Ioneer Ltd. refers to its announcement on 31 October 2023 about the entry into a Research and Development Memorandum of Understanding with EcoPro Innovation Co Ltd. Ioneer wishes to confirm that the MOU is not legally binding, but forms the basis for a good faith negotiation of a legally binding contract between Ioneer and EcoPro. The parties propose to work together to agree legally binding contracts as Ioneer's Rhyolite Ridge Lithium Boron project ("Rhyolite Ridge") is developed further. Ioneer also provides the following additional information in respect of the material terms of the MOU: EcoPro will endeavour to develop a commercially feasible process for the extraction of lithium from lithium clays at Rhyolite Ridge considering location constraints provided by Ioneer.

If a commercially feasible process is developed by EcoPro, EcoPro plans to develop a commercial-scale refining plant to develop lithium clay supplied from Rhyolite Ridge and produce Battery Grade Lithium Hydroxide (the "Product"). Subject to Ioneer's financing and contractual arrangements the lithium clay raw material would be supplied at no cost by Ioneer to EcoPro, but the profits referable to the sale of the Product produced by the commercial scale refining plant will be equally shared between EcoPro and Ioneer based on an index price formula to be agreed less agreed costs. The R&D project will be managed by a jointly developed Project Committee, which will meet quarterly to evaluate progress of the project and to determine in good faith if progress justifies continuation of the agreement.

Should EcoPro develop a commercially feasible process it would be Ioneer's intent that a detailed contract regarding the long term supply of lithium clays is targeted to be signed 6 months prior to the EcoPro final investment decision to develop a refining plant. If EcoPro has made no material progress in the R&D project for more than 6 months, Ioneer and EcoPro will discuss in good faith the continuation of the R&D. EcoPro will own any intellectual property developed by EcoPro or arising from this R&D project will be owned by EcoPro. However, on the earliest of: EcoPro not proceeding with building a commercial-scale refining plant; termination of expiry of the MOU; and entry into a contract regarding the long-term supply of the lithium clays from Rhyolite Ridge, EcoPro will grant Ioneer an indefinite non-exclusive licence, at no cost, for Ioneer to use and deal with that intellectual property.