Leo Lithium On Track to Become a Major Hard Rock Lithium Producer

• Leo Lithium is a newly formed company listed on ASX in 2022, with a focus on the Gulamina lithium project in Mali.
• The project boasts over 200 million tons of resources, a significant financial potential with an NPV of $2.9 billion, and a strong JV partnership with Gang Feng.
• Leo Lithium has made substantial progress in construction and resource expansion, with plans for further growth and exploration in the lithium sector.

About Leo Lithium

Leo Lithium is poised to become one of the world's largest hard rock lithium producers through the development of its flagship Goulamina Lithium Project in Mali, West Africa. With construction underway and first production slated for mid-2023, Leo Lithium offers investors near-term exposure to the booming lithium market.

"We're only nine months away from first spodumene product," said Leo Lithium Managing Director Simon Haye. "Funding is secured and we have a fantastic JV partner in Ganfeng."

Massive High-Grade Lithium Resource in Mali

Located in southwest Mali near the border with Guinea, the Goulamina Lithium Project contains one of the world's largest hard rock lithium resources. With 211 million tons at 1.5% Li2O, Goulamina ranks as the fifth largest hard rock lithium deposit globally.

The project benefits from thick, high-grade pegmatite intercepts near surface, with widths up to 100 meters and grades substantially higher than many lithium deposits in Western Australia. The life-of-mine strip ratio is a low 3.8, compared to 10-20 for many emerging spodumene projects.

"Our deposit has a real competitive advantage with its scale, grade and minimal waste rock," Haye remarked.

Resource Expansion Underway

Leo Lithium has an extensive drilling program underway and expects to significantly expand the resource base later this year. An updated reserve estimate is also slated for release in late 2022, likely increasing the current 16.2 million ton reserve.

"We expect the reserve to grow significantly, allowing us to expand Stage 1 production and advance Stage 2," Haye said.

Large-Scale Production in 2023

Leo Lithium is advancing construction on a Phase 1 mining and concentrator operation at Goulamina, which will produce 526,000 tons per year of 6% spodumene concentrate. The US$305 million project is approximately one-third complete, with first production expected by mid-2023.

"We've awarded the mining contract and we're in the busy phase of construction over the next few months," noted Haye. "We anticipate completing construction around the end of Q1 2023."

The company is also evaluating an expanded Phase 2 project to boost production to 500,000 tons of spodumene per year. Further expansions could lift Goulamina's output above 1 million tons per year in the future.

Advancing Plans for Lithium Hydroxide Production

To capture additional margin in the lithium value chain, Leo Lithium is collaborating with strategic partner Ganfeng Lithium on plans to construct lithium hydroxide conversion facilities. The partners are currently evaluating locations in North Africa, Europe, the Middle East and elsewhere.

"We'll take the spodumene up to lithium hydroxide in conversion facilities outside China, likely in North Africa or Europe," Haye stated.

Strong Financial Backing From Ganfeng

Leo Lithium is supported by a 50/50 joint venture with Ganfeng Lithium, one of the world's largest lithium producers. Ganfeng brings both financial strength and technical expertise to the project.

In May 2022, Ganfeng agreed to invest US$106 million into Leo Lithium through equity placements. The partners recently restructured the deal to directly inject funds into the Mali project entity while maintaining the same valuation.

Ganfeng's contributions ensure Leo Lithium is fully funded through to first production next year. The company had approximately US$67 million in cash reserves at the end of June 2022.

Advancing Social Programs in Mali

With over 1,200 employees currently working at Goulamina, Leo Lithium is focused on creating opportunities for the local community in Mali. Malaysians comprise 94% of the project's workforce.

"We have a great opportunity to grow with the local communities," Haye said.

Initial social investments include providing mosquito nets and launching studies on healthcare needs and agricultural productivity. Further infrastructure development is planned over the coming year.

Regulatory Discussions Ongoing

Leo Lithium has been engaged in discussions with the Mali government regarding project regulations and duties. The government recently halted Leo's plans to undertake early direct shipping ore (DSO) operations.

While disappointed, Leo Lithium stated it will comply with the government's directives. DSO sales were intended to demonstrate product logistics and bring forward revenues but are not critical to the overall project.

"The final decision hasn't been reached on DSO yet. There's still an opportunity it could be permitted," noted Haye.

The company is also in talks with officials regarding the government's shareholding and tax exonerations. Haye expressed optimism that collaborative solutions will be reached.

Major Production Growth on the Horizon

With construction rapidly advancing, Leo Lithium is poised to join the ranks of the world's major lithium suppliers next year. The company offers investors a unique opportunity to gain exposure to a large, low-cost hard rock lithium project on the cusp of production.

Assuming a successful ramp-up, Goulamina's output could quickly scale up to 500,000 tons per year, establishing Leo Lithium as a new force in the global lithium industry. By securing strategic backing from Ganfeng and leveraging the project's massive resource, the company aims to deliver substantial returns for shareholders in the years ahead.

Reasons to Invest

• Rapid production growth in a tight lithium market - Leo Lithium is on track to become a major new producer of lithium just as demand is soaring. With lithium prices at record highs, this should allow the company to generate strong revenues and cash flows.
• Large, high-quality resource - The Goulamina deposit is one of the world's largest and highest grade hard rock lithium resources, providing the scale and mineralization needed for low-cost production over a long mine life.
• Favorable project economics - Initial studies indicate Goulamina could have highly attractive financial metrics, including low operating costs, high margins, and a rapid payback period. There is also expansion potential to further improve economics.
• Strategic partner and project funding - Leo Lithium has the financial backing and technical support of Ganfeng Lithium, one of China's largest lithium producers. Project financing is in place through to initial production.
• Near-term catalysts - Key milestones in the coming 6-12 months, like completing construction and commencing production, could drive share price appreciation.
• Long-term demand outlook - Lithium demand is projected to grow dramatically over the next decade driven by electric vehicle adoption, presenting a strong macro outlook.
• Potential for downstream expansion - Moving into lithium hydroxide conversion could add further value to Leo Lithium's production profile.

In summary, Goulamina offers investors leveraged exposure to surging lithium demand via a world-class deposit with strong economic fundamentals. The company's rapid production growth and backing from a leading industry player make it an attractive lithium investment.