Dr. Thomas Benson reports

LITHIUM AFRICA RECEIVES TWO NON-BINDING OFFERS TO FUND THE SPRINGBOK PROJECT, INCLUDING A US$60 MILLION INVESTMENT PROPOSAL

Lithium Africa Corp. has received two non-binding offers to finance the development of the Springbok project in the Northern Cape province, South Africa: (i) a prepayment facility with offtake from a major international commodity trading house for 100 per cent of the project's spodumene concentrate in its first three years of production; and (ii) a $60-million (U.S.) investment from a lithium processing company backed by a Fortune Global 500 group for a 55-per-cent interest in the company's holding in the project. The project is held outside the company's 50/50 joint venture with GFL International Co. Ltd., an affiliate of Ganfeng Lithium. The company is in competitive discussions with more than 20 potential counterparties to identify the best partner to advance Springbok toward production, with first production of spodumene concentrate targeted for the second half of 2027 (see news release dated Oct. 7, 2026). The two offers address different stages of the project: the prepayment facility and offtake would support near-term production, while the investment would finance district-wide drilling followed by a larger processing plant.

Highlights:

• $60-million (U.S.) investment proposal implies a premoney valuation of approximately $70-million (U.S.) for Springbok: The proposal contemplates $60-million (U.S.) in cash for a 55-per-cent interest in a new holding company that would hold the company's 70-per-cent interest in the project, implying a premoney valuation of approximately $70-million (U.S.) for 100 per cent of the project.
• Lithium Africa's retained 45-per-cent interest valued at approximately $49-million (U.S.): The company would retain 45 per cent of the holding company, valued at approximately $49-million (U.S.) based on the implied postmoney valuation of the holding company of approximately $109-million (U.S.), without contributing to the $60-million (U.S.) program.
• Prepayment facility with offtake: A major international commodity trading house has proposed a prepayment facility for the project, together with an offtake of 100 per cent of the project's spodumene concentrate for its first three years of production.
• Competitive process with more than 20 counterparties: Both offers are non-binding, and the company continues discussions with more than 20 potential counterparties across offtake, prepayment, vendor financing and project-level equity.
• First production targeted for second half of 2027: The company continues to target a project financing decision in the first half of 2027 and first production of spodumene concentrate in the second half of 2027.

Dr. Thomas Benson, PhD, chief executive officer of Lithium Africa, commented: "Receiving offers from both a major trading house and a lithium processing company shows the strength of interest in Springbok, a permitted mine with a path to production in 2027. With more than 20 counterparties engaged, we are running a competitive process, and our job now is to select the partner and the structure that deliver the most value for Lithium Africa shareholders so that small-scale production at Springbok can fund large-scale exploration across the district."

$60-million (U.S.) investment proposal

Under the proposal, the investor would subscribe $60-million (U.S.) in cash for new shares in a holding company to be established to hold the company's 70-per-cent interest in Namli Exploration & Mining Pty. Ltd., which holds the project. On completion, the investor would hold 55 per cent of the holding company and the company would hold 45 per cent, giving the company an indirect 31.5-per-cent interest in Namli. The remaining 30-per-cent interest in Namli, held by the company's Broad-Based Black Economic Empowerment (B-BBEE) partner, would be unaffected. The proposal implies a premoney valuation of $70.1-million (U.S.) for 100 per cent of Namli. The proceeds would finance approximately $10-million (U.S.) of drilling across the Springbok district and approximately $50-million (U.S.) for a processing plant. The proposal is non-binding and is subject to, among other things, due diligence, including confirmatory drilling, the negotiation and execution of definitive agreements, board approvals, acceptance of the TSX Venture Exchange, approval of the company's shareholders, and required regulatory approvals.

Competitive process

The company is in competitive discussions with more than 20 potential counterparties regarding financing at the project level, with structures under discussion including offtake, prepayment, vendor financing and project-level equity. The company continues to target a project financing decision in the first half of 2027, followed by the start of construction, subject to approvals and completion of financing, and first production of spodumene concentrate in the second half of 2027 (see news release dated Oct. 7, 2026). There can be no assurance that any financing will be completed on acceptable terms, or at all.

About Lithium Africa Corp.

Lithium Africa is a lithium exploration and development company building a portfolio of hard-rock lithium assets across Africa. The company holds the Springbok project in South Africa directly and its exploration interests in West Africa and southern Africa, including the Adzope district in Ivory Coast, through a 50/50 joint venture with GFL International, an affiliate of Ganfeng Lithium.

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