LIGHTNING MINERALS LTD — Capital/Financing Update 2024

Oct 27, 2024

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Execution of MOU With Minas Gerais Government to Fast Track Project Development in Brazil

ASX Announcement 28 October 2024

Lightning Minerals Limited ( L1M or the Company ) is pleased to announce the signing of a Non-Binding Memorandum of Understanding ( MOU ) with the Minas Gerais State Economic Development Department ( SEDE ) and the Minas Gerais Integrated Development Institute ( INDI ), together referred to as Invest Minas.

HIGHLIGHTS

• Signing of MOU with Invest Minas to support the development of the Company’s lithium projects in Brazil and develop the battery materials sector in the state of Minas Gerais

• Invest Minas to support project development through licensing, environmental approvals and other licensing requirements where applicable

• The Company is aggressively exploring its Caraíbas, Sidrônio and Esperança lithium projects in the prolific Lithium Valley region of Minas Gerais during Phase 1 exploration stage which includes soil sampling, geophysics and ground reconnaissance

The MOU has been signed by Chief Executive Officer of Invest Minas, João Paulo Braga and the Company’s Managing Director, Alex Biggs and signifies strong intent of the Company’s commitment to Brazil and the Lithium Valley in Minas Gerais. Similarly, it demonstrates the forward-thinking nature of the Minas Gerais government in supporting the Company’s plans in Brazil.

The purpose of the MoU is to provide mutual support between the parties to support the battery materials sector and supply chain investment in the region, including two-way introductions and investment partnerships in the region.

The Company will support the partnership by offering employment opportunities, utilisation of local services and contractors plus introduction of lithium expertise to the region and Invest Minas.

Lightning Minerals Managing Director Alex Biggs said , “The signing of this MOU with Invest Minas is a great indication of the supportive nature of the Minas Gerais government to Lightning’s exploration activities in the Lithium Valley region. As a Company we fully endorse Brazil and Minas Gerais as a tier-1 jurisdiction to conduct business, not only from the supportive nature of the government but also from a prospectivity perspective. We have been aggressive in beginning our work programs across our three project areas and are committed to developing a strong relationship with the government and local communities. We are a firm believer in the lithium thematic moving forwards and to be located in, what we see, as one of the most prolific lithium districts globally we see significant upside for the Company and its shareholders. We look forward to developing our relationship with Invest Minas and joint cooperation to assist in building a strong, sustainable lithium industry in Minas Gerais”.

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Level 11, 40 The Esplanade, Perth, Western Australia, 6000 | admin@lightningminerals.com.au | (08) 9429 8806
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Secretary of State for Economic Development, Fernando Passalio said , “The Lithium Valley project was created to promote not only local economic development, but also to improve the living conditions of the population, especially in areas such as Vale do Jequitinhonha, through the generation of jobs and income. This partnership with Lightning Minerals is also fundamental to position Minas Gerais as a reference in technology, sustainability and the global energy transition”.

Figure 1: Signing ceremony of MOU with Invest Minas in Perth. From L -R: João Paulo Braga (Chief Executive Ofcer - Invest Minas), Alex Biggs (Managing Director - Lightning Minerals), Fernando Passalio (Secretary of State for Economic Development of Minas Gerais)

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About Invest Minas

Invest Minas is a government organisation in the state of Minas Gerais, Brazil. Its purpose is to promote, attract and regulate economic activity in the state of Minas Gerais including the facilitation of foreign trade and exports. This includes developing cooperation between companies, investors and the government to promote the development of the State.

About the MOU

The MOU is applicable for a term of three (3) years and is non-binding in nature but outlines both the Company’s and Invest Minas’ collaboration opportunities as follows:

Invest Minas undertakes to provide support to Lightning Minerals during research, development and operational stages of the Caraíbas, Sidrônio and Esperança Projects, with ability to:

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• Support the company in contacting government agencies and assist in the application for approval and licensing of projects.

• Introduce and facilitate interaction with suppliers to assist the company's activities.

• Promote Lightning Minerals’ activities through investment announcements once prior authorisation has been granted, through press advisory services.

Invest Minas and Lightning Minerals will work together to support a battery feedstock and materials sector and supply chain investment for the State of Minas Gerais, which may include:

• Two-way introductions and partnerships.

• Investment partnerships into the local lithium supply chain.

• Consider and facilitate supply contracts to assist companies wanting to set up in Minas Gerais.

Lightning Minerals undertakes to provide support to Invest Minas with building a battery feedstock and materials sector in Minas Gerais as follows:

• Lightning Minerals will attempt to use local suppliers and employ local talent wherever possible and commercially viable

• As part of development planning, understand the local infrastructure needs and provide support through local investment that contributes to a robust battery feedstock and materials sector

Approved for release by the Board of Directors

-END-

More information at www.lightningminerals.com.au

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Level 11, 40 The Esplanade, Perth, Western Australia, 6000 | admin@lightningminerals.com.au | (08) 9429 8806
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ABOUT LIGHTNING MINERALS

Lightning Minerals is a mineral exploration company, listed on the Australian Securities Exchange (ASX:L1M) and focused on the exploration of lithium and critical minerals. The recent acquisition of the Caraíbas, Canabrava and Esperança lithium projects in Minas Gerais, Brazil are potentially transformational to the Company’s success in the lithium sector. The Company also owns the Dundas lithium project in the prolific Dundas region of Western Australia and the Dalmas and Hiver lithium projects in Quebec, Canada, another significant and evolving lithium region globally. The Company also holds other projects in Western Australia which include Mt Jewell, Mt Bartle and Mailman Hill which are prospective for base metals and critical minerals.

FORWARD LOOKING STATEMENTS

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

REFERENCES TO PREVIOUS ANNOUNCEMENTS

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements, and that all material assumptions and technical parameters have not materially changed. The Company also confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. The announcement does not contain any new exploration results or data.

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Level 11, 40 The Esplanade, Perth, Western Australia, 6000 | admin@lightningminerals.com.au | (08) 9429 8806
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