SIGMA Lithium Corporation announced the Company's Board of Directors has made a Final Investment Decision ("FID") to double production of its unique Quintuple Zero Green Lithium from current 270,000t/y to 520,000t/y. The Board of Directors approved the initiation of construction of a second line of its Greentech Industrial Plant ("Phase 2 Industrial Greentech Plant") with Capex of $100 million (FEL3). The capital expenditure ("Capex") for Phase 2 Industrial Greentech Plant is targeted to be $100 million, aiming to increase the Company's total annual lithium capacity by 250,000 tonnes of Quintuple Zero Green Lithium to 520,000 tonnes in 2025. Combined, Sigma Lithium would produce enough lithium concentrate to power roughly 1.8 million electric vehicles.

The Company is also pleased to announce that it shall commence mobilization for construction on site of approximately 180 workers and construction equipment to build the earthworks, foundation and infrastructure installation of its Greentech dense media separation production plant (the "Production Plant"). The Company has quoted FEL3 the critical long lead items required for the Project and begun planning orders from respective suppliers to secure manufacturing timetables. Completion of this stage of the construction civil works (earthworks and the concrete plant drainage channels and civil works) is expected to be concluded within approximately six months, by the Brazilian construction firm of Promon Engenharia Ltda.

("Promon"), which successfully constructed the Phase 1 Industrial Greentech Plant and delivered it on time and on budget. The Company is also announcing that it has identified approximately 35 critical long lead items required for the Project and plans to begin ordering them from respective suppliers, placing deposits to secure manufacturing timetables. Prices and FEL-3 quotes for these long lead items have been in line with the FEL-2 capex estimates in the feasibility study included in the Company's most recently filed technical report.

The total build and commissioning timeline for Phase 2 Industrial Greentech Plant is expected to be approximately 10 months. With earthworks commencing in April, the Company expects construction and assembly on an accelerated plan to begin in 4Q24. This would lead to first commercial production thereafter.

Phase 2 flow sheet will be modified to incorporate the improvements to the Company's industrial cleantech implemented during current operations to optimize processes. This should also translate into a faster commissioning and ramp schedule of the Phase 2 Industrial Greentech Plant. Phase 2 Industrial Greentech Plant has been designed to produce up to 250,000 tonnes per annum of high purity 5.5% chemical grade coarse lithium concentrate ("Quintuple Zero Green Lithium"), equivalent to approximately 34,000 tonnes per year of lithium carbonate equivalent ("LCE").

The Company´s Board of Directors has approved an initial total of $8.4 million of construction disbursements, to be entirely funded from the Company´s cash and construction savings account. The approvals include: Execution of civil works of earth moving for foundations, land adaptation and protective drainage of the construction site of the Production Plant. Continuity of certain construction-related engineering services throughout the second quarter of 2023.

The Company is currently negotiating an agreement for the engineering, procurement, and construction management of the Production Plant and associated infrastructure with Promon. Sigma Lithium built on the operational progress achieved in the third quarter. Sigma Lithium's Greentech plant ended the year with production for the month of December sustaining annualized nameplate capacity of 270,000.

The Company continues to take additional steps to boost plant efficiency and maintain nameplate capacity in 2024. It has been meeting delivery schedules each 30 to 35 days. All in, Sigma Lithium produced over 105,000 tons of lithium concentrate in its first calendar year of operations.

In the first quarter to March 30, it has produced 52,800 tonnes. The Company is taking proactive measures to manage costs and bring operating leverage in line with its new goals. At the Greentech Plant, the operations team is replacing expensive contract labor with in-house, trained, salaried employees and is working to optimize its maintenance schedules.

Logistics and operations are also diversifying service providers to drive additional savings. With recurring production costs in Fourth Quarter of $455/t FOB Vitoria, the Company believes it has a very credible path to achieving its $420/t FOB Vitoria target for 3Q24.