Zinnwald Lithium plc provided an operational update on its recent activities. OPERATIONAL UPDATE: Zinnwald Lithium continues to make significant progress in the development of its flagship Zinnwald Lithium Project in Germany.   In-fill and Resource Delineation Drill Programme On 15 September 2023, the Company finished its drill programme at its core Zinnwald License area, totalling 26,969m of diamond core drilling across 84 drill holes.  This campaign has more than doubled the total number of holes completed in the license area, including the historic drill campaigns.

The map below charts the location of all drilled holes across the various drill campaigns.  The Company was able to deploy up to six drill rigs simultaneously, which allowed the completion of the programme within a tight timeframe.  The Company's purpose-built core facility allowed the processing of more than 400 metres of core per week with the achievement of greater than 95% core recovery. The results of the infill drilling campaign have, as expected, increased the Company's level of confidence in the geological model of the orebody. As previously noted, the Company's objectives for the programme were to: Increase drillhole and data density in all parts of the deposit to further optimise the geological model to support Bankable Feasibility Study ('BFS') level mine planning, metallurgical and geotechnical engineering workstreams; Raise the confidence level of the previous geological model and eventually generate solid Indicated and Measured Mineral Resources that can be converted to Mineral Reserves in the BFS applying all economic factors generated during the next few months; Prove the existence of two mineral domains and optimise the geological model accordingly: An upper high-grade Quartz-Mica-Greisen ('HG', previously Ore type 1) with a maximal thickness of 75 m. The average Li grade is 3,062 ppm (0.66 % Li2O); o A lower greisenised Albite-Granite ('AG', previously Ore type 2) that reflects the shape of the granite cupola and an average vertical thickness of 133 m. The average Li grade is 2,176 ppm (0.42 % Li2); Generate additional geological and geometallurgical data to support inclusion of the AG-lithology in order to upgrade the existing MRE; Improve resolution of the extents of the high grade Greisen mineralisation ('HGG'); and Improve confidence in available existing historical drillhole data. The Company is currently finalising the updating of the geological and mineralisation/domaining model and anticipates publishing the updated MRE in fourth quarter 2023.

SRK Consulting (UK) ('SRK') has been commissioned to complete this updated MRE. Additionally, the Company carried out extensive surveying programmes such as a LIDAR underground survey of existing/historic mine workings and a geotechnical investigation of drill core was undertaken to assist in mine planning. The Company has also completed underground structural mapping comparing structural data from both drill core and in situ surveys.

These have corresponded closely and will assist in the completion of a detailed mine model. The latest results from the current drill and survey programme have improved the confidence in the geological modelSignificant recent drill intersections and assay results include: ZGLi 047/2023: HGG: 19.55 m (88.45-108.00 m) @ 0.71 % Li2O AG: 163.18 m (112.82 m - 276.00) @0.44 % Li2O ZGLi 050/2023: HGG:  41.91 m (75.42-117.33 m) @ 0.66 % Li2O AG:  122.0 m (133.0-255.0 m) @ 0.46 % Li2O ZGLi 063/2023: HGG:  30.85 m (113.6-144.45m) @ 0.78 % Li2O o AG:  98.9 m (145.1-244.0m) @ 0.50 % Li2O ZGLi 068/2023: HGG: 42.75 m (87.25-130.0m) @ 0.70 % Li2O o AG: 117 m (144.0-261.0m) @ 0.42 % Li2O ZGLi 085/2023: o HGG:  66.1 m (171.0-237.1m) @ 0.94 % Li2O o AG: 103.13 m (237.1-340.23m) @ 0.52 % Li2O. Metallurgical Process Development /Testwork The Company is undertaking a confirmatory metallurgical testwork programme together with Metso.

Bench scale minerals processing testwork was completed by Metso during September 2023. This clearly indicated that Lithium recovery and concentrate mass pull from the previously untested Albite Granite-lithology are suitable for a simple flow sheet consisting of a comminution circuit and a rougher-scavenger wet magnetic separation circuit. The material used in the tests was from a representative sample selected in consultation with SRK earlier this year and incorporates a mix of both HGG and AG.

The main findings were: A simple flow can be applied; A simulated Run of Mine sample Li-recovery is c.85 % with a mass pull of c.20%; Li-recovery from HGG is clearly above 85%; Li-recovery from AG is clearly above 80%; The same flow sheet is suitable for both of the ore types; and Both of the ore types can be processed individually or at any mix without compromising the recoveries. Pilot scale tests of the material are currently being carried out by UVR-FIA in its facilities in Freiberg, Germany under supervision by Metso. The pilot test will produce sufficient zinnwaldite concentrate to confirm the earlier calcination testwork and enough quartz sand to be tested for environmental qualities.

The material for both tests will be available in October 2023.