Jindalee Lithium Limited (Jindalee, the Company) is pleased to announce that it is seeking to raise up to $6.7 million (Capital Raise), with total firm commitments of $4.1 million, to allow Jindalee to progress work at the Company’s McDermitt Lithium Project (McDermitt, Project), which hosts the largest lithium deposit in the USA1 (Table 1).

• Jindalee is seeking to raise $6.7 million, through a combination of a Placement, Entitlement Issue and Convertible Notes, with the potential to raise up to a further $9.0 million in Convertible Notes. Total firm commitments of $4.1 million
• Firm commitments for a Placement to raise gross proceeds of approximately $0.6 million from institutional investors, directors and management, at an issue price of $0.30 per share, including a $0.5 million commitment from Mercer Street Global Opportunity Fund II, LP and other funds managed by US-based C/M Capital Partners, LP (Mercer Street)
• Opportunity for eligible shareholders to participate via a non-renounceable Entitlement Issue on a 1 for 6 basis to raise up to approximately A$3.1 million on the same terms as the Placement
• Strong support indicated from directors and management in the Entitlement Issue with pre- commitments received for approximately A$0.5 million
• Every two shares under the Placement and Entitlement Issue will be accompanied by two free- attaching options in total (one ‘Short Term Option’ and one ‘Long Term Option’), with Placement options subject to shareholder approval
• Funding facility of up to $12 million via Convertible Securities received from Mercer Street with an initial tranche of $3.0 million ($1.5 million of which is subject to shareholder approval) and additional potential funding of up to $9.0 million by mutual agreement
• Funds to be directed to deliver value optimisation opportunities in the McDermitt PFS, which are expected to improve capital intensity and operating costs (versus initial PFS scope) and provide runway to achieve several key value catalysts in H2 2024, including the optimised PFS and potential for non-dilutive US government grant funding

• a placement of approximately $0.6 million to institutional investors, directors and management at $0.30 per fully paid ordinary share (Share) with Attaching Options (Placement);
• a non-renounceable rights issue to existing shareholders on a 1 for 6 basis at $0.30 per Share with Attaching Options pursuant to a prospectus (Prospectus), to raise up to approximately $3.1 million (Entitlement Issue); and
• a funding facility including:
  • $3.0 million investment for Convertible Notes, with $1.5m advanced on closing with a further $1.5 million investment subject to shareholder approval
  • Additional potential funding of up to $9 million for Convertible Notes

Further details in relation to the Placement, Entitlement Issue and Convertible Notes are available in Schedules 2 and 3.

Support from US Institutional Investors, Board and management

US-based fund manager C/M Capital Partners LP, as manager of Mercer Street Global Opportunity Fund II, LP and other funds (together, Mercer Street) have agreed to provide the Company with a $0.5 million equity investment via the Placement.

The Company has also entered into a funding facility with Mercer Street of up to $12 million. Mercer Street will fund an initial Convertible Note tranche of $3.0 million ($1.5 million of which is subject to shareholder approval). In addition, Mercer Street may fund optional further tranches of up to $9.0 million by mutual agreement and subject to shareholder approval or the Company having available placement capacity, demonstrating the value Mercer Street sees in the long-term prospects of Jindalee and its flagship McDermitt Lithium Project.

Furthermore, Jindalee has secured formal commitments from directors and management, including from Mr Lindsay Dudfield (Executive Director and largest shareholder), totalling minimum subscriptions of approximately $0.6 million in the Placement and Entitlement Issue. Director participation in the Placement will be subject to shareholder approval.

Use of Proceeds

Funds raised pursuant to the Capital Raise, will be applied as follows:

• Completion of the McDermitt Pre-Feasibility Study (PFS) with the incorporation of new value optimisation opportunities, which are expected to improve capital intensity, operating costs and production outcomes vs the initial scope of PFS (see Schedule 1 for further details);
• Continuing US activities including baseline studies, permitting and stakeholder engagement; and
• Corporate costs, general working capital and costs associated with the Capital Raise.

Upcoming Value Catalysts

Jindalee has continued to progress McDermitt throughout 2024, with the Capital Raise to allow the Company to execute on several potential value catalysts in the second half of CY2024. These include:

• Tribal Agreements (Q3)
• US Government technical cooperation agreement (Q3)
• Production of battery grade lithium carbonate from test work (Q3)
• Update on POSCO test work currently underway in Korea (Q3)
• Completion of optimised McDermitt PFS (Q4)
• Potential award decision for non-dilutive US Government grant funding (Q3/Q4)
• Commence strategic partnership/investment process (Q4)

Jindalee’s CEO Ian Rodger commented:

“We are very pleased to have secured the support of Mercer Street as a long-term funding partner, alongside the continued backing of our existing shareholders. We firmly believe that the funding initiatives announced today will support Jindalee’s work programs for the foreseeable future. This funding will enable us to deliver several key value catalysts in the second half of 2024, including the optimised McDermitt PFS and a potential award decision for US Government grant funding.

Additionally, we are excited by the value optimisation opportunities at McDermitt, which are underpinned by our recent metallurgical test-work which yielded better than expected results. Our goal is to reduce capital intensity and operating costs, thereby improving early returns while still delivering a multi-decade production outlook for battery-grade carbonate, from what we believe is an emerging top-tier, generational asset. We are committed to incorporating these opportunities into the PFS and look forward to sharing the outcomes later this year.”

Mercer Street’s Managing Partner Jonathan Juchno added:

“Mercer Street is pleased to support Jindalee Lithium. We see a significant value disconnect between Jindalee's current market valuation and the strategic potential of the McDermitt Lithium Project. With strong long-term prospects for the lithium market as the US builds out its battery value chain, we are confident in the Jindalee team's ability to advance the Project through key milestones expected in the coming months."

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