Lithium Ionic Corp. Advances Engineering and Commercial Work at Bandeira Project

• Engineering completion reaches 48% with basic plant design and primary civil work completed
• Multiple term sheets received for offtake agreements and project debt financing
• Spodumene concentrate prices rise from US$800 per tonne to over US$1,800 per tonne since September 2025
• Environmental regulators issue technical opinion recommending project approval
• Team expansion includes roles in environmental management, community relations and project finance

Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) is a Canadian-based development company advancing the Bandeira Lithium Project in Minas Gerais, Brazil. The project is located in an emerging hard rock lithium district. The company is focused on engineering development, regulatory processes and commercial partnerships to establish spodumene concentrate production for battery supply chains.

Engineering and Procurement Progress at 48% Completion

Bandeira has reached 48% engineering completion since the feasibility study release in September 2025. Basic engineering for plant layout, equipment specifications and primary infrastructure has been completed. Lycopodium has finished plant engineering work defining the processing facility's parameters and design criteria. Civil engineering for roads, plant areas and buildings is complete, with detailed engineering for water services and drainage in final stages.

NCL Ingeniería y Construcción is preparing an underground mine development plan and schedule targeted for April 2026. Underground mine development planning includes detailed design work for mine access and surface facilities. The company has engaged Jon Treen of Fuse Advisors and SRK Consulting to provide underground mining expertise and audit geotechnical models supporting mine design.

Procurement activities show 23% of infrastructure packages tendered, including earthworks, drainage, mine access development and site infrastructure.

CEO Blake Hylands stated:

"Bandeira is now firmly in the execution phase. With a technically robust and optimised Feasibility Study in hand, our focus has shifted to disciplined delivery, advancing engineering, securing the right commercial partnerships, and preparing the Project for construction."

Offtake and Financing Negotiations Advancing

The company is in offtake discussions with parties across North America, Europe, China and Japan. Lead parties have completed due diligence including concentrate testing and site visits. Lithium Ionic has received multiple term sheets and is working towards binding agreements. Offtake negotiations are proceeding alongside project debt discussions.

The company has strengthened its team with appointments including a Director of ESG and Permitting, a Community Relations Manager based in Araçuaí, and a Director of Finance. RTEK International DMCC, engaged as strategic adviser since April 2025, has expanded its technical support across engineering disciplines including electrical and instrumentation.

Water rights for the Piauí and Jequitinhonha Rivers have been secured, and explosives purchasing authorisation has been obtained from the Brazilian Army. The company submitted its environmental licensing application to the State Foundation for the Environment (FEAM) in January 2024. FEAM issued a technical opinion in February 2025 confirming the project's environmental viability and recommending approval based on proposed mitigation and control measures.

Lithium Market Pricing

Spodumene concentrate prices (6% Li₂O, delivered to Asia) have increased since the feasibility study release. According to Fastmarkets, prices have risen from approximately US$800 per tonne in September 2025 to greater than US$1,800 per tonne in February 2026, representing an increase of more than 125%. This pricing exceeds the near term scenario used in the project economic plan.

CEO Blake Hylands commented:

"Importantly, this progress is unfolding in a materially stronger lithium market than when our Feasibility Study was completed, which reinforces our confidence in the Project's long term value. Our objective is clear: to bring Brazil's next high quality, low cost lithium operation into production with the right foundations in place."

The company notes that longer term lithium demand is supported by electric vehicle adoption and energy storage deployment.

Project Status and Timeline

The company is working to finalise binding offtake and financing agreements. Environmental permitting continues under Brazil's Environmental Permitting Law (Law No. 15,590/2025) enacted in February 2026. The underground mine development plan is scheduled for April 2026 completion. Engineering work continues with additional procurement packages to be tendered as engineering progresses.

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