Essential Metals Limited announced positive pioneer dome scoping study supports commencement of detailed studies. The Scoping Study is based on the Dome North lithium Mineral Resource upgrade in December 2022 with an impressive 81% of the total contained lithium upgraded to the higher confidence Indicated Category, reflecting the thick, high grade and out-cropping nature of the deposits. Scoping Study Cautionary Statements: The Scoping Study referred to in this announcement has been undertaken to ascertain whether to proceed to more definitive studies on the viability of the Pioneer Dome Lithium Project.

It is a preliminary technical and economic study to determine the potential viability of the Pioneer Dome Lithium Project. It is based on low level technical and economic assessments that are not sufficient to support the estimation of Ore Reserves. Further exploration and evaluation work and appropriate studies are required before Essential will be able to estimate any Ore Reserves or to provide any assurance of an economic development case.

Approximately 94% of the Life-of-Mine (LOM)Production Target is in the Indicated Mineral Resource category with only 6% in the Inferred Mineral Resource category. Essential has concluded that it has reasonable grounds for disclosing a Production Target which includes the 6% Inferred Mineral Resources given the characteristics of the deposits and the location of the Inferred Resources within the deposits. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of further Measured or Indicated Resources or that the Production Target or preliminary economic assessment will be realised.

It should be noted that the term "ore" is used in this announcement to describe mineralised material that mine optimisation modelling considered potentially economic. It should not be confused with the stricter definition of economically extractable material as denoted by ore in an "Ore Reserve". The Scoping Study is based on the material assumptions outlined in this announcement.

These include assumptions about the availability of funding. While Essential considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved. To achieve the range of outcomes indicated in the Scoping Study, funding of in the order of approximately $350 million will likely be required to cover capital expenditure and working capital.

Investors should note that there is no certainty that Essential will be able to raise that amount of funding when needed. Key Outcomes: The Scoping Study is based on the Mineral Resource upgrade reported on 20 December 20222 which comprises Indicated and Inferred Resources of 11.2Mt at 1.16% Li2O, of which 81% of the total contained lithium is reported within the higher confidence Indicated category. The Scoping Study is based on three open pits (one per deposit) producing 8.8Mt at 1.11% Li2O for processing via a 1.2Mtpa concentrator process plant, resulting in the production of spodumene concentrate with a targeted lithium grade of 5.7% Li2O.