SIGMA Lithium Resources Corporation announce the successful completion of the first phase of early contractor involvement (the “ECI”) with Duro Felguera S. A of Spain (“DF”), which provided an updated multicurrency gross maximum price (the "Multicurrency GMP") of USD 22.8 million (US Dollars) and BRL 182.1 million (Brazilian Reais) for the engineering, procurement and construction (“EPC”) of the Grota do Cirilo lithium project in Brazil (the “Project”). As part of the ECI, DF: (i) updated its due diligence on the Project based on the more recent documentation and information provided by the Company, (ii) reconfirmed quantities and pricing in the overall expected capital expenditure (“Capex”) for the Project provided in the Feasibility Study Report (defined below), (iii) established the Multicurrency GMP for the process plant and associated infrastructure and (iv) submitted a Multicurrency GMP proposal and schedule to progress to the next phase. Sigma and DF have entered into a memorandum of understanding (the “MOU”) which includes (among its provisions) the following: Multicurrency GMP. The construction cost for plant and infrastructure in the Multicurrency GMP of USD 59 million (the USD: BRL translation was calculated utilizing the exchange rate of USD 1 = BRL 5.05) is lower than the USD 66 million estimated in the NI 43-101 Technical Report on Grota do Cirilo Project Feasibility Study filed on SEDAR on November 6, 2019 (the “Feasibility StudyReport”). The approximate 30% devaluation of the Brazilian Real since then had the overall effect of decreasing the Capex of the Project, a material portion of which is expected to be sourced domestically in Brazil and is, therefore, to be denominated in Brazilian Real. EPC Contract. DF will prepare a proposal for a contract for the EPC for the Project (the “EPC Contract”). The EPC Contract is to include a multicurrency Lump Sum Turnkey Price (“LSTK Price”), which is to be based on the Multicurrency GMP of USD 22.8 million (US Dollars) and BRL 182.1 million (Brazilian Reais) for the engineering, have a break-down by currency and is not to exceed the Multicurrency GMP. Mediation of Financial Services: DF’s services are to include assisting the Company in obtaining Project financing by introducing and supporting the Company with different potential lenders, including export financing & development government agencies. Subcontractor: The MOU contemplates that Primero Group Americas, a subsidiary of Primero Group of Australia, will be the subcontractor to execute engineering services for the Project. It is not possible to reliably estimate the length and severity of the COVID-19 pandemic or its ultimate impact on the financial results and condition of the Company in future periods. However, as per federal government decree, the activities of both operational and pre-operational mining companies in Brazil are not subject to the COVID-19 related physical movement restrictions and shelter-in-place, lockdowns and state border restrictions imposed by certain states and municipalities. However, due to international travel curtailments, the Company has been prioritizing Project activities that can be mostly executed with Brazilian-based personnel and that require a limited amount of inbound and outbound travel to and from Brazil. As announced on 19 May 2020, the Company’s short and medium-term goals have not been materially impacted by the COVID-19 pandemic and excellent progress is being made on the pre-construction execution activities to advance the Project. Sigma plans to: Continue to work closely with the international and Brazilian financial institutions as well as with Brazilian development banks in order to finalize the debt and equity financing for the construction of the Project. Finalize negotiations with DF to conclude the EPC FEED Contract and initiate the detailed front-end engineering design and the EPC of the Project in the second phase of the ECI. Following the approval of the PAE (Plano de Aproveitamento Econômico), initiate the environmental licensing process for the Barreiro deposit, Sigma’s second deposit slated for development (the “Barreiro deposit”) and finalize the ongoing pre-feasibility study for the Barreiro deposit, validating the economic potential and production costs outlined in the PAE. Mining the Barreiro deposit, subject to completion of all related feasibility studies and assessments, has the potential to double the planned production capacity of the Project to 440,000 tonnes of lithium concentrate per year. Continue ongoing negotiations with offtake customers in order to enter into binding off-take agreements (interested parties to date include companies from the lithium, chemicals, battery and automotive sectors).