Lithium Ionic Secures Binding Term Sheet with Appian for US$20 Million Royalty Financing

Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) ("Lithium Ionic" or the "Company") is excited to announce the execution of a binding term sheet (the "Term Sheet") with Appian Capital Advisory LLP ("Appian"). This agreement involves the sale of a 2.25% gross revenue royalty on its Bandeira Deposit in exchange for an upfront cash consideration of US$20,000,000 (the "Royalty"). Appian serves as an investment advisor to long-term, value-focused private capital funds, specializing in investments exclusively within the mining and mining-related sectors.

Lithium Ionic plans to utilize the proceeds from the Royalty to further propel the development and construction of its esteemed Bandeira Lithium Project ("Bandeira" or the "Project"), situated within the Lithium Valley in Minas Gerais State, Brazil. The Lithium Valley stands out as a distinctive geological region boasting a notable concentration of lithium-bearing pegmatites and has emerged as a globally significant hub for lithium production. On May 29, 2024, the Company disclosed the results of its Feasibility Study for Bandeira, endorsing a 14-year, cost-effective mining operation yielding 178,000tpa of high-quality spodumene concentrate (5.5% Li2O). This achievement translates to a post-tax NPV8 of US$1.3 billion and an IRR of 40%.

Provisions outlined in the Royalty Term Sheet

The completion and financing of the Royalty hinge on the formalization of a definitive agreement (the "Definitive Agreement") between the Company and Appian. Key terms agreed upon include:

• A 2.25% Life of Mine gross revenue royalty on the Bandeira Project.

• A purchase price of US$20,000,000 payable to the Company upon closing.

• The Company retains the option to repurchase the Royalty in full within the first five years for a fee of US$67,500,000.

• Funding is contingent upon customary conditions precedent, including the finalization and execution of documentation and the provision of legal opinions.

Lithium Ionic, a Canadian mining enterprise, is actively exploring and developing its lithium assets situated in Brazil. Spanning across 14,182 hectares, its Itinga and Salinas properties are strategically positioned in the northeastern region of Minas Gerais state. This area is renowned for its mining-friendly environment and is rapidly gaining recognition as a premier hard-rock lithium hub globally. Among its assets is the Feasibility-stage Bandeira Project, located within the same vicinity as CBL’s long-standing Cachoeira lithium mine, boasting over three decades of lithium production. Additionally, nearby lies Sigma Lithium Corp.’s Grota do Cirilo project, renowned for hosting the largest hard-rock lithium deposit in the Americas.