Zinnwald Lithium : Preliminary Economic Assessment for the revised Zinnwald Lithium Project

Preliminary Economic Assessment

for the revised

Zinnwald Lithium Project

Prepared for:	Deutsche Lithium GmbH	Zinnwald Lithium Plc
	Am Junger-Loewe-Schacht 10	8 St James's Square
	09599 Freiberg	London, SW1Y 4JU
	Germany	United Kingdom
Issue Date:	06 September 2022

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••• ZINNWALD	••• DEUTSCHE
Iii. LITHIUM	Iii. LITHIUM
	CERTIFICATE OF QUALIFIED PERSON

I, Kersten Kuhn, EurGeol, do hereby certify that

1. I am Head of the Resources Department and Senior Geologist for G.E.O.S. lngenieurgesellschaft GmbH, Schwarze Kiefern 2, 09633 Halsbrucke, Germany. E-mail [e-mail].
2. This certificate applies to the technical report titled "Preliminary Economic Assessment for the revised Zinnwald Lithium Project, Germany, September 2022" (the "Technical Report"), prepared for Deutsche Lithium GmbH.
3. The Effective Date of the Technical Report is 6th September 2022.
4. I am a graduate of Freiberg Mining Academy, Germany with a diploma degree in Geology.
5. I have worked as a geologist in the fields of mining, mine operation planning and raw material exploration for a total of 33 years since my graduation from University.
6. I am a Member of the Berufsverband Deutscher Geowissenschaftler (BDG) with the status of a "Consulting Geoscientist BDG". Since 2018, I have the title of "European Geologist" conferred by the European Federation of Geologists (EFG) under the EFG number 1557.
7. I have read the definition of "Qualified Person" set out in National Instrument 43-101 {NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43- 101) and past relevant work experience, I fulfil the requirements to be a "Qualified Person" for the

purposes of NI 43-101.

1. I am co-ordinating author of the Technical Report, and co-author responsible specifically for sections (1-12, 14 - 16, 18.1, 18.2.1, 20.1- 20.6, 23, 24, 25.1, 25.2, 25.4, 25.5, 26.1, 26.2, 26.4, 26.5, 26.6), unless subsections are specifically identified by another Qualified Person.
2. I have visited the property at least weekly between January 2011 and December 2017 and again on a number of occasions for the purposes of this Technical Report.
3. I am independent of Deutsche Lithium GmbH and Zinnwald Lithium Pie, applying all of the tests in section 1.5 of NI 43-101.
4. I have not had any prior involvement with the property that is the subject of the Report, aside from any involvement in prior NI 43-lOls produced for Deutsche Lithium on this property.
5. I have read NI 43-101 and Form 43-l0lFl; the sections of the Technical Report I am responsible for have been prepared in compliance with that instrument and form.
6. As of the Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.
7. I consent to the filing of the Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public.

EurGeol, Kersten Kuhn

Mining Geologist

�6 E OS	K-UlEC	Pagelo/222
SALT TECHNOLOGIES

ZINNWALD	•• DEUTSCHE
LITHIUM	IA� LITHIUM
	CERTIFICATE OF QUALIFIED PERSON

I, Dr Bernd Schultheis, FIMMM, do hereby certify that

1. I am Deputy Head of Department, Chemical / Physical Process Engineering of K-UTEC AG Salt Technologies.

This certificate applies to the technical report titled "Preliminary Economic Assessment for the revised Zinnwald Lithium Project, Germany, September 2022" (the "Technical Report"), prepared for

Deutsche Lithium GmbH.

1. The Effective Date of the Technical Report is 6 September 2022.
2. I am a graduate of Technical University of Kaiserslautern /Germany with a diploma degree in Chemistry.
3. I have worked as a Process Engineer and a Physical Chemist for 31 years since my graduation from University.
4. I am a Fellow of the Institute of Materials, Minerals & Mining (Membership No. 0476269) and AACE International (Association for the advancement of cost engineering, ID: 204980).
5. I have read the definition of "Qualified Person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43- 101) and past relevant work experience, I fulfil the requirements to be a "Qualified Person" for the purposes of NI 43-101.
6. I am co-ordinating author of the Technical Report, and co-author and peer reviewer responsible specifically for sections [1, 2, 4.1.5, 4.2, 13, 16.5, 16.6, 17, 18.2, 19, 21, 22, 25, 26), unless another Qualified Person specifically identifies subsections.
7. I visited the company facilities in Freiberg/Saxony, had access to the main experimental results of the pyrometallurgical tests and was involved in the entire hydrometallurgical test programme, including process development and engineering, as a supervisor.
8. I am independent of Deutsche Lithium and Zinnwald Lithium Pie applying all of the tests in section 1.7 and 1.9 of NI 43-101.
9. I have not had any prior involvement with the property that is the subject of the Report, aside from any involvement in prior NI 43-lOls produced for Deutsche Lithium on this property.
10. I have read NI 43-101 and Form 43-l0lFl; the sections of the Technical Report I am responsible for have been prepared in compliance with that instrument and form.
11. As of the Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.
12. I consent to the filing of the Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public.

Signed on 6th September 2022.

PGEOS

K-UIEC

SALT TECHNOLOGIES

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Cautionary Statement Regarding Preliminary Nature of the Preliminary Economic Assessment

Readers are cautioned that this Preliminary Economic Assessment ("PEA") PEA is preliminary in nature and is intended to provide an initial, high-level review of the project's economic potential and design options. The PEA mine plan and economic model includes numerous assumptions. There is no certainty that the PEA will be realised. Actual results may vary, perhaps materially. The projections, forecasts and estimates presented in the PEA constitute forward-looking statements and readers are urged not to place undue reliance on such forward-looking statements.

The Mineral Resources referred to in the PEA were announced in a Competent Persons Report on the Zinnwald Lithium Project dated 20 September 2020. Zinnwald Lithium confirms that it is not aware of any new information or data that materially affects the information in the above releases and that all material assumptions and technical parameters, underpinning the estimates continue to apply and have not materially changed. Zinnwald Lithium confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.

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Table of Contents

1	Summary .................................................................................................................	16
	1.1	Introduction .................................................................................................................	16
	1.2	Accessibility, Local resources, Infrastructure and Physiography....................................	17
	1.3	Geology and Mineralization .........................................................................................	18
	1.4	Exploration Status ........................................................................................................	18
	1.5	Resource Estimates ......................................................................................................	18
	1.6	Reserve Estimates ........................................................................................................	19
	1.7	Processing and Metallurgical Test Work .......................................................................	20
	1.7.1		Process Stages..............................................................................................................................	20
	1.7.2		Test work undertaken .................................................................................................................	20
	1.7.3		Summary of results......................................................................................................................	21
	1.8	Mining..........................................................................................................................	21
	1.9	Recovery Methods .......................................................................................................	23
	1.10	Project Infrastructure ...................................................................................................	23
	1.11	Environmental Studies .................................................................................................	24
	1.12	Market Review and Lithium Pricing ..............................................................................	25
	1.12.1	Background to Lithium and its production.............................................................................	25
	1.12.2	Lithium Market - Supply / Demand and Pricing Forecasts....................................................	26
	1.12.3	Price Forecasts ........................................................................................................................	27
	1.13	Zinnwald Project Business Model .................................................................................	27
	1.13.1	Strengths and Sustainability of the Project............................................................................	27
	1.13.2	Project's pricing assumptions.................................................................................................	28
	1.14	Capital Cost Estimates ..................................................................................................	29
	1.15	Operating Cost Estimates .............................................................................................	29
	1.16	Economic Analysis........................................................................................................	30
	1.17	Project Development Plan............................................................................................	31
	1.17.1	Execution Strategy ..................................................................................................................	31
	1.17.2	Project Development Plan and Timetable .............................................................................	31
	1.17.3	Sustainability Matters.............................................................................................................	32
	1.18	Conclusions and Recommendations .............................................................................	32
	1.19	Forward Work Program................................................................................................	33
	1.19.1	Geology ...................................................................................................................................	33
	1.19.2	Mining .....................................................................................................................................	33
	1.19.3	Processing ...............................................................................................................................	33
	1.19.4	Infrastructure ..........................................................................................................................	33
	1.19.5	Environment, Social and Governance ....................................................................................	34
2	Introduction.............................................................................................................	35
	2.1	Terms of Reference ......................................................................................................	35
	2.2	Evolution of the Zinnwald Lithium Project....................................................................	35
	2.3	Project Scope and Terms of Reference .........................................................................	36

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