Lithium Ionic Advances Bandeira Towards Construction with New Contractor Tenders and Community Work

• Hect, a Brazilian procurement and contracting specialist, has been appointed to lead mine operations contractor tenders at Bandeira.
• Overall engineering at Bandeira has progressed to approximately 57% completion since the Feasibility Study was published in September 2025.
• Multiple equipment and service packages for plant utilities and site infrastructure have been formally issued to bid.
• The Company is in the final stages of securing a manufacturing slot for the processing plant, with a deposit and supplier commitment expected within weeks.
• An expanded community engagement programme was completed over the past two months, encompassing community hearings, a social census, socio-anthropological studies, and targeted impact workshops.

Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) is a Canadian-based lithium development company focused on advancing its 100%-owned Bandeira Lithium Project in Minas Gerais, Brazil. The project is located in a region known as Brazil's "Lithium Valley," an emerging world-class hard-rock lithium district. The Company's development strategy is centred on engineering, permitting advancement, commercial planning, and construction readiness, with the goal of becoming a near-term producer of high-quality spodumene concentrate, a lithium mineral used as feedstock in battery manufacturing, for global battery supply chains.

Mine Operations Contractor Tendering and Procurement Progress at Bandeira

To support the transition from engineering into active procurement, Lithium Ionic has engaged Hect, an experienced Brazilian procurement and contracting firm, to lead the structuring and market release of mine operations and underground development tenders. Hect's local expertise is expected to support a competitive tendering process, which the Company describes as a key milestone on the path to underground mine development and production. 

CEO Blake Hylands stated: 

"Bandeira continues to advance in a disciplined and coordinated manner as we move towards construction readiness. As engineering progresses, we are actively bringing key contracting packages to market, ensuring alignment between design and execution."

As engineering packages reach completion, the project is moving into a phased procurement cycle in which tenders are issued to the market in step with the relevant design scope. Multiple equipment and service packages tied to plant utilities and site infrastructure have already been issued to bid.

In addition, the Company is in the final stages of securing a manufacturing slot for the processing plant, with a deposit and supplier commitment anticipated in the coming weeks, subject to final negotiations and customary conditions.

Engineering Advancement Across Project Workstreams

Engineering activities at Bandeira have reached approximately 57% overall completion since the Feasibility Study was published in September 2025, with progress recorded across plant, site infrastructure, and underground mine workstreams. This figure is based on internal project management estimates and does not represent any change to the Feasibility Study's assumptions, results, or conclusions.

Within plant utilities, detailed engineering and equipment definition are well advanced across water intake and treatment, raw and potable water distribution, compressed air, sewage treatment, oil treatment, and supporting site buildings, enabling the structured release of associated equipment and service packages to the market.

Underground mine engineering is also advancing, with detailed work on water management, ventilation, and electrical systems progressing ahead of associated equipment tenders. NCL Ingeniería y Construcción SpA. is leading the detailed underground mine plan and schedule, while Lycopodium is overseeing process plant engineering with technical support from RTEK International DMCC.

Expanded Community Engagement Programme and Social Licence Development

Over the past two months, Lithium Ionic has carried out an expanded community engagement programme at Bandeira that goes beyond baseline regulatory requirements. Activities included community hearings, socio-anthropological studies, a social census, and targeted impact workshops, undertaken voluntarily to ensure that project planning is informed by direct community input.

The current phase of work is focused on finalising documentation related to the assessment of potential impacts on traditional communities, a distinct category under Brazilian law that carries specific consultation obligations. In parallel, the Company is working towards the co-development of social and environmental programmes aligned with priorities identified through community engagement. 

CEO Blake Hylands added: 

"We believe the strongest projects are built in partnership, and we are committed to incorporating community perspectives as we advance Bandeira toward development."

Oversight of community engagement is led by the Company's Director of ESG and Permitting, in coordination with Federal and State authorities. Lithium Ionic has stated that it considers this work a fundamental element of responsible project development and long-term operational success.

Outlook

Bandeira is progressing through the transition from engineering into active procurement and community programme formalisation. Near-term milestones include the formal launch of mine operations contractor tenders through Hect, completion of the manufacturing slot agreement for the processing plant, continued advancement of engineering across all workstreams, and the finalisation of traditional community impact documentation in support of the ongoing permitting process.

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