Zero Carbon Lithium Project update

ASX Release 18 March 2022

ASX:VUL

FSE:VUL

Fast Facts

Issued Capital: 131,607,598

Market Cap (@$9.57): $1.26b

onlyVulcan Energy Resources Limited (Vulcan; ASX: VUL, FSE: VUL, the Company) is aiming to become the world's first integrated lithium chemicals and renewable energy producer with net zero greenhouse gas emissions. Vulcan's unique Zero Carbon Lithium™ Project aims to produce both renewable geothermal energy and lithium hydroxide for electric vehicle batteries from the same deep brine source in the Upper Rhine Valley, Germany.

Highlights

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Lithium division: pre-fabrication of Vulcan's Direct Lithium Extraction (DLE) - Demonstration

Plant (Demo Plant) has commenced offsite in Germany, while 80% of the equipment has been

ordered and design-work has been finalised. Start of commissioning of the Demo Plant is on

track for mid-year.

A team of experts from Nobian, Vulcan and external engineering teams are adapting Vulcan's

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lithium hydroxide production Demo Plant design to Nobian's existing site at the Höchst Chemical

Park ahead of construction and operation.

is progressing on track to be finalised in the second half of 2022.

Vulcan's operational DLE Pilot Plant is reporting consistent lithium concentration and low level

of impurities. Lithium recovery rates are averaging 94-95%, above the levels noted in the 2021 Pre-Feasibility Study. The Pilot Plant has been operating since April 2021.

New laboratory in Karlsruhe-Durlach, Germany, extending the analytical capability and expertise of the Company's lithium division, is now fully operational, with further expansions planned.

Renewable energy division: the Company has commenced discussions with local stakeholders to expand operations at its 100% owned geothermal renewable energy plant, which is currently operating in Insheim, to provide heating and energy security to local communities.

Refurbishment of the electric drill rigs purchased in 2021 is underway, with the rigs due to be operation-ready by the end of the year, before being deployed for mass-scale geothermal renewable energy development in Germany, reducing reliance on Russian gas.

Feasibility & financing: kick-offof Bankability Study with BNP Paribas completed, in advance of planned financing process which will follow the DFS completion.

Led by Vulcan's in-house team and supported by Hatch Ltd, the Definitive Feasibility Study (DFS)

Vulcan's Managing Director Dr. Francis Wedin commented: "Vulcan is combining the fields of geothermal renewable energy and lithium battery materials, to create the world's first fully integrated renewable energy Forand battery raw materials company. Geothermal renewable energy on a mass scale, combined with lithium extraction from the same deep geothermal source, can and will play an important part in achieving Europe and Germany's energy security and independence. Geothermal energy in Germany has the potential to account for 50% of heat supply in Germany if backed up by sufficient investment. Vulcan's geothermal and lithium divisions are leaders in their field and are working hard to continue to realise significant project milestones in the development of Vulcan's Zero Carbon Lithium Project. It is encouraging to see the consistent and successful track record of our lithium Pilot Plant as it comes up to one year of operation, and positive to see the Demo Plant start to take shape. At a time when Europe, particularly Germany's, reliance on Russian energy is being keenly felt, we stand committed to helping ensure Europe's and Germany's energy independence and security of supply of sustainably sourced battery metals."

Contact

Level 11, Brookfield Place

Vulcan Energie Ressourcen GmbH

125 St Georges Terrace

Baischstr. 8

Perth WA 6000 Australia

76133 Karlsruhe

08 6189 8767

Zero Carbon Lithium division onlyDemo Plant

Building on the success of the Pilot Plant, Vulcan's Demo Plant is progressing well. The Demo Plant will consist of two parts: the DLE plant and the lithium hydroxide production plant. Importantly, technical and operations personnel will train in the plant to develop a comprehensive understanding of the process and its operation prior to construction of the first commercial plant, planned for 2024.

DLE Demo Plant

useThe DLE Demo Plant is a priority for the lithium team and will be installed and operated at an existing geothermal plant. A team of around 15 engineers and technicians have now finalised the design work and the pre-fabrication of the plant started in February 2022, offsite in Germany. Designed to produce 15 to 20 kg/h of concentrated LiCl solution from 5000 to 6000 l/h of geothermal brine, the Demo Plant will provide important operational learnings prior to Vulcan's planned start of commercial production in 2024. More than 80%of the equipment has been ordered and commissioning start is on track for mid- 2022. The DLE Demo Plant will represent an approximately 1:200 scale of the first commercial plant. Once operational, the plant will employ more than 20 people, with the Company committed to prioritising

personallocal jobs in the Upper Rhine Valley region.

Below: Vulcan's DLE Demo Plant under construction, and a 3D image of the Demo Plant design. For

Lithium hydroxide production - Demo Plant

onlyThe lithium hydroxide production Demo Plant, also known as "LiLy", will receive lithium chloride solution from the DLE Demo Plant and electrolyse and crystalise it into lithium hydroxide monohydrate. Lithium electrolysis, for environmental, infrastructure and economic reasons, is Vulcan's selected process for lithium hydroxide production for battery electric vehicles.

Another hybrid team of around 15 people, including experts from Nobian, Vulcan and external engineering teams, has been assembled to adapt Vulcan's CLP - Demo Plant design to Nobian's site at the Höchst Chemical Park. The Demo Plant will represent an approximately 1:200 scale of the first commercial plant. Approximately 95% of the equipment needed for the CLP - Demo Plant has been

useordered ahead of commissioning, which is expected to start in Q4 2022.

Noting that Nobian's chlor-alkali production uses an electrolysis process which is similar to part of Vulcan's flowsheet, both companies are working together on the electrochemical conversion process of lithium chloride to battery quality lithium hydroxide.

personalAbove: 3D image of the lithium hydroxide Demo Plant "LiLy". For

Laboratory

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Vulcan opened its new

laboratory in

Karlsruhe-Durlach, Germany in

February 2022.

Dr Angela Digennaro leads five experts focused on

refining the processing of Vulcan's lithium product

with zero carbon footprint. They will use the

expanded laboratory to deepen their understanding

of the lithium processing and to optimise the

process to inform the Definitive Feasibility Study

(DFS).

Importantly, the acquisition of new instruments

including an ICP-OES and an IC, enhance the team's

efficiency and reduces analysis waiting time. The

brine can be fully characterised rapidly, and the team can gather information and react fast to support

operation at the pilot plant.

For personaluse

Vulcan's newly opened laboratory in Durlach-Karlsruhe

DLE Pilot Plant

onlyDesigned, built and commissioned in-house, Vulcan's Pilot Plant has been in operation for 12 months, with seven engineers and technicians supporting the on-site operation, under the leadership of Dr. Thomas Aicher. Using 'live' geothermal brine coming directly from an operational geothermal plant, the team are conducting a number of test programs with varying operating parameters, such as flow rates, temperature, cycle times.

The team continues to successfully demonstrate multi-cycle sorption tests on Upper Rhine Valley geothermal brine using multiple commercially available aluminate-based sorbents, including from Vulcan's partners such as DuPont.

useAdditional lab equipment has been acquired, and more technicians recruited to support further on-site analysis, while larger columns containing sorbents are being installed to increase sample production.

This thorough test work produces crucial data needed for de-risking the lithium extraction process. Consistent lithium concentration and low level of impurities are being reported, together with lithium recovery rates averaging 94-95%, which are above the levels noted in the 2021 Pre-Feasibility Study.

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Vulcan's DLE Pilot Plant, successfully in operation for 12 months

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Vulcan Energy Resources Limited published this content on 17 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 March 2022 22:30:10 UTC.