Lithium Ionic Corp. — Regulatory Filings 2025

Sep 19, 2025

FORM 51-102F3

MATERIAL CHANGE REPORT

Item 1 Name and Address of Company

Lithium Ionic Corp.
36 Lombard Street
Floor 4
Toronto, ON M5C 2X3

Item 2 Date of Material Change

September 17, 2025

Item 3 News Releases

A news release was issued by Lithium Ionic Corp. ("Lithium Ionic" or the "Company") on September 17, 2025, in respect of the material change and was disseminated through the facilities of GlobeNewswire and filed on SEDAR+.

Item 4 Summary of Material Changes

Lithium Ionic announced the updated results of a Feasibility Study ("FS" or "Study") for its 100%-owned Bandeira Lithium Project ("Bandeira" or the "Project") located in Minas Gerais, Brazil. This updated FS incorporates a larger mineral resource and reserve and optimized mine and plant design.

Highlights of the Updated Feasibility Study:

Project Snapshot
- Post Tax IRR 61%
- Post Tax NPV₈% US$1.45B
- CAPEX US$191M
- OPEX US$378/t spodumene concentrate
- Mine Life 18.5 years
- Pay Back 2.2 years

Compared to the May 2024 Feasibility Study:

Stronger Economics
- Post-tax NPV₈% improved to US$1.45 billion, compared to US$1.31 billion in the May 2024 FS (the "Prior Study") despite applying more conservative commodity price assumptions based on Fastmarkets' long-term forecast.
- Post-tax IRR increased to 61%, up from 40%.
- Payback period reduced to 2.2 years, compared to 3.4 years previously.

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Tangible CAPEX and Operating Cost Reductions

• Site operating cost of US$378/t spodumene concentrate 5.2% ("SC5.2").
• Initial CAPEX reduced by ~28% to US$191 million (including contingency), versus US$266 million in the Prior Study.

Longer Mine Life

• Mine life of 18.5 years, up from 14 years in the Prior Study, supported by a 6 million tonne increase in proven and probable reserves from the 2024 drill campaign.
• Average annual life-of-mine ("LOM") rate of production of 177,000 tpa of spodumene concentrate.

Optimized Flowsheet

• Plant flowsheet incorporates proven technology supported by RTEK's operational track record at multiple hard rock spodumene deposits.
• More conservative metallurgical recovery of 65% aligned with hard rock dense media separation (DMS) peer producers.

Responsible Environmental Design

• Bandeira's mine plan is designed to minimize land disturbance and water consumption, supported by a long-term underground mining strategy that reduces dust and noise.
• Optimized processing flowsheet and dry-stacked tailings are expected to reduce overall water consumption and facilitate faster site rehabilitation.
• Dry stacking ensures enhanced safety and lower environmental risk versus conventional wet tailings storage.

Bandeira FS – Summary of Key Results and Assumptions Compared to May 2024 Feasibility Study (all figures in USD unless otherwise stated)

Feasibility Studies	May 2024	Sept. 2025
Project Economics
Post - Tax NPV_{8}	$1.31 B	$1.45 B
Post - Tax IRR	40%	61%
Pre - Tax NPV_{8}	$1.57 B	1.72 B
Pre - Tax IRR	44%	68%
Annual Gross Revenue – LOM Average	$417 M	$343 M
Average Annual After-Tax Free Cash Flow (after repayment of initial capital)	$286 M	$208 M
Payback	41 months	26 months

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Production Profile
Total Project Life (LOM)	14 years	18.5 years
Total LOM production (ore mined)	17.2 Mt	23.2 Mt
Total concentrate production (LOM)	2,493 kt SC5.5
(338 kt LCE)	3,198 kt SC5.2
(411 kt LCE)
Nominal Plant Capacity	1.30 Mtpa	1.50 Mtpa
Average plant throughput	1.23 Mtpa	1.29 Mtpa
Run-of-Mine grade, Li2O (mine diluted)	1.16%	1.10%
Average Annual Production of Spodumene Concentrate	178 ktpa
(SC5.5)	177 ktpa
(SC5.2)
Metallurgical Recovery	68.9%	65.3%
CAPEX & OPEX
Initial Capital Costs	$266M	$191M
Sustaining CAPEX	$81M	$100M
Site Operating costs (5.2% Basis)	$420/t	$378/t

Mineral Reserve Estimate

The Feasibility Study is supported by a Mineral Reserve estimate totaling 23.2 million tonnes at a delivered $\mathrm{Li}_2\mathrm{O}$ grade of $1.10\%$ supported by the mineral resource estimate announced on May 6, 2025 (see Table 6).

Deposit / Cut-Off Grade	Category	Resource (kt)	Grade (% Li2O)	Contained LCE (kt)
Bandeira	Proven	2,571	1.12	72
	Probable	20,626	1.09	557
	Proven + Probable	23,197	1.10	629

1. The Mineral Resource dated November 20, 2024, is the basis for the Ore reserve
2. Only the Measured and Indicated Mineral Resources have been considered as potentially economic for the mining study
3. The Reserve has been validated by Hugo Filho (FAUSIM CP - 323096) in conformity with the CIM Estimation of Mineral Resource and Mineral Reserves Best Practices guidelines.
4. The report adheres to the Canadian Securities Administrators' NI 43-101 requirements.
5. Figures are rounded to appropriate levels of precision, and discrepancies may occur due to rounding.

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1. The Reserve was calculated considering a cut-off of 0.5% Li₂O for underground resources and 0.3% for near-to surface ore.

Item 5 Full Description of Material Changes

Full description of material change attached hereto as schedule "A".

Item 6 Reliance on subsection 7.1(2) of National Instrument 51-102

Not applicable.

Item 7 Omitted Information

Not applicable.

Item 8 Executive Officer

Blake Hylands
CEO
Email: bhylands@lithiumionic.com

Item 9 Date of Report

September 19, 2025

Cautionary Note Regarding Forward-Looking Statements

This material change report contains statements that constitute "forward-statements." Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. When used in this material change report, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this material change report include information relating to the prospectivity of the Project, the economic viability of the Project, the mineralization and development of the Project, the Company's exploration program and other mining projects and prospects thereof, the Company's ability to complete a feasibility study, the Company's ability to complete an environmental impact assessment and obtain the requisite permitting and approvals and the Company's future plans. Such statements and information reflect the current view of the Company. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking information contained in this material change report represents the expectations of the Company as of the date of this material change report and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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Schedule “A”

See attached press release dated September 17, 2025.