Lepidico Limited announced that all test-work associated with the demonstration and pilot scale trials that started in November 2021 has successfully completed and reported on by Strategic Metallurgy, with excellent results received that confirm the Phase 1 L-Max and LOH-Max design. The two final reports, lithium hydroxide refining and by-product manufacture, have been reviewed by Lepidico. These are now being provided to Behre Dolbear Australia Pty Ltd. (BDA), Independent Engineer to lender International Development Finance Corporation (DFC), along with the latest Karibib mine schedule, allowing it to complete its technical review.

This represents a major gating item for closing out due diligence and finalising Project lending. Of particular note, a sample of crude lithium hydroxide generated from the pilot trial using the LOH-Max process was provided to a leading crystalliser vendor to undertake confirmatory test- work using its own equipment. The vendor processed the crude product through dissolution, sulfate removal and recrystallisation under Phase 1 design conditions.

The recovered product satisfies Livent and Targray battery grade specifications for lithium hydroxide monohydrate. The final phase of crystalliser vendor test-work started in early July 2022 and included trials on the potassium-caesium-rubidium by-product stream. This work, coupled with the extensive piloting at Strategic Metallurgy's facilities in Perth, Western Australia has successfully validated the Phase 1 by-product recovery circuit process design in continuous operation at pilot scale.

Third-party crystalliser test-work produced a market specification sulfate of potash (SOP) with key impurities all below the required levels. SOP recoveries were lower than design due to the need for higher crystallisation evaporation rates, with losses reporting to the gypsum residue. Optimisation of this circuit will be undertaken once operational.

Strategic Metallurgy subsequently refined this in a new pilot circuit to remove rubidium, successfully producing a marketable specification product. Further research and development work is planned to convert both caesium and rubidium into other commercial industrial compounds of the critical metals, with this conversion expected to be undertaken by third parties.