Obeikan Group Executes Shareholder Agreement for Hydroxide Plant in Kingdom of Saudi Arabia

European Lithium Limited (ASX: EUR, FRA:PF8, OTC: EULIF) (European Lithium or the Company), is pleased to announce that Obeikan Group for Investment Company (Obeikan Group) has executed the Shareholders Agreement.

HIGHLIGHTS

• Obeikan Group has agreed to a Deed of Assignment and entered into the Shareholder Agreement for the development and operation of the plant;
• Work is progressing with incorporation of the joint venture company, Arabian New Energy.
• Arabian New Energy shall be incorporated after successful registration and approval by the KSA Regulatory Authorities.

• The 50%/50% JV will be geared towards developing, constructing and commissioning a lithium hydroxide processing plant, and operating the plant for the conversion of lithium spodumene concentrate from Wolfsberg.
• Under the Shareholders agreement, the newly established Arabian New Energy company (Arabian New Energy) seek to have an exclusive right to purchase spodumene mined from the current resource at Wolfsberg (Zone 1), and the facility is expected to be developed to meet the minimum initial capacity and product specifications based on the Company’s binding Long Term Supply Agreement with BMW (refer ASX announcement dated 21 December 2022).
• Under the Shareholders Agreement, and subject to the successful commissioning of the Plant, the Wolfsberg Project Zone 1 will sell the lithium spodumene concentrate to the JV company over the life of the current resources of the Wolfsberg mine at a reduced rate, with a floor and ceiling price subject to final agreement of the parties.
• The parties will establish a Development Committee for the purpose of jointly collaborating on all key decisions in relation to the development of the Plant.
• Once Critical Metals Corp (CRML) has signed the Deed of Assignment (refer ASX announcement dated 2 June 2023) and the Shareholders Agreement, both agreements will become binding on all parties.

Tony Sage, Executive Chairman of EUR said: “This is another huge milestone for the Wolfsberg project following on from the recent $US15m commitment made by BMW. We now have two very dedicated partners to ensure we fulfil our ambition of becoming the first European producers of both spodumene and hydroxide. Now after these key milestones have been achieved the next steps become a lot easier. Over the next two quarters we expect to finalize the updated DFS on the now separated projects and secure the necessary funding to commence construction. The Board of the newly formed Arabian New Energy will appoint a leading ECPM to oversee the construction of the hydroxide plant. The funding for the project will be organized from within Saudi Arabia”.

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