Lithium Ionic Reports 2025 Resource Growth and Feasibility Study Update

• Consolidated mineral resources total 36.76 million tonnes at 1.31% Li₂O in Measured & Indicated category, with Bandeira showing 30% increase in tonnage over prior estimate
• Updated feasibility study shows mine life of 18.5 years and initial capital expenditure of US$191 million, representing 28% reduction from previous study
• Post-tax internal rate of return of 61%, net present value of US$1.45 billion at 8% discount rate, and payback period of 2.2 years
• Completed $18.3 million private placement and reached 38% completion of detailed engineering by year end
• RTEK International engaged as strategic advisor for construction readiness and operational execution

Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) is a Canadian-based mining company developing lithium projects in Minas Gerais, Brazil. The company holds approximately 14,000 hectares across its Itinga and Salinas property groups. The Bandeira Project is located in the same region as CBL's Cachoeira lithium mine, which has been in production for over 30 years, and Sigma Lithium's Grota do Cirilo project.

2025 Accomplishments Including Resource Growth and Optimised Feasibility Study

Lithium Ionic reported mineral resource updates across its property portfolio in 2025. The company's total global mineral resource stands at 36.76 million tonnes grading 1.31% Li₂O in the Measured & Indicated category, with an additional 31.87 million tonnes at 1.19% Li₂O in Inferred resources. The Baixa Grande Project mineral resource estimate, released in January, outlined 6.52 million tonnes grading 1.11% Li₂O in Measured & Indicated category and 12.90 million tonnes grading 0.96% Li₂O in Inferred category.

The Bandeira Project mineral resource estimate, released in May, reported 27.27 million tonnes Measured & Indicated at 1.34% Li₂O, equivalent to 901,000 tonnes of lithium carbonate equivalent. This represented a 30% increase in Measured & Indicated tonnage compared to the resource used in the May 2024 feasibility study. The updated estimate also included 18.55 million tonnes Inferred at 1.34% Li₂O, equivalent to 615,000 tonnes of lithium carbonate equivalent.

In September, the company released an updated feasibility study for Bandeira incorporating the larger resource base, revised mine sequencing, and modified plant design. The study reported a mine life of 18.5 years, compared to 14 years in the previous study. Initial capital expenditure decreased to US$191 million from approximately US$265 million. Post-tax internal rate of return was calculated at 61%, up from 40%, with site operating costs of US$378 per tonne of spodumene concentrate. The study outlined a post-tax net present value of US$1.45 billion at an 8% discount rate and a payback period of 2.2 years. The mine design includes underground mining, dry-stacked tailings, and reduced surface disturbance.

2026 Strategic Priorities Toward Construction Readiness

The company stated that 2026 priorities include advancing permitting, finalising project financing, completing detailed engineering, and preparing for construction through pre-development activities. The company noted that environmental permitting discussions across Minas Gerais in 2025 focused on clarifying consultation processes and defining impact parameters for mining projects. According to the company, this has provided greater transparency and predictability in the permitting framework.

Engineering work progressed to approximately 38% completion of all activities by year end 2025. The company expects to complete 100% of basic and detailed engineering by mid-2026. In April 2025, RTEK International DMCC was engaged as strategic advisor to support construction readiness and operational execution. Brian Talbot, RTEK partner, is overseeing project development and will be involved in implementation of the Bandeira project.

The company is progressing offtake discussions and developing its financing strategy. Pre-development activities planned include long-lead equipment procurement and early site works. The company appointed Flávia Veronese as Director of ESG in 2025. Veronese, an environmental engineer with over 15 years of experience, leads the company's ESG strategy and oversees environmental permitting, community engagement, and regulatory compliance at Bandeira. The company stated these efforts aim to support a final investment decision to transition the project into construction.

Balance Sheet Strengthening Through $18.3 Million Financing and K2 Option Termination

Lithium Ionic completed a non-brokered private placement in late 2025 that raised $18.3 million. The company stated the financing was oversubscribed and reflected support from long-term strategic shareholders. The proceeds are designated for advancing permitting, detailed engineering, and pre-development activities in 2026.

CEO Blake Hylands commented,

"Lithium Ionic has moved decisively beyond concept and optimisation and is now firmly in an execution phase. Bandeira is a technically mature, economically compelling project located in one of the world's lowest-cost hard-rock lithium regions, and our focus is on converting that strength into a producing operation."

The company terminated its option agreement for the K2 claims in the Curralinho Pegmatite Field. As part of the termination, Neolit Minerals Participações Ltda., the company's wholly owned Brazilian subsidiary, divested its minority interests in the special purpose companies associated with the agreement. The company stated the decision reflects a focus on disciplined capital allocation and prioritising its most advanced assets, specifically the advancement of the Bandeira Project.

Next Steps and Milestones

The company reported mineral resource growth, an updated feasibility study showing improved economics, and completed $18.3 million in financing during 2025. Detailed engineering is targeted for completion by mid-2026, with permitting processes ongoing. The company stated it is working toward a final investment decision that would mark the transition from development into construction.

According to the updated feasibility study, the Bandeira Project has an 18.5-year mine life and site operating costs of US$378 per tonne of spodumene concentrate. The company is advancing permitting, completing engineering work, progressing offtake discussions, and preparing pre-development activities including long-lead equipment procurement and early site works.

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