Announcement PDF MARCH 2025 QUARTERLY REPORT HIGHLIGHTS Strong Definitive Feasibility for Bécancour Lithium Refinery The Lithium Universe Strategy • • • • Positive, robust Bécancour Refinery DFS even in low pricing environment LU7 Board has made Financial Investment Decision (FID) and proceeding to funding LU7 has a counter cyclical strategy – develop project, ready for price recovery Closing the Lithium Conversion Gap – growth in resource and end market projects The Financial Modelling • Economically viable with excellent pre-tax NPV8% of approximately US$718M • IRR (pre-tax) of approximately 21.0% and payback of 3.9 years based on; • Price forecast of US$1,170/t SC6 and US$20,970/t for battery grade Li2CO3 • Operating costs at around US$3,931/tonne; capital cost estimate of US$549 million • 11% Increase from PFS mainly due to Zero Liquid Discharge (ZLD) system and escalation • Expected annual revenue of approx US$383 million and EBITDA of around US$148 million • Project break even at around US$740/t (SC6) and around US$14,000 per tonne Li2CO3 The Location • • • • Québec ideal trans-Atlantic lithium conversion centre, comparable to China Feedstock from Canada, Brazil and Africa – end market North America Critical cost benefits – cheap green power, transport mine/end market savings, US/Canada tariffs 95% GHG emission reduction with Hydro Québec’s green energy Next Steps • • Offtake discussions with interested OEMs underway LU7 to embark on the funding stage of the project LU7 Announces Exclusive Supply Aluminosilicate To Lafarge Canada Inc. • • • • • • Of MOU signed with strategic cement partner, Lafarge Canada Inc. Canadian cement producer, part of the Holcim Group Exclusive supply of all Aluminosilicate product (“ACSR”) from Bécancour ACSR is used as an additive to cement products Improves cement durability, strength, and production costs Significant growth in Canadian cement industry The Design LU7 Announces Strategic Partnership With Polytechnique Montréal • • • • • • • LU7 offers a solution to worldwide lithium conversion failures and startup problems Using proven Jiangsu Refinery operating technology and lithium industry experience Producing up to 18,270 tonnes/year of green batterygrade lithium carbonate Smaller off-the-shelf style plant rather than large difficult-to-operate facilities Initial focus on lithium carbonate production – feed for LFP batteries Assumptions based on real operating data and experience – not new aspirant • • • • • Collaboration in lithium processing with renowned local University Build local Canadian expertise in battery materials Enhance education, training, and research in critical mineral industry in Canada Drive innovation in engineering solutions for sustainability Promote student and faculty practical experience in lithium industry Support the onshoring of the lithium battery supply chain in Canada |1 Lithium Universe Limited | ASX: LU7 (NPV) of approximately US$718 million, using an 8% Strong Definitive Feasibility ForLimited Bécancour Lithium Universe I Quarterly Report I September 2024 discount rate, and a pre-tax Internal Rate of Return (IRR) Lithium Refinery Lithium Universe Limited recently announced the results Strong Preliminary Feasibility forthe Bécancour of its Definitive Feasibility Study (DFS) for Bécancour Lithium Refinery Lithium Carbonate Refinery in Québec, Canada. The DFS Lithiumthe Universe Limited recentlylithium announced the results of its confirms viability of a strong conversion project, Preliminary Feasibility Study (PFS) for the Bécancour Lithium even within a below-average pricing environment. The Carbonate Refinery in Québec, Canada. The PFSlithium confirms the Company plans to build a reliable, low-risk conviability of a strong lithium conversion project, even within a version refinery with an annual capacity of up to 18,270 below-average pricing environment. The Company plans to tonnes, utilizing proven expertise from the Jiangsu probuild a reliable, low-risk lithium conversion refinery with an cessing model. The facility will produce environmentally annual capacity of up to 18,270 tonnes, utilizing proven friendly, battery-grade lithium carbonate. expertise from the Jiangsu processing model.The TheCompany facility will aims to establish a Canadian-based lithium chemicals produce environmentally friendly, battery-grade lithium business, purchasing spodumene feedstock from both carbonate. The Company aims to establish a Canadian-based domestic suppliersbusiness, and international markets, including lithium chemicals purchasing spodumene feedstock Brazil and Africa and producing a battery grade lithium from both domestic suppliers and international markets, carbonate ThisAfrica aligns with the Company’s includingproduct. Brazil and and producing a batterybroadgrade lithium ofcarbonate product. aligns with lithium the Company's er vision contributing to theThis North Atlantic supply broader vision ofthe contributing to the NorthGap. Atlantic lithium chain and closing Lithium Conversion supply chain and closing the Lithium Conversion Gap. The project’s economics are highly favourable, even project's economics are highly favourable, even with withTheconservative price assumptions. The refinery is conservative price assumptions. The refinery is economically economically viable with a pre-tax Net Present Value viable with a pre-tax Net Present Value (NPV) of approximately of around 21.0%. The payback period is estimated at 3.9 years. The financial model is built on cautious price forecasts of US$1,170 spodumene US$779 million, per using tonne an 8% for discount rate, and concentrate a pre-tax Internaland RateUS$20,970 of Return (IRR) around The payback (SC6) per oftonne for23.5%. battery-grade lithium period is estimated at 3.5(LCE). years. The financial modelbelieve is built onthey carbonate equivalent LU7’s directors cautious price forecastsbasis of US$1,170 per tonne for spodumene have a reasonable for using the assumed price in concentrate (SC6) and US$20,970 per tonne for battery-grade the study of US$20,970 per tonne for battery grade lithium lithium carbonate equivalent (LCE). LU7's directors believe carbonate. Key operational assumptions include 86% plant they have a reasonable basis for using the assumed price in availability and 88% lithium recovery. At full production the study of US$20,970 per tonne for battery grade lithium capacity, the project is expected to generate approximately carbonate. Key operational assumptions include 86% plant US$383 million in annual revenue, with costs totalling availability and 88% lithium recovery. At full production around million, leading an annual EBITDA of is expected to to generate approximately capacity,US$236 the project approximately US$148 million and a gross margin US$383 million in annual revenue, with costs totalling aroundof in the region of 38%. theEBITDA NPV atof approximately an 8% discount US$236 million, leadingPost-tax, to an annual rate is estimated at approximately US$449 US$147 million and a gross margin of in the regionmillion. of 38%.The capital theatproject estimated Post-tax,cost the for NPV an 8%isdiscount rateatisUS$549 estimatedmillion, at which includesUS$501 a contingency of capital US$51cost million. capital approximately million. The for theThe project is estimated at US$494 which includes a contingency cost estimate is basedmillion, on advanced design specifications of US$68 million. Lithium The capital cost estimate is based robust on from the Jiangsu Refinery model, ensuring advancedplanning design specifications from the factors Jiangsuhighlight Lithium the financial and projection. These Refinery strong model, financial ensuring viability, robust financial planning and project’s even under conservative projection. These factors highlight the project's strong financial pricing conditions. viability, even under conservative pricing conditions. 7000 100,000 6000 85,000 Price (USD$ / tonne) Price (USD$ / tonne) Figure 1: Lithium Universe Bécancour Refinery Estimated Pre-tax Cashflows 5000 4000 3000 1000 1000 70,000 55,000 40,000 25,000 15,000 Universe PFS Price: US$1,170 0 Universe PFS Price: US$20,970 0 Figure 2: Spodumene SC6 historical prices vs LU7 Forecast Figure 2: Spodumene SC6 historical prices vs LU7 Forecast Figure 3: BG Lithium Carbonate historical prices vs LU7 Forecast Figure 3: BG Lithium Carbonate historical prices vs LU7 Forecast Page 2 Quarterly Report | March 2025 | 2 Lithium Universe Limited | ASX: LU7 Figure 4: Model of the Lithium Universe Bécancour Lithium Refinery Counter-Cyclical Strategy Lithium Universe employs a counter-cyclical strategy, developing projects during market downturns to position for recovery. Despite recent price declines due to oversupply, the company remains confident in strong longterm lithium demand driven by EV and energy storage growth. Although LU7 demonstrates viability even in low price environments, LU7 aims to capitalize on future price recovery and market opportunities. Closing the Lithium Conversion Gap Over 90% of LFP battery manufacturing is concentrated outside North America, but the region is expanding rapidly. By 2028, nearly 1,000 GWh of capacity will be added, requiring 850,000t of LCE annually. With no current lithium converters, efforts are underway to reduce reliance on foreign supply chains. Quarterly Report | March 2025 | 3 Lithium Universe Limited I Quarterly Report I September 2024 Lithium Universe Limited | ASX: LU7 Quebec Trans Atlantic Lithium Conversion Centre Québec is emerging as a strategic trans-Atlantic hub for Quebecconversion, Trans Atlantic Lithium Conversion Centrelowlithium benefiting from local feedstock, cost green energy (US$0.04/kWh), and proximityhub to key Québec is emerging as a strategic trans-Atlantic for lithium regions. Thebenefiting US Inflation Act, European lithium conversion, fromReduction local feedstock, low-cost green energy (US$0.026/kWh), and proximity to key lithium Battery Passport, and significant tariffs placed on raw maregions. Thecreate US Inflation Reduction European Battery terial imports opportunities for Act, Québec to supply the Passport, and significant tariffs placed on raw material imports growing North American market. create opportunities for Québec to supply the growing North American market. Figure 5: Electricity prices in Trans-Atlantic Region Technology Challenges and Failures Technology Challenges and Failures LU7North addresses theLithium recurring issues by western The American project wentfaced bankrupt in 2015, lithium conversion projects worldwide, offering a robust producing only 109 tonnes of lithium carbonate despite solution to the industry's common startup problems. The CAD 250 million invested. Nemaska Lithium also failed North American Lithium project went bankrupt in 2015, after spending CAD 411 million. The Tianqi Kwinana and producing only 109 tonnes of lithium carbonate despite Albemarle Kemerton plants Nemaska in AustraliaLithium struggled unCAD 250 million invested. alsowith failed proven technologies andmillion. design The issues, leading to delays after spending CAD 411 Tianqi Kwinana and and cost overruns. Theplants alkaline pressure struggled leach process Albemarle Kemerton in Australia with unprovenunreliable technologies design issues,challenges. leading to remains due toand severe operational delays and cost overruns. The alkaline pressure leach process remains unreliable due to severe operational challenges. ReplicatingJiangsu JiangsuSuccess Success Replicating 2012, the tpatpa Jiangsu Lithium Carbonate Plant, InIn2012, the17,000 17,000 Jiangsu Lithium Carbonate engineered by Hatch Ltd. under Iggy Tan and Plant, engineered by Hatch Ltd. under Iggy Tan and Dr. Dr. Jingyuan Liu, became the world's largest lithium refinery, Jingyuan Liu, became the world’s largest lithium refinery, exceedingdesign designcapacity. capacity.The Company's strategy strategy to to exceeding The Company’s mitigatetechnology technologyrisks risksinvolves involvesusing using the the same same flow flow mitigate sheet, equipment, and suppliers that were successfully sheet, equipment, and suppliers that were successfully implementedatatthe theJiangsu JiangsuLithium LithiumCarbonate Carbonate Plant. Plant. By By implemented replicating this proven approach, the Company replicating this proven approach, the Company minimizes minimizesuncertainties operational uncertainties and ensures reliable operational and ensures reliable performance, performance, leveraging established processes leveraging established processes and trusted suppliersand to trusted suppliers to deliver consistent results in new deliver consistent results in new projects. projects. Page 4 Quarterly Report | March 2025 | 4 Replicating Jiangsu Success In 2012, the 17,000 tpa Jiangsu Lithium Carbonate Plant, engineered by Hatch Ltd. under Iggy Tan and Dr. Jingyuan Liu, became the world's largest lithium refinery, exceeding design capacity.The Company's strategy to mitigate technology risks involves using the same flow sheet, equipment, and suppliers that were successfully implemented at the Jiangsu Lithium Carbonate Plant. By replicating this proven approach, the Company minimizes operational uncertainties ensures reliable Lithium Universeand Limited | ASX: LU7 performance, leveraging established processes and trusted suppliers to deliver consistent results in new projects. Figure 5: Galaxy Jiangsu Lithium Carbonate Plant Figure 6: Galaxy Jiangsu Lithium Carbonate Plant Page 5 Quarterly Report | March 2025 | 5 in China. China. In In an an emerging emerging industry industry like like lithium, lithium, where where in retaining experienced experienced personnel personnel is is increasingly increasingly retaining challenging, Lithium Lithium Universe Universe has has assembled assembled aa proven proven challenging, ofMining), Mining),and andMr. Mr.Roger RogerPover Pover(Head (Headof ofProcessing), Processing),all all of of whom bring extensive lithium industry expertise and of whom bring extensive lithium industry expertise and experience. experience. Lithium Universe Limited | ASX: LU7 Lithium Universe Limited I Quarterly Report I September 2024 IggyTan, Tan, Iggy Chairman Chairman Lithium Dream Team ExGalaxy GalaxyMD MD Ex DrJingyuan JingyuanLiu Liu Dr PatrickScallan Scallan Patrick Director Director EXTalison TalisonGM GM EX Director including Mr. Iggy Tan (Executive Director expertise team, ExGalaxy GalaxyGM GMTechnology Technology Ex Chairman), Mr. Patrick Scallan (Non-Executive Director), The Company is comprised of lithium industry leaders Dr. Jingyuan Liu (Non-Executive Director), Mr. John known for rapidly developing and operating Australian Loxton (Head of Lithium Refinery), Mr. Terry Stark (Head hard rock lithium extraction and downstream operations of Mining), and Mr. Roger Pover (Head of Processing), all in China. In an emerging industry like lithium, where of whom bring extensive lithium industry expertise and retainingTerry experienced personnel is increasingly John TerryStark Stark RogerPover Pover JohnLoxton Loxton JohnSobolewski Sobolewski Roger John experience. Headof ofMining Mining Head ofLiLiProcessing Processing Headof ofLiLiRefinery Refinery ChiefFinancial FinancialOfficer Officer Head Head of Chief challenging, Lithium Universe has assembled a provenHead ExGalaxy GalaxyGM GMOps Ops Ex ExGalaxy GalaxyPlant PlantManager Manager Ex ExHatch HatchLiLiCarb CarbPlant Plant Ex ExGalaxy GalaxyCFO CFO&&Company CompanySecretary Secretary Ex BécancourIndustrial IndustrialPark Park Bécancour Lithium Dream Team Funding Strategy LithiumUniverse Universehas hasexecuted executedan anoption optionagreement agreementon onaa Lithium The Companywithin is comprised of lithium industryIndustrial leaders Funding plans for the capital costs involve inviting one or key property property within theTan,Bécancour Bécancour Waterfront Industrial key the Waterfront Iggy Dr Jingyuan Liu Patrick Scallan known for rapidly developing and operating Australian Chairman Director Director two strategic partners to join as 49% equity partners at the Park situated situated on theMD St St Lawrence Lawrence River between Park on the River between Ex Galaxy Ex Galaxy GM Technology EX Talison GM hard rock lithium extraction and downstream operations Montreal and and Québec Québec City. City.The The site, site, strategically strategically located located project level. The Company is also in the process of apMontreal in China. In an emerging industry like lithium, where renear aa major major highway highway and and served served by by Canadian Canadian National National near pointing a debt advisor and has already initiated discustaining experienced personnel is increasingly challengRailway, offers year-round access to the Port of Railway, offers year-round access to the Port of sions with financial institutions. The Company will actively ing, Lithium Universe assembled apier proven Bécancour, featuringhas deep-water pier andexpertise multiple Bécancour, featuring aa deep-water and multiple engage with financial institutions and government agenteam, including Mr.ititIggy Tanfor (Executive Chairman), Mr. berths, making ideal for the proposed proposed Lithium berths, making ideal the Lithium cies to secure project by presenting the findings Terry Stark Roger Pover John Loxton Johnfinancing Sobolewski Carbonate Refinery. Carbonate Head of MiningRefinery. Head of Li Processing Head of Li Refinery Chief Financial Officer Ex Galaxy GM Ops Ex Galaxy Plant Manager Ex Hatch Li Carb Plant Galaxy CFO & Company Secretary Study (DFS). from theExDefinitive Feasibility Patrick Scallan (Non-Executive Director), Dr. Jingyuan Funding Strategy Director), Mr. John Loxton (Head of Funding Strategy Liu (Non-Executive Lithium Mr. Terry Stark Mining), and FundingRefinery), plans for for the the capital capital costs(Head involveofinviting inviting one or Funding plans costs involve one or Mr. Pover (Head of join Processing), all of whom bring Bécancour Industrial Park twoRoger strategic partners to join as 49% 49% equity equity partners at two strategic partners to as partners at extensive lithium industry expertise and experience. the project project level. The Company is also alsoagreement the process process of the level. The Company inin the Lithium Universe has executed an is option on aof appointing a debt advisor and has already initiated appointing a debt advisor and has already initiated key property within the Bécancour Waterfront Industrial discussions with financial institutions. The Company will discussions Company will Park situatedwith onfinancial the St institutions. Lawrence The River between Bécancour Industrial Park actively engage with financial institutions and activelyandengage financial institutions and Montreal Québec with City. The site, strategically located Figure6:6:The TheCompany's Company'srefinery refinerysite sitewithin withinthe theBécancour BécancourIndustrial IndustrialFacility Facilitysituated situated Figure government agencies to secure project financing by government agencies to secure project financing by Lithium Universe has executed an option agreement betweenMontreal Montrealand andQuébec QuébecCity. City. near a major highway and served by Canadian Nationalon between presenting thewithin findings from the Preliminary Preliminary Feasibility the findings the apresenting key property the from Bécancour Waterfront Industrial Railway, offers year-round access to the Feasibility Port of Study (PFS). Study (PFS). Park situated on the Sta Lawrence River MontreBécancour, featuring deep-water pierbetween and multiple al and Québec The site, located near a berths, makingCity. it ideal for strategically the proposed Lithium major highway and served by Canadian National Railway, Carbonate Refinery. offers year-round access to the Port of Bécancour, featurFunding Strategy pier and multiple berths, making it ideal ing a deep-water Funding plans for the capital costs involve inviting one or for the proposed Lithium Carbonate Refinery. Page 66 two strategic partners to join as 49% equity partners at Page the project level. The Company is also in the process of appointing a debt advisor and has already initiated discussions with financial institutions. The Company will actively engage with financial institutions and Figure 6: The Company's refinery site within the Bécancour Industrial Facility situated government agencies to secure project financing by Figure 7:Montreal The Company’s refinery between and Québec City. site within the Bécancour Industrial Facility situated between Montreal and Québec City. presenting the findings from the Preliminary Feasibility Study (PFS). Quarterly Report | March 2025 | 6 LOT 22, BÉCANCOUR INDUSTRIAL PARK 7 Universe Limited | ASX: LU7 Bécancour LithiumLithium Refinery Bécancour Lithium Refinery The design of the Bécancour Lithium Carbonate Plant The design of the Bécancour Lithium Carbonate Plant Table 1. Bécancour Lithium Refinery Key Criteria will be modelled after the proven Jiangsu facility, with will be modelled after the proven Jiangsu facility, with targeted operational enhancements. The primary targeted operational enhancements. The primary Inputs Approximate objective of this engineering study is to develop a objective value of this(t/year) engineering study is to develop a comprehensive design and cost estimation for a comprehensive design and cost estimation for a Estimated Production Battery Grade Lithium Carbonate 16,748 (5.5% Feed) - 18,270 (6% Feed) standalone battery-grade lithium carbonate plant with standalone battery-grade lithium carbonate plant with Assumedcapacity Spodumene Feedstock at 5.5% to 6% O 140,000 an annual of up to 18,270 tons perLiannum an annual capacity of up to 18,270 tons per annum 2 (tpa). This facility will be engineered to process (tpa). This facility will be engineered to process Steady State Recovery sourced globally. The required 88% spodumene concentrate sourced globally. The required spodumene concentrate feedstock for the plant will be approximately 140,000 feedstock for the plant will be approximately 140,000 Steady State Availability (inc annual shutdowns) 86% tpa at 6% Li2O grade however, the plant has been tpa at 6% Li2O grade however, the plant has been designed totoreceive Ramp up full rate grades as low as 5% Li2O. 3 yearsdesigned to receive grades as low as 5% Li2O. Typically, industry-supplied spodumene averages Typically, industry-supplied spodumene averages around 5.5% Li2O. around 5.5% Li2O. Bécancour Lithium Refinery Bécancour Lithium Refinery Key Criteria The design of the Bécancour Lithium Carbonate Plant will be modelled after the provenInputs Jiangsu facility, with targeted operational The Grade primaryLithium objective of this Estimatedenhancements. Production Battery Carbonate engineering is to develop a comprehensive Assumedstudy Spodumene Feedstock at 5.5% to 6%design Li2O and cost estimation for a standalone battery-grade lithium Steady State Recovery carbonate plant with an annual capacity of up to 18,270 Steady State Availability (inc annual shutdowns) tons per annum (tpa). Ramp up to full rate This facility will be engineered to process spodumene Approximate Volume (t/year) feedstock for concentrate sourced globally. The required the16,748 plant (5.5% will be approximately Feed) - 18,270 (6%140,000 Feed) tpa at 6% Li2O grade however, the plant has been designed to receive 140,000 grades as low as 5% Li2O. Typically, industry-supplied 88% spodumene averages around 5.5% Li2O. 86% 3 years Figure 7: Lithium Universe Bécancour Process Flow Sheet Figure 8: Lithium Universe Bécancour Process Flow Sheet Page 7 Quarterly Report | March 2025 | 8 Lithium Universe Limited | ASX: LU7 Plant Layout An overall site layout plan was developed where the main facilities and major pieces of equipment are identified, i.e. the spodumene feed stockpile, kilns, driers, cooler, ball mill, belt filters, process tanks and bins, reagent tanks and bins, thickeners, Area 40 and 60 process building including amenities, laboratory and office, lithium product storage, sodium sulphate storage, main substation, air compressor building and maintenance and stores. The layout defines the roads required for delivery of raw materials and shipment of products and co-products. The main piping racks for the reticulation of utilities, reagents, process piping and electrical cable trays have been defined on the layout. All gas fired equipment such as kilns and driers are located outside of buildings to reduce risks associated with use of natural gas. Most of the plant areas are in heated buildings as part of a winterization of the process. Figure 9: Lithium Universe Bécancour Refinery Plant Layout Operating Cost Estimate The operating cost is based on the mass balance usage of electricity, natural gas, sulphuric acid, sodium carbonate, neutralising agents, and various reagents and consumables extracted from Jiangsu operating experience. The operating costs at the Bécancour site are approximately US$3,931 per tonne of lithium carbonate (Li2CO3) benefiting from inexpensive renewable power from Hydro Québec, costing approximately US$0.04 per kWh. In comparison, the average operating costs in China are around US$3,250 per tonne of Li2CO3, with more efficient plants often having slightly lower costs. product, which means that the cost of converting in China stands at around US$4,520 per tonne of LC, compared to approximately US$3,931 per tonne in Bécancour. This cost advantage underscores why the company believes Québec has the potential to emerge as a key conversion hub for Canada. If you were a spodumene producer in Canada, the transportation costs to China for conversion, including port charges, ocean freight, and internal trucking, amount to approximately US$150 per tonne of ore. This translates to about US$1,275 per tonne of final lithium carbonate (LC) Quarterly Report | March 2025 | 9 Lithium Universe Limited | ASX: LU7 Table 2. Bécancour Costs vs Chinese Conversion for Canadian-sourced Spodumene Cost Item Bécancour China Average Estimated Operating Costs US$3,931/t US$3,250/t Estimated Transport Impact (+US$1,275) - US$1,275/t Total Estimated Cost US$3,931/t US$4,525/t Offtake Discussions Automotive and battery companies have secured spodumene supply contracts from mines globally to ensure a steady provision of lithium chemicals for their cathode/ battery plants. However, a challenge arises as they need to convert this spodumene supply in China before shipping the lithium units to their supply chains in Europe and America. This poses significant issues by way of government funding support eligibility (ie. IRA) and an increasing tariff rate imposed on the Chinese dependent supply chain in addition to a significant hurdle in establishing a dependable supply chain, particularly due to limited lithium converters in North America. As the North American region aims to reduce reliance on Chinese suppliers, aligning with both commercial and national security objectives. The business model of Lithium Universe is straightforward: the company will seek to convert essential spodumene supply for these OEMs in Québec and ensure the availability of critical units for the North American supply chain. Pricing is likely to be based on “take or pay” agreements with the OEMs, incorporating certain risk-reducing mechanisms such as floor and ceiling prices to protect Lithium Universe. Assuming there is an established margin to guarantee Lithium Universe refinery’s payback, the OEMs gain assurance and sustainability in conversion supply without Lithium Universe being exposed to price and market volatility risks. Next Steps The Company will actively engage with financial institutions and government agencies to secure project financing by presenting the findings from the Definitive Feasibility Study (DFS). Concurrently, LU7 will advance environmental assessments and the permitting process, ensuring regulatory compliance and addressing potential issues proactively. The due diligence process will be coordinated with federal and provincial authorities to obtain necessary approvals. Discussions with strategic partners regarding offtake agreements and feedstock supply will continue to secure stable supply chains. Additionally, LU7 will conduct a comprehensive impact analysis in consultation with the local First Nation group to incorporate community feedback and promote sustainable development. These steps are essential to progressing the Bécancour project with thorough planning, strong financial backing, and robust stakeholder engagement. Due to ongoing holding costs and the focus of LU7 on the Bécancour Lithium Refinery, the Board have made the decision to relinquish the remaining Canadian Tenements (Apollo and Adina). Lithium Universe has commenced discussions with OEMs, focused on establishing strategic partnerships with customers for battery-grade lithium carbonate with an emphasis on a customer base which is focused on EV demand growth in North America and Europe. Lithium Universe will concentrate this effort on these growing EV supply chains, particularly considering the growing commitments of battery manufacturing by groups such as Ford, General Motors, Stellantis, Toyota, LGES, SK Innovation, Samsung SDI, and others. Quarterly Report | March 2025 | 10 Lithium Universe Limited | ASX: LU7 LU7 Announces Exclusive Supply Aluminosilicate To Lafarge Canada Inc Of Lithium Universe Limited announced the signing of a non-binding Memorandum of Understanding (MOU) with Lafarge Canada Inc. (“Lafarge”) for the exclusive supply of Aluminosilicate Product (ASP) produced from the Bécancour Lithium Refinery. ASP, commonly used as an additive in the cement industry, significantly enhances compressive strength and reduces production costs. L