McDermitt PFS Demonstrates Multi-Decade Competitive Source of US Lithium Carbonate

Jindalee Lithium Limited (Jindalee, the Company; ASX: JLL, OCTQX: JNDAF) is pleased to advise that its recently completed Pre-Feasibility Study (PFS), on the Company’s 100% owned McDermitt Lithium Project (currently the largest lithium Resource in the USA) (McDermitt or the Project), has demonstrated strong economic returns over an initial project life in excess of 40 yearsⁱ

Highlights include:

• Lithium Carbonate Production: Forecast production of 1.8 million tonnes battery grade Lithium Carbonate over first 40 yearsⁱ, supporting the growing US battery supply chain
• Average Annual Lithium Carbonate Production:
  • 47.5ktpa in the first 10 yearsⁱ of operation (C1 unit cost US$8,080/t of lithium carbonate)ⁱⁱ
  • 44.3ktpa in the first 40 yearsⁱ of operation (C1 unit cost US$8,670/t of lithium carbonate)ⁱⁱ
• Strong Financial Metrics (first 40 yearsⁱⁱⁱ): Ungeared, using flat US$24,000/t lithium carbonate price^iv
  • Post-tax NPV₈ of US$3,229M^v
  • Post-tax IRR of 17.9%
  • Payback period under 5 years^vi
  • NPV break even price^vii of ~US$14,600/t of lithium carbonate

Note: PFS price assumption for lithium carbonate is based on long term incentive priceiv which exceeds current Chinese spot price^xiii

• Generational Project with Life in Excess of 40 years: The PFS processing schedule (Processing Schedule) supports a 63 year production life, however the production target and forecast financial information excludes any production post 40 yearsⁱ
• Processing Studies and Capital Estimate prepared by Fluor Corporation (Fluor)^viii: US$3.02B capital estimate, including 21%^ix contingency, prepared by Fluor - a leading US and global engineering and construction company with deep experience in US sedimentary lithium projects
• EBITDA^x Margin^xi: 66% over the first 10 yearsⁱ of operations, with C1 costs in the bottom half of industry^xii and 17% pre-tax net operating cashflow margins (including sustaining capital) at current spot prices^xiii
• Maiden Probable Ore Reserve (JORC 2012) of 251Mt @ 1,751ppm lithium, containing 2.34Mt of Lithium Carbonate Equivalent (LCE)^xiv, accounts for 79%^xv of forecast production in the PFS Processing Schedule but represents only ~10% of current Mineral Resource on a contained LCE basis, highlighting future optionality
• Cost Reduction and Sustainability: Opportunities for cost reduction and enhanced sustainability outcomes through the recently announced strategic agreement with the US Department of Energy^xvi
• Potential Partnerships: PFS completion allows for deeper engagement with a broader pool of potential strategic funding partners as well as the US Government agencies, which continue to actively support domestic US critical minerals production

Jindalee’s CEO Ian Rodger Commented:

The completion of this PFS is a pivotal milestone for Jindalee and our wholly owned McDermitt Lithium Project, underscoring McDermitt’s strategic potential as a large-scale, long-life competitive source of “American-made” lithium chemicals for the US battery supply chain.

Among the study's key achievements is the successful bench-scale test work, which validated our flowsheet and confirmed the production of battery-grade lithium carbonate with high recovery rates. While the PFS demonstrates McDermitt’s compelling value, we remain committed to further enhancing cost efficiency and sustainability as we responsibly advance the Project, delivering value for all stakeholders.

We are excited by the recent finalisation of Section 45X tax credit regulations under the Inflation Reduction Act, which represents a significant shift in support for domestic lithium projects. By expanding eligible costs specifically for integrated mining and refining operations—those producing a finished critical mineral product like lithium carbonate—the policy now more effectively targets projects like McDermitt, which is designed to produce battery-grade lithium chemicals domestically. This alignment with US energy security goals reflects a commitment to reducing dependency on foreign suppliers by incentivising long-life, fully integrated supply chain solutions within the US.

The completion of the PFS delivers, for the first time, the production metrics and cost estimates needed to engage meaningfully with potential strategic partners, accelerating discussions with a solid technical and financial foundation. It also provides a catalyst for re-engaging with US government agencies on potential future funding, building on our current Department of Defense grant application, which could co-fund the next phase of development.

Jindalee has an exciting 12 months ahead as we advance our Exploration Plan of Operations, targeted for mid- CY2025. This will enable a significant infill drilling campaign to inform a future feasibility study and associated test work. With a robust PFS and encouraging early interest from prospective partners, we look forward to building on this momentum as we evaluate the next steps for McDermitt.

I extend my sincere thanks to the Jindalee team and our consulting partners, Fluor Corporation and Cube Consulting, whose expertise was instrumental in delivering the PFS.”

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