Lithium Ionic Secures $18.3M in Funding with Strong Investor Support

• Successfully closed first tranche raising $12.8 million through the sale of 18.35 million units at $0.70 per unit
• Upsized the total offering from $15 million to $18.3 million due to strong investor demand, with books now closed
• Secured backing from Martin Rowley, a recognised leader in the lithium sector known for building multi-billion-dollar mining companies
• Attracted participation from RTEK International DMCC, a team of lithium industry veterans with global project development experience
• Final tranche expected to close on or about 3 October 2025, subject to regulatory approvals

Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FSE: H3N) is a Canadian exploration and development company focused on lithium projects in Brazil. The company operates the Itinga and Salinas projects, which together span 14,668 hectares in the northeastern region of Minas Gerais state. This area is gaining recognition as an emerging hard-rock lithium district, located in the same region as CBL's Cachoeira mine, which has been producing lithium for over 30 years, and near Sigma Lithium Corp.'s Grota do Cirilo project, home to the largest hard-rock lithium deposit in the Americas.

First Tranche Closing and Final Upsize to $18.3 Million

The company completed the first tranche of its private placement on 29 September 2025, raising $12.8 million through the sale of 18.35 million units. Each unit consists of one common share and one warrant, with each warrant allowing the holder to purchase an additional common share at $0.90 within 24 months of issuance. This structure provides investors with both immediate equity participation and potential upside through the warrant component, which becomes valuable if the share price exceeds the $0.90 exercise price.

Following the strong response to the initial offering, the company announced a final upsize, increasing the total placement from $15 million to $18.3 million. The books are now closed, meaning no additional subscriptions are being accepted. This represents an increase of approximately 22% over the originally planned amount, reflecting robust investor appetite for the opportunity. The company expects to close the final tranche on or about 3 October 2025, pending receipt of all necessary approvals, including clearance from the TSX Venture Exchange.

The net proceeds from the offering will be directed towards developing the company's Brazilian lithium properties and supporting general corporate activities. With lithium demand continuing to grow driven by the electric vehicle and energy storage sectors, this capital injection positions the company to advance its exploration and development programmes. The securities issued under this placement are subject to a four-month statutory hold period under Canadian securities laws, which is standard for private placements of this nature.

Strategic Investor Participation and Industry Support

The offering attracted significant support from established figures in the lithium mining sector, most notably Martin Rowley, described as a recognised leader in the lithium industry with a track record of building multi-billion-dollar mining companies. Rowley's participation sends a strong signal to the market, as experienced mining executives typically conduct thorough due diligence before committing capital. His involvement suggests confidence in both the quality of Lithium Ionic's assets and the management team's ability to execute on the business plan.

RTEK International DMCC, an organisation comprising experienced lithium industry veterans, also participated in the offering. RTEK is recognised for successfully designing and developing lithium projects worldwide, bringing technical expertise and industry connections that extend beyond their financial contribution. This type of strategic investor can provide valuable guidance on project development, operational best practices, and potential partnerships or offtake agreements, which are crucial for emerging lithium producers.

The participation of key strategic shareholders further demonstrates the confidence existing investors have in the company's direction. When insiders and strategic partners increase their positions, it typically indicates alignment between management and shareholders, as these parties have access to detailed information about the company's prospects. Blake Hylands, Chief Executive Officer and Director of Lithium Ionic, is overseeing this capital raise, positioning the company for its next phase of growth in Brazil's expanding lithium sector.

Insider Participation and Related Party Transaction Details

Company insiders are expected to acquire 912,179 units as part of the upsized offering, representing their confidence in the company's future prospects. When management and directors invest their own capital alongside external investors, it demonstrates alignment of interests and signals that those with the most intimate knowledge of the business believe in its potential. This insider participation will be conducted as a related party transaction under Multilateral Instrument 61-101, which is designed to protect minority shareholders in situations where insiders are involved.

The company expects this insider participation to be exempt from the formal valuation and minority shareholder approval requirements typically associated with related party transactions. This exemption applies because neither the fair market value of the units subscribed for by insiders, nor the consideration they are paying, is expected to exceed 25% of the company's market capitalisation. This threshold ensures that the transaction is not large enough to materially affect the ownership structure or control of the company.

The terms offered to insiders are identical to those available to all other investors in the placement: $0.70 per unit, with each unit comprising one common share and one warrant exercisable at $0.90 for 24 months. This ensures that insiders are not receiving preferential treatment or more favourable pricing than external investors. The regulatory framework surrounding related party transactions provides transparency and protects the interests of all shareholders, ensuring that insider purchases are conducted on fair and reasonable terms.

Looking Ahead

With the books now closed on the upsized $18.3 million offering and the final tranche expected to close on or about 3 October 2025, Lithium Ionic is positioned to accelerate development activities at its Brazilian lithium projects. The company's Itinga and Salinas properties are located in Minas Gerais state, a jurisdiction that is establishing itself as a significant lithium producing region in the Americas. The successful completion of this capital raise, backed by industry veterans and strategic investors, provides the financial resources needed to advance exploration programmes, complete technical studies, and move closer to potential production. Investors will be watching for updates on drilling results, resource estimates, and permitting progress as the company executes its development strategy in the months ahead.

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