Mr. David Park reports

SMACKOVER LITHIUM RECEIVES INDICATIONS OF INTEREST FOR OVER $1 BILLION IN PROJECT FINANCE FOR THE SWA PROJECT

Smackover Lithium Ltd., a joint venture (JV) between Standard Lithium Ltd. and Equinor, is providing an update with respect to the project financing being pursued for the South West Arkansas project (SWA project). Smackover Lithium has received expressions of interest from three major export credit agencies (ECAs), including among them Export-Import Bank of the United States (EXIM) and Export Finance Norway (Eksfin), for over $1-billion in senior secured project debt (the ECA financing) to fund the construction of phase 1 of the SWA project. All figures are in United States dollars unless otherwise stated.

Smackover Lithium is currently seeking a senior secured, limited recourse debt financing package of up to $1.1-billion in total. The project debt is expected to comprise i) the ECA financing package, which includes direct lending and the provision of ECA loan guarantees to a group of commercial banks (the covered tranche) that together account for a substantial portion of the total debt, and ii) an uncovered tranche of senior secured project debt from the commercial banks.

Earlier this year, Smackover Lithium conducted a market sounding of global commercial banks that are active in the project financing debt market and received multiple expressions of interest for both the covered tranche under the ECA financing and the uncovered tranche. The responses included indicative terms that were consistent with the expectations of the JV and validated certain assumptions regarding the cost, term, structure and conditions that are customary for project debt facilities of this nature. The combined commercial bank interest, together with the ECA financing, exceed the targeted project debt.

The project debt will be used to finance total estimated capital expenditures of $1.45-billion for the SWA project based on the results of the JV's front-end engineering design (FEED) and definitive feasibility study, as well as financing costs. Any cost overrun facilities and reserve accounts, typical for project financings of this nature, remain subject to negotiation with the lenders.

David Park, chief executive officer of Standard Lithium, stated: "We have seen a very strong level of interest and engagement from export credit agencies and commercial lenders that are keen to partner with us in the development of the first lithium project in the Smackover. Expressions of interest have been at competitive indicative terms and exceed our targeted debt amount for the SWA project. This strong response demonstrates the availability of capital and underscores the project's strategic importance, competitiveness and technological derisking. We are well positioned to be a regional champion, delivering a low-cost and sustainable source of lithium production in the United States."

"Securing an attractive and comprehensive project financing package is a critical component of moving the SWA project into construction," said Allison Kennedy Thurmond, vice-president for United States lithium, at Equinor. "We continue to make meaningful progress on this important workstream and are pushing to reach a final investment decision as soon as practical."

None of the expressions of interest received to date from the ECAs or the commercial banks are commitments to finance the SWA project and remain subject to customary due diligence that is in progress, credit and other approvals, the satisfactory negotiation of definitive documentation, and other conditions precedent to financial close and drawdown.

Further updates on these efforts, including the dual-track customer offtake process that is critical to supporting this financing structure, will be provided as progress continues.

Project financing overview

The $1.45-billion in total capital expenditures for the SWA project was highlighted in the DFS news release dated Sept. 3, 2025. The SWA project was awarded a $225-million grant from the U.S. Department of Energy's Office of Manufacturing and Energy Supply Chains in January of 2025. Remaining capex is expected to be financed by project debt of up to $1.1-billion and pro rata equity contributions from Standard Lithium and Equinor.

Department of Energy acknowledgment and disclaimer

This material is based upon work supported by the U.S. Department of Energy's Office of Manufacturing Energy and Supply Chains under award No. DE-MS-0000099. The views expressed herein do not necessarily represent the views of the U.S. Department of Energy or the United States government.

About Smackover Lithium Ltd.

Smackover Lithium is a joint venture between Standard Lithium and Equinor. Formed in May, 2024, Smackover Lithium is developing multiple direct lithium extraction (DLE) projects in southwest Arkansas and East Texas (the JV projects). Standard Lithium owns a 55-per-cent interest and Equinor holds the remaining 45-per-cent interest in the JV projects, with Standard Lithium maintaining operatorship.

About Standard Lithium Ltd.

Standard Lithium is a leading near-commercial lithium development company focused on the sustainable development of a portfolio of large, high-grade lithium-brine properties in the United States. The company prioritizes projects characterized by high-grade resources, robust infrastructure, skilled labour and streamlined permitting. Standard Lithium aims to achieve sustainable, commercial-scale lithium production via the application of a scalable and fully integrated DLE and purification process. The company's flagship projects are in the Smackover formation, a world-class lithium brine asset, focused in Arkansas and Texas. In partnership with global energy leader Equinor, Standard Lithium is advancing the SWA project, a greenfield project located in southern Arkansas, and actively advancing a promising lithium brine resource position in East Texas, including the highest known lithium brine grade project in North America, the Franklin project.

Standard Lithium trades on both the TSX Venture Exchange and the NYSE American under the symbol SLI.

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