Mr. Blake Hylands reports

LITHIUM IONIC SECURES OFFTAKE AGREEMENTS WITH LEADING INTEGRATED LITHIUM PRODUCERS, INCLUDING ONE OF THE WORLD'S LARGEST LITHIUM HYDROXIDE PRODUCERS, FOR BANDEIRA PROJECT PRODUCTION

Lithium Ionic Corp. has executed binding multiyear offtake agreements with each of Sichuan Yahua Industrial Group Co. Ltd. and Grand Chen Resources Pte. Ltd., two leading global lithium-ion battery materials producers, for the supply of high-quality spodumene concentrate from its Bandeira lithium project in Minas Gerais, Brazil.

Highlights

• Lithium Ionic will supply a combined 170,000 tonnes per annum of spodumene concentrate under five-year binding take-or-pay offtake agreements to Yahua Group and Grand Chen, two integrated counterparties serving Tier 1 battery and EV (electric vehicle) manufacturers, including BYD and other leading OEMs (original equipment manufacturers).
• Minimum price of $1,000 (U.S.)/t (6 per cent spodumene concentrate grade basis, or SC6) with no maximum price limit, reflecting a highly competitive pricing structure that provides downside protection while maintaining full exposure to lithium price upside.
• Pricing indexed to prevailing market prices, with no discount to the applicable market reference price, reflecting the strength and expected commercial quality of the Bandeira project.
• A total of $20-million (U.S.) combined prepayment facility associated with the offtake agreements, aligned with the project's advancement toward construction.
• Agreements materially enhance project bankability and strengthen the company's position as it advances project financing toward a potential construction decision.

Blake Hylands, PGeo, chief executive officer of Lithium Ionic, commented: "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 commercial terms of these agreements reflect the strength of the project and the growing demand for reliable new sources of lithium supply. With offtake now secured, we are well positioned to advance project financing and move Bandeira toward a construction decision."

The execution of these offtake agreements represents a significant milestone in the advancement of the Bandeira project and provides strong third party validation of its quality and strategic importance within the rapidly growing global lithium supply chain.

Yahua and Grand Chen are established participants in the global lithium supply chain, with integrated downstream conversion and supply into Tier 1 battery and electric vehicle supply chains, including BYD, Tesla, CATL and LG Energy Solution. The counterparties have existing working relationships with members of the Lithium Ionic development team, including RTEK International (see April 2, 2025, press release for further details), providing continuity and supporting efficient execution as the Bandeira project advances toward financing and development. Their downstream integration and conversion capabilities further strengthen the marketability of Bandeira concentrate and support competitive commercial terms as the project progresses toward production.

In connection with the offtake agreements, Yahua Group and Grand Chen have agreed to provide the company with an aggregate amount of $20-million (U.S.) in prepayment facilities. The facilities are subject to the execution of definitive agreements on market-standard terms and is expected to align with the advancement of the Bandeira project toward a construction decision.

About Lithium Ionic Corp.

Lithium Ionic is a Canadian lithium development company focused on responsibly advancing its 100-per-cent-owned Bandeira lithium project in Minas Gerais, Brazil, a region coined the Lithium Valley that is emerging as a world-class hard-rock lithium district. The company is executing on a focused development strategy centered on engineering derisking, permitting advancement, commercial planning and construction readiness, with the goal of becoming a near-term producer of high-quality spodumene concentrate for global battery supply chains.

Qualified person

The contents of this news release has been reviewed and approved by Blake Hylands, CEO and director of Lithium Ionic, who is a qualified persons as defined by National Instrument 43-101. Mr. Hylands is not considered independent of the company.

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