Standard Lithium : Q3 March 31, 2024 Financial Statements

Condensed Consolidated Interim Financial Statements

(Expressed in Canadian dollars - unaudited)

Three and nine months ended March 31, 2024 and 2023

STANDARD LITHIUM LTD.

Condensed Consolidated Interim Statements of Financial Position As at March 31, 2024 and June 30, 2023

(Expressed in thousands of Canadian Dollars - unaudited)

		March 31,		June 30,
		2024		2023
ASSETS
Current assets
Cash	$	15,716	$	59,612
Receivables		527		468
Prepaid expenses		2,578		1,969
		18,821		62,049
Non-current assets
Reclamation deposit		85		83
Exploration and evaluation assets (Note 5)		143,210		99,952
Intangible asset (Note 6)		1,368		1,432
Right of use asset		833		1,233
Property, plant and equipment (Note 4)		3,180		2,765
Advances and deposits		203		2,669
Investment in Aqualung Carbon Capture SA (Note 3)		3,386		3,314
		152,265		111,448

TOTAL ASSETS	$	171,086		$	173,497
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities	$	10,811	$		12,737
Lease liability - short-term		340			512
Non-current liabilities		11,151			13,249
Lease liability - long-term		513			739
Decommissioning provision		135			133
		648			872
TOTAL LIABILITIES		11,799			14,121
EQUITY
Share capital (Note 8)		290,444			272,419
Reserves		45,733			35,888
Deficit		(178,996)			(148,707)
Accumulated other comprehensive income (loss)		2,106			(224)
TOTAL EQUITY		159,287			159,376
TOTAL LIABILITIES AND EQUITY	$	171,086	$		173,497

Commitments (Notes 5) and Contingencies (Note 11)

Approved by the Board of Directors and authorized for issue on May 7, 2024.

"Robert Cross"		"Claudia D'Orazio"
Director		Director

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

STANDARD LITHIUM LTD.

Condensed Consolidated Interim Statements of Comprehensive Income (Loss) Three and nine months ended March 31, 2024 and 2023

(Expressed in thousands of Canadian Dollars, except share and per share amounts - unaudited)

		Three months ended			Nine months ended
				March 31,				March 31,
		2024		2023		2024		2023
Expenses
Share-based payments	$	3,614	$	44	$	9,971	$	1,135
Demonstration plant operations
(Note 7)		1,975		4,428		7,177		10,403
Office and administration		1,164		820		3,322		2,459
Consulting fees		879		931		2,935		2,501
Professional fees		893		239		1,972		1,625
Management fees (Note 9)		661		555		1,987		1,579
Salaries and benefits		516		152		1,670		152
Patent		274		189		699		657
Travel		238		174		655		334
Amortisation of property, plant and
equipment (Note 4)		232		1		666		207
Amortisation of office leases		136		64		404		156
Filing and transfer agent		60		168		308		366
Advertising and investor relations		48		132		220		286
Amortisation of intangible assets
(Note 5)		21		20		64		89
Foreign exchange (gain)/loss		(167)		38		(727)		(5,192)
Project investigation		-		161		-		1,300
Loss from operations		(10,544)		(8,116)		(31,323)		(18,057)
Interest and other income		205		1,027		1,098		2,539
Interest and accretion expense		(19)		(12)		(64)		(21)
Net loss for the period		(10,358)		(7,101)		(30,289)		(15,539)
Other comprehensive income (loss)
Item that may be reclassified
subsequently to income or loss:
Currency translation differences of
foreign operations		3,157		23		2,330		2,489
Total comprehensive income (loss)		(7,201)		(7,078)		(27,959)		(13,050)
Weighted average number of
common shares outstanding - basic
and diluted		178,223,074		168,790,419		174,731,258		166,694,224
Basic and diluted loss per share	$	(0.06)	$	(0.04)	$	(0.17)	$	(0.09)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

STANDARD LITHIUM LTD.

Condensed Consolidated Interim Statements of Changes in Equity Nine months ended March 31, 2024 and 2023

(Expressed in thousands of Canadian Dollars, except share amounts - unaudited)

						Accumulated
	Number					other
	of	Share				comprehensive
	shares	capital	Reserves	Deficit	Income (loss)	Total equity
Balance, June 30, 2022	166,402,197	$ 262,047	$ 21,945	$	(106,718)	$	(746)	$	176,528
Share-based payment	-	-	1,135		-		-		1,135
Stock options exercised	5,750,000	8,224	(2,967)		-		-		5,257
Net loss for the period	-	-	-		(15,539)		-		(15,539)
Currency translation differences for
foreign operations	-	-	-		-		2,489		2,489
Balance, March 31, 2023	172,152,197	$ 270,271	$ 20,113	$	(122,257)	$1,743	$	169,870
Balance, June 30, 2023	172,752,197	$ 272,419	$ 35,888	$	(148,707)	$	(224)	$	159,376
Share-based payment	-	-	9,971		-		-		9,971
Shares issues under At-The-Market
offering (Note 8)	9,320,559	19,263	-		-		-		19,263
Share issuance costs	-	(1,504)	-		-		-		(1,504)
Stock options exercised	100,000	266	(126)		-		-		140
Net loss for the period	-	-	-		(30,289)		-		(30,289)
Currency translation differences for
foreign operations	-	-	-		-		2,330		2,330
Balance, March 31, 2024	182,172,756	$ 290,444	$ 45,733	$	(178,996)	$	2,106	$	159,287

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

STANDARD LITHIUM LTD.

Condensed Consolidated Interim Statements of Cash Flows Nine months ended March 31, 2024 and 2023 (Expressed in thousands of Canadian Dollars - unaudited)

		Nine months ended
		March 31,		March 31,
		2024		2023
Operating activities
Net loss	$	(30,289)	$	(15,539)
Add items not affecting cash
Share-based payments		9,971		1,135
Foreign exchange		(1,044)		(5,324)
Amortisation		730		296
Amortisation - office leases		404		156
Interest expense		64		21
Net changes in non-cash working capital items to operations:
Receivables		(59)		473
Prepaid expenses		(609)		(1,709)
Advances		2,466		-
Accounts payable and accrued liabilities		(3,519)		(503)
Net cash used in operating activities		(21,885)		(20,994)
Investing activities
Exploration and evaluation assets		(39,336)		(25,150)
Purchase of land for future South West Arkansas Project plant		(939)		-
Aqualung Carbon Capture pilot plant development		(68)		(1,754)
Purchase of property, plant and equipment		(22)		-
Patent		-		(40)
Net cash used in investing activities		(40,365)		(26,944)
Financing activities
Proceeds from issuance of at the market ("ATM") shares		19,263		-
Share issuance costs		(1,504)		-
Exercise of options		140		5,257
Lease payments		(460)		(171)
Net cash from financing activities		17,439		5,086
Effect of exchange rates on cash		915		5,209
Net change in cash		(43,896)		(37,643)
Cash, beginning of period		59,612		129,065
Cash, end of period	$	15,716	$	91,422
Non-cash investing activities:
Change in current liabilities relating to Exploration and evaluation
assets		1,593		1,033

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

STANDARD LITHIUM LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2024 AND 2023

(Expressed in thousands of Canadian Dollars, except where indicated and share and per share amounts - unaudited)

1. Nature of Operations

Standard Lithium Ltd. (the "Company") was incorporated under the laws of the Province of British Columbia on August 14, 1998 under the name Tango Capital Corp. On April 7, 1999, the Company changed its name to Patriot Capital Corp. and then to Patriot Petroleum Corp. effective March 5, 2002. On December 1, 2016, the Company continued under the Canadian Business Corporations Act and changed its name to Standard Lithium Ltd. The Company's principal operations are exploration for and development of lithium brine properties primarily in the Smackover formation in the states of Arkansas and Texas of the United States of America ("USA").

The address of the Company's corporate office and principal place of business is Suite 1625, 1075 West Georgia Street, Vancouver, British Columbia, Canada, V6E 3C9. The Company's shares are listed on the TSX Venture Exchange and NYSE American Stock Exchange under the symbol "SLI" and the Frankfurt Exchange in "S5L".

2. Basis of Presentation

a) Statement of compliance

The annual consolidated financial statements of the Company, including comparatives, have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. The condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (IAS 34).

These condensed consolidated interim financial statements follow the same accounting policies and methods of application as the most recent audited consolidated financial statements of the Company.

These condensed consolidated interim financial statements do not include all of the information required of a complete set of consolidated financial statements and are intended to provide users with an update in relation to events and transactions that are significant to an understanding of the changes in financial position and the performance of the Company since the end of its last annual reporting period. It is therefore recommended that these condensed consolidated interim financial statements be read in conjunction with the annual consolidated financial statements of the Company for the year ended June 30, 2023.

b) Basis of consolidation

The consolidated financial statements of the Company include the accounts of the Company and its subsidiaries which the Company controls 100% of.

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STANDARD LITHIUM LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2024 AND 2023

(Expressed in thousands of Canadian Dollars, except where indicated and share and per share amounts - unaudited)

3. Investment in Aqualung Carbon Capture SA

Changes in the Company's Investment in Aqualung during the period ended March 31, 2024 and year ended June 30, 2023 are summarized as follows:

Balance, June 30, 2022	$ 3,221
Effect of change in fair value	93
Balance, June 30, 2023	3,314
Effect of change in fair value	72
Balance, March 31, 2024	$ 3,386

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STANDARD LITHIUM LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2024 AND 2023

(Expressed in thousands of Canadian Dollars, except where indicated and share and per share amounts - unaudited)

4. Property, Plant and Equipment

					Land for
					future
					South
			Demonstration	Aqualung	West
			plant (formerly	Carbon	Arkansas
	Leasehold	Furniture	Pilot plant)	Capture	Project
	improvements	and fixtures	(Note 7)	pilot plant	plant	Total
Cost	$	$	$	$	$	$
June 30, 2022	-	-	26,649	-	-	26,649
Additions	187	12	-	1,778	-	1,977
June 30, 2023	187	12	26,649	1,778	-	28,626
Additions	-	22	-	68	939	1,029
Effect of foreign exchange
translation	-	-	16	38	(2)	52
March 31, 2024	187	34	26,665	1,884	937	29,707
Accumulated amortisation
June 30, 2022	-	-	(25,664)	-	-	(25,664)
Amortisation	(6)	(1)	(207)	-	-	(214)
Effect of foreign exchange
translation	-	-	17	-	-	17
June 30, 2023	(6)	(1)	(25,854)	-	-	(25,861)
Amortisation	(39)	(3)	-	(624)	-	(666)
Effect of foreign exchange
translation	-	-	1	(1)	-	-
March 31, 2024	(45)	(4)	(25,853)	(625)	-	(26,527)
Net book value
June 30, 2022	-	-	985	-	-	985
June 30, 2023	181	11	795	1,778	-	2,765
March 31, 2024	142	30	812	1,259	937	3,180

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STANDARD LITHIUM LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2024 AND 2023

(Expressed in thousands of Canadian Dollars, except where indicated and share and per share amounts - unaudited)

5. Exploration and Evaluation Assets

			Commercial
		South West	Plant
	California	Arkansas	Evaluation	Texas
	Property	Project(1)	(Lanxess 1A)	Properties	Total
	$	$	$	$	$
Acquisition:
Balance, June 30, 2022	18,460	14,230	-	-	32,690
Option payments	2,352	1,378	-	885	4,615
Lanxess brine supply costs	-	(7,953)	7,953	-	-
Effect of foreign exchange
translation	527	406	-	-	933
Balance, June 30, 2023	21,339	8,061	7,953	885	38,238
Option payments	128	1,416	-	1,485	3,029
Acquisition of Wheelhouse
Water Resources, LLC	-	-	-	27	27
Effect of foreign exchange
translation	469	205	173	30	877
Balance, March 31, 2024	21,936	9,682	8,126	2,427	42,171
Exploration and Evaluation:
Balance, June 30, 2022	4,333	4,105	4,533	-	12,971
Exploration costs	9	17,429	-	18,175	35,613
Lanxess 1A evaluation costs	-	-	12,740	-	12,740
Effect of foreign exchange
translation	124	136	130	-	390
Balance, June 30, 2023	4,466	21,670	17,403	18,175	61,714
Exploration costs	5	8,337	-	18,220	26,562
Lanxess 1A evaluation costs	-	-	11,084	-	11,084
Effect of foreign exchange
translation	96	625	495	463	1,679
Balance, March 31, 2024	4,567	30,632	28,982	36,858	101,039
Balance, June 30, 2023	25,805	29,731	25,356	19,060	99,952
Balance, March 31, 2024	26,503	40,314	37,108	39,285	143,210

1. On October 31, 2023, the Company exercised its option agreement with TETRA Technologies, Inc. to acquire brine productions rights for the South West Arkansas Project. The Company did not incur any costs associated with the exercise.

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STANDARD LITHIUM LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2024 AND 2023

(Expressed in thousands of Canadian Dollars, except where indicated and share and per share amounts - unaudited)

6. Intangible Asset

The carrying value of the intangible assets acquired is as follows:

	IP Assets	Patents	Total
Balance, June 30, 2022	$ 1,501	$	-	$ 1,501
Additions	-		41	41
Amortisation	(110)		-	(110)
Balance, June 30, 2023	1,391		41	1,432
Amortisation	(62)		(2)	(64)
Balance, March 31, 2024	$ 1,329	$	39	$ 1,368

7. Demonstration Plant Operations (formerly Pilot Plant)

As at March 31, 2024, and 2023, demonstration plant costs are comprised of the following:

		Three months ended			Nine months ended
			March 31,			March 31,
		Aqualung	Demonstra�on		Aqualung	Demonstra�on
	pilot plant		plant		pilot plant		plant
	2024	2023	2024	2023	2024	2023	2024	2023
	$	$	$	$	$	$	$	$
Internet	-	-	2	3	-	-	8	8
Personnel	54	-	1,312	1,298	54	-	3,938	4,341
Reagents	-	-	17	1,895	-	-	583	2,479
Repairs and	-	-	14	7	-	-	360	16
maintenance
22	-	372	870	22	-	862	2,552
Supplies
Test work	-	-	138	297	-	-	1,187	857
Office trailer rental	-	-	23	11	-	-	71	30
U�li�es	16	-	(7)	47	16	-	44	120
Vehicle	-	-	10	-	-	-	23	-
Waste disposal &	-	-	2	-	-	-	9	-
recycling
Total opera�ons costs	92	-	1,883	4,428	92	-	7,085	10,403

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