Announcement PDF 2024 ANNUAL REPORT LITHIUM UNIVERSE LIMITED AND CONTROLLED ENTITIES ABN: 22 148 878 782 Contents Consolidated Financial Statements Page Corporate Directory .................................................................................................................................................... 3 Chairman’s Letter to Shareholders ............................................................................................................................ 4 Review of Operations and Tenements ....................................................................................................................... 6 Corporate Governance Statement.............................................................................................................................. 14 Directors’ Report......................................................................................................................................................... 15 Auditors Independence Declaration ........................................................................................................................... 32 Consolidated Statement of Profit or Loss and Other Comprehensive Income ........................................................... 33 Consolidated Statement of Financial Positon ............................................................................................................. 35 Consolidated Statement of Cashflows........................................................................................................................ 36 Consolidated Statement of Changes in Equity ........................................................................................................... 37 Notes to the Financial Statements.............................................................................................................................. 39 Consolidated Entity Disclosure Statement ................................................................................................................. 73 Directors' Declaration ................................................................................................................................................. 74 Independent Auditor's Report to the Members of Lithium Universe Limited ............................................................... 75 Schedule of Tenements.............................................................................................................................................. 79 ASX Additional Information......................................................................................................................................... 80 LITHIUM UNIVERSE LIMITED AND CONTROLLED ENTITIES A.B.N. 22 148 878 782 Corporate Directory Directors Registered Office (Australia) Mr Ignatius (Iggy) Kim-Seng Tan (Executive Chairman) Dr Jingyuan Liu (Non-Executive Director) Mr Patrick Scallan (Non-Executive Director) Company Secretary Mr John Sobolewski Chief Executive Officer Mr Alexander Hanly Chief Financial Officer Mr John Sobolewski Auditor Suite 9, 295 Rokeby Road SUBIACO WA 6008 Registered Office (Canada) 500 Place d’Armes, Suite 1800 MONTREAL, QUEBEC, H2Y 2W2 Principal Place of Business Suite 9, 295 Rokeby Road SUBIACO WA 6008 P +61 2 8046 2799 W https://www.lithiumuniverse.com/ Share Registry (Australia) Automic Pty Ltd Level 2 191 St Georges Terrace PERTH WA 6000 Home Exchange RSM Australia Partners Level 13, 60 Castlereagh Street Sydney NSW 2000 Solicitors Australian Securities Exchange Limited Exchange Plaza 2 The Esplanade PERTH WA 6000 ASX Code Steinepreis Paganin Level 14 - QV1/250 St Georges Terrace Perth WA 6000 LU7 (Ordinary Shares) LU7O (Listed Options) Banker ANZ Bank Level 1 Core C / 833 Collins Street Docklands, VIC 3008 - 3 - Lithium Universe Limited Annual Report 2024 LITHIUM UNIVERSE LIMITED AND CONTROLLED ENTITIES A.B.N. 22 148 878 782 Chairman’s Letter to Shareholders Dear Fellow Shareholders, It is with great pleasure that I present this Chairman’s Report for Lithium Universe Ltd, outlining the Company’s performance and activities for the period from January 2024 to present. This has been a transformative chapter in the Company’s journey, during which we have made meaningful progress towards realising our strategic vision of developing a fully integrated lithium production and processing business model. At the core of the Company’s strategy is the Québec Lithium Processing Hub (QLPH) - an initiative to establish a standalone, merchant lithium conversion facility in Québec, Canada, which is one of the world’s most favourable jurisdictions for clean energy, critical minerals, and industrial development. Over the period, the Company achieved a number of significant technical, strategic, and commercial milestones in advancing this strategy. In September 2024, the Company completed a comprehensive Pre-Feasibility Study (PFS) for the QLPH Project, confirming the technical and economic viability of a 18,270 tonne-per-annum battery-grade lithium carbonate refinery, utilising spodumene concentrate as feedstock. The study validated the Company’s merchant refinery model, operating independently of upstream mine ownership and highlighted Québec’s strategic advantages, including access to clean hydroelectric power, wellestablished infrastructure, and proximity to both North American and European electric vehicle markets. A key outcome of the PFS was the identification of the Bécancour industrial zone in Québec, Canada, as the preferred site for the proposed refinery. Bécancour presents a compelling strategic location, offering proximity to port and rail logistics, access to reliable and clean hydroelectric power, strong support from both local and provincial governments, and a well-established chemical and battery materials environment. As a rapidly emerging hub for battery-grade materials with several global industry leaders already committed to the region, Bécancour is well aligned with the Company’s vision to establish a critical conversion link in the North American battery supply chain. In support of this strategy, the Company has secured an exclusive option to acquire Lot 22 within the industrial zone, a strategically positioned parcel of land that would serve as the site for the proposed lithium refinery. Following the completion of the PFS, the Company commenced a Definitive Feasibility Study (DFS) in October 2024 to further de-risk the lithium carbonate refinery project. The DFS focused on refining capital and operating cost estimates, advancing detailed engineering and process design, and progressing environmental and permitting pathways. To lead this work, the Company appointed Hatch Ltd as its principal engineering and technical consultant. In February 2025, the Company released the DFS results, which reaffirmed the strong technical and economic fundamentals of the project. The study supported the business case for a 18,270 tonne-per-annum lithium carbonate refinery, operating as a merchant facility and sourcing spodumene concentrate from third-party suppliers. According to the DFS financial model, the project is forecast to generate annual revenues of US$383 million and deliver annual EBITDA of US$148 million. It also reported a compelling pre-tax Net Present Value (NPV) of US$718 million and an Internal Rate of Return (IRR) of 21.0%, with a projected payback period of under four years. These results provide a strong commercial foundation as the project progresses toward development. In tandem with our technical progress, the Company also deepened its stakeholder engagement activities across Québec. We built and strengthened positive relationships with local government bodies, industrial partners and First Nations representatives, reflecting our commitment to sustainable development and long-term regional collaboration. One of the key highlights of this engagement was the signing of a Memorandum of Understanding (MoU) with Polytechnique Montréal, one of Canada’s premier engineering institutions. This strategic partnership aims to foster collaboration in research and development, workforce training, and knowledge transfer related to lithium processing technologies, further aligning the Company with Québec’s growing clean energy and critical minerals landscape. On the corporate front, the Company made several important advancements. Our team was strengthened through the appointment of experienced professionals across technical, commercial, and financial functions. Notably, Mr John Sobolewski was appointed as Chief Financial Officer. Mr Sobolewski previously served at Galaxy Resources Ltd, where he oversaw both the Mt Cattlin Spodumene Mine and the Jiangsu Lithium Carbonate Refinery. His experience in financial and debt modelling played a critical role in the successful delivery of the DFS and positions the Company strongly as we move into the funding and execution phase of the project. Looking ahead, the macroeconomic outlook for lithium remains highly compelling. While short-term volatility in lithium prices - 4 - Lithium Universe Limited Annual Report 2024 LITHIUM UNIVERSE LIMITED AND CONTROLLED ENTITIES A.B.N. 22 148 878 782 Chairman’s Letter to Shareholders have persisted, the long-term structural drivers - principally the electrification of transport and the growth in renewable energy storage - remain firmly in place. The Company believes this environment presents an optimal window for long-term focused companies to execute integrated development strategies across the lithium value chain. With the completion of the DFS and a clear path toward development now established, the Company is uniquely positioned to deliver value as a critical supplier of battery-grade lithium to the North Atlantic supply chain. The Bécancour Lithium Refinery represents one of the most advanced and strategically located independent lithium conversion projects in the Western Hemisphere and is a key enabler in bridging the current lithium conversion gap in North America. In closing, I would like to extend my sincere appreciation to our loyal shareholders. Your continued belief in our strategy and vision has been the foundation of our progress. Your support has enabled us to maintain our growth trajectory and attract the expertise and partnerships necessary to advance our ambitious plans. The Board and I remain fully committed to building a resilient, globally significant lithium company that will play a meaningful role in the energy transition. Warm regards, Iggy Tan Executive Chairman Dated this 31st day of March 2025 - 5 - Lithium Universe Limited Annual Report 2024 LITHIUM UNIVERSE LIMITED AND CONTROLLED ENTITIES A.B.N. 22 148 878 782 Review of Operations and Tenements Lithium Universe Limited (the Company) and its controlled entities (collectively, the Group) present the following review of operations concerning the period 1 January 2024 to 31 December 2024 (Financial Year). PRINCIPAL ACTIVITIES The principal activities of the Group during the Financial Year were as follows: • • • • • the Company completed a comprehensive Pre-Feasibility Study (PFS) for the Québec Lithium Processing Hub (QLPH) in September 2024, confirming the technical and economic viability of a 18,270 tonnes per annum batterygrade lithium carbonate refinery. in October 2024, the Company commenced a Definitive Feasibility Study (DFS) for the QLPH, engaging Hatch Ltd as lead engineering and technical consultants, with the relevant study having been completed in February 2025. the Company identified the Bécancour industrial zone in Québec as the preferred location for the QLPH, citing key advantages including proximity to port and rail logistics, access to reliable green energy, and an established chemical and battery materials ecosystem. In line with this strategic selection, the Company secured an exclusive option over Lot 22 within the zone, earmarked as the proposed site for the lithium refinery. exploration activities at the Apollo Lithium Project in the James Bay region included geological mapping, surface sampling, and geophysical surveys, confirming the presence of spodumene-bearing pegmatites. the Company strengthened its executive team with the appointment of Mr. John Sobolewski as Chief Financial Officer, bringing significant experience from his tenure at Galaxy Resources Ltd, where he oversaw both the Mt Cattlin Spodumene Mine and the Jiangsu Lithium Carbonate Refinery. REVIEW OF OPERATIONS AND ACTIVITIES During the financial year ending 31 December 2024, the Group made significant strides in advancing its strategic initiatives, particularly focusing on the development of the Québec Lithium Processing Hub. This initiative aims to establish a standalone lithium conversion facility in Québec, Canada, to address the lithium conversion gap in North America. Concurrently, the Company evaluated and optimised its lithium asset portfolio in Canada and Australia to align with its strategic objectives. Québec Lithium Processing Hub Strategy The 2024 financial year represented a significant period of progress in advancing the Company’s QLPH strategy. In February 2024, Lithium Universe entered into an option agreement to secure a 27.6-hectare parcel of land, known as “Lot 22,” within the Bécancour Industrial Park. This agreement marked a critical milestone in the Company’s plan to develop a 18,270 tonne-per-annum lithium carbonate refinery. The site was selected following a comprehensive assessment of potential locations and was chosen for its strategic proximity to hydroelectric power, established industrial infrastructure, port and rail access, and a rapidly growing ecosystem of battery materials manufacturers. Under the terms of the option agreement, the anticipated purchase price for the land is CAD$12.6 million, subject to confirmation through a land survey to be completed before the end of the option period. The option term extends for 36 months from the date of signing, with monthly option payments of CAD$63,135, commencing in March 2025. These payments will be credited toward the final purchase price should the Company choose to exercise the option. Following the selection of Bécancour as the preferred site, the Company commenced a comprehensive Pre-Feasibility Study (PFS) which focused on the development of a lithium carbonate refinery at Lot 22. The PFS, completed in September 2024, confirmed the technical and economic viability of constructing a standalone lithium carbonate refinery with a production capacity of 18,270 tonnes per annum. The study validated a merchant refinery model in which spodumene concentrate would be sourced from third-party suppliers rather than a vertically integrated mine(s). This model was designed to address the growing lithium conversion capacity deficit in North America and maximise supply chain flexibility. Following the completion of the PFS, the Company commenced a Definitive Feasibility Study (DFS) in October 2024 to further de-risk the project and strengthen its technical merits. Leading engineering firm Hatch Ltd was appointed as the principal - 6 - Lithium Universe Limited Annual Report 2024 LITHIUM UNIVERSE LIMITED AND CONTROLLED ENTITIES A.B.N. 22 148 878 782 Review of Operations and Tenements consultant for the study. The DFS was designed to refine capital and operating cost estimates, deliver detailed engineering and process design, and support both permitting and financing efforts in preparation for a Final Investment Decision (FID). By the 2024 year-end, significant progress had been achieved, including the completion of process modelling, site assessments, and capital planning. The final DFS report was delivered in February 2025. To support engineering design and confirm the performance of various feedstocks for the lithium refinery, the Company conducted metallurgical test work in China, in collaboration with Linyi University. Test samples were sourced from Australia, Brazil and Africa to reflect a diverse range of potential spodumene inputs. These tests simulated real-world refining conditions and generated vital data on lithium recovery rates, impurity profiles, and reagent usage. The results enabled refinement of the refinery flowsheet and optimisation of operational parameters, ensuring the design could accommodate variable feedstock and maintain consistent product quality. In parallel, the Company continued to progress its engagement with stakeholders, with a focus on First Nations representation. In August 2024, a joint committee was formed between Lithium Universe and the W8banaki Nation to oversee coordination around the Bécancour site. The committee was established to manage communication, monitor the project timeline, and ensure alignment with compliance obligations. The W8banaki Nation also began supporting the environmental assessment process through participation in the preparation of an impact analysis. This process aimed to document historical and presentday use of the land and identify mitigation and monitoring measures to safeguard W8banakiak rights. In addition, the W8banaki Nation offered technical services such as land surveying, project inspections, and feasibility analysis in support of the Company’s ongoing planning. Exploration Projects in Canada and Australia In parallel with its focus on the QLPH, the Company advanced exploration activities at the Apollo Lithium Project, located in the James Bay region of Québec during the Financial Year. Year-ending 2023, the Company completed an intensive program of geological and structural mapping, surface sampling, remote sensing, geochemical/geophysical analysis and interpretation across priority areas. These efforts do not confirm the presence of spodumene-bearing pegmatites on apollo Property. The Company during the Financial Year worked at reviewing the results received from this exploration activity and is continuing to assess whether a lithium resource to provide a potential feedstock for the QLPH can be established. Additionally, the Company undertook a strategic review of its exploration assets in Australia and Canada during the Financial Year. The purpose of this review was to streamline the Company’s exploration portfolio and to prioritise capital allocation. The review, which was conducted by the Company’s internal geologist - Mr Justin Rivers, concluded that several tenements in both Canada and Australia were considered to be “non-core” and unlikely to deliver any near-term value. Consequently, the Company determined in September 2024 that it would proceed with relinquishment of all of its exploration assets, other than the Apollo Lithium project. By making this decision, the Company has been able to preserve capital and focus efforts on the QLPH and other valueaccretive initiatives. ANNUAL REPORT OF MINERAL RESOURCES AND EXPLORATION RESULTS The Statement of Mineral Resources and Exploration Results presented in this Report has been prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 Edition (the JORC Code 2012). Lithium Universe is not aware of any new information or data that materially affects the information included in this Report and confirms that all of the material assumptions and technical parameters underpinning the Mineral Resource estimates and Exploration Results in the relevant market announcement(s) continue to apply and have not materially changed. - 7 - Lithium Universe Limited Annual Report 2024 LITHIUM UNIVERSE LIMITED AND CONTROLLED ENTITIES A.B.N. 22 148 878 782 Review of Operations and Tenements MINERAL RESOURCES AND ORE RESERVES ESTIMATES – CORPORATE GOVERNANCE STATEMENT Set out below is the following in relation to the Company’s Mineral Resources and Ore Reserves: Summary of the results of the annual review of Mineral Resource and Ore Reserves The Company has no Ore Reserves or Mineral Resources within any of its tenements. Comparison of Mineral Resources and Ore Reserves holdings against that from the previous year The Company has no Ore Reserves or Mineral Resources within any of its tenements. Basis of mineral resources and exploration results and competent person sign-off All information contained in this report are based on work exploration and results that have been appropriately reviewed by the Competent persons listed and based on work programs approved and paid for by the Company. The Company has provided an advanced copy of the draft annual report to each Competent Person to review and make any comment necessary and adjustments that they feel necessary in relation to the Company’s tenements. COMPETENT PERSONS Canadian Lithium Projects The information in this report that relates to Exploration Results related to the Canadian Lithium Projects (Apollo and Adina) are based on, and fairly represents, information and supporting documentation prepared by Mr. Hugues Guérin Tremblay, Exploration Manager – Canada and President of Laurentia Exploration Inc and Mr. Justin Rivers, Head of Geology – Lithium Universe Ltd. Mr Tremblay (P.Geo) is duly registered with the Ordres des Géologues du Québec (OGQ) as a geologist, member #1584, and a member of the Quebec Mineral Exploration Association (AEMO) and the Prospectors and Developers Association of Canada (PDAC). Mr. Tremblay has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person (CP) as defined in the JORC, 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and has read the definition of "qualified person" (QP) set out in National instrument 43-101 ("Nl 43-101') and certify that by reason of education, affiliation with a professional association (as defined in Nl 43-101) and past relevant work experience, fulfills the requirements to be a "qualified person" for the purposes of Nl 43-101'. Mr. Rivers is a member of and Chartered Professional with the Australasian Institute of Mining and Metallurgy (AusIMM). Mr. Rivers has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person (CP) as defined in the JORC, 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” Both Mr Tremblay and Mr. Rivers consent to the inclusion in this release of the matters based on the information in the form and context in which they appear. CORPORATE ACTIVITIES Board Changes The following board changes were announced by the Company during the reporting period (31 December 2024). Resignations During the 31 December 2024 financial year, the following director resignations occurred: (a) Fadi Diab, on 12 July 2024; and (b) Gernot Abl, on 9 December 2024. - 8 - Lithium Universe Limited Annual Report 2024 LITHIUM UNIVERSE LIMITED AND CONTROLLED ENTITIES A.B.N. 22 148 878 782 Review of Operations and Tenements More information concerning the directors can be found under the Directors’ Report below. With the exception of the above, there were no other changes made to the Board’s composition during the year. Management Changes Ignatius Tan – Executive Chairman Iggy Tan was appointed as Executive Chair of the Company on 26 April 2024, transitioning from his previous role as Non-Executive Chair. This change reflected the Company’s strategic shift into an active project development phase, particularly in relation to its Québec Lithium Processing Hub initiative and the work required for the Preliminary Feasibility Study (PFS). Mr Tan’s move to an executive role enabled the Company to leverage his extensive operational expertise, leadership in lithium project development and proven track record in bringing projects into production. With Mr Tan’s increased involvement, the Company was able to accelerate execution of its development plans, including delivery of the PFS and subsequently the Definitive Feasibility Study (DFS). Appointment of John Sobolewski – Chief Financial Officer On 25 January 2024, the Company announced the appointment of Mr John Sobolewski as its Chief Financial Officer, effective from 1 February 2024. Mr Sobolewski is a Chartered Accountant and a graduate of the Australian Institute of Company Directors. His previous roles include Managing Director and CEO with Mintrex Pty Ltd, CFO and Company Secretary with Mintrex Pty Ltd, Galaxy Resources Limited, and Vital Metals Limited, Financial Controller and Company Secretary with Croesus Mining NL and Group Accountant and Company Secretary with Titan Resources NL. During his time at Galaxy Resources Limited, Mr Sobolewski played a pivotal role during the feasibility, funding, construction, and operation phases of the Mt Cattlin Spodumene mine and Jiangsu Lithium Carbonate refinery. In conjunction with the appointment of John Sobolewski as Chief Financial Officer, Messrs Kurt Laney and Vince Fayad resigned from this role. Appointment of John Sobolewski – Company Secretary On 31 December 2024, Mr Sobolewski was also appointed to the role of Company Secretary. In conjunction with the appointment of John Sobolewski as Company Secretary, Messrs Kurt Laney and Vince Fayad resigned from this role. Capital raising initiatives During the 2024 financial year, the Company undertook the following capital raising initiatives: • Share Purchase Plan (March 2024) In March 2024, the Company provided eligible shareholders with the opportunity to acquire additional shares at an issue price of A$0.02 per share under an employee share plan. Eligibility for the offer was limited to shareholders recorded on the Company’s register as at the close of trading on 12 March 2024, with a registered address in Australia or New Zealand. On 10 April 2024, the Company closed the offer and subsequently announced that it had received valid applications for 23,175,000 ordinary shares, raising $0.46 million. - 9 - Lithium Universe Limited Annual Report 2024 LITHIUM UNIVERSE LIMITED AND CONTROLLED ENTITIES A.B.N. 22 148 878 782 Review of Operations and Tenements • Share Placement (May 2024) In May 2024, the Company announced a capital raising of approximately $3.64 million (before costs) through a twotranche placement to sophisticated investors, at $0.02 per share. The details of the two tranches comprising of this raising initiative were as follows: • Tranche 1: 95,016,667 shares were issued on 10 May 2024, raising approximately A$1.90 million. • Tranche 2: 87,200,000 ordinary shares were issued, which were subject to shareholder approval at the Company’s Annual General Meeting which was held on 14 June 2024, raising approximately A$1.74 million. In addition, investors who participated in either the Tranche 1 or Tranche 2 share placements received one free attaching listed option for every two ordinary shares subscribed for, with an exercise price of A$0.03 and an 18-month expiry, ending on 12 January 2026. These options were quoted on the ASX on 12 July 2024 and trade under the code “LU7O” (Listed Option). • Share Placement (October 2024) On 30 October 2024, the Company announced that it had received binding commitments from sophisticated investors to raise approximately $2.14 million (before costs) through a placement of 178,458,334 ordinary shares at an issue price of $0.012 per share. The capital raising was conducted via a two-tranche placement, as outlined below: • Tranche 1: 161,791,667 ordinary shares were issued on 8 November 2024, raising approximately $1.94 million. • Tranche 2: 16,666,667 ordinary shares were proposed to be issued to the Company’s directors, subject to shareholder approval at a General Meeting held on 9 December 2024. This tranche, raising $200,000, was settled on 31 December 2024 Participants in either the Tranche 1 or Tranche 2 placement also received one free attaching listed option for each ordinary share issued, on the same terms as the existing Listed Options. • Non-Renounceable Entitlement Offer (October 2024) In conjunction with the October 2024 placement, the Company also undertook a pro-rata non-renounceable entitlement offer to existing shareholders at the same issue price of $0.012 per share. Under the offer, eligible shareholders were entitled to subscribe for one new ordinary share for every ten ordinary shares held. The entitlement offer closed on 29 November 2024, with the Company receiving valid applications totalling approximately $52,000. Participants of the Company’s non-renounceable entitlement offer received one free attaching Listed Option for every share subscribed to. • Shortfall Offer - Non-Renounceable Entitlement Offer (December 2024) Following the close of its non-renounceable entitlement offer, the Company announced its intention to place the remaining shortfall (Shortfall Offer). This offer allowed the Company’s directors to allocate the remaining shares to both existing and prospective new investors, on terms consistent with the original entitlement offer. By 31 December 2024, the Company had received and allotted applications totalling $111,681 (before costs) under the Shortfall Offer. Participants in the Shortfall Offer received one free attaching Listed Option for every share subscribed to. - 10 - Lithium Universe Limited Annual Report 2024 LITHIUM UNIVERSE LIMITED AND CONTROLLED ENTITIES A.B.N. 22 148 878 782 Review of Operations and Tenements Use of Funds The Company confirms that it used cash and assets which were readily convertible to cash, in a way that was consistent with the Company’s business objectives during the Financial Year, in accordance with ASX Listing Rule 4.10.19. Performance Plan Employee Securities Incentive Plan (ESOP) At the Company’s Gen