Mr. Blake Hylands reports

LITHIUM IONIC INITIATES ENGINEERING AND CONSTRUCTION MANAGEMENT SERVICES CONTRACTS, AWARDED TO HATCH AND RETA FOR BANDEIRA PROJECT DEVELOPMENT

Lithium Ionic Corp. has initiated engineering, procurement and construction management (EPCM) services for its flagship Bandeira lithium project, located in northeastern Minas Gerais state, Brazil. This milestone marks the transition to the construction and development phase of the project and is a key step toward production. Advancing engineering and construction management services will progress the project along the targeted timeline in anticipation of the coming approval of site permits.

Key highlights:

• Hatch Ltd. has been awarded engineering and design services. Hatch is an internationally recognized engineering firm with extensive global experience in several commodities and a local presence in Brazil, including offices in Belo Horizonte, the capital city of Minas Gerais state. Hatch's involvement will bring world-class expertise and innovative solutions to the Bandeira project, ensuring a streamlined and efficient development process.
• Reta Engenharia, a leading Brazilian construction management company, has been selected to provide construction management services for the Bandeira project. With extensive experience in greenfield mining projects, Reta has supported both junior and large-cap producers, making it ideally suited to drive efficient and effective project outcomes. Its proven record in managing greenfield projects, combined with its deep regional knowledge, will be instrumental in advancing the Bandeira project toward production.
• Growing the owner team: To support this transition to project development and ensure a smooth transition into production, Lithium Ionic is expanding the technical capabilities of its owner team, by bringing in experienced professionals to guide the Bandeira project through the construction and operational readiness phases.

Blake Hylands, PGeo, chief executive officer of Lithium Ionic, commented: "Our momentum towards production is stronger than ever as we kick off the engineering and construction management phase with our esteemed partners, Hatch and Reta. This significant milestone marks an important step towards our goal of becoming one of Brazil's next major lithium producers. On the permitting front, we are now in the final stages at both the national and state levels, putting us firmly on track to deliver on our commitment of building a sustainable and economic lithium mine that will contribute to the region's growing significance in the global lithium supply chain."

Permitting process advancing on track; key milestones approaching

The permitting process for the Bandeira project is progressing efficiently at both the state and federal levels, with key approvals approaching. Currently, the review process is under way for the granting of the concomitant environmental and installation licence (licenca ambiental concomitante; LAC), which is part of a fast-track permitting process for critical mineral projects, designed to expedite the timeline to construction. Following the LAC approval, the final steps for full-scale production will include the granting of the mining concession and the operating licence (licenca de operacao; LO), which is issued upon inspection of the completed site facilities. Lithium Ionic remains on track to begin initial production at Bandeira in the second half of 2026.

Bandeira lithium project

The Bandeira property covers 157 hectares, or approximately 1 per cent of the company's large approximately 17,000-hectare land package in Brazil's prolific Lithium Valley in Minas Gerais state. Bandeira currently accounts for approximately 70 per cent of Lithium Ionic's global lithium mineral resource estimate of 60.1 million tonnes (see press release dated April 12, 2024).

In May, 2024, a feasibility study for Bandeira highlighted a robust 14-year mine life, producing an average of 178,000 tonnes of high-quality spodumene concentrate (5.5 per cent Li2O (lithium oxide)) annually with an after-tax NPV (net present value) of $1.3-billion (U.S.) and an IRR (internal rate of return) of 40 per cent (see press release dated May 29, 2024).

Bandeira is situated in northeastern Minas Gerais state, a Tier 1 mining region with excellent infrastructure, including low-cost, renewable hydroelectric power, access to water, excellent transport infrastructure and access to foreign markets through nearby ports. Known as Brazil's Lithium Valley, this region hosts the largest lithium reserves in the country and has emerged as a globally significant producer of high-purity spodumene concentrate. Bandeira is located approximately 500 metres from CBL's Cachoeira lithium mine and approximately four kilometres from Sigma Lithium's Grota do Cirilo mine.

About Lithium Ionic Corp.

Lithium Ionic is a Canadian mining company advancing its lithium projects in Brazil, with near-term production expected from its flagship Bandeira project. Situated in the heart of the Lithium Valley in Minas Gerais state, Bandeira is positioned to become the next major supplier of high-quality lithium concentrate. Since its formation in 2022, Lithium Ionic has rapidly progressed toward the construction stage, defining one of the largest lithium deposits in the belt, with continuing drilling continuing to expand its significant resource base. Benefiting from a streamlined permitting process in a mining-friendly jurisdiction, Lithium Ionic is strategically positioned to meet the growing demand for lithium in the EV (electric vehicle) and battery supply chains.

Qualified persons

The technical information in this news release has been prepared by Carlos Costa, vice-president, exploration, of Lithium Ionic, and Mr. Hylands, chief executive officer and director of Lithium Ionic, who are both qualified persons as defined in National Instrument 43-101. Mr. Costa and Mr. Hylands have both read and approved the content in this news release.

We seek Safe Harbor.