Activity Report For The Quarter Ended December 2022

Lithium Power International Limited (ASX: LPI) (“LPI” or the “Company”) is pleased to provide shareholders with an overview of quarterly activities for the period ending 31 December 2022 (“Quarter”, “Reporting Period”), including subsequent events that might have a significant impact between 31 December 2022 and the issuance date of this Report.

HIGHLIGHTS

• Completed consolidating ownership of 100% of Maricunga Lithium Project.
  • Merger with Salar Blanco LLC to acquire its 31.31% of Maricunga completed on 20 December 2022.
  • Completed the Plan of Agreement with JV partner Bearing Lithium to acquire its 17.14% interest in Maricunga on 22 December 2022.
• Battery grade lithium carbonate produced with 99.92% purity from Maricunga.
  • Significantly exceeds industry standard specifications for battery grade lithium carbonate of 99.5%.
  • Samples sent to potential lithium buyers for analysis as part of LPI’s financing plans for mine development at Maricunga.
• Completed the acquisition of water rights for Maricunga.
  Purchased 62 litres/second CAN 6 rights replace a long-term lease that was previously held for only part of Maricunga’s requirements.1
• Commenced RC and diamond drilling at East Kirup lithium prospect, Western Australia.
  Several zones encountered indicated the potential for pegmatites at part of the LPI’s Greenbushes project in the south-west of Western Australia.
• MSB continues with its project financing process.
  Non-binding terms sheets being evaluated from parties interested in providing both equity and debt for Maricunga development. Progress as expected during upcoming months.

LPI advised during the reporting period that it had successfully completed the transactions to consolidate its ownership of the Maricunga Lithium Brine Project in Chile (“the Maricunga”, “Project”).

As announced on 20 December 2022, the Company completed a merger with Salar Blanco, LLC to acquire the 31.31% of Maricunga, which was held by joint venture partner Minera Salar Blanco SpA. This involved merging Salar Blanco, LLC into LPI. As a result, Mr Martin Borda, the sole shareholder of Salar Blanco, became the largest share- holder of the Company holding some 28% of LPI’s issued ordinary shares.

On 22 December 2022, it was announced that the Plan of Arrangement with joint venture partner Bearing Lithium Corp (BRZ:TSXV), which held a 17.14% interest in Maricunga, had been concluded. All BRZ shareholders received 0.7 LPI share for every 1 BRZ share owned, on or around 23 December 2022. BRZ has now been delisted from the TSXV.

As a result of the transactions, LPI has consolidated ownership of 100% of the Maricunga project. The company is now well positioned to deliver additional value to shareholders. The consolidation:

• Provides the optimal ownership structure to oversee the development of Maricunga by streamlining decision making for management and the board of directors; and
• Simplifies and de-risks the funding pathway for Maricunga, enhancing the ability to source capital from a wider range of providers to fund project development, in the lead up to Final Investment Decision, and potentially deliver enhanced returns to shareholders.

The reviewed corporate structure is shown in Figure 2.

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