Quarterly Activities and Cash Flow Report for the quarter ended 30 September 2023

The Board of Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, “Atlantic Lithium” or the “Company”), the African-focused lithium exploration and development company targeting to deliver Ghana’s first lithium mine, is pleased to present its Quarterly Activities and Cash Flow Report for the period ended 30 September 2023.

Highlights from the Reporting Period:

• Commitment from partner Piedmont Lithium to sole fund the first US$70m, and 50% of any additional costs thereafter, of the total US$185m development expenditure indicated in the Definitive Feasibility Study (“DFS”) for the Company’s flagship Ewoyaa Lithium Project (“Ewoyaa” or the “Project”) in Ghana, comprising the proposed Ewoyaa Lithium Mine and Processing Plant.

• Planned investment of a total US$32.9m (A$51.4m / £26.3m) by the Minerals Income Investment Fund of Ghana (“MIIF”) in the Company and its Ghanaian subsidiaries to expedite the development of the Project.

• Commenced competitive offtake partnering process to secure Project funding for a portion of the remaining 50% available feedstock from Ewoyaa.

• Memorandum of Understanding (“MoU”) signed with The University of Mines and Technology, Tarkwa (“UMaT”) to assess the viability of producing feldspar feedstock at the Project.

• Appointment of DRA Global Limited (“DRA”) to conduct a Scoping Study for the inclusion of an additional downstream flotation circuit to the proposed Dense Media Separation (“DMS”) processing plant.

• Advancement of 2023 resource and exploration drilling programme at Ewoyaa:
  • Further assay results received for a total 11,594m of infill and exploration reverse circulation (“RC”) and groundwater monitoring drilling completed at Ewoyaa, part of the ongoing planned 18,500m programme.
  • Auger drilling ongoing at Saltpond, with two rigs active, part of the 20,000m 2023 programme.
  • Soil sample analysis underway following completion of geochemistry survey over the Cape Coast licence.

• Cash on hand at end of quarter was A$10.6m.

Post-period end

• Mining Lease granted for the Ewoyaa Lithium Project, representing a major de-risking milestone for the Project.
  • Agreed terms maintain Ewoyaa’s position as one of the lowest capital and operating cost hard rock lithium projects globally.
  • Project economics indicate strong commercial viability and exceptional profitability potential for a 2.7Mtpa steady state operation, producing a total of 3.6Mt of spodumene concentrate (approximately 350,000tpa) over a 12-year mine life1:
    • Payback period of main processing plant of 9.5 months;
    • C1 cash operating costs of US$377/t of concentrate Free-On-Board (“FOB”) Ghana Port, after by- product credits, All in Sustaining Cost (“AISC”) of US$675/t;
    • Development cost estimate of US$185m;
    • Post-tax NPV8 of US$1.3bn, with free cash flow of US$2.1bn from Life of Mine (“LOM”) revenues of US$6.6bn.

• Environmental Protection Agency authorisation to commence the diversion of the transmission lines crossing the Mankessim licence, moving the Project a step closer to shovel readiness.

Commenting on the Company’s latest progress, Neil Herbert, Executive Chairman of Atlantic Lithium, said:

“The news of the Mining Lease for the Ewoyaa Lithium Project follows yet another remarkable period of progress for Atlantic Lithium. The Mining Lease represents the Government’s belief in the Company as its partner of choice in its long-term lithium production objectives and sets Ewoyaa on a path to become one of the next major hard rock spodumene mines.

“During the quarter, we announced two major funding commitments which underscore the Project’s commercial viability and significantly de-risk Ewoyaa from a funding perspective. We are delighted that Ghana’s sovereign wealth fund, the Minerals Income Investment Fund, has agreed terms to invest in the Company and its local Ghanaian subsidiaries. Having MIIF invest at the listed company and Project level more closely aligns the Government with the success of the Project, enables us to return further value from Ewoyaa to Ghana and strengthens the Company’s cash balance.

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