INFINITY METALS LIMITED — Capital/Financing Update 2021

Jun 27, 2021

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Infinity Signs Offtake MoU with LG Energy Solution

ASX Release 28 June 2021 ASX: INF FRA: 3PM

HIGHLIGHTS

Project highlights

• Infinity Lithium and LG Energy Solution sign non-binding Memorandum of Understanding (‘MOU’) for the offtake of lithium hydroxide.

• LG Energy Solution a world leading manufacturer of lithium-ion batteries.

Infinity Lithium Corporation Limited (‘ Infinity ’, or ‘ the Company ’) is pleased to announce that it has entered into a non-binding Memorandum of Understanding (‘MOU’) for the long-term supply of battery grade lithium hydroxide (‘ LiOH ’, or ‘ Product ’) from the San José Lithium Project (‘ San José’ , or ‘ the Project ’) with major South Korean lithium-ion battery producer LG Energy Solution (‘ LGES ’).

Infinity’s CEO and Managing Director, Ryan Parkin commented , “We are delighted to announce the commencement of a long-term commercial relationship with tier one partner LG Energy Solution, welcoming the potential to support a global leading lithium-ion battery producer to secure essential facets of the supply chain.”

The key terms of the MOU are detailed below:

• The MOU refers to the potential supply of LiOH for an initial 5-year period with the potential to continue for a further 5 years;

• First right to 10,000tpa of Product with additional volumes under the MOU subject to negotiations and agreement between Infinity and LGES;

• The purchase price for the product will be based on the market prices for lithium hydroxide, subject to agreement by the parties and to be finalised under the terms of a binding offtake agreement.

The Parties have agreed to consult in good faith towards finalising the binding offtake agreement within 12 months of signing the MOU. Any formal agreement is likely to be subject to standard conditions precedent for an offtake agreement of this nature, including Infinity successfully entering commercial production and producing a product that meets the product specification requirements of LGES.

2[nd] Largest JORC hard rock lithium deposit in the EU

Strategically located in Spain, Europe to be the 2[nd] largest market for battery grade lithium after China

1st lithium project to secure EIT InnoEnergy Funding

Uniquely fully integrated project with mine and adjacent conversion plant

Low carbon footprint and sustainable operation

Corporate Directory

Ryan Parkin Managing Director & CEO

Adrian Byass Non-Executive Chairman

Remy Welschinger Executive Director

Jon Starink Executive Director

Contact

Level 3, 22 Railway Road Subiaco WA 6008

T: +61 (8) 6146 5325 E:admin@infinitylithium.com W: www.infinitylithium.com W: www.sanjosevaldeflorez.es

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Infinity Lithium Corporation Limited ACN 147 413 956

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Any formal agreement will also be subject to Infinity resolving the permitting matters set out in the Company's announcement of 17 May 2021.

The announcement was authorised by the Board. For further inquiries please contact:

Ryan Parkin Lucas Robinson CEO, Managing Director Investor Relations Manager T: +61 (8) 6146 5325 T: +61 (0)408 228 889 E: rparkin@infinitylithium.com E: lrobinson@infinitylithium.com

About Infinity Lithium

Infinity Lithium is an Australian listed minerals company who is seeking to develop its 75% owned San José Lithium Project in Spain. The proposed fully integrated industrial Project is focused on the production of battery grade lithium chemicals from a mica feedstock that represents the EU’s 2[nd] largest JORC compliant hard rock lithium deposit.

The Project would provide an essential component in the EU’s development of a vertically integrated lithium-ion battery supply chain. The availability of critical raw materials and the production of battery grade lithium hydroxide in the EU is essential to ensure the long-term production of lithium-ion batteries for electric mobility and the transition of the burgeoning EU’s automotive industry to electric vehicle.

About LG Energy Solution

LG Energy Solution is a global leader delivering advanced lithium-ion batteries for Electric Vehicles (EV), Mobility & IT applications, and Energy Storage Systems (ESS). With 30 years of experience in advanced battery technology, it continues to grow rapidly towards the realization of sustainable life. With over 23,000 employees working within its robust global network that spans the US, Europe, Asia, and Australia, LG Energy Solution is more committed than ever to developing innovative technologies that will bring the future energy a step closer. For more information, please visit https://www.lgensol.com.

Infinity Lithium Corporation Limited ACN 147 413 956