Quarterly Activities Report Period Ending 30 June 2022

HIGHLIGHTS

• The City Council of Cáceres and the Regional Government of Extremadura invited Extremadura New Energies to formally present the redesigned San José underground development proposal and confirmed all parties’ commitment to an environmentally sustainable project.
• The Company continued direct engagement with major community and business groups as evidenced by:
  • Collaboration agreement with EIT InnoEnergy to implement European Battery Academy training courses in Extremadura.
  • Joint investment with the Cáceres Chamber of Commerce in a start-up incubator/accelerator project.
• Extension of MoU with LG Energy Solution to progress the future definitive offtake agreement for the long-term supply of battery grade lithium hydroxide.
  
• Infinity GreenTech entered into an agreement with Murdoch University to advance GreenTech RPKTM* test work.
• Available cash as at 30 June 2022 of A$16.29 million.

Government Invitation for the Assessment of San José

The Company believes the public request from the Mayor of Cáceres to present an alternative proposal is a major step forward as all parties seek to resolve a pathway to deliver San José as a cornerstone in Extremadura’s lithium-ion battery value chain. The Project has been extensively redesigned as a result of the direct engagement with major stakeholders, and in response to the local community and social licence advancements.

The Company has acknowledged the City Council of Cáceres’ clarification of multiple project requirements and the technical studies underpinning San José will be presented based on the underground-only mineral extraction and associated major lithium battery chemical production facility providing improved environmental and social outcomes.

The City Council of Cáceres and the Regional Government of Extremadura are both committed to the requirement for an environmentally sustainable project that will benefit Cáceres and Extremadura. Furthermore, the Regional Government of Extremadura have acknowledged the requirement for the Project to be formally presented and publicly registered. This can be following the resolution of Investigation Permit Valdeflorez (‘PIV’) which is currently before the before Contentious Appeal Court of Cáceres, or through alternative legal avenues sought in advance of the determination.

During the quarter, Infinity, through San José Joint Venture (‘JV’) entity Tecnologia Extremeña Del Litio S.L. (‘TEL’) and with authority under the revised JV amendment with Project JV partners Valoriza Mineria S.L.U. (‘VM’), continued to contest the cancellation PIV through a contentious-administrative appeal. The contentious-administrative appeal continued to progress through the Contentious-Administrative Court in Cáceres (‘CAC’, or ‘the Court’). Initial writ submissions have been lodged with the CAC and the Court will determine whether the contentious-administrative appeal will be considered by the judge presiding over the CAC or by trial. This action predates and is separate from the invitation to present the redesigned underground-only project.

The Mayor of Cáceres noted the administrative and legal framework in the context of the process for assessment through the City Council of Cáceres, commenting "when a new project is proposed, we are not opposed to it; we are in favour of checking that things are done well and that they are legal", and furthermore proposed the technical presentation of the Project for assessment.

The Company, led locally by its highly experienced Spanish executive Mr Ramón Jiménez Serrano, welcomed the opportunity to collaborate with local stakeholders and is advancing discussions with government stakeholders to clarify and resolve alternative legal avenues to advance the Project. The technical presentation of the Project will provide visibility to interested parties and stakeholders under the requirements of the administrative process and in adherence with ASX listing rules. For further details refer to ASX announcement 15 June 2022.

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