Ms. Ana Cabral-Gardner reports

SIGMA LITHIUM DELIVERS ON ZERO TAILINGS STRATEGY, RECEIVES FIRST PAYMENT AND OBTAINS PREMIUM PRICING FOR SALE OF GREEN LITHIUM AT 9% OF LIOH INDEX

Sigma Lithium Corp. is delivering on its pioneering zero tailings environmental sustainability strategy, eliminating the environmental footprint of tailings with a positive ecosystem impact.

• The company received the first payment on its first shipment under a three-year environmental offtake agreement to sell 100 per cent of its green tailings (the green tailings environmental offtake) together with one spot shipment of 15,000 tonnes of green lithium:
  • Green tailings are high-purity, zero chemicals, approximately 1.3 per cent lithium oxide (Li2O), ultrafine tailings generated by the company's Greentech lithium processing plant as a byproduct.
  • Green lithium is high-purity 5.5 per cent battery grade sustainable lithium produced by the Greentech plant.
• The green tailings environmental offtake and the spot sale agreement were concurrently signed on May 3, 2023, with Yahua International Investment and Development Co. Ltd., one of the largest lithium chemical refiners for electric vehicles in the world, with a leading industry position and customer relationships that include LG Chem, LG Energy Solution and leading original equipment manufacturers (OEMs).
  • One hundred per cent of green tailings are expected to be upcycled into battery grade lithium concentrate by Yahua, lowering Yahua's and its customers' scope 3 carbon emissions by using upcycled feedstock.
• The company received 50 per cent prepayment in advance of these shipments and achieved premium pricing:
  • Green lithium: 9 per cent of lithium hydroxide index;
  • Green tailings: 9 per cent of lithium hydroxide index, with deductions for grade, processing and tolling costs.
• This shipment of 30,000 tonnes is in the process of being transported and stored at port to be shipped in early June, and comprises 15,000 tonnes of green tailings and 15,000 tonnes of green lithium.

The company received the first payment on its first shipment under the green tailings environmental offtake to sell 100 per cent of its green tailings for up to three years to Yahua International Investment and Development Co. Ltd. Sigma Lithium's zero tailings strategy ensures that lithium material is neither wasted nor consigned to environmentally hazardous tailings dams, making the company the world's first lithium producer to achieve zero tailings from the onset.

The green tailings environmental offtake agreement signed on May 3, 2023, comprises the sale of up to 300,000 tonnes of green tailings per year for up to three years to be upcycled into battery grade lithium concentrate for use in electric vehicle battery production. In addition, the company concurrently entered into a spot sale agreement with Yahua for the sale of 15,000 tonnes of green lithium.

Yahua is one of the largest lithium chemical refiners for electric vehicles in the world, with a leading industry position and customer relationships that include LG Chem, LG Energy Solution and leading OEMs.

"Achieving zero tailings marks a major milestone for Sigma Lithium and for the battery materials industry, demonstrating that lithium battery materials can be produced in harmony with the environment and without hazardous tailings dams," said Ana Cabral-Gardner, Sigma Lithium chief executive officer and co-chairperson. "Our zero tailings strategy enables Sigma Lithium to lead the way in the inception of a sustainable global supply chain for the next generation of electric vehicles built in line with the ethos of the consumer to meet the accelerated global demand for lithium.

"Reaching zero tailings is a result of our consistent investments in clean technologies over the last five years to deliver on our commitment to achieve a green process flowsheet for lithium materials. The successful operation of our Greentech plant, which uses 100 per cent renewable energy, 100 per cent recycled water and 100 per cent dry-stacked tailings, is a testament to this commitment and a model of environmental sustainability.

"As a producer of green lithium, Sigma Lithium is helping to elevate Brazil's role in the energy transition while creating a positive impact on the communities in Vale do Jequitinhonha, also known as Lithium Valley, through our continued collaboration with federal and state government leaders."

Sigma Lithium began trucking green lithium and green tailings in April, 2023, stockpiling the materials in its two warehouses at Vitoria Port in preparation for its first shipment. Green lithium and green tailings shipment volume continues to increase daily and is on track to achieve the expected ramp-up volumes for 2023.

About Sigma Lithium Corp.

Sigma Lithium is a company dedicated to powering the next generation of electric vehicle batteries with environmentally sustainable and high-purity lithium.

Sigma Lithium has been at the forefront of environmental and social sustainability in the electric vehicle battery materials supply chain for six years and it is currently producing green lithium from its Grota do Cirilo project in Brazil. Phase 1 of the project is expected to produce 270,000 tonnes of green lithium annually (36,700 lithium carbonate equivalent annually). If it is determined to proceed after completion of a continuing feasibility study, phases 2 and 3 of the project are expected to increase production to 766,000 tonnes annually (or 104,200 LCE annually). The project produces green lithium in a state-of-the-art Greentech lithium plant that uses 100 per cent renewable energy, 100 per cent recycled water and 100 per cent dry-stacked tailings. Please refer to the company's National Instrument 43-101 technical report titled "Grota do Cirilo Lithium Project, Aracuai and Itinga Regions, Minas Gerais, Brazil, Updated Technical Report" dated Oct. 31, 2022, which was prepared for Sigma Lithium by Homero Delboni Jr., MAusIMM, Promon Engenharia; Marc-Antoine Laporte, PGeo, SGS Canada Inc.; Jarrett Quinn, PEng, Primero Group Americas; Porfirio Cabaleiro Rodriguez (Meng), FAIG, GE21 Consultoria Mineral; and Noel O'Brien, BE, MBAC, FAusIMM. The updated technical report is filed on SEDAR and is also available on the company's website.

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