Lithium Ionic Reports 61% IRR and 18.5-Year Mine Life for Bandeira Project

• Project Economics: Post-tax IRR of 61% and NPV of US$1.45 billion, up from 40% IRR and US$1.31 billion NPV in May 2024 study
• Capital Costs: Initial CAPEX reduced by 28% to US$191 million through streamlined plant design and equipment optimisation
• Mine Life Extension: Mine life increased to 18.5 years from 14 years, supported by 6 million tonne increase in proven and probable reserves
• Operating Costs: Site operating costs of US$378 per tonne of spodumene concentrate with payback period of 2.2 years
• Production Target: Average annual production of 177,000 tonnes of spodumene concentrate over life of mine

Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FSE: H3N) is a Canadian mining company developing lithium properties in Brazil. The company controls 14,668 hectares in northeastern Minas Gerais state, including the Bandeira Project which is at feasibility stage. The project is located in the same region as CBL's Cachoeira lithium mine and Sigma Lithium Corp.'s Grota do Cirilo project.

Updated Feasibility Study Results & Project Economics

The September 2025 feasibility study incorporates an expanded mineral resource estimate while reducing capital and operating costs compared to the May 2024 study. The study applies Fastmarkets' long-term spodumene concentrate pricing assumptions of US$1,400 per tonne at production start and US$2,200 per tonne life-of-mine average.

Post-tax NPV increased to US$1.45 billion with IRR of 61%, compared to US$1.31 billion NPV and 40% IRR in the previous study. The payback period decreased from 3.4 years to 2.2 years. Under a conservative pricing scenario of US$1,370 per tonne average, the project shows post-tax NPV of US$583 million and IRR of 33%.

The study incorporates a 30% increase in Measured & Indicated resources at Bandeira, extending proven and probable reserves by 6.0 million tonnes and mine life by 4.5 years. Total life-of-mine production is projected at 3,198 kt of spodumene concentrate containing 411 kt lithium carbonate equivalent over 18.5 years.

Mining Operations & Processing Plant Design

Mining operations will use sub-level stope mining methods targeting 1.29 million tonnes per annum average plant throughput from run-of-mine grade of 1.10% lithium oxide. The underground approach reduces surface footprint compared to open-pit mining. Operations begin with a mining contractor during initial development, transitioning to owner-operated model for life-of-mine cost optimisation.

The processing plant follows proven dense media separation technology used by peer operations in the region. RTEK's modular design uses pre-assembled structural steel components to reduce on-site construction time and costs. The flowsheet includes crushing, sorting, screening, dense media separation and dewatering with metallurgical recovery of 65.3%.

Processing plant capacity is rated at 1.50 million tonnes per annum with dry-stacked tailings storage. Blake Hylands, Chief Executive Officer, commented:

"This updated Feasibility Study reflects the incredible effort of our team and the expertise of RTEK, who together have optimised every aspect of Bandeira. What was already a robust project is now even stronger - delivering a longer mine life, lower capital requirements and significantly improved project economics."

Permitting Progress & Regulatory Developments

The Minas Gerais State Secretariat for the Environment and Sustainable Development (SEMAD) issued positive technical endorsement in February 2025. The project awaits the Licença Ambiental Concomitante (LAC) environmental licence following review by COPAM (State Council for Environmental Policy of Minas Gerais).

A federal prosecutor requested evaluation of considerations relating to a Quilombola traditional community located 11 kilometres north of Bandeira during the COPAM review process. The community lies outside the defined impact zone, but the request reflects broader discussions regarding impact radii and consultation practices across lithium projects in Minas Gerais.

The company continues engagement with regulatory agencies, community stakeholders and traditional communities. The State of Minas Gerais remains the competent authority for environmental licensing, with expectations that queries will be addressed through the state review process before returning to COPAM for deliberation.

Next Steps

The company plans to advance offtake agreements and secure project financing to support a final investment decision. Subject to financing and permits, production start is targeted for H2 2027 with normal ramp-up profile. The complete NI 43-101 technical report will be filed within 45 days on SEDAR+ and the company website.

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