potential share price catalysts are anticipated across its portfolio spanning drilling, studies, permitting, construction and financing. With strategic investors on board, Delta Lithium is primed to transition swiftly from explorer to emerging lithium producer. Well-positioned in a Tier-1 mining jurisdiction, Delta Lithium represents a compelling investment opportunity targeting near-term cash flow generation.