Mr. Mirco Wojnarowicz reports

ROCK TECH ANNOUNCES ESTIMATED EUROS50 MILLION REDUCTION IN CAPITAL EXPENDITURES FOR GUBEN LITHIUM CONVERTER

Further to the opex (operating expenditure) news release, Rock Tech Lithium Inc. has achieved another significant milestone in the development of the fully permitted Guben lithium converter on the German-Polish border. Following a comprehensive design and procurement review, management now estimates the capex (capital expenditure) for commissioning the facility at approximately 680 million euros, compared with the prior estimate of 730 million euros, representing a net reduction of approximately 50 million euros (approximately 6.9 per cent). Together with the previously announced modelled opex reductions of approximately 23 per cent, management believes these changes will improve the project's competitiveness, positioning Rock Tech as an internationally competitive player in lithium refining and improving the financing basis for the strategic EU (European Union) raw materials project.

"The combination of modelled operating cost reductions and estimated capital cost savings will fundamentally change the business case for Guben," explained Henrik Wende, managing director of Rock Tech Guben GmbH. "With potential production costs that position us competitively in the international market and simultaneously reduced investment expenditures, we would increase the economic viability of the project. To complete the financing of the project, these optimizations are decisive factors that we expect to significantly improve our position."

Estimated capex reduction through targeted optimizations

The estimated cost reduction is the result of a comprehensive review of all project components and targeted adjustments in several areas:

• Optimized plant design: Through targeted adjustments in various areas, such as packaging systems, facade elements, the emission measurements, truck scales or parts of the piping construction, the company expects to save approximately 22 million euros, reducing the original estimate of 62 million euros to approximately 40 million euros.
• Adjusted storage capacities: On-site storage for raw materials, reagents (chemical auxiliaries) and residual materials is expected to be reduced in line with the new logistics concept. Costs in this category are expected to decrease from 35 million euros to 28 million euros -- a saving of seven million euros.
• Process optimizations: Through changes in process technology that are compatible with permit requirements -- for example, for intermediate buffers or individual process stages -- the company expects to save an additional 14 million euros, reducing the original estimate of 88 million euros to 74 million euros.
• Updated supplier estimates: Through revised procurement requirements with suppliers and the expansion of procurement sources, potential savings of around 16 million euros have been identified, reducing the original estimate of 597 million euros to 581 million euros.
• Contingency: Additionally, expenses for contingencies were adjusted from 60 million euros to 57 million euros -- a further estimated saving of three million euros.

These gross savings of approximately 62 million euros are partially offset by an estimated 12 million euros of increased costs in other categories, including owner costs (costs that are necessary to make the plant operational), resulting in a net estimated reduction of 50 million euros.

Further optimizations planned -- competitiveness sustainably strengthened

The owner costs -- expenses for establishing the operational readiness of the facility -- and other external costs are currently the focus of further optimization. Rock Tech expects additional savings potential in these areas by optimized plant design. Furthermore, Rock Tech expects additional saving opportunities upon project implementation with an external solutions provider and EPCM (engineering, procurement and construction management) partner Worley, detailed engineering, and optimization of the sourcing strategy.

As noted in the opex news release, Rock Tech modelled a 23-per-cent reduction in opex -- a reduction from approximately 5,033 euros to 3,878 euros per tonne of lithium hydroxide. Production costs are therefore expected to decrease significantly, which is expected to strengthen the international competitiveness of the Guben converter.

Non-binding MOU (memorandum of understanding) with Sichuan Calciner Technology (SCT)

In connection with the capex optimization program, Rock Tech has signed a non-binding MOU with SCT for a potential collaboration on engineering and process optimization for the Guben lithium converter.

The MOU was signed during a high-level business delegation visit to Berlin, which included representatives from Sichuan province, including Lijun Cao, member of the standing committee of the Sichuan Provincial Party committee and party secretary of the Chengdu Municipal Party committee. Chengdu is considered the centre of advanced battery production. The delegation met with selected representatives of the German industry, including, amongst others and Rock Tech, Danone Germany, Dreame Technology, Deutsche Messe AG and the Chinese Chamber of Commerce in Germany.

SCT is a globally recognized engineering expert in the field of lithium refining plants and a founding member of the International Lithium Association. The company operates as a service provider for technologies and plants for cathode materials and has realized many operational production lines for lithium battery materials in China. SCT is specialized in providing engineering design, process technology, procurement, construction and commissioning services. SCT has designed and built over 60 lithium convertor trains of lithium carbonate and lithium hydroxide globally and developed proven proprietary process technology, know-how and equipment.

"Should the partnership advance on mutually agreeable terms, the company will gain access to SCT's comprehensive expertise in lithium processing," explains Mirco Wojnarowicz, chief executive officer of Rock Tech. "This potential cooperation could support us in efficiently advancing our project in Guben and benefiting from proven processes. Particularly in the pyro-metallurgical area, we see further potential for optimizing our investment costs through collaboration with SCT in the area of plant design and sourcing."

SCT's chief executive officer, Jeremy Chang, said: "We are delighted to be working with the experienced team from Rock Tech and be able to bring value to the project. SCT can bring expertise and experience in the industry to improve the safety, reliability and economics of the plant. This collaboration reflects the growing global momentum in decarbonization and electrification and could help establish battery and electric vehicles industry in Germany."

Update on merger with Arcore AG

Further to the company's news releases dated July 7 and Feb. 20, 2025, Rock Tech intends to cease its activities in Bosnia and Herzegovina and has terminated the previously contemplated joint venture with Arcore for the extraction of lithium-bearing ore in order to prioritize capital and management attention on the Guben lithium converter, the company's core project, and other related strategic initiatives.

About the Guben converter

The Guben lithium converter is a pioneering facility in Guben, Brandenburg, Germany, by Rock Tech Lithium, a German-Canadian company. This fully permitted refinery is one of Europe's first commercial lithium facilities and is aiming to produce 24,000 tonnes of battery-grade lithium hydroxide annually (equivalent to approximately 30 gigawatt-hours of battery capacity) -- enough, based on an average consumption of 800 grams per kilowatt-hour and 60 kilowatt-hours per EV (electric vehicle), to supply batteries for approximately 500,000 electric vehicles per year.

Strategically located near major automotive and battery manufacturing hubs, the Guben converter is designed to strengthen Europe's battery supply chain by processing spodumene concentrate secured through leading trading partner C&D Logistics (Qingdao) Co. Ltd. The converter will utilize advanced crystallization technologies, supplied by GEA Group AG, to ensure high-purity lithium production with minimal environmental impact. Global professional services company Worley has been selected as EPCM partner for the plant.

Recognized as a strategic project under the EU's Critical Raw Materials Act, the Guben converter underscores Europe's commitment to securing essential materials for the energy transition. The project is expected to create approximately 200 jobs and represents a significant step toward regionalizing and decarbonizing the lithium supply chain in Europe.

About Rock Tech Lithium Inc.

Rock Tech is enabling the battery age by making the battery industries in Europe and North America more independent and competitive. The company's goal is to ensure the supply of high-quality, locally produced lithium -- supporting a resilient, sustainable and transparent value chain from mine to battery-grade material.

Rock Tech relies on responsible sourcing, state-of-the-art and proven technologies, and a clear focus on circular economy principles. The company's lithium hydroxide converter projects in Guben, Germany (24,000 tonnes lithium hydroxide per year), and Ontario, Canada (up to 36,000 tonnes lithium carbonate equivalent per year), form the foundation for a stable and regional supply to the battery and automotive industries. The Guben converter has been recognized as a strategic project under the EU Critical Raw Materials Act.

The raw materials for Rock Tech's converter projects are sourced exclusively from verifiably ESG-compliant (environmental, social and governance) suppliers. In Canada, Rock Tech relies, among other sources, on its wholly owned Georgia Lake project, which ensures a stable and sustainable supply for the North American market and is being developed in close partnership with local indigenous communities. By integrating recycled materials, the company aims to close the local battery loop.

With its facilities, Rock Tech makes a central contribution to battery-grade material sovereignty and the achievement of climate targets. The company works in partnership with industry, policymakers and community groups and is committed to open communication and the highest environmental standards.

We seek Safe Harbor.