LIVIUM LTD — Capital/Financing Update 2019

Dec 23, 2019

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24 December 2019

Funding, R&D rebates and grants for Lithium Australia total A$5.2 million

HIGHLIGHTS

• The Lind Partners A$3.0 million funding deal completes.

• Receipt of $1.23 million R&D rebate from Australian Tax Office.

• VSPC Ltd receives $876,095 R&D rebate from Australian Tax Office.

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• Envirostream Australia receives $110,000 grant from Sustainability Victoria.

The Lind Partners funding

Lithium Australia NL (ASX: LIT, ‘the Company’) is pleased to announce that A$3 million (net of costs) has been received under its $6.3 million funding agreement with New Yorkbased institutional fund manager The Lind Global Macro Fund, LP, an entity managed by The Lind Partners (see ASX announcement dated 16 December 2019).

R&D rebate for Lithium Australia

The Company wishes to advise that it has received an R&D rebate of A$1,229,442 from the Australian Tax Office (‘ATO’) – in relation to eligible activities under the ATO’s R&D tax incentive scheme – for the 2019 financial year.

R&D rebate for VSPC Ltd

On 10 December 2019, Lithium Australia’s 100%-owned subsidiary VSPC Ltd announced receipt of an ATO R&D rebate of $876,095 for the 2019 financial year.

Sustainability Victoria grant

On 10 December 2019, Lithium Australia subsidiary Envirostream Australia Pty Ltd announced it had been awarded an $110,000 grant from Sustainability Victoria in relation to its Melbourne battery recycling facility.

Other grants

The Company and its subsidiaries await the outcome of two more grant applications, with decisions expected in early 2020.

Use of funds

Collectively these funds, along with Lithium Australia’s current cash, will be used for:

• growing the Soluna Australia battery business;

• commercialising the VSPC Ltd cathode business;

• progressing the Envirostream Australia battery recycling business, and

• general working capital, including the costs of the funding agreement.

ASX ANNOUNCEMENT Lithium Australia

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Authorised for release by the Board.

Company representatives to contact in relation to this release are listed below.

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Adrian Griffin Barry Woodhouse Managing Director CFO and Company Secretary Mobile +61 418 927 658 Mobile +61 438 674 259 Adrian.Griffin@lithium-au.com Barry.Woodhouse@lithium-au.com

About Lithium Australia NL

Lithium Australia aims to ensure an ethical and sustainable supply of energy metals to the battery industry (enhancing energy security in the process) by creating a circular battery economy. The recycling of old lithium-ion batteries to new is intrinsic to this plan. Lithium Australia will produce advanced components for the battery industry globally and sell lithium-ion batteries into the stationary energy storage systems sector within Australia while continuing R&D on its proprietary extraction processes. The latter are designed to convert all lithium silicates (including mine waste), as well as unused fines from spodumene processing, into lithium chemicals. By uniting resources and innovation, the Company seeks to vertically integrate its lithium extraction, processing and recycling activities.

ASX ANNOUNCEMENT Lithium Australia

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