Lepidico Powers Ahead with Sustainability and Community Focus

• Lepidico is a lithium development company planning to redevelop open pit mines in Namibia and build a concentrator. The concentrate will be processed at a chemical conversion plant in Abu Dhabi, with production expected in 2024.
• The company recently introduced an all-Namibian senior management team and is in Cape Town for meetings with financial institutions and potential investors, with a particular focus on financing and equity investments.
• The Abu Dhabi project is progressing rapidly with infrastructure development in the KIZAD industrial zone. The UAE government views Lepidico's project as an enabler for future battery and energy storage industries.
• In Namibia, the company aims to expand the current life of mine from 14 to 20 years. There's significant drilling and exploration activity in progress, with efforts to discover new resources and validate existing ones.
• Lepidico's sustainability initiatives in Namibia focus on environmental remediation and community engagement. The company is training locals in sustainable agricultural practices, aiming to reduce dependency on the mine and bolster local economies.

About Lepidico

Lepidico is an ASX listed lithium development company focused on building a vertically integrated lithium business. The company has upstream assets in Namibia, where it plans to redevelop two open pit mines and build a new concentrator. The concentrate will then be shipped to Lepidico's planned chemical conversion plant in Abu Dhabi, which will utilize the company's proprietary lithium extraction technologies. Lepidico is targeting production in 2024.

Interview with Joe Walsh, Benedicta Uris & Simon Kahovera of Lepidico

Exploration and Resource Expansion in Namibia

Lepidico's exploration efforts in Namibia are focused on defining and expanding the resource at its assets to support the planned 14-year initial life of mine. The company's VP of Exploration, Simon Calvera, highlighted that the aim is to grow the resource base to support a targeted 20-year life of mine.

Calvera noted that drilling is ongoing, with Lepidico utilizing both reverse circulation and diamond drilling methods. The focus areas include converting inferred resources to indicated and measured categories through diamond drilling at Helikon 4, as well as testing new targets identified through geophysics and geochemistry. Significant mineralization has already been identified at surface at one of the new targets.

The drilling program consists of a combination of Lepidico's own geologists as well as contracted local companies. Calvera emphasized Lepidico's commitment to developing local skills, recruiting graduates from the University of Namibia and providing on-the-job training.

Sustainability and Community Development

Lepidico's newly appointed GM of Sustainability and Country Affairs, Benedicta Uras, highlighted the company's sustainability focus and community engagement efforts.

A key aspect is the rehabilitation of former mining sites, including remodeling waste dumps for eventual agricultural use. Lepidico has already initiated outreach and training for local small-scale farmers to assist them in transitioning to commercial operations. The company plans to provide access to remediated land as well as facilitate access to markets. Livestock production to supply Lepidico's operations is another opportunity being explored.

Uras emphasized the shift away from the old 'fly-in, fly-out' mining model to one of partnership and capacity building to create a positive legacy. She noted the good relations and open communication already established with local communities and stakeholders, supporting the success of sustainability initiatives.

Potential Cornerstone Project for Abu Dhabi

The planned chemical conversion facility in the Khalifa Industrial Zone of Abu Dhabi has the potential to be a flagship project for the emirate, according to Lepidico's MD Joe Walsh. With access to affordable power and a stable operating environment, the facility aligns with Abu Dhabi's efforts to enable downstream industries.

Walsh highlighted that infrastructure development at the site is already underway, reflecting strong government support. Offtake agreements, project financing and equity investment are on track, with key milestones targeted for Q3 2023. Walsh emphasized the world-class location and Lepidico's unique proprietary technologies as differentiators.

Financing Update

CFO Chantelle Norgate provided an update on financing efforts, noting good progress with the U.S. Government's Development Finance Corporation on securing debt funding. Discussions are also advancing with commercial lenders. Equity financing remains a focus, with significant interest observed from potential investors at recent conferences.

Indaba a Relationship Building Opportunity

The annual Investing in African Mining Indaba conference provided an opportunity to advance discussions with project financiers, equity investors and potential offtakers. Walsh noted that major Asian and North American companies made the trip to Cape Town, reflecting renewed appetite for in-person engagement.

Conclusion

With lithium demand projected to grow exponentially in the coming decade, Lepidico is primed to start production just in time to ride the wave. Its vertically integrated business model, proprietary technologies and premier operating locations set it apart from many lithium hopefuls. The company's emphasis on sustainability and community partnership also provides confidence that Lepidico will be a responsible mining operator.

Exploration results continue to demonstrate resource expansion potential, while financing efforts are progressing well across debt, equity and offtake. Lepidico's near-term milestones provide opportunities for re-rating as de-risking advances. For investors seeking lithium exposure, Lepidico warrants consideration. Its unique strategies and experienced leadership team position it strongly to deliver value to shareholders.