Quarterly Activities And Cash Flow Report For The Quarter Ended 30 June 2023

The Board of Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, “Atlantic Lithium” or the “Company”), the African-focused lithium exploration and development company targeting to deliver Ghana’s first lithium mine, is pleased to present its Quarterly Activities and Cash Flow Report for the period ended 30 June 2023.

During the quarter, the Company announced a Definitive Feasibility Study1 (“DFS”) for the Ewoyaa Lithium Project (“Ewoyaa” or the “Project”) in Ghana, confirming the Project’s economic viability and exceptional profitability potential, representing a major milestone in the Company’s pathway to production.

Highlights from the Reporting Period:

Project development

• Definitive Feasibility Study¹ reported for the Ewoyaa Lithium Project indicating exceptional economic outcomes and profitability potential for a 2.7Mtpa steady state operation, producing 3.6Mt of spodumene concentrate over a 12-year Life of Mine (“LOM”):
  • Post-tax NPV8 of US$1.5bn, with free cash flow of US$2.4bn from LOM revenues of US$6.6bn, Internal Rate of Return (“IRR”) of 105%;
  • Average LOM EBITDA of US$316 million per annum, short payback of 19 months;
  • C1 cash operating costs of US$377/t of concentrate Free-On-Board (“FOB”) Ghana Port, after by-product credits, All in Sustaining Cost (“AISC”) of US$610/t;
  • Capital cost estimate of US$185 million; US$127.5 million to be provided by funding partner Piedmont Lithium (NASDAQ: PLL; ASX: PLL, “Piedmont”) as part of existing agreement (refer announcement of 1 July 2021);
  • Increased Production Target of approx. 350,000tpa of spodumene concentrate compared with Pre-Feasibility Study target of 255,000tpa (refer announcement of 22 September 2022);
  • Early-stage revenue potential via construction of a Modular DMS plant for starter-pit operations;
  • DFS incorporates Mineral Resource Estimate1 ("MRE") of 35.3Mt @ 1.25 Li2O, Ore Reserves of 25.6Mt @ 1.22% Li2O and LOM concentrate pricing of US$1,587/t, FOB Ghana Port.
• The Company awaits approval of Mankessim licence consolidation ahead of resubmission of Mining Lease application for the Project.

Post-period end

• Appointment of DRA Global Limited (“DRA”) to conduct a Scoping Study to assess the viability of an additional flotation circuit downstream to the proposed Dense Media Separation (“DMS”) processing plant.
• The flotation circuit Scoping Study is underway, with an outcome expected in Q4 2023.

Exploration

• Advancement of 2023 resource and exploration drilling programme at Ewoyaa:
  • Initial assay results received for 2,208m of infill reverse circulation ("RC") drilling confirming mineralisation continuity at the Ewoyaa South-2 deposit:
    • Multiple high-grade drill intersections reported as downhole intercepts, with true widths estimated in the intersections table, including highlights at a 0.4% Li2O cut-off and a maximum 4m of internal dilution of:
      • GRC0892: 57m at 1.17% Li2O from 45m
      • GRC0899: 54m at 1.14% Li2O from 3m
      • GRC0900: 41m at 1.16% Li2O from 73m
      • GRC0909A: 33m at 1.12% Li2O from 78m
      • GRC0896: 18m at 1.16% Li2O from 80m
      • GRC0908: 19m at 0.93% Li2O from 47m
      • GRC0906: 11m at 1.5% Li2O from 38m
      • GRC0906: 17m at 0.91% Li2O from 54m
      • GRC0908: 10m at 1.53% Li2O from 33m.
  • Completion of soil geochemistry survey with analysis underway.
  • Continuation of planned 20,000m auger drilling programme with analysis underway.

Corporate

• Appointment of Keith Muller as Chief Executive Officer and Len Kolff as Head of Business Development & Chief Geologist.
  • Changes aligned with the Company’s strategy to strengthen mine operating skills and to identify long-term growth opportunities for the Company.
• Appointment of Keith Muller and Patrick Brindle to the Company’s Board of Directors.
• Joined the International Lithium Association as an Associate Member.
• Granted eligibility for the Company’s common shares listed on the OTCQX® Best Market ("OTCQX") in the United States for electronic clearing and settlement through the Depository Trust Company ("DTC").
• Cash on hand at end of quarter was A$15.3 million.

Post-period end

• Appointment of Aaron Maurer as Head of Operational Readiness.

Sustainability

• Awarded Exploration Company of the Year (Mining) at the Ghana-West Africa Business Excellence Awards 2023.
• Sponsorship of Central Region’s May Day events for the community in the Mfantseman municipality.

“The June quarter has seen substantial progress in the Company’s development.

“We were delighted to appoint Keith Muller as CEO to lead the Company at this important time in the Project’s development. As one of only a handful of people with proven lithium mine operating experience globally, Keith’s appointment as CEO attests to Atlantic Lithium’s vision of achieving near-term lithium production at Ewoyaa.

“Keith has been pivotal in delivering the Definitive Feasibility Study this quarter, which represents a significant de-risking milestone and reaffirms Ewoyaa as a low capex and low opex project with impressive profitability potential.

“Over a 12-year mine life, the DFS indicates the production of 3.6Mt spodumene concentrate, delivering free cash flow of US$2.4bn from US$6.6bn Life of Mine revenues, a post-tax NPV8 of US$1.5bn and an Internal Rate of Return of 105%. Ewoyaa benefits from exceptional fundamentals, including adjacent infrastructure and the support of our surrounding host communities, which underlie our confidence in the delivery of the Project.

“Having only drilled 3% of the Company’s tenure in Ghana, there also remains significant value upside through exploration. As such, we continue to advance our drilling activities across Ewoyaa and the wider Cape Coast Lithium Portfolio. While our current focus is on delivering first production at Ewoyaa to capture the current higher lithium prices, we are continuing our exploration strategy, which has proved highly successful in growing the Company to date.

“We believe that Ewoyaa is one of the leading hard rock lithium assets globally. We are, therefore, driven to achieve our objective of near-term production in Ghana.”

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