Lithium Universe Launches Share Purchase Plan

Highlights

• Share Purchase Plan (SPP) offered to raise working capital and reward former Mogul Games Group Limited and IPO shareholders
• SPP at an issue price of $0.02 per share
• Represents a 9.09% discount to the closing price of $0.022 per share on 12 March 2024 and a 9.09% discount to the 5-day VWAP prior to this announcement
• Funds applied to engineering studies and working capital requirements
• Eligible shareholders to take advantage of a unique business model
• Focused on lithium conversion for multinational players together with the continued exploration of suite of lithium and rare earth assets
• Closing the lithium downstream conversion gap in North America
• Option agreement to acquire an industrial site in Bécancour, Québec
• Site has capacity for three trains with a total of 48,000 tpa LCE

Presently, approximately 900 gigawatts (GW) of cathode/battery projects are under consideration for the North American continent, featuring prominent players such as Tesla, LG Energy, Northvolt, POSCO, Ford, GM, and Toyota, among others. This translates to a demand for 800,000 tons per annum (tpa) of lithium chemicals.

North America lacks operational lithium converting refineries, with only approximately 100,000 tpa of lithium chemicals in planned capacity. Recognizing this lithium processing gap, LU7 is poised to address this need. The Company’s unique QLPH strategy focuses on the opportunity to convert spodumene offtake for multinational players, facilitating the conversion process closer to their supply chains in North America, rather than solely relying on China. It is also envisaged that any run of mine ore generated by the Company’s mineral assets in Canada would form part of the spodumene mix feeding the QLPH in the future.

Mr. Iggy Tan, Chairman of Lithium Universe said “The Company is looking to raise working capital and reward previous Mogul Games shareholders and new shareholders for their continual support by pricing the SPP at the price of the Lithium Universe IPO completed in August 2023 (via a re-compliance listing). Despite the decline in lithium prices affecting numerous industry players, Lithium Universe is full steam ahead. We view the current short-term dip in lithium prices as an advantageous window to finalize feasibility studies for the QLPH before the onset of the next cycle. These moments present tangible opportunities for our organization and we invite current shareholders to position themselves for the next lithium cycle. I look forward to achieving several significant milestones in 2024 for the QLPH strategy. We are well advanced on the key engineering studies which will form the basis for the Company moving towards funding, construction and development”.

Share Purchase Plan Details

The SPP will enable existing shareholders who are recorded on the Company’s share register at close of market on 12 March 2024 (Record Date), with a registered address in Australia or New Zealand to participate (Eligible Shareholder). Eligible Shareholders will be permitted to purchase up to $A30,000 ordinary shares in the Company (subject to any scale back), without incurring brokerage or transaction costs. All shares issued under the SPP will rank equally with existing ordinary shares of the Company.

The SPP is being undertaken under ASX Listing Rule 7.2, exception 5 and as such, the issue will not take up any of the Company’s placement capacity and will not require shareholder approval.

New shares issued under the SPP will be offered at $0.02 per share (SPP Price), representing a 9.09% discount to the closing price of $0.022 per share on the Record Date of 12 March 2024, and a 9.09% discount to the volume weighted average price of the Company’s shares calculated over the last 5 days on which sales in the shares were recorded prior to the date of this announcement.

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