Transformational A$35 Million Capital Raising to Expedite Lithium Business in Brazil

Latin Resources Limited (ASX: LRS) (“Latin” or “the Company”) is pleased to announce that it has received firm commitments from institutional and sophisticated investors to subscribe for a placement of new ordinary shares at an issue price of $0.16 to raise gross proceeds of A$35 million (“Placement”).

• Latin raises A$35 million in a placement anchored by Canadian cornerstone investor, Electrification and Decarbonization AIE LP Fund, with a lead order of A$15 million.
• Latin now well-funded to rapidly accelerate its Bananal Valley drilling program at the Salinas Lithium Project in Brazil.
• Objective to delineate a maiden JORC Mineral Resource and establish project scale rapidly through escalating the drilling campaign from two to four diamond drill rigs with a planned 25,000 metre drill program on the Bananal Valley project.
• Additional drill rig to commence scout drilling at high priority regional lithium targets including Salinas South and the recently acquired Monte Alto prospect area.
• In parallel with advancement of the lithium business in South America, Latin will press forward to complete a Pre-Feasibility Study on its large-scale Cloud Nine Halloysite-Kaolin Deposit in Western Australia.

Demand for the Placement was strong, supported by a cornerstone investment of $15 million by Electrification and Decarbonization AIE LP Fund (“E&D Fund”), a 100% owned subsidiary of Toronto based Waratah Capital Advisers (“Waratah”). The Placement was also supported by several institutional investors in Australia, North America and Asia.

The Waratah Electrification and Decarbonization fund invests in equities of critical battery materials companies and related decarbonisation investment opportunities. Waratah is the sponsor and general partner of Lithium Royalty Corp, a leading North American royalty corporation focused on lithium assets, which holds royalties on projects operated by Sigma Lithium, Zijin Mining, Core Lithium, Allkem and Sayona Mining.

The investment from a highly experienced lithium investor such as Waratah signals a strong vote of confidence in the Salinas Lithium Project and the potential for it to become a significant lithium operation.

Euroz Hartleys Limited and PAC Partners Securities Pty Ltd acted as Joint Lead Managers to the Placement, with Jett Capital Advisors being a Co-Manager to the Placement in North America.

Ernie Ortiz, Waratah’s President and Managing Director said:

“We are very pleased to have the opportunity to invest in Latin Resources. The Salinas Lithium Project shows potential to become a significant lithium operation. We are excited about our partnership with Latin to advance its Salinas Lithium Project.”

Latin Resources’ Managing Director Chris Gale said:

“Our results at Salinas have been exceptional, revealing we have some very high-grade lithium spodumene mineralisation. We consider that winning the support of a technical-focused group, like Waratah’s E&D fund, who are very well-versed on the lithium sector, is a big tick of approval for what we are doing and where we are headed with our Salinas Lithium Project.

“What’s really exciting is the roadmap ahead for LRS shareholders. We are relatively early in the discovery phase of our Salinas Lithium Project, and we have much work ahead of us, however the level of attention we are receiving from industry players suggests we are not alone in thinking that Latin has a chance to develop a highly valuable lithium project in Brazil.”

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