Pilbara Minerals Limited (Pilbara Minerals or the Company; ASX: PLS) is pleased to provide an update to the market regarding the outstanding deferred consideration payable to the Altura Loan Noteholders in respect of the acquisition of the Altura Lithium Project owned by Altura Lithium Operations Pty Ltd (ALO).

The acquisition of ALO was successfully completed on 20 January 2021 following an upfront cash payment of US$155 million. As previously advised in Pilbara Minerals' ASX releases, including the ASX releases dated 1 December 2020 and 20 January 2021, a further amount of deferred consideration representing approximately 69 million shares (or its cash equivalent) remained payable to the Altura Loan Noteholders in either cash or shares (at Pilbara Minerals' election) at any time prior to the 12-month maturity date, being 20 January 2022.

A variation deed has now been executed with the Altura Loan Noteholders that provides for a discount to the number of shares to be issued to complete the deferred consideration early. As a result, 65,340,902 shares (representing a 5% discount, or approximately 3.5 million less shares than the original amount) will be issued in two equal tranches as final settlement of the deferred consideration. The first tranche will be issued in the next five business days (under Pilbara Minerals' existing Listing Rule 7.1 placement capacity), with the second tranche issued following approval of shareholders at a general meeting to be held in due course. 1

The successful acquisition of the former Altura Lithium Project, now referred to as the Ngungaju (pronounced - 'nuh-ga-ju') Operation, is expected to be successfully consolidated with Pilbara Minerals' existing Pilgangoora Project (now the Pilgan Plant). Combined with the recent success of its inaugural Battery Material Exchange (BMX) Platform product auction, the Company is now focused on the restart of the Ngungaju Plant as soon as possible with works progressing well.

Contact:

Ken Brinsden

Tel: +61 (0)8 6266 6266

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