Announcement PDF ASX ANNOUNCEMENT 16 July 2024 Investor Presentation Lithium Australia Ltd (ASX:LIT) (“Lithium Australia” or the “Company”) is pleased to provide an updated Investor Presentation. No new information is disclosed in this presentation. A copy of the Investor Presentation is attached and can be viewed on the Company’s website. Authorised for release by the Board. Simon Linge Stuart Tarrant Managing Director / CEO Mobile +61 (0) 438 721 280 Chief Financial Officer Mobile +61 (0) 467 817 005 simon.linge@lithium-au.com stuart.tarrant@lithium-au.com Forward-looking statements This announcement contains forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties that it is beyond the Company’s ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Investors should be aware that past performance should not be relied upon as being indicative of future performance. About Lithium Australia Lithium Australia is aiming to lead and enable the global transition to sustainable lithium production. The Company operates Australia’s market leading battery recycler, produces critical battery material lithium ferro phosphate (LFP), and has developed a patented lithium extraction technology. Lithium Australia’s revenue-generating recycling business and technologies are well-placed to capitalise on growing global lithium-ion battery demand and provides diversification benefits to global supply chains. Lithium Australia Limited Suite 16/17, 79-83 High Street ASX: LIT ACN: 129 129 413 Kew, Victoria 3101 Investorhub.lithium-au.com T: +61 (0) 3 7017 2656 lithium-au.com E: info@lithium-au.com ASX : LIT Energising a better world Investor Presentation July 2024 Lithium Australia Limited securities are listed on Australian Securities Exchange (ASX Codes: LIT, LITOA, LITOB) Disclaimer This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in that jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in that jurisdiction. This presentation does not constitute financial product advice and has been prepared without taking into account the recipients’ investment objectives, financial circumstances or particular needs, and the opinions and recommendations in this presentation are not intended to represent recommendations to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include, among others, the risk of adverse or unanticipated market, financial or political developments. Certain statements contained in this presentation, including information as to the future financial or operating performance of Lithium Australia Limited (ABN 29 126 129 413) (‘the Company’) and its business and operations, are forward-looking statements. Such forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies, involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements, and may include, among other things, statements regarding targets, estimates and assumptions in respect of commodity prices, operating costs and results and capital expenditures, or may be, based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. The Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and other, similar expressions identify forward-looking statements. All forward-looking statements in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forwardlooking statements due to the inherent uncertainty therein. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include but are not limited to: competition; ability to meet additional funding requirements; commercialisation risks; development and operating risks; uninsurable risks; risks associated with intellectual property; environmental regulation, permitting and liability; battery management, including fire risk; currency risks; effects of inflation on results of operations; factors relating to title to properties; dependence on key personnel, and share-price volatility. Refer to the Company’s prospectus dated 12 October 2022 for additional details regarding key risks facing the Company. They also include unanticipated and unusual events, many of which it is beyond the Company’s ability to control or predict. Whilst care has been exercised in preparing and presenting this presentation, to the maximum extent permitted by law, the Company, and its representatives: ▪ Make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this presentation; ▪ Accept no responsibility or liability as to the adequacy, accuracy, completeness or reasonableness of this presentation; and ▪ Accept no responsibility for any errors or omissions from this presentation. ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 2 “ We are proactively executing on our strategic initiatives, including 1) increasing utilisation rates and enhancing operational efficiencies in recycling, 2) making rapid progress with LieNA® JDA activities which is on track to be completed in 2024, 3) actively pursuing commercialisation opportunities to monetise our unique LFP technology, and 4) securing partners for growth. An investment in Lithium Australia represents a compelling opportunity to be leveraged to the rapidly growing battery supply chain and retain significant upside potential via our unique technologies, while also ensuring limited exposure to cyclical swings in commodity pricing.” Simon Linge Managing Director & CEO of Lithium Australia Lithium Australia’s Unique Value Proposition Energising a better world by leading and enabling the global transition to sustainable electrification Strong partnerships in place Enhanced financial performance Rapid LieNA® commercialisation Significant upside potential Market leading Australian battery recycler, achieving record collection volumes. Executing recycling growth strategy and generating sustainable operating cashflow4. Joint development activities with Mineral Resources5 well progressed to date. Battery Materials currently in discussions with potential development partners. Recycling agreements in place with industry leaders, including: LG Energy Solution1, Volvo2, and Hyundai Glovis3. Underpinned by improved battery recycling commercial arrangements and strategic focus on large-format Lithium-ion batteries (LIBs). LieNA® piloting and engineering study on track to be completed in 2024, ahead of forming a 50:50 Joint Venture with Mineral Resources. Positioned to secure off-take agreements and focused on developing a lithium ferro phosphate (LFP) demonstration or semi-commercial scale plant. Notes: 1. See ASX announcement, ‘New battery recycling agreement with LG Energy Solution’, 18 March 2024; 2. See ASX announcement, ‘Exclusive battery recycling agreement Volvo Group Australia’, 5 June 2024; 3. See ASX announcement, ‘Exclusive battery recycling agreement with Hyundai Glovis’, 25 March 2024; 4. See ASX announcement, ‘Lithium Australia’s recycling operations achieve maiden operating cash profit’, 11 July 2024 5. See ASX announcement, ‘Landmark joint development agreement with Mineral Resources’, 7 August 2023 ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 4 Where we focus today Lithium Australia is scaling up in the growing battery industry and focused on high value opportunities across the lithium value chain Exploration and Mining Lithium Chemicals Battery Materials Battery Manufacturing Battery Recycling Passive investments in exploration assets Joint Development Agreement with Mineral Resources (ASX:MIN) Actively seeking partners for scale up towards commercialisation Relationships secured with leading battery manufacturers Market leading, revenue generating lithium-ion battery (LIB) recycler Overview Proprietary technology to process fine and low-grade materials to improve mining yields by up to 50%1 Validated LFP / LMFP3 product serves as an alternative supply source for global battery manufacturers Provision of recycling services. Growing LIB volumes underpinning positive operating cashflows and then national expansion strategy Commercial model Licensing to domestic and global miners at a gross product royalty rate of 8%2 Positioned for either licensing or owned and operated commercial scale plants Prioritise upstream fees and complement with additional downstream sales Notes: 1. Assumes existing mine concentrator is 60%: 60% to 90% Li recovery increase assumes lithium extraction technology recovers 75% of lithium units going to tails; 2. Company cautions that although it considers this to be a reasonable expectation, there is no guarantee that this rate will be achieved; 3. LFP: Lithium ferro phosphate, LMFP: Lithium manganese ferro phosphate ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 5 Battery Recycling ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com Leading Australian battery recycler Revenue-generating battery recycling business generating operating cashflows Battery supply chain strategy in action End-of-life Lithium-ion batteries received through strategic recycling agreements with leading EV / ESS1 manufacturers High and growing barriers to entry Recycling collection volumes and mix (tonnes)2 Growth in lithium-ion battery volume drives profitability 1,542 1,347 46% 1,086 Established operations with high compliance and safety requirements and growing government regulations 59% 849 69% Select recycling customers 21% 72% 27% 33% 19% 21% 7% 12% 14% FY21 FY22 FY23 Other Small-format LIBs FY24 Large-format LIBs Notes: 1. EV: Electric Vehicle, ESS: Energy Storage Systems; 2. Company analysis ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 7 Rapidly growing LIB collections to drive utilisation Recycling agreements with leading OEMs1 to drive uplift in collection volumes and utilisation rates 1 Forecast collections volume (tonnes)2 2 2 1,347 1,542 1,086 FY22 FY23 FY24 Growing utilisation and pipeline Contracts recently signed with leading OEMs and battery manufacturers including LG Energy Solution (LGES), Volvo, and Hyundai Glovis collectively are expected to rapidly increase utilisation rate. 849 FY21 Strategic recycling agreements have driven a significant uplift in recent collection volumes and underpin future collections growth. 2,400 1 Rapidly growing collection volumes Other contracts Current capacity Further ability to grow utilisation towards capacity driven by a strong and growing pipeline of recycling agreements with large OEMs and battery manufacturers. Notes: 1. OEM: Original equipment manufacturer；2. Company analysis ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 8 Attractive recycling revenue model Revenue generated from providing collection / processing services and sale of recycled materials Cash receipts and cash gross profit (A$m)1 Recycling revenue streams Upstream fees • • • Fees charged for the collection and processing of batteries, and provision of complimentary services Upstream fees expected to grow as a proportion of revenue mix going forward Relatively stable earnings given service-based revenue 1.5 1.3 1.0 0.6 0.5 1.5 1.4 1.4 1.1 1.0 0.6 0.6 0.4 0.2 0.3 0.2 0.4 0.0 Downstream sales • • Processing of Lithium-ion batteries includes production of Mixed Metal Dust (MMD) for downstream sales at market prices, with profit share arrangements in place Battery processing also yields additional revenue from other metals sold at market prices (e.g. aluminium, copper, steel etc.) (0.1) (0.3) (0.3) (0.7) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 FY24 Cash receipts Cash gross profit Notes: 1. Derived from respective Appendix 4C (Receipts from customers less product manufacturing and operating costs) and Appendix 5B (Receipt from customers less production) ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 9 SungEel HiTech: MMD off-take agreement Off-take agreement secured for at least 60% of MMD production, with JDA discussions underway Off-take agreement1 Key highlights • Signed 3-year Mixed Metal Dust (MMD) off-take agreement – effective from 1 July 2024 • SungEel HiTech will purchase a minimum of 60% of LIT’s annual MMD production – subject to minimum quality requirements ✓ Accelerates recycling growth strategy The off-take agreement is synergistic with Lithium Australia’s rapidly growing LIB2 collection volumes and MMD production, helping drive sustainable earnings growth • Discussions underway on a joint development agreement (JDA), incorporating a potential investment – initially focused on upgrading recycling equipment and expansion of processing capacity ✓ Significant addressable market LIT continues to serve the growing demand for MMD – underpinned by growing LIB collections and future uplift in product volumes ✓ Potential investment Opportunity to fund the expansion of LIT’s recycling capability and capacity in a non-dilutive manner – with execution of JDA targeted in 2024 Notes: 1. See ASX announcement, ‘Lithium Australia signs MMD off-take agreement with SungEel HiTech’, 13 June 2024; 2. LIB: lithium-ion battery ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 10 Strategic battery recycling outlook Strategic battery recycling outlook Growth Phase (2-3 years) Foundation Phase - Complete • Build Phase (1 year) • Continue to increase contribution mix of large-format LIBs in battery collections Expand collections and processing capacity through development of centralised Victoria facility • Increase battery processing capacity to match collection volumes • Build national collection and storage capacity through “spoke” network • Explore international options for expansion ✓ Revenue of A$6.5m in FY20241 • Improve MMD conversion efficiency ✓ >1,500 tonnes of battery collections in FY24 • Sustain positive operating cashflows • Optimise existing customer contracts ✓ Off-take agreement for MMD secured • ✓ Stabilising commercial model and offer to market Secure further recycling agreements with tier 1 EV and ESS3 manufacturers • Secure strategic and financing partners to facilitate scale up ✓ Recycling agreements signed with Volvo, Hyundai Glovis, and LG Energy Solution ✓ Improved MMD yield per tonne by up to 25%2 via process optimisation works Notes: 1. See ASX announcement, ‘Lithium Australia’s recycling operations achieve maiden operating cash profit’, 11 July 2024; 2. See ASX announcement, ‘Quarterly Activities Report December 2023’, 31 January 2024; 3. EV: Electric vehicle, ESS: Energy storage systems. ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 11 Lithium Chemicals ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com LieNA® value proposition Patented extraction technology offers ~50% higher lithium extraction efficiency ✓ Driving greater profitability for miners Unique method of processing un-used fine and low-grade spodumene, potentially yielding higher levels of lithium output ~50% Higher yield efficiency relative to existing methods1 ✓ Improves sustainability Materially less wastage as fine and low-grade spodumene typically ends up as waste streams Input ✓ Increases mine asset value Miners can extract significantly more lithium from the same spodumene resources, increasing mine value Fine / Low-grade spodumene Processing Patented lithium extraction technology ✓ Moves down value chain Output Allows miners to capture more of the value chain by processing spodumene on site into a lithium chemical Lithium phosphate / High grade battery materials Notes: 1. Assumes existing mine concentrator is 60%: 60% to 90% Li recovery increase assumes lithium extraction technology recovers 75% of lithium units going to tails. ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 13 LieNA® commercialisation pathway MinRes JDA targeting completion by end 2024, with a clear commercialisation pathway forward Joint Development Activities ✓ Commercialisation Pathway MinRes to provide sample materials Piloting and study ✓ Set-up and commissioning of pilot plant ✓ Commencement of engineering study Significant progress made under the JDA with MinRes to date – targeting completion in 2024 JV formation & commercial scale ✓ Produce intermediate product LieNA® technology to be held within 50:50 JV with MinRes. Key focus on proving technology at commercial scale through a demonstration plant ❑ Produce 5kg of final product Licensing ❑ Finalise engineering study report Licenses to miners globally at a gross product royalty rate of 8%1 (with potential to earn up to US$21m p.a. from a single licence2) ❑ Formation of 50:50 Joint Venture (JV) with MinRes Notes: 1. The Company cautions that although it considers this to be a reasonable expectation, there is no guarantee that this rate will be achieved; 2. Estimated revenue for the 50:50 JV based on: typical operation with 20,000tpa processing capacity (company assumption), achieving an average sale price of US$13,000/t (Source: SMM, Lithium Carbonate (99.5% Battery Grade) , 26 June 2024 converted at prevailing CNY/USD rate) at an 8% royalty rate ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 14 Battery Materials ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com Lithium Ferro Phosphate (LFP) value proposition Rapidly growing battery chemistry with strong adoption across global EV and ESS manufacturers1 Critical input for battery manufacturers LFP is a cathode material which represents most of input costs in the manufacture of LIBs Lithium-ion battery manufacturing cost mix6 Electrolyte, 4% Separator, 7% Battery housings,… Lower cost batteries LFP batteries are ~25% cheaper than traditional nickelbased batteries, with prices continuing to decline2 Anode, 12% Cathode, 51% Longer life cycle Relative to traditional batteries, LFP batteries have around double the longevity of traditional battery chemistries3 Lucrative economics and scalable Potential annual revenue of US$319m assuming a 25,000 tpa4 commercial plant and an LFP price of ~US$12.75/kg5 Manufacturing & Depreciation, 24% Notes: 1. Wood Mackenzie Energy Storage Services 2020; 2. IEA, Global EV Outlook (2024); 3. WhichCar, EV battery types explained (2023); 4. Company estimate: 25,000 tonnes per annum; 5. Avenira Limited (ASX; AEV) Announcement (Scoping Study, 2 March 2023), Ave. LFP Basket; 6. BloombergNEF, Electric Vehicle Outlook (2022) ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 16 LFP market dynamics Favourable market dynamics provides strong tailwinds for LIT’s Battery Materials business Rapid LFP adoption1 LFP batteries are being rapidly adopted by EV and ESS manufacturers due to the chemistry’s superior qualities Global EV sales by battery chemistry1 11% 8% 6% Existing supply chain risk >95% of LFP production is controlled by China, posing a significant geo-political supply chain risk for global EV manufacturers 55% 54% 61% Low-nickel High-nickel LFP Global Ex-China LFP industry still in its infancy We are one of the few developers with patented technology outside of China Sustainability and safety pressures 28% Ethical and safety concerns behind cobalt and nickelbased batteries are pressuring manufacturers to adopt alternatives, such as LFP batteries 2021 37% 40% 2022 2023 LFP adoption expected to continue, further increasing market share Notes: 1. IEA, Global EV Outlook (2024). ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 17 Well positioned for commercial discussions LIT’s LFP product has been externally validated and is seeking value creation opportunities ✓ Proven LFP product Independently assessed and validated against commercially available products by leading battery researcher NOVONIX1 Validated product Proprietary production process ✓ Proprietary cost-competitive process Proprietary production process, developed over 10+ years, ready for LFP manufacturing at scale on a competitive basis ✓ Partner ready Securing of off-take and / or development partners remains the focus before scale up of manufacturing. Samples have been provided to >20 potential customers ✓ Reducing supply chain risks Governments globally are actively seeking to lower dependency on China, which produces >95% of all LFP Input Lithium carbonate / other inputs Processing Proprietary production process Output Lithium Ferro Phosphate (LFP) Notes: 1. See ASX announcement, ‘Final testing for Lithium Australia's LFP cathode material’, 22 September 2023 ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 18 LFP commercialisation pathway Alternative commercialisation pathways driven by partnership with government or strategic partner Completed Completed Government Partnership International Strategic Partner ✓ Pilot plant operational and producing ~1-2 tpa of LFP ✓ LFP product independently validated by NOVONIX ✓ Progressed partnership discussions, as demonstrated by MOU’s with First Phosphate1 and Centrex2 ShortShort-term to medium-term • Secure government funding for Australian demonstration plant • Secure LFP off-take agreements • Development and operation of LFP demonstration plant to produce ~250 tpa • Secure international strategic partner for offshore semi-commercial facility • Secure LFP off-take agreements • Development and operation of LFP semi-commercial plant to produce ~5k tpa Long-term Medium to long-term • Development and operation of initial commercial scale plant to produce ~25,000 tpa • Scale up to achieve more than 100,000 tpa of LFP / LMFP3 production over the long-term Notes: 1. See ASX Announcement, ‘Lithium Australia signs MOU with First Phosphate’, 7 December 2023. 2. See ASX Announcement, ‘Lithium Australia signs MOU with Centrex regarding the development of LFP manufacturing’, 16 April 2024 3. LMFP: Lithium Manganese Ferro Phosphate. ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 19 Key activities over the balance of 2024 Planned transformational activities seek to unlock value Battery Recycling Battery Materials Lithium Chemicals • Sustain positive operating cashflows at current volumes. • Secure government funding for demonstration plant; or • Commence final stage of pilot plant operation. • Finalise joint development agreement and funding with SungEel HiTech. • Secure international strategic partner for semi-commercial facility. • Complete piloting to produce 5kg of final lithium phosphate product. • Secure further lithium-ion battery • recycling agreements with tier 1 partners. Offtake development including production of LFP / LMFP samples. • Finalise engineering study report to support a demonstration scale plant. • Increase mix of large-format batteries to further improve commercial outcomes. Continue raw materials strategy to support commercial scale volumes. • ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 20 Investment highlights Leading Australian battery recycler: providing sustainable solutions for the disposal of batteries, with recycling activities generating operating cashflows Strategic supply partnerships: Future supply of batteries secured through strategic partnerships – which underpins upstream revenue and MMD production MMD off-take secured: Downstream sales underpinned by secured off-take with SungEel HiTech for at least 60% of annual MMD production Rapid LieNA® commercialisation: JDA with MinRes well progressed – with piloting and engineering study on track to be completed in 2024 Upside potential from LFP technology: Actively pursuing commercialisation opportunities with domestic government or international strategic partner 21 Appendices Corporate: Snapshot Strong balance sheet with cash and listed investments of A$7 million Financial information Share price performance (YTD) Share price (A$) Volume (m) $0.04 10 Share price (12-Jul-24) 52-week trading range (low / high) $0.03 A$0.023 A$0.02 / A$0.07 8 $0.03 Shares on issue 1,222m 6 $0.02 Market capitalisation (12-Jul-24) $0.02 A$28.1m 4 Cash (31-Mar-24) A$4.9m 2 Listed investments1 (31-Mar-24) A$2.1m Debt (Convertible Note) (31-Mar-24) (A$0.9m) Cash and listed investments (31-Mar-24) A$7.0m $0.01 $0.01 $- 0 Jan-24 Feb-24 Mar-24 Apr-24 Volume (m) May-24 Share price Jun-24 Jul-24 Notes: 1. Includes Charger Metals NL (ASX: CHR) and Evion Group NL (ASX: EVG). Joint venture holdings of 30% for certain tenements held by CHR also exist. ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 23 Corporate: Board and management High profile and capable team with specialised expertise LIT Directors Simon Linge Managing Director / CEO George Bauk Non-Executive Chairman Kristie Young Phil Thick Non-Executive Director Non-Executive Director LIT Management Stuart Tarrant Chief Financial Officer Steven Marshall GM - Recycling Andrew Skalski GM – Safety, Risk, and Integration Andrew Napier GM - Technology Development David Taylor GM – Business Development Julie Coleman Chief People Officer ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 24 Market: Growing global demand Rapidly increasing demand for batteries expected to drive strong growth in lithium production LIBs demand growth1 Global shift towards EVs Global Li-ion battery cell demand, GWh 5000 4000 571% 3000 2000 1000 0 2022 2025 2030 Strong demand growth for battery cells supports need for LIT’s proprietary chemicals, materials, and recycling technologies 44 countries have committed to phasing out petrol car sales between 2035 – 20402 Notes: 1. McKinsey & Company, Battery 2030: Resilient, sustainable, and circular (2023). 2. Coltura, Gasoline Vehicle Phaseout Advances Around The World (2023). ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 25 Lithium Chemicals: Partnering with Mineral Resources Ltd. (MinRes) Joint development agreement with A$11bn1 Australian miner validates lithium extraction technology Strategic Partnership2 • • MinRes will fund the pilot plant operations and engineering study (up to A$4.5m) LIT to provide its extraction technology, LieNA®, and will manage piloting and the engineering study • Upon successful completion of piloting and engineering study, a new 50:50 JV will be formed between LIT and MinRes • New JV aims to licence the technology at a headline gross product royalty rate of 8%3 • First licence will be for the demonstration plant, which is expected to be funded and operated by MinRes Highlights ✓ Ideal partner Leveraging MinRes’ extensive mining operations and robust client base as an ASX50 company ✓ Free-carry Effectively free-carries LIT to commercialisation of the technology ✓ Large addressable global market Opportunity to target both brownfield and greenfield lithium mines globally ✓ Significant progress to date ~A$3m of MinRes funding has been received to date, with key activities progressing4 Notes: 1. Market capitalisation as at 15 July 2024. 2. See ASX announcement, ‘Landmark joint development agreement with Mineral Resources’, 7 August 2023. 3. The Company cautions that although it considers this to be a reasonable expectation, there is no guarantee that this rate will be achieved. 4 See ASX Announcement, ‘LIT confirms third drawdown from Mineral Resources’, 5 April 2024. ASX: LIT | July 2024 | www.investorhub.lithium-au.com | www.lithium-au.com 26 Lithium Chemicals: LieNA® process comparison Potential to broaden the quality of feed for extraction of lithium at scale Comparison to Conventional Thermal Conversion ✓ Process LieNA® is a disruptive process that replaces alpha to beta thermal conversion with a phase change using caustic. ✓ Feed grade LieNA® process has been tested technically at a range of grades, including lower than current thermal (alpha to beta) converters can effectively process. ✓ Reagent regeneration LieNA® has the potential to regener