EQS-Adhoc: Vulcan Energy Resources Limited: Definitive Feasibility Study Demonstrates Significantly Improved Economics for Phase One of Vulcan’s Zero Carbon Lithium Project

Vulcan Energy Resources Limited (or the Company, Vulcan) has completed the Definitive Feasibility Study (DFS) for the first phase of Vulcan’s Zero Carbon Lithium Project development. Vulcan’s goal is to be the world’s first integrated lithium chemicals and renewable energy producer with zero net greenhouse gas emissions. Vulcan aims to be the first integrated renewable energy, lithium recovery and lithium hydroxide refining project serving the battery electric vehicle industry from Europe for Europe. The DFS and Resource Reserves update were based on newly acquired data from the Company’s geothermal production and reinjection wells and lithium extraction pilot plant, engineering studies, newly acquired seismic data and state-of-the-art modeling and simulation techniques. The main findings of the study are as follows:

Targeted production of 24 ktpa Lithium Hydroxide Monohydrate (LHM) per year from the EU, for the EU.

– The aim is >300 GWh renewable electricity and >250 GWh renewable heat production per year.

– >250% increase in Estimated Net Present Value (NPV): $3.9 billion before tax, $2.6 billion after tax.

– Estimated IRR 34% before tax, 26% IRR after tax.

– Estimated CAPEX of 1,496 million, increasing broadly in line with larger project size and inflation.

– Low estimated OPEX of 4,359 /t LHM.

– Amortization target of 3.5 years (integrated project). Desired start of production at the end of 2025.

– Net zero per tonne estimated LHM carbon footprint: a world first in the lithium industry.

– No Scope 1 fossil fuels. Very low net water consumption.

– Increased resources and reserves compared to the integrated Phase 1 PFS (Pre-Feasibility Study): the largest lithium resource in the EU at 26.6Mt Lithium Carbonate Equivalent (LCE).

This DFS confirms the economic viability of Vulcan Energy Resources Ltd’s business model. Economics for the first phase of the Company’s Zero Carbon Lithium Project have improved significantly compared to assumptions in the Pre-Feasibility Study (PFS) published in January 2021.

With these latest studies demonstrating the technical and economic feasibility and sustainability of the Company’s business model, Vulcan Energy Resources Ltd. a positive signal effect for the financing of the further implementation of the zero carbon lithium project.