Mr. Chris Lang reports

SWA LITHIUM DRILLS NEW SMACKOVER WELL AND CONDUCTS EXTENSIVE RESERVOIR TESTING PROGRAM AT SOUTH WEST ARKANSAS LITHIUM PROJECT

SWA Lithium, the joint venture between Standard Lithium Ltd. and Equinor ASA, which is developing the South West Arkansas project, has successfully commenced drilling a new well into the Smackover formation at the project. The well is currently at a depth of approximately 8,000 feet below surface (2,438 metres), and has a targeted total depth of 9,600 feet (2,926 metres). SWA Lithium is also undertaking an extensive field program to re-enter the wells drilled in 2023 to conduct detailed reservoir testing and brine sampling work.

New exploration well

The new well, named Lester-1, is a vertical exploration well being drilled by local contractors. The well fills in a data gap in SWA Lithium's proposed first area of operation, and after spudding of the well on Dec. 27, 2024, is now at a depth of 8,000 feet and advancing steadily. During drilling, it is intended to retrieve core from the Upper and Middle Smackover formation limestone and the bore terminate in the Lower Smackover formation. After installation of production casing, the borehole will be selectively perforated in zones of interest and multiple large-scale representative samples of lithium brine will be produced from the formation. The same horizons of interest will also be subjected to permeabilitity testing to assess reservoir characteristics and behaviour. Discrete core samples will be sent for third party assessment of porosity and permeability. All data gathered from this new well will be used to inform the forthcoming front-end engineering design (FEED) and definitive feasibility studies (DFS).

Field program

The SWA team is also conducting an extensive field program at four wells in the proposed first area of operation. The work consists of well re-entry, hydraulic testing to determine reservoir characteristics, and brine sampling and testing. In addition, large volumes of brine have been collected from the International Paper Company to allow the field-based pilot testing to be operated (see Standard Lithium's recent news release dated Dec. 19, 2024). To date, the work has demonstrated that reservoir properties are better than previously gathered in the preliminary feasibility study, and also, where lithium brine samples have been sent off for third party analysis, the lithium concentrations are higher than previously published. Key data will be made public when available, and all relevant data will be provided in the DFS later in 2025, along with all QA/QC (quality assurance/quality control) information.

Standard Lithium's director and president, Dr. Andy Robinson, commented: "The Standard Lithium and Equinor teams, along with our various field and drilling partners are working hard to gather all the remaining subsurface data we require for our first commercial lithium project. The remaining field programs are required so that our engineering and design partners can complete the FEED and DFS studies by mid-2025. The SWA Lithium joint venture remains focused on execution and moving the project towards commercialization."

Qualified person

Steve Ross, PGeol, a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has reviewed and approved the relevant scientific and technical information that forms the basis for this news release. Mr. Ross is vice-president, resource development, for the company.

About Standard Lithium Ltd.

Standard Lithium is a leading near-commercial lithium development company focused on the sustainable development of a portfolio of lithium-brine-bearing properties in the United States. The company prioritizes brine projects characterized by high-grade resources, robust infrastructure, skilled labour and streamlined permitting. The company aims to achieve sustainable, commercial-scale lithium production through the application of a scalable and fully integrated direct lithium extraction and purification process. The company's signature project, the South West Arkansas project, is located on the Smackover formation in Southern Arkansas, a region with a long-standing and established brine processing industry. The company has also identified a number of highly prospective lithium brine project areas in the Smackover formation in eastern Texas and is conducting an extensive brine leasing program in this region. The company is developing the South West Arkansas project and the eastern Texas project in a 55/45 joint venture with Equinor ASA. In addition, the company has an interest in certain mineral leases located in the Mojave Desert in San Bernardino county, California.

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