Lithium Ionic Sells Salinas Lithium Properties to PLS for US$37.5 Million, Keeps Royalty on Future Spodumene Output

• Lithium Ionic has agreed to sell its Salinas group of lithium properties, including the Baixa Grande deposit, to PLS Brasil Mineração Ltda, a subsidiary of PLS Group Limited (ASX: PLS), for total cash consideration of US$37.5 million.
• The purchase price includes US$30.0 million payable at closing and US$7.5 million payable on the earlier of a positive final investment decision for PLS's Colina Project or December 31, 2029.
• Lithium Ionic retains a 2.0% royalty on future spodumene sales from Baixa Grande, calculated on a free-on-board basis.
• Proceeds are expected to support early works, procurement, and construction-readiness activities at the Company's 100%-owned Bandeira Lithium Project.
• The transaction reflects Lithium Ionic's transition from a multi-asset explorer to a focused developer of the Bandeira project.

Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) is a Canada-based lithium development company advancing the Bandeira Lithium Project, which it fully owns, in Minas Gerais, Brazil. The project is located in a district referred to as the Lithium Valley, described as an emerging hard-rock lithium district. The Company's strategy centres on engineering work, permitting, commercial planning, and construction readiness, with the goal of becoming a near-term producer of spodumene concentrate, the processed lithium mineral supplied to battery manufacturers.

Sale of Salinas Group of Lithium Properties to PLS for US$37.5 Million in Non-Dilutive Cash Proceeds

Lithium Ionic has entered into a definitive agreement to sell its Salinas group of lithium properties, comprising ten mineral claims in Brazil's Lithium Valley, to PLS, one of the world's largest hard-rock lithium producers. The properties include the Baixa Grande lithium resource, which the Company advanced to a mineral resource estimate after entering the district in early 2023. The agreement was signed on August 12, 2026, through the Company's subsidiaries Salit Mineração Ltda and Neolit Minerals Participações Ltda.

The total purchase price is US$37.5 million in cash, split into US$30.0 million payable at closing and a further US$7.5 million payable once PLS makes a positive final investment decision on its neighbouring Colina Project, or by December 31, 2029, whichever occurs first. The consideration is paid entirely in cash, meaning the Company does not need to issue new shares to fund this stage of Bandeira's development. The transaction is expected to close within ten business days, subject to standard closing conditions.

CEO Blake Hylands, P.Geo., commented:

"This Transaction crystallizes that value for shareholders without dilution, at a constructive point in the lithium cycle, and the Royalty keeps shareholders exposed to Baixa Grande's potential future development under PLS, one of the largest hard-rock lithium operators in the world."

Retained 2.0% Royalty on Future Spodumene Sales Preserving Shareholder Exposure to Baixa Grande Development

Alongside the cash sale, Lithium Ionic has secured a separate royalty agreement entitling it to 2.0% of the proceeds from all spodumene sold from the Salinas mineral claims in the future, calculated on a free-on-board basis, meaning before shipping and delivery costs are deducted. The royalty is held through the Company's subsidiary, Neolit, and applies to production from the property going forward.

PLS intends to evaluate integrating Baixa Grande with its adjacent Colina Project, which it acquired through its 2025 purchase of Latin Resources Limited. Under the royalty agreement, Lithium Ionic would receive payments tied to future spodumene sales from Salinas, should production proceed under PLS's ownership.

CEO Blake Hylands, P.Geo., stated:

"PLS is a natural fit as the acquirer of Baixa Grande given its neighbouring Colina Project. We are pleased to see it pass to a leading lithium producer rapidly growing its presence in the Lithium Valley, and with a strengthened balance sheet, we are squarely focused on advancing Bandeira toward a construction decision and becoming a near-term, low-cost lithium producer."

Strengthened Balance Sheet Supporting Bandeira Construction Decision as Company Transitions to Focused Single-Asset Developer

The cash proceeds from the sale are directed toward supporting Bandeira as it moves through procurement, early works tendering, and construction-readiness activities, ahead of a future construction decision.

BMO Capital Markets acted as financial advisor to the Company on the transaction, with Cassels Brock & Blackwell LLP and TozziniFreire Advogados serving as Canadian and Brazilian legal counsel, respectively.

With the Salinas properties divested, Lithium Ionic's remaining asset base centres on the Bandeira project. The Company's stated objective is to advance Bandeira toward a construction decision and become a near-term, low-cost producer of spodumene concentrate for battery supply chains.

Milestones and Next Steps

The transaction is expected to close within ten business days, pending customary closing conditions, at which point the initial US$30.0 million payment becomes payable to Lithium Ionic. The Company's next steps involve advancing Bandeira through early works and procurement toward a construction decision. The deferred US$7.5 million payment and future royalty payments remain contingent on PLS's progress at the Colina Project and any future spodumene production from Salinas.

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