Lithium Ionic Completes US$37.5 Million Salinas Sale, Retains 2% Royalty

Lithium Ionic Corp. has completed the sale of its Salinas group of lithium properties, including the Baixa Grande lithium resource in Minas Gerais, Brazil, to PLS Brasil Mineração Ltda., a wholly-owned subsidiary of PLS Group Limited (PLS), for total consideration of US$37.5 million. The Company received US$30.0 million in non-dilutive cash proceeds at closing, with a further US$7.5 million in deferred consideration payable on the earlier of a positive final investment decision (FID) for PLS' Colina Project or December 31, 2029, and retains a 2.0% royalty on future spodumene sales from Salinas.

Company Overview

Lithium Ionic Corp. (TSXV: LTH | OTCQX: LTHCF | FSE: H3N) is a Canadian lithium development company advancing its 100%-owned Bandeira Lithium Project in Minas Gerais, Brazil, part of the hard-rock lithium district known as the Lithium Valley. An updated feasibility study completed in September 2025 outlined an 18.5-year underground mining operation producing an average of 177,000 tons per year of spodumene concentrate over the life of mine, and the Company is targeting near-term production for global battery supply chains. Its ground sits in the same district as Companhia Brasileira de Lítio's Cachoeira lithium mine, and Sigma Lithium's Grota do Cirilo operation.

Transaction Delivers US$37.5 Million in Total Consideration

Lithium Ionic has completed the previously announced sale of its Salinas group of lithium properties, which includes the Baixa Grande lithium resource, to PLS Brasil Mineração Ltda., for total consideration of US$37.5 million. The sale agreement was first announced on August 12, 2026, and closed on August 25, 2026. At closing, the Company received US$30.0 million in cash, providing non-dilutive capital without issuing new equity.

Deferred Consideration & Royalty Preserve Future Upside

A further US$7.5 million in deferred consideration is payable to Lithium Ionic under the terms of the transaction agreements, triggered by the earlier of a positive final investment decision (FID) for PLS' Colina Project or December 31, 2029. Through its wholly-owned subsidiary, Neolit Minerals Participações Ltda, the Company also retains a 2.0% royalty on future spodumene sales from Salinas, preserving shareholder exposure to any future development of Baixa Grande under PLS' ownership.

Chief Executive Officer and Director of Lithium Ionic, Blake Hylands, said the completion of the sale crystallizes value built up over several years of exploration work while keeping the Company's focus on its flagship project:

"The completion of this transaction crystallizes significant value from Salinas while strengthening Lithium Ionic's balance sheet with US$30.0 million in non-dilutive cash proceeds. In just over three years, our team advanced Salinas from an early-stage exploration opportunity to a monetized asset, while retaining shareholder exposure to future production through the royalty. With this transaction complete, our focus remains squarely on advancing our flagship Bandeira Lithium Project toward a construction decision and our objective of becoming a near-term, low-cost lithium producer."

Next Steps

With the Salinas sale closed, Lithium Ionic's near-term milestones include continued advancement of the Bandeira Lithium Project toward a construction decision. On the Salinas side, the Company will track PLS' progress toward FID on the Colina Project, which would trigger the US$7.5 million deferred consideration ahead of the December 31, 2029 backstop date, and monitor future spodumene sales from Salinas under the retained 2.0% royalty.