Lithium Ionic Signs Five-Year Sales Agreements for Bandeira Project, Advances Financing Path

• Lithium Ionic has signed binding five-year take-or-pay offtake agreements with Yahua Group and Grand Chen for a combined 170,000 tonnes per annum of spodumene concentrate from the Bandeira Lithium Project in Brazil.
• Pricing carries a floor of US$1,000 per tonne with no ceiling, meaning the company retains full exposure to any upside if lithium prices rise above that level.
• Offtake pricing is indexed to prevailing market rates with no discount applied to the applicable market reference price.
• A US$20 million combined pre-payment facility from the two buyers will be structured in line with the project's advancement toward a construction decision.
• The agreements are expected to strengthen the project's position as Lithium Ionic advances formal project financing.

Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) is a Canadian-based lithium development company whose flagship asset is the 100%-owned Bandeira Lithium Project in Minas Gerais, Brazil. The project is located in a region known as the "Lithium Valley," an emerging hard-rock lithium district in northeastern Minas Gerais State. The company is focused on advancing Bandeira through engineering, permitting, and commercial planning stages, with the aim of producing spodumene concentrate for global battery supply chains.

Binding Five-Year Agreements Cover Planned Annual Output of Bandeira Spodumene Concentrate

The offtake agreements, executed on 25 March 2026, are binding take-or-pay contracts, a structure in which buyers are committed to purchasing the agreed volumes or paying a penalty if they do not. Yahua Group, one of the world's largest producers of lithium hydroxide, and Grand Chen Resources, a vertically integrated lithium supply chain participant established in 2013, together agreed to purchase 170,000 tpa of spodumene concentrate (SC6) from Bandeira over five years. Spodumene concentrate is the first saleable product from a hard-rock lithium mine and is subsequently processed by converters into battery-grade lithium chemicals.

Both buyers supply lithium materials to major battery and electric vehicle manufacturers, including BYD, Tesla, CATL, and LG Energy Solution. Yahua and Grand Chen also have existing working relationships with members of Lithium Ionic's development team through RTEK International, the engineering and operational readiness firm engaged by the company in April 2025.

The agreements cover the entirety of Bandeira's planned annual concentrate output. The company noted that the execution of these agreements represents a significant milestone in the advancement of the project and provides third-party validation of its quality and strategic importance within the global lithium supply chain.

US$1,000/t Floor Price with No Ceiling Maintains Full Upside Exposure

The pricing structure in the agreements includes a floor of US$1,000 per tonne of SC6 and carries no maximum price limit. Pricing is indexed to the prevailing market reference price with no discount applied. 

CEO Blake Hylands commented: 

"The commercial terms of these agreements reflect the strength of the Project and the growing demand for reliable new sources of lithium supply."

Yahua Group has a vertically integrated platform spanning resource development, refining, and supply to major battery and electric vehicle manufacturers, with customers including Tesla, CATL, LG Energy Solution, BMW, and BYD. The company also has a partnership with LG Energy Solution to develop a lithium hydroxide conversion facility in Morocco, targeting approximately 50,000 tpa of battery-grade production for European and North American markets.

Grand Chen operates across Africa and Asia, supported by strategic partnerships with state-owned enterprises and industrial groups, and maintains established commercial relationships with downstream customers including BYD. Both buyers' downstream integration and conversion capabilities are noted by the company as factors that support the marketability of Bandeira's concentrate.

US$20 Million Pre-Payment Facility to be Structured Around Construction Timeline

Alongside the volume and pricing commitments, Yahua Group and Grand Chen have agreed to provide Lithium Ionic with a combined US$20 million pre-payment facility. A pre-payment facility is a form of advance financing in which buyers pay a portion of the purchase price ahead of product delivery. The facility remains subject to the execution of definitive agreements on market-standard terms and is expected to align with the Bandeira Project's advancement toward a construction decision.

CEO Blake Hylands stated: 

"We are very pleased to be partnering with Yahua Group and Grand Chen - two highly capable and globally established participants in the lithium supply chain, and Tier-1 suppliers to leading battery and electric vehicle manufacturers. Their commitment to the Bandeira Project is a strong endorsement of both the quality of our asset and our ability to deliver high-quality spodumene concentrate into global markets."

The company noted that the offtake agreements materially enhance project bankability, a term referring to a project's ability to attract debt financing from lenders, and strengthen its position as it advances project financing toward a potential construction decision.

Next Steps

With binding offtake agreements in place covering 100% of planned annual output and a pre-payment facility agreed in principle, Lithium Ionic's stated next focus is advancing formal project financing toward a potential construction decision for Bandeira. Key milestones to monitor include the finalisation of pre-payment facility documentation, continued permitting progress in Minas Gerais, and any further updates on project financing.

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