CORE LITHIUM LTD — Capital/Financing Update 2022

Sep 26, 2022

ASX: CXO Announcement

27 September 2022

Business Update: Finniss DSO shipment preparations, and BP33 diamond drilling results

Highlights

Finniss operations

• Uncovered first spodumene ore at Finniss in September

• First lithium, Direct Ship Ore (DSO) shipment preparations are underway

BP33 exploration

• High grade spodumene bearing pegmatite intersected in multiple holes at BP33, up to 830m below surface

• New spodumene intersections more than 400m outside of the current Mineral Resource at BP33 expected to deliver substantial orebody extensions

• High-grade lithium intersections, including:

• 22.85m @ 1.59% Li2O in NMRD032

• 15.31m @ 1.62% Li2O in NMRD034

Australian lithium miner, Core Lithium Ltd ( Core or Company ) (ASX: CXO ), is pleased to provide a business update regarding mining operations and resource expansion activities at the Finniss Lithium Project (Finniss Project) near Darwin in the Northern Territory.

Finniss Operations

First DSO spodumene shipment via tender

Preparations are underway for Core’s first shipment of Direct Ship Ore spodumene from the Finniss Project before year end 2022. Due to the high level of interest in Finniss ore, the shipment will be sold via a tender process using a digital exchange platform.

First ore mined from Grants Pit

First spodumene ore was uncovered at Grants on 15 September 2022.

The crushing and screening plant is on track for commissioning ahead of the DSO sale. A nightshift has been implemented to accelerate construction of the Dense Media Separation (DMS) plant which is on track to support spodumene concentrate production in H1 2023.

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Figure 1. Grade control drilling ore at base of Grants Stage 1

Figure 2. Core CEO Gareth Manderson and geologist Anthony Oduah showing spodumene form the Grants Pit

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Figure 3. Finniss Lithium Project and Operations Progress (looking south)

BP33 exploration

The 12-hole diamond drilling program, that commenced in May, is now complete. Results reported below include assays returned for five previously reported diamond drilling holes at BP33 (CXO ASX Announcement 1 August 2022), and visual results for three recently completed deep diamond holes.

Visual observations of deep diamond holes NMRD035, NMRD038 and NMRD039 confirmed that all three intersected variable thicknesses of spodumene mineralised pegmatite at depths below any previous drilling, and up to 830m below surface (Figure 4).

The best result of 76m of highly mineralised pegmatite was intersected in hole NMRD038 and is interpreted to represent the down plunge extension of the main BP33 pegmatite body. The intersections in NMRD035 and NMRD039 are interpreted to be associated with the southern BP33 pegmatite body.

Collectively, these drill intersections combine to define and double the depth extent of the pegmatite hosting the BP33 mineralisation, within an apparent steep southerly plunge.

Assays have been received for five diamond drill holes drilled at BP33 (Figure 4, Table 1), assays for three holes are outstanding. All holes intersected mineralised pegmatite, with significant intersections shown below, and full drill hole data included in Table 1.

Significant intersections include:

• 35.0m @ 1.54% Li2O in NMRD027

• Incl. 4m @ 2.03% Li2O

• 29.95m @ 1.11% Li2O in NMRD028

• Incl. 5.0m @ 1.63% Li2O

• 22.85m @ 1.59% Li2O in NMRD032

• Incl. 3.85m @ 2.07% Li2O

• 15.31m @ 1.62% Li2O in NMRD034

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Figure 4. Long-section for BP33 showing the current Mineral Resource (coloured by resource category), with new assay results included (intercept widths are not true width)

The true thicknesses of the intersections are approximately two thirds of those shown (i.e. downhole intersection of 35m equals true thickness of approximately 23m). The continuity in grade and thickness displayed, together with the position of the intersections outside of the current Mineral Resource envelope, is expected to result in an increase in the Mineral Resource estimate.

The proposed BP33 underground mine will be the second mine at Finniss. Core has been granted environmental approval for BP33 from the Environmental Protection Authority (EPA). The Mine Management Plan has been submitted with to the Department of Industry, Tourism and Trade which represents the final step to complete the approvals process.

Core Chief Executive Officer Gareth Manderson commented:

“Core Lithium continues to demonstrate progress towards building a great lithium business through the delivery of the Finniss Project to production and the ongoing work to prove up our resources to support future operations.

“Finniss will come online at a time of high lithium demand.

“Core has significantly increased exploration and resource expansion funding to grow the resource at Finniss. The diamond drilling results from BP33, the second lithium mine planned at Finniss, demonstrates the value of this investment.

“Spodumene bearing pegmatites were intersected in multiple holes at BP33. Importantly, these intersections sit well outside of the current BP33 Mineral Resource and will likely contribute to a positive Mineral Resource update.”

This announcement has been approved for release by the Core Lithium Board.

For further information please contact:	For Media and Broker queries:
Gareth Manderson	Gerard McArtney
Chief Executive Officer	Senior Consultant
Core Lithium Limited	Cannings Purple
+61 8 8317 1700	+61 421 505 557
info@corelithium.com.au	gmcartney@canningspurple.com.au

About Core

Core Lithium is building Australia's newest and most advanced lithium project on the ASX, the Finniss Project in the Northern Territory. Finniss has been awarded Major Project Status by the Australian Federal Government, is one of the most capital efficient lithium projects and has arguably the best logistics chain to markets of any Australian lithium project. The Finniss Project will provide the globe with high-grade and high-quality lithium suitable for lithium batteries used to power electric vehicles and renewable energy storage.

Competent Persons Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Graeme McDonald (BSc(Hons)Geol, PhD) who is a full time employee of Core Lithium Ltd and a member of the Australasian Institute of Mining and Metallurgy and is bound by and follows the Institute’s codes and recommended practices. He has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr. McDonald consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Core confirms that it is not aware of any new information or data that materially affects the results included in this announcement previously released as “BP33 drilling delivers outstanding results” on 1 August 2022.

Table 1 Summary of 10 new BP33 drill hole data and received assay results at the Finniss Project

Hole ID	Prospect	Drill Type	Easting	Northing	Dip	Azimuth	Total Depth	From (m)	To (m)	Interval (m)	Grade (Li2O%)
NMRD027	BP33	MRD	694341	8593666	-66.61	137.2	511.13	461.0	496.0	35.0	1.54
							incl	473.0	477.0	4.0	2.03
NMRD028	BP33	MRD	694256	8593271	-69.48	84.24	465.1	426.0	455.95	29.95	1.11
							incl	448.0	453.0	5.0	1.63
NMRD032	BP33	MRD	694191	8593459	-60.12	109.93	501.8	449.15	472.0	22.85	1.59
							incl	449.15	453.0	3.85	2.07
NMRD033	BP33	MRD	694210	8593182	-65.2	85.21	498.6	465.0	468.0	3.0	0.84
NMRD034	BP33	MRD	694210	8593404	-56.21	99.86	402.3	369.41	384.72	15.31	1.62
NMRD035	BP33	MRD	694680	8593300	-69.29	254.03	900.6	Assays Pending
NMRD036	BP33	MRD	694676	8593300	-70	290	98.35	Hole Abandoned
NMRD037	BP33	MRD	694679	8593299	-70	290	29.5	Hole Abandoned
NMRD038	BP33	MRD	694681	8593299	-70	290	760.09	Assays Pending
NMRD039	BP33	MRD	694140	8593275	-66.09	84.46	643.04	Assays Pending

.

JORC Code, 2012 Edition – Table 1 Report

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

• Criteria JORC Code Explanation

• Sampling • Nature and quality of sampling (e.g. cut channels, random chips, techniques or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• Aspects of the determination of mineralisation that are Material to the Public Report.

Commentary

• Diamond core (DDH) drill techniques have been employed for the Core Lithium Ltd (“Core” or “CXO”) drilling at BP33. A list of the hole IDs and positions has been included in the release.

• Drill core was collected directly into trays, marked up by metre marks and secured as the drilling progressed.

• DDH Core was transported to a local core preparation facility where geological logging and sample interval selection took place. Core was cut into half longitudinally along a consistent line between 0.3m and 1m in length, ensuring no bias in the cutting plane.

• DDH sampling of pegmatite for assays is done over the sub-1m intervals described above. 1m-sampling continued into the barren phyllite host rock.

	• •	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report.	logging and sample interval selection took place. Core was cut into half longitudinally along a consistent line between 0.3m and 1m in length, ensuring no bias in the cutting plane. • DDH sampling of pegmatite for assays is done over the sub-1m intervals described above. 1m-sampling continued into the barren phyllite host rock.
	•	In cases where ‘industry standard’ work has been done this
		would be relatively simple (e.g. ‘reverse circulation drilling was
		used to obtain 1 m samples from which 3 kg was pulverised to
		produce a 30 g charge for fire assay’). In other cases, more
		explanation may be required, such as where there is coarse gold
		that has inherent sampling problems. Unusual commodities or
		mineralisation types (e.g. submarine nodules) may warrant
		disclosure of detailed information.
Drilling	•	Drill type (e.g. core, reverse circulation, open-hole hammer,	• DDH drilling used a triple tube HQ technique. Core was oriented using a Reflex
techniques		rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core	HQ core orientation tool.
		diameter, triple or standard tube, depth of diamond tails, face-	• All diamond holes for the current program utilised Mud Rotary precollars to
		sampling bit or other type, whether core is oriented and if so,	fresh rock (approx. 65m) with diamond tails.
		bywhat method,etc).

• Drill sample • Method of recording and assessing core and chip sample recovery recoveries and results assessed.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• Drill collars are sealed to prevent sample loss and holes are normally drilled dry to prevent poor recoveries and contamination caused by water ingress. Wet intervals are noted in case of unusual results.

• DDH core recoveries were measured using conventional procedures utilising the driller’s markers and estimates of core loss, followed by mark up and measuring of recovered core by the geologist or geotechnician.

• DDH core recovery is 100% in the pegmatite zones and in fresh host-rock.

• Previous studies have shown that there is no sample bias due to preferential loss/gain of the fine or coarse material.

Logging	• Whether core and chip samples have been geologically and	• Detailed geological logging was carried out on all DDH drill holes.
	geotechnically logged to a level of detail to support appropriate	• Logging recorded lithology, mineralogy, mineralisation, weathering, colour, and
	Mineral Resource estimation, mining studies and metallurgical	other sample features.
	studies.	• DDH core is stored in plastic core trays.
	• Whether logging is qualitative or quantitative in nature. Core (or	• All holes were logged in full.
	costean, channel, etc) photography.	• DDH core trays are photographed and stored on the CXO server.
	• The total length and percentage of the relevant intersections
	logged.
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all	• HQ sized drill core is collected through the mineralised zones, and this is
techniques and	core taken.	considered appropriate for the style of mineralisation.
sample	• If non-core, whether riffled, tube sampled, rotary split, etc and	• Half Drill Core sample intervals were constrained by geology, alteration or
preparation	whether sampled wet or dry.	structural boundaries, intervals varied between a minimum of 0.3 metres to a

• Half Drill Core sample intervals were constrained by geology, alteration or structural boundaries, intervals varied between a minimum of 0.3 metres to a maximum of 1 m. The core is cut along a regular Ori line to ensure no sampling bias.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Field and lab standards together with blanks were used routinely.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

Quality of assay	• The nature, quality and appropriateness of the assaying and	•	Sample analysis occurred at Intertek, Darwin, NT.
data and	laboratory procedures used and whether the technique is	•	All samples are crushed and pulverized.
laboratory tests	considered partial or total.	•	A sub-sample of the pulp is digested via a sodium peroxide fusion in a Ni
	• For geophysical tools, spectrometers, handheld XRF		crucible and analysed via ICP-MS and ICP-OES methods for the following
	instruments, etc, the parameters used in determining the		elements: Li, Al, B, Ba, Be, Ca, Cs, Fe, K, Mg, Mn, Nb, P, Rb, S, Sn, Sr, Ta, W and
	analysis including instrument make and model, reading times,		As.
	calibrations factors applied and their derivation, etc.	•	Intertek utilise standard internal quality control measures including the use of
	• Nature of quality control procedures adopted (e.g. standards,		Certified Lithium Standards and duplicates/repeats.
	blanks, duplicates, external laboratory checks) and whether	•	CXO implemented quality control procedures include appropriatecertified
	acceptable levels of accuracy (i.e. lack of bias) and precision		Lithium ore standards, duplicates for RC drilling and blanks.
	have been established.	•	There were no significant issues identified with any of the QAQC data.
Verification of	• The verification of significant intersections by either	•	Senior technical personnel have visually inspected and verified the significant
sampling and	independent or alternative company personnel.		drill intersections.
assaying	• The use of twinned holes.	•	All field data is entered into OCRIS logging system (supported by look-

• All field data is entered into OCRIS logging system (supported by lookup/validation tables) at site and imported into the centralized CXO Access database.

• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

• Hard copies of survey and sampling data are stored in the local office and electronic data is stored on the CXO server.

• Discuss any adjustment to assay data.

• Metallic Lithium percent was multiplied by a conversion factor of 2.1527/10000 to report Li ppm as Li2O%.

Location of data	• Accuracy and quality of surveys used to locate drill holes (collar	• Collar locations presented within the release have been determined by
points	and down-hole surveys), trenches, mine workings and other	handheld GPS. Differential GPS has been used to determine all other collar
	locations used in Mineral Resource estimation.	locations, including RL. Collar position audits are regularly undertaken, and no
	• Specification of the grid system used.	issues have arisen.
	• Quality and adequacy of topographic control.	• The grid system is MGA_GDA94, zone 52 for easting, northing and RL.
		• All of the CXO drilled DD hole traces were surveyed by north seeking gyro tool
		operated by the drillers and the collar is oriented by a line of sight compass and
		a clinometer.
Data spacing and	• Data spacing for reporting of Exploration Results.	• Drill spacing is illustrated in the Long Section.
distribution	• Whether the data spacing and distribution is sufficient to	• The mineralisation and geology show good continuity from hole to hole and
	establish the degree ofgeological andgrade continuity	will be sufficient to support the definition of a Mineral Resource and the

classifications contained in the JORC Code (2012 Edition).

appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• All DDH mineralised intervals reported are based on a maximum of one metre sample interval, with local intervals down to 0.3m.

• • Drilling is oriented approximately perpendicular to the interpreted strike of mineralization (pegmatite body) as mapped. Because of the dip of the hole, drill intersections are apparent thicknesses and overall geological context is needed to estimate true thicknesses.

• Whether sample compositing has been applied.

Orientation of	• Whether the orientation of sampling achieves unbiased	• Drilling is oriented approximately perpendicular to the interpreted strike of
data in relation to	sampling of possible structures and the extent to which this is	mineralization (pegmatite body) as mapped. Because of the dip of the hole,
geological	known, considering the deposit type.	drill intersections are apparent thicknesses and overall geological context is
structure	• If the relationship between the drilling orientation and the	needed to estimate true thicknesses.
	orientation of key mineralised structures is considered to have	• Estimates of true thickness have been discussed in the announcement to avoid
	introduced a sampling bias, this should be assessed and	confusion.
	reported if material.	• No sampling bias is believed to have been introduced.
Sample security	• The measures taken to ensure sample security.	• Sample security was managed by the CXO. After preparation in the field or

• Sample security was managed by the CXO. After preparation in the field or CXO’s warehouse, samples were packed into polyweave bags and transported by the Company directly to the assay laboratory. The assay laboratory audits the samples on arrival and reports any discrepancies back to the Company. No such discrepancies occurred.

Audits or reviews • The results of any audits or reviews of sampling techniques and data.

• No audits or reviews of the data associated with this drilling have occurred.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.		• Drilling by CXO took place on EL30015 and EL29698, which are 100% owned by CXO. • The area being drilled comprises Vacant Crown land. • There are no registered heritage sites covering the areas being drilled. • The tenements are in good standing with the NT DPIR Titles Division.
Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties.		• The history of mining in the Bynoe area dates back to 1886 when tin was discovered by Mr. C Clark.

• By 1890 the Leviathan Mine and the Annie Mine were discovered and worked discontinuously until 1902.

• In 1903 the Hang Gong Wheel of Fortune was found, and 109 tons of tin concentrates were produced in 1905. In 1906, the mine produced 80 tons of concentrates.

• By 1909 activity was limited to Leviathan and Bells Mona mines in the area with little activity in the period 1907 to 1909.

• The records of production for many mines are not complete, and in numerous cases changes have been made to the names of the mines and prospects which tend to confuse the records still further. In many cases the published names of mines cannot be linked to field occurrences.

• In the early 1980s the Bynoe Pegmatite field was reactivated during a period of high tantalum prices by Greenbushes Tin which owned and operated the Greenbushes Tin and Tantalite (and later spodumene) Mine in WA. Greenbushes Tin Ltd entered into a JV named the Bynoe Joint Venture.

• Greenex (the exploration arm of Greenbushes Tin Ltd) explored the Bynoe

Criteria	JORC Code explanation	Commentary
		pegmatite field between 1980 and 1990 and produced tin and tantalite from its Observation Hill Treatment Plant between 1986 and 1988.

• They then tributed the project out to a company named Fieldcorp Pty Ltd who operated it between 1991 and 1995.

• In 1996, Julia Corp drilled RC holes into representative pegmatites in the field, but like all their predecessors, did not assay for Li.

• Since 1996 the field has been defunct until recently when exploration has begun on ascertaining the lithium prospectivity of the Bynoe pegmatites.

• The NT geological Survey undertook a regional appraisal of the field, which was published in 2004 (NTGS Report 16, Frater 2004).

• LTR drilled the first deep RC holes at BP33, Hang Gong and Booths in 2016, targeting surface workings dating back to the 1980s. The operators at that time were seeking Tin and Tantalum.

• CXO subsequently drilled BP33, Grants, Far West, Central, Ah Hoy and several other prospects in 2016.

• After purchase of the Liontown tenements in 2017, CXO drilled Lees, Booths, Carlton and Hang Gong.

Geology • Deposit type, geological setting and style of mineralisation.

• The tenements listed above cover the northern and central portion of a swarm of complex zoned rare element pegmatite field, which comprises the 55km long by 10km wide West Arm – Mt Finniss pegmatite belt (Bynoe Pegmatite Field; NTGS Report 16). The main pegmatites in this belt include Mt Finniss, Grants, BP33, Hang Gong and Sandras.

• The Finniss pegmatites have intruded early Proterozoic shales, siltstones and schists of the Burrell Creek Formation which lies on the northwest margin of the Pine Creek Geosyncline. To the south and west are the granitoid plutons and pegmatitic granite stocks of the Litchfield Complex. The source of the fluids that have formed the intruding pegmatites is generally accepted as being the Two Sisters Granite to the west of the belt, and which probably underlies the entire area at depths of 5-10 km.

• Lithium mineralisation has been identified historically as occurring at Bilato’s

Criteria	JORC Code explanation	Commentary
		(Picketts) and Saffums 1 (both amblygonite) but more recently CXO have identified spodumene at numerous other prospects, including Grants, BP33, Booths,Lees,HangGong,Ah Hoy,Far West Central and Sandras.
Drill hole Information • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearlyexplain whythis is the case.		• A summary of material information for all drill holes drilled and discussed in this release is contained within the body of the report. This includes all collar locations, hole depths, dip and azimuth as well as current assay or intercept information. • No drilling or assay information has been excluded.
Data aggregation methods • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high- grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearlystated.		• Any sample compositing reported here is calculated via length weighted averages of the 1 m assays. Length weighted averages are acceptable method because the density of the rock (pegmatite) is constant. • 0.4% Li2O was used as lower cut off grades for compositing and reporting intersections with allowance for including up to 3m of consecutive drill material of below cut-off grade (internal dilution). • No metal equivalent values have been used or reported.
Relationship between mineralisation • These relationships are particularly important in the reporting of Exploration Results. • If thegeometryof the mineralisation with respect to the drill		• All holes have been drilled at angles of between 55 - 70° and approximately perpendicular to the strike of the pegmatite. The pegmatite dips steeply to the east. Refer to the drill hole table for dip and azi data.

Criteria	JORC Code explanation	Commentary
widths and intercept lengths hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).		• Some holes deviated in azimuth and therefore are marginally oblique in a strike sense. • Based on rough assessment of drill sections, true width represents about 50- 70% of the intercept width.
Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.		• Refer to Figures and Tables in the release.
Balanced reporting • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.		• All exploration results received to date for the BP33 prospect have been reported. • Assays for some DD holes at BP33 are still pending and will be reported when received and reviewed.
Other substantive exploration data • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.		• All meaningful and material data has been reported.
Further work • The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commerciallysensitive.		• Further RC drilling at BP33 is being planned for the remainder of the 2022 dry season to further define extensions to the south.