On 12 September 2017, Kidman Resources Limited and Sociedad Quimica y Minera de Chile (SQM) announced that they had entered into Definitive Agreements in relation to the establishment of the 50:50 Mt Holland Lithium Joint Venture. Kidman Resources Limited announce that finalization of the Mt Holland Lithium Joint Venture (JV) has now occurred following satisfaction of the relevant conditions precedent, including approval from the Australian Government's Foreign Investment Review Board. As a result: Kidman has transferred a 50% interest in the Mt Holland tenements, including the world-class Earl Grey lithium deposit, to an Australian subsidiary of SQM; The Mt Holland Lithium Joint Venture has been established with each of Kidman and SQM holding a 50% interest; Kidman has received the initial instalment of the purchase price for the transfer of the 50% interest of net USD 3.5 million (being USD 5.0 million less an amount of USD 1.5 million lent by SQM and applied to Kidman corporate matters); and The newly established Joint Venture received its first staged contribution from SQM of net USD 15 million (being USD 20.0 million less USD 5 million spent by Kidman and SQM on joint venture matters to date) Pursuant to the Definitive Agreements with SQM, further payments will be made both to Kidman directly and to the JV when the JV makes a decision to mine.

A decision to mine is anticipated shortly after the expected release of the Feasibility Study in the June quarter 2018. The further payments are as: Kidman Resources to receive USD 25.0 million; and JV to receive USD 60.0 million.