Liontown Resources : June 2021 Quarterly Activities and Cashflow Report

JUNE 2021

QUARTERLY ACTIVITIES REPORT

ASX:LTR

Kathleen Valley DFS on-track for delivery in Q4 2021, with accelerated growth and development programs underpinned by landmark $52M capital raising

HIGHLIGHTS

KATHLEEN VALLEY LITHIUM PROJECT (Western Australia: 100%)

• Continued strong progress with the Kathleen Valley Definitive Feasibility Study (DFS), which remains on-track for completion in Q4 2021. Key focus work streams during the Quarter included:
• • Assessing technology to minimise Scope 1 and Scope 2 emissions
  • Ongoing test work
  • Continuing engagement with Traditional Owners to strengthen social license
  • Underground and open pit mine schedule optimisation
  • Increased throughput options under examination (>2Mtpa)
  • Final concentrate/grade optimisation via test work (with potential to deliver a >6% Li2O premium concentrate)
  • Design schedule accelerated to meet the market - targeting a 3-year development timeline

KOOJAN JV GOLD-PGE*-NICKEL-COPPER PROJECT (Western Australia: right to earn 51%)

• Geochemical sampling defines several PGE and gold anomalies, including:
• • The Mallory PGE-Gold target, with anomalous PGEs* (up to 160ppb/0.16g/t), gold (up to 18ppb), copper (up to 270ppm) and nickel (up to 242ppm) recorded over 2km strike; and
  • The Bourbana Gold Anomaly, with gold values of up to 135ppb defined over a 2 x 2.4km area.
• The Koojan JV Project abuts the western boundary of Liontown's 100%-owned Moora Project, where initial Reverse Circulation (RC) drilling has intersected up to 43m @ 1.7g/t Au at the Angepena prospect.

BULDANIA LITHIUM PROJECT (Western Australia: 100%)

• Soil sampling has defined several strong lithium-tantalum-caesium-rubidium anomalies adjacent to the Anna Mineral Resource.
• The soil anomalies have been defined over ~1km strike and are potentially open to the north-east.
• The newly defined soil anomalies have not been tested by previous drilling and represent a new exploration opportunity with the potential to expand the scale of the Buldania Project.

CORPORATE

• Global mining executive Tony Ottaviano commenced as Chief Executive Officer and Managing Director in May 2021.
• Experienced finance executive Clint McGhie appointed as Commercial Manager and Company Secretary.
• In-principleBoard approval announced for a proposed demerger of Liontown's 100%-owned Moora Project and its interest in the Koojan JV, with the Company working through the regulatory and approval requirements.
• Landmark $52m capital raising completed after Quarter-end to accelerate growth and development programs at Kathleen Valley, optimise project economics, and

drive new growth horizons.

(* PGE - palladium-platinum.)

Mt Mann, Kathleen Valley

INVESTMENT HIGHLIGHTS

• One of the largest high-grade, hard rock lithium deposits in the world (156Mt).
• 100%-ownedresource and full off-take optionality preserved.
• Kathleen Valley DFS on track for completion in Q4 2021, underpinning Liontown's ambition to become a world- class battery materials producer.
• Plus, a 1,000km2 land position in the emerging Julimar mineral province, with initial results confirming the potential for significant bedrock mineralisation.

Auger drilling at Moora

PROJECTS

1. Kathleen Valley Lithium Project, WA (Liontown: 100%)

The Kathleen Valley Project is located in Western Australia, ~680km north-east of Perth and ~350km north-north-west of Kalgoorlie, within the Eastern Goldfields of the Archaean Yilgarn Craton (Figure 1). Liontown commenced work at Kathleen Valley in 2017 and has since defined a world-class Mineral Resource Estimate of 156Mt @ 1.4% Li2O and 130ppm Ta2O5 and completed a Pre-Feasibility Study (PFS) which confirms the potential for a long-life, standalone mining and processing operation.

Kathleen Valley represents the only large (>40 Mt) pre-development phase hard rock lithium deposit in the developed world

Kathleenwith 100% offValley-take optionalityDFS .on-track for delivery in Q4 2021, with accelerated growth and

development programs underpinned by landmark $52M capital raising

Figure 1: Kathleen Valley Lithium Project - Location and Geology Plan.

During the quarter, work continued on Kathleen Valley Definitive Feasibility Study (DFS), which remains on track for completion in Q4 2021. Work programs conducted during the period identified key improvements and enhancements which have the potential to upgrade the financial metrics for the Project.

The principal focus of the DFS is to build on the Pre-Feasibility Study (PFS) completed in October 2020 and activities either completed during the Quarter or well-advanced include:

• Assessing technology adoption to minimise Scope 1 and Scope 2 carbon emissions;
• Comprehensive DFS optimization test work program with early planning for a pilot program to produce ~5 tonne of spodumene concentrate for offtake customer pre-qualification (planned for Q4 2021);
• Design schedule accelerated to meet the market - targeting a 3-year development timeline;
• Open Pit and underground mine schedule optimisation;
• Examination of options to increase throughput to >2Mtpa and future proofing the initial operation;
• Undertaking "value engineering" exercise with our key engineering consultant Lycopodium to further optimise project scope and design;
• Flowsheet optimisation to improve concentrate/grade (with potential for >6% Li2O premium concentrate); and
• Equipment tendering.

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Environmental Social Governance (ESG-E)

A corporate review of Liontown's ESG policies and how they apply to the Kathleen Valley Project is being undertaken with a focus on returning a positive financial outcome while:

• Minimising carbon emissions, water usage and land disturbance;
• Engaging meaningfully with the Traditional Owners and other local stakeholders; and
• Ensuring corporate governance is consistent with industry best practices.

Liontown aspires to achieving Net Zero Emissions in line with the Paris Agreement and is assessing different pathways to achieve this goal. The Company's Climate strategy is expected to be announced prior to a Final Investment Decision (FID)

Kathleenfor the KathleenValleyValleyDFSdevelopmenton-track. Key elementsfor deliveryof the Company'sin Q4Climate2021,strategywithinclude:accelerated growth and

• Bestdevelopment-in-class Scope 1 andprograms2 emissionsunderpinnedand reduced impactbyon landmarklocal surroundings$52Mdue tocapitalits undergroundraisingmining approach;
• Implementing a greater than 50% renewable energy target at project startup to reduce Scope 2 emissions;
• Designing the Project for the electrification of underground operations; and
• Minimising water usage through recycling.

The Company is also reviewing internationally recognised benchmarking standards which can be applied to ensure transparent assessment and reporting in line with the ESG guidelines.

Liontown's inaugural Sustainability Report is being prepared and is scheduled for release in the Q4, 2021 Quarter.

Upcoming work programs

Following the recent completion of a landmark $52 million capital raising (see Corporate section below), Liontown is fully funded to undertake the following key work programs to progress towards development at Kathleen Valley:

1. Project Acceleration and Operational Readiness
2. • Securing production slots for long-lead items such as Crushers, SAG Mill, flotation cells and thickeners;
   • Undertaking additional test work and data collection to expand our renewable energy strategy, specifically Scope 1 and 2 emissions in support of the Company's net zero aspiration;
   • Accelerating the EPCM tender/negotiation process;
   • Recruitment of key personnel to support the accelerated development timeframe; and
   • Commitments to key contracts and potential offsite infrastructure purchase.
3. Operating and Commercial Strategies to Optimise OPEX and CAPEX
4. • Commercial opportunities to reduce operating costs, optmise capital and achieve its key Environmental Social Governance ("ESG") objectives; and
   • Mine schedule and grade/concentrate optimisation.
5. Downstream processing - Value-maximising pathway for Liontown
6. • Refresh Scoping study outcomes and input metrics to accelerate the Company's strategy to move up the value chain by producing pre-cursor materials such as lithium hydroxide;
   • Pursuing government funding initiatives to support downstream objectives; and
   • Undertaking the required test work, foreshadowed in the Downstream Scoping Study, to provide valuable design information for a potential Downstream PFS.

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2. Moora Gold-Nickel-Copper-PGE Project, WA (Liontown: 100%)

The Moora Project, which is located in south-west Western Australia approximately 150km north-east of Perth (Figure 2), comprises wholly-owned tenure applied for in 2018 and 2019 as part of Liontown's generative studies to acquire areas considered prospective for precious and battery-related metals. Liontown's initial phase of exploration which included geochemical, geophysical and drilling programs has defined multiple zones of bedrock mineralisation confirming the potential for an economic discovery.

Kathleen Valley DFS on-track for delivery in Q4 2021, with accelerated growth and

development programs underpinned by landmark $52M capital raising

Figure 2: Moora and Koojan Projects - Location and Regional Geology.

During the Quarter, the Liontown Board confirmed in-principle support for a proposed demerger and IPO of the Moora and Koojan JV Projects. Planning for work programs to follow up drilling results reported last Quarter continues. The results delineated several zones of significant bedrock mineralisation including the:

• Angepena Zone - a +900m long gold zone with intersections up to 43m @ 1.7g/t gold including higher grade intersections up to 2m @ 21.2g/t gold;
• Northern Zone - a +2km, up to 150m wide copper gold zone with intersections up to 9m @ 2.1% copper and 12m @ 1.2g/t gold; and
• South Eastern Zone (SEZ) - defined by a single drill traverse with drill intersections up to 17m @ 0.4g/t gold and 12m @ 0.2% copper.

All mineralised trends associated with the Mt Yule magnetic anomaly (Figure 3) remain open along strike and at depth.

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Kathleen Valley DFS on-track for delivery in Q4 2021, with accelerated growth and

development programs underpinned by landmark $52M capital raising

Figure 3: Image showing magnetic high and coincident mineralised zones defined by drilling.

In addition, first pass geochemical and geophysical programs designed to define new drill targets are being planned for areas within the Moora Project which have not yet been explored.

Proposed work includes:

• Follow-upRC/Diamond core drilling at Angepena comprising 6-10 holes to confirm the continuity and orientation of the mineralisation.
• RC drill testing of other Mt Yule targets.
• A detailed review of pathfinder geochemistry to determine whether reconnaissance aircore drilling has intersected the margins of sulphide-relatedPGE-nickel-copper mineralised zones.
• Ground EM surveys across geochemically anomalous areas.
• A low-level, detailed aeromagnetic survey designed to allow modelling and targeted drill testing of magnetic highs coincident with geochemical anomalies and interpreted to be related to mafic/ultramafic bodies.

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