HIGHLIGHTS The Lithium Universe Strategy • Positive and robust Brownsville Lithium Refinery Pre-Feasibility Study, demonstrating strong economics, even under conservative lithium pricing assumptions • Closing the North American Lithium Conversion Gap by establishing domestic lithium chemical production capacity • Positioned to benefit from growing North American EV and ESS demand, supported by increasing regional lithium resource development • Leveraging proven Jiangsu lithium conversion technology and operating experience to reduce technical and execution risk The Financial Feasibility Modelling • Economically viable with a pre-tax NPV8% of approximately US$787 million • Pre-tax IRR of approximately 21.0% and payback period of 3.9 years • Based on long-term pricing assumptions of US$1,170/t SC6 spodumene concentrate and US$20,970/t battery-grade lithium carbonate • Current lithium carbonate spot prices are above the study price assumptions • Operating cost estimated at approximately US$3,566/t lithium carbonate (ex spod) • Gross margin of approximately 42% or US$8,822/t lithium carbonate • Capital cost estimate of approximately US$607 million • Includes a substantial US$130 million contingency allowance, reflecting current construction and geopolitical market volatility • Annual revenue of approximately US$383 million • Annual EBITDA of approximately US$161 million • Lower operating costs than the Bécancour DFS driven by lower labour costs, soda ash, natural gas pricing, and discounted spodumene supply from Nigeria The Design • LU7 offers a practical solution to lithium refinery start-up challenges by adopting proven technology rather than developing untested processes • Based on the successful Jiangsu Lithium Carbonate Refinery design and operating model • Modelled on producing up to 18,270 tonnes per annum of battery-grade lithium carbonate • Modular, manageable refinery scale designed to minimise operating complexity • Initial focus on lithium carbonate production, the preferred lithium chemical for LFP battery growth markets • Design assumptions based on real operating experience and commercial refinery performance 2 lithiumuniverse.com The Location • Brownsville, Texas strategically positioned as a trans-Atlantic lithium conversion hub • Direct access to spodumene feedstock from Africa, Brazil and North America • Proximity to rapidly growing North American EV, battery and ESS markets • Deep-water port access allows efficient receipt of large-scale spodumene shipments • Lower labour costs, favourable business environment and established industrial infrastructure • Potential access to U.S. federal and Texas state incentives supporting critical minerals processing Next Steps • Commence Definitive Feasibility Study (DFS) and detailed engineering activities • Secure the proposed refinery site through long-term lease arrangements with the Port of Brownsville • Advance permitting, environmental and site investigation programs • Finalise long-term spodumene supply arrangements • Progress strategic financing and project partnership discussions Lithium Universe Limited ASX:LU7 ABN 22 148 878 782 Unit 2, 190 Main Street, Osborne Park, WA 6017, Australia www.lithiumuniverse.com investorhub.lithiumuniverse.com 3 Photo: Illustrative Proposed Brownsville Lithium Refinery, Port of Brownsville, Texas, USA ASX: LU7 4 Executive Summary ........................................................................................... Management Comments .................................................................................... Lithium Price Recovery ...................................................................................... Global Lithium Outlook ...................................................................................... Lithium Carbonate & Lithium Hydroxide Mix ................................................... North American Market: Brownsville Refinery ................................................ Lithium Demand in ESS ..................................................................................... Importance of Brownsville Refinery ................................................................. Other Potential Lithium Conversion Refineries .............................................. Alignment with U.S. Critical Minerals Policy ................................................... Lithium Conversion Technology Risks ............................................................ Brownsville Will Use A Conventional Process From 1950’s .......................... Use Of Proven Jiangsu Technology ................................................................. Solving The Technology Risk ............................................................................ Long Term Spodumene And Lithium Carbonate Price Assumptions ........... Port Of Brownsville Site .................................................................................... Brownsville Spodumene Feedstock From Nigeria ......................................... Brownsville Lithium Refinery Design ............................................................... Brownsville Flow Sheet ..................................................................................... Patent Application Process ............................................................................... Plant Layout ........................................................................................................ Process Reagents And By-Product Production .............................................. Metallurgical Testwork ....................................................................................... Capital Cost Estimate ........................................................................................ Economic Analysis ............................................................................................ Operating Cost Estimate .................................................................................... Profitablity of Lithium Converters .................................................................... Sensitivity Analysis ............................................................................................ Project Finance ................................................................................................... Environmental, Sustainability And Governance ............................................. Government And Community Relations ......................................................... Project Risk Management ................................................................................. Next Steps .......................................................................................................... 6 7 8 9 10 11 12 13 14 15 15 16 17 18 20 22 25 26 27 29 30 31 35 37 43 45 46 50 52 53 55 55 58 CONTENTS lithiumuniverse.com CAUTIONARY STATEMENTS Information Required by Listing Rules The Brownsville Lithium Refinery Pre-Feasibility Study (PFS) does not rely upon estimated ore reserves / and or mineral resources. The spodumene concentrate feedstock for the proposed refinery has been assumed to have been purchased directly from spodumene miners currently producing spodumene concentrates or marketing agents or traders currently purchasing spodumene concentrate and selling to the downstream processors. Accordingly, the JORC Code is not relevant to this study nor are Listing Rules 5.16 and 5.17 to the extent to which they relate to matters concerning JORC. Forward Looking Statements This release contains “forward-looking information” that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to studies, the Company’s business strategy, plan, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations. Generally, this forward looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘likely’,’ believe’, ’estimate’, ‘expect’, ’intend’, ’may’, ’would’, ’could’, ’should’, ’scheduled’, ’will’, ’plan’, ’forecast’, ’evolve’ and similar expressions. Persons reading this news release are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to general business, economic, competitive, political and social uncertainties; the actual results of current development activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; failure of plant, equipment or processes to operate as anticipated; accident, labour disputes and other risks of the chemical industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on 5 such forward-looking information. Neither the Company, nor any other person, gives any representation, warranty, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statement will actually occur. Except as required by law, and only to the extent so required, none of the Company, its subsidiaries or its or their directors, officers, employees, advisors or agents or any other person shall in any way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatever nature arising in any way out of, or in connection with, the information contained in this document. The Company disclaims any intent or obligations to update or revise any forward-looking statements whether as a result of new information, estimates, or options, future events or results or otherwise, unless required to do so by law. Cautionary Statement The Pre-Feasibility Study is based on the material assumptions outlined including that it has been completed to a Class 3 level with a nominal level of accuracy of -30% and +30%, that the financial forecasts rely upon the purchase of third party spodumene concentrate as the feedstock for the plant. The Pre-Feasibility Study referred to in this announcement has been undertaken to assess the potential technical feasibility and economic viability of constructing and operating facilities capable of producing battery grade lithium carbonate for use in lithium-ion batteries from those units of operations and provide baseline financial metrics to consider future investment decisions. The Pre-Feasibility Study (PFS) is based on the material assumptions outlined below. These include assumptions about the availability of funding and site location. While Lithium Universe considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Pre-Feasibility Study will be achieved. To achieve the range of outcomes indicated in the Pre- Feasibility Study, funding of in the order of US$620-650 million will likely be required. Investors should note that there is no certainty that Lithium Universe will be able to raise that amount of funding when needed. It is also likely that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Lithium Universe’s existing shares. It is also possible that Lithium Universe could pursue other ‘value realisation’ strategies such as a sale, partial sale or joint venture of the project. If it does, this could materially reduce the Company’s proportionate ownership of the project. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Pre-Feasibility Study. ASX: LU7 EXECUTIVE SUMMARY Lithium Universe Limited (“Lithium Universe” or the “Company,” ASX: “LU7”) is pleased to announce the results of its Pre-Feasibility Study (PFS) for the Brownsville Lithium Carbonate Refinery in Texas, USA. Rapid growth in North American lithium demand highlights the need for domestic lithium conversion capacity such as the proposed Brownsville Lithium Refinery. The project would reduce reliance on imported lithium chemicals, strengthen supply chain security, and support the localisation goals of the North American EV and battery industries. Brownsville’s location near emerging Gulf Coast battery and EV manufacturing hubs further enhances its strategic importance. The proximity to Tesla’s lithium hydroxide refinery in Corpus Christi highlights Texas’ emergence as a key North American lithium processing hub. Brownsville benefits from deep-water port access, established chemical infrastructure, competitive operating costs, and access to growing ESS and EV markets, making it an attractive location for lithium conversion capacity and supporting North America’s long-term battery material security. LU7 continues to position itself as one of the very few companies capable of deploying multiple lithium‑refining trains using a proven, repeatable “copy‑and‑paste” engineering model first established through the Bécancour Definitive Feasibility Study (DFS). A proven lithium carbonate refinery in Texas could benefit from significant US federal and state support aimed at strengthening domestic critical minerals supply chains. Potential incentives include DOE grants and loans, Inflation Reduction Act tax benefits, DoD critical minerals funding, and Texas-based incentives such as tax abatements, infrastructure support, and workforce grants. A commercial-scale refinery producing battery-grade lithium carbonate in the US would strongly align with national objectives to localise battery supply chains and reduce reliance on Chinese lithium conversion capacity. The Pre-Feasibility Study confirms the viability of a strong lithium conversion project, even within a below-average pricing environment. The Company’s planned vision is to build a reliable, low-risk lithium conversion refinery with an annual capacity of up to 18,270 tonnes of battery-grade lithium carbonate, utilising proven expertise from the successful Jiangsu processing model. The facility will produce environmentally responsible battery-grade lithium carbonate for domestic and international markets. The Company aims to establish a North American-based lithium chemicals business, purchasing spodumene feedstock from both domestic suppliers and international markets, including Africa and Brazil, and converting this material into a high-purity battery-grade lithium carbonate product. This aligns with the Company’s broader vision of contributing to the North American lithium supply chain and helping close the region’s lithium conversion gap. The project economics remain highly attractive, even under conservative pricing assumptions. The refinery is economically viable with a pre-tax Net Present Value (NPV) of approximately US$787 million, using an 8% discount rate, and a pre- tax Internal Rate of Return (IRR) of 21.0%. The full-rate payback period is estimated at 3.9 years. The financial model is based on conservative long-term price assumptions of US$1,170 per tonne for spodumene concentrate (SC6), reflecting the proposed Nigeria offtake arrangement (subject to commisioning), and US$20,970 per tonne for battery-grade lithium carbonate. LU7’s Directors believe there is a reasonable basis for using the assumed lithium carbonate price of US$20,970 per tonne in the study. Key operating assumptions include 86% plant availability and 88% lithium recovery (as per Jiangsu design). At full production capacity, the project is expected to generate approximately US$383 million in annual revenue, with total operating costs of approximately US$222 million per annum, resulting in an annual EBITDA of approximately US$161 million. The estimated operating cost of production is US$3,566 per tonne and US$12,148 per tonne, including spodumene, of lithium carbonate, generating a gross margin of approximately 42% or US$8,822 per tonne. The total capital cost for the project is estimated at US$607 million, including a substantial contingency allowance of approximately US$130 million to reflect current market volatility and project execution risks. The higher contingency provides additional confidence in the robustness of the capital estimate and reflects lessons learned from other recent non LU7 large-scale industrial developments. The Brownsville Pre-Feasibility Study demonstrates stronger economics than the completed Bécancour DFS while maintaining the same production capacity of 18,270 tpa of battery-grade lithium carbonate using the proven Jiangsu flowsheet. Pre-tax NPV increased by approximately 10% to US$787 million, compared with US$718 million for Bécancour. Annual EBITDA improved to US$161 million from US$148 million, while gross margins increased from 39% to 42%. Operating costs were reduced by approximately US$365/t to US$3,566/t (excluding spod) or US$12,148/t lithium carbonate (including spodumene). 6 lithiumuniverse.com The improved Brownsville economics are primarily driven by lower labour, soda ash, natural gas, maintenance and logistics costs in Texas, together with discounted spodumene feedstock secured through the proposed Nigeria offtake arrangement. Shorter shipping distances from West Africa to Brownsville further enhance operating margins, while the elimination of cold-climate infrastructure reduces long-term operating complexity. Although capital costs increased to US$607 million from US$549 million due to inflation, updated vendor pricing and a larger contingency allowance, the study includes a robust US$130 million contingency compared with US$51 million in the Bécancour DFS. Despite higher electricity costs, Brownsville delivers superior overall project economics and strategic emplacement in potential US EV/ESS manufacturing. Management Comment: The Brownsville Pre-Feasibility Study demonstrates that Lithium Universe’s strategy of replicating the proven Jiangsu lithium refinery model can deliver stronger economics than the previously completed Bécancour Definitive Feasibility Study, while maintaining the same conservative long-term lithium pricing assumptions. Importantly, the study has retained the identical forecast prices of US$1,170/t for SC6 spodumene concentrate and US$20,970/t for battery-grade lithium carbonate used in the Bécancour DFS, allowing investors to make a true “apples-to-apples” comparison between the two projects. Despite ongoing inflationary pressures and geopolitical uncertainty impacting global construction markets, including recent volatility associated with the Middle East conflict, Brownsville delivers a pre-tax NPV8 of approximately US$787 million compared with US$718 million for Bécancour. Annual EBITDA has increased to approximately US$161 million from US$148 million, reflecting the project’s lower operating cost structure and strategic feedstock advantages. While capital costs have increased in comparison, the Company has deliberately adopted a more conservative approach to project risk management. The Brownsville estimate includes a contingency allowance of approximately US$130 million compared with US$51 million in the Bécancour DFS. This larger contingency recognises current uncertainty in equipment pricing, construction markets, freight costs, and broader macroeconomic conditions, providing a more robust capital framework for future development. Operating costs are estimated to be approximately US$365 per tonne lower than Bécancour. The primary drivers are Brownsville’s lower labour costs, estimated to be around 24% below Québec levels, together with lower natural gas and soda ash costs. These benefits more than offset higher electricity prices and recent increases in sulphuric acid costs driven by global supply disruptions and energy market volatility. An additional competitive advantage is the Company’s binding long-term offtake agreement in Nigeria, which provides spodumene concentrate at a 7.5% discount to market pricing. Combined with Brownsville’s logistics advantages and lower operating costs, this strengthens project margins and positions the refinery as a highly competitive future supplier of battery- grade lithium carbonate into the growing North American battery and energy storage markets. 7 “ ASX: LU7 WATCH: CEO Iggy Tans tour of the Port of Brownsville Site (2min) https://youtu.be/PHlQDV8g8JU LITHIUM PRICE RECOVERY During the preparation of the Bécancour Lithium Refinery Definitive Feasibility Study (DFS) in late 2024 and early 2025, the lithium industry was experiencing the lowest point of a significant cyclical downturn. Battery-grade lithium carbonate prices had fallen to approximately US$10,000–11,000 per tonne as a result of global oversupply, elevated inventories, delayed purchasing activity, and production curtailments across both mining and conversion sectors. Since that period, lithium prices have recovered strongly. Battery-grade lithium carbonate prices in China have risen from approximately 75,000–85,000 CNY per tonne at the 2025 lows to around 177,000–191,000 CNY per tonne currently, equivalent to approximately US$25,000–27,000 per tonne. This represents an increase of more than 100% from the market trough in mid 2025 till June 2026, and reflects a substantially improved pricing environment for lithium producers and downstream converters. Current spot prices are also trading above the long-term assumptions adopted in the Bécancour DFS. The DFS utilised a long-term battery-grade lithium carbonate price of approximately US$20,970 per tonne (150,000 CNY per tonne). At current market levels, spot prices are approximately 19–28% higher than the DFS assumption, highlighting the leverage of lithium projects to improving market conditions. In addition, spodumene concentrate prices have staged a strong recovery from the cyclical lows experienced during late 2024 and early 2025. After falling below US$700/t for 6% Li2 O spodumene concentrate (SC6) at the trough of the market downturn, spot prices have more than doubled, with recent assessments generally in the range of US$1,500–1,700/t SC6. The recovery has been supported by accelerating demand from both electric vehicle and energy storage system (ESS) markets, ongoing inventory restocking throughout the battery supply chain, and tightening supply conditions following the closure or suspension of higher-cost lithium operations during the downturn. Strong ESS demand, particularly in China, North America and Europe, has emerged as a major driver of lithium consumption growth. With current spot battery-grade lithium carbonate prices at approximately US$24,000 per tonne, and assuming pricing is sustained at these levels, materially above the long-term price assumption of US$20,970 per tonne used in this Pre-Feasibility Study, the Company believes the economic fundamentals of the proposed Brownsville Lithium Refinery 8 Figure 1 – Recovery of Battery Grade Lithium Carbonate lithiumuniverse.com Figure 1B – Recovery of Spodumene SC6 price Brownsville PFS Study Forecast US$20,970 /t Brownsville PFS Study Forecast US$1,170 /t 9 GLOBAL LITHIUM OUTLOOK Figure 2 – Global Lithium Demand by 2040 Figure 3 – Battery Demand by Application – 2040 Source: Project Blue ELECTRIC VEHICLES GLOBAL CAR SALES According to International Lithium Association (ILiA)1 the share of combined BEV and PHEV sales as a function of total vehicle sales is forecast to grow from 20% in 2024 to 35% by 2030 and 60% by 2040. Due to larger battery pack sizes, BEVs will be the primary driver for lithium demand out to 2040, although PHEVs will play a strong supporting role for fleet electrification and decarbonisation. ASX: LU7 have been significantly strengthened. The recent recovery in lithium prices supports the Company’s counter-cyclical development strategy of advancing project studies during the market downturn and positioning the project for potential development during a stronger pricing environment. Higher realised lithium carbonate prices have the potential to materially improve operating margins, cash flow generation and overall project economics, while enhancing the attractiveness of the project to potential strategic partners, offtake customers and financing providers, subject to final project design, commercial arrangements and financing structures. According to International Lithium Association (ILiA)1 the biggest driver for global lithium demand is its use in Li-ion batteries. While outcomes over the next 15 years may vary, global lithium demand is expected to grow from 1.3Mt LCE this year to between 3.6Mt and 5.2Mt LCE by 2040. The EV sector will continue to dominate battery deployment through 2040. In addition to net-zero targets driving fleet electrification, lower total cost of ownership and reduced maintenance requirements will continue to drive interest for consumers over internal combustion engine (ICE) alternatives. According to ILiA’s report1 , in addition to passenger vehicles, demand from the 2/3-wheeler sector (e.g. e-bikes, e-scooters, e-mopeds) is expected to grow significantly to 2040. Much of the growth will be driven by rental and battery swapping platforms in more urban areas, particularly in Asia and Africa. Alternative future demand streams include e-VTOL (urban air transport such as short-range cargo transport and flying taxis) and robotics applications, which are receiving significant attention currently. Lithium-ion battery storage is a pivotal enabler of renewables projects by providing flexibility for grid balancing, providing additional electricity during peak times and recharging during periods of low demand. The requirement for such applications is increasing globally, where projects are supported by both government and private funding. As a result, battery demand from ESS applications is forecast to experience the strongest growth rate (albeit from a lower base) between 2025-20401 . Once the main drivers of battery demand, portable electronics have become less prominent due to the sheer size of batteries and growth rate of battery capacity installed in EVs over the past decade. Nevertheless, portable electronics continue to be an integral battery end use sector as a mainstay in our everyday life. In addition, power devices, which include drones and cable-less power tools, are expected to see marginal but steady increases in use owing to rising defence and global construction spending. LITHIUM CARBONATE & LITHIUM HYDROXIDE MIX China is expected to retain majority market share in 2040 at 45%, followed by Europe at 16% and North America at 14%, with the rest of world (ROW) at 25%. In Europe, new low-cost EVs from both domestic and global OEMs will further accelerate EV adoption. Emissions targets will remain a focus for OEMs in the European market and will continue to drive the rollout of new EV models across the region. Europe also contains global leaders in EV adoption, with Norway at 72% in 2024, followed by Sweden at 51%. The US and North American EV market saw little growth in 2024, owing to a shift in eligibility of IRA clean vehicle tax credits and uncertainty surrounding the US election towards the latter half of the year. Nevertheless, it is estimated that growth in EV sales will remain strong in the USA through to the long-term as EV uptake becomes increasingly consumer-driven and less policy-driven. PHEV models represent an excellent opportunity in the US market to increase adoption for consumers less willing or less able to purchase a BEV. The ROW represents the largest growth market for EV sales throughout the forecast.Although volumes were comparatively low in 2024, subsidy schemes in many ROW countries and the influx of affordable EV models from China will see sales climb over the next 15 years, raising demand for lithium. Countries such as India, Thailand and Malaysia are expected to be at the forefront of electrification within the ROW. 10 Figure 5 – Lithium Carbonate & Hydroxide Mix Source: Project Blue Figure 6 – Global Cathode Market Share (% by Mass) 1. Lithium 2040: “The element shaping our future”, International Lithium Association and Project Blue 2. ESS 2040 Energy Storage Systems Outlook, International Lithium Association and Project Blue lithiumuniverse.com International Lithium Association (ILiA)1 states that cathode active material production requires significant quantities of lithium carbonate or lithium hydroxide. Whether one form of lithium is chosen over another is dependent on the chosen chemistry. Typically, the production of iron-based chemistries (LFP or LMFP) will require lithium carbonate, whilst lithium hydroxide is often favoured for higher-nickel chemistries (NCM, NCMA or NCA). The drive to lower cell production costs has led the rapid adoption of LFP batteries for EVs in many applications. Moreover, LFP remains the chemistry of choice for most battery ESS applications, owing to its low cost, long cycle life and high safety rating. Combined, this has led to a monumental surge in lithium carbonate demand over the past few years. It is estimated that demand for iron-based cathode active material will increase 150% between 2025-2030, requiring equivalent increases in lithium carbonate. Figure 4 – EV Sales by Regio