Announcement PDF LITHIUM REFINERY BECANCOUR QUEBEC PRECIOUS METALS EXTRACTION RECYCLING DIVISION LITHIUM REFINERY DIVISION Extraction of Silver from PV Waste Closing the Lithium Conversion Gap in Nth America MINE SUPPLY +40 companies Quebec >500Mt +1% Li2O resource Canada, Brazil, Africa DEMAND +20 battery manufacturers 1,000GW by 2028 850,000t LCE per year No current lithium converters Only 100 Ktpa planned No lithium refining experience LITHIUM REFINERY BÉCANCOUR QUEBEC (DFS) 18,270 tpa Battery Grade Lithium Carbonate Refinery 2ND LITHIUM REFINERY BROWNSVILLE TEXAS (SCOPING) 18,270 tpa Battery Grade Lithium Carbonate Refinery THE LITHIUM GAP • Many failures, technical difficulties • Existing Lithium producers • Relatively young industry • Complex chemical business Proven Technology PROBLEMS FILLING THE GAP Experienced Operators CHINA LITHIUM CONVERSION Where did the technology come from? • China dominates lithium spod conversion (>96% globally) • Replication outside China has failed (Tianqi & Albermarle) • China banned its export of conversion technology • Original technology brought to China by Australian Company • Galaxy built the Jiangsu 17 ktpa Li C plant in 2011 • Largest plant at the time was 5 ktpa • Became the benchmark and revolutionized China’s Li industry • LU7 (ex Galaxy) can bring this technology to Canada/USA LU7 LITHIUM STRATEGY PATENT I/P RIGHTS • Chemistry comes from 1950’s • Process is now essentially OPEN Technology • Most plants use the basic process • Difference is the intimate operating knowledge • Steers the design phase – mistakes at design - disaster • LU7 & Hatch have collective know how • Replicate exactly the final Jiangsu Plant • 3 LU7 Patents pending – process improvements LU7 LITHIUM STRATEGY DESIGN MISTAKES - MASSIVE SCALING ISSUES LU7 LITHIUM STRATEGY CANADIAN ATTEMPTS THE COMPETITION • Shutdown 2015 • Spent circa CAD 250m • Produced 109 t LC North American Lithium • DFS completed 2018 • Spent CAD 411 m • Failed to start up 2019 Nemaska Lithium • In construction • 32,000 tpa LiOH • Start Prod 2028 Rio Nemaska 2 X X AUSTRALIAN ATTEMPTS • 8 Years so far • Capital Cost Blowout • > A$1 billion • Care and Maintenence Tianqi Kwinana LiOH THE COMPETITION • 5 years so far • Still <20% of design rate • Shut trains 2,3,4 • Write down US$1.5 billion Albemarle Kemerton LiOH • Unproven Technology • 1995 Greenbushes 5Ktpa • Failed due to scaling • Tesla and Keliber Alkaline Pressure Leach • 50,000 tpa LiOH • Wesframers:SQM • Estimate US$1.2b • Ramping Up Covalent Kwinana LiOH X X ? AUSTRALIAN ATTEMPTS • 8 Years so far • Capital Cost Blowout • > A$1 billion • Care and Maintenence Tianqi Kwinana LiOH THE COMPETITION • 5 years so far • Still <20% of design rate • Shut trains 2,3,4 • Write down US$1.5 billion Albemarle Kemerton LiOH • Unproven Technology • 1995 Greenbushes 5Ktpa • Failed due to scaling • Tesla and Keliber Alkaline Pressure Leach • 50,000 tpa LiOH • Wesframers:SQM • Estimate US$3b • Ramping Up Covalent Kwinana LiOH X X ? CHINA TECHNOLOGY EXPORT BANS THE COMPETITION Roger Pover Head of Processing Ex Galaxy Plant Manager Terry Stark Head of Mining Ex Galaxy GM Operations John Loxton Head of Li Refinery Ex Hatch Li Carb Plant John Sobolewski Chief Financial Officer Ex Galaxy CFO & Co Sec DREAM TEAM TO BRING TECHNOLOGY 1 May 2010 6 Dec 2011 (19 months) Start of Construction Project Completion Ground Breaking 21 Feb 2010 DREAM TEAM TRACK RECORD 6 May 2012 (6 months Commissioning) 2 Years to Commercial Production • Capital Cost – US$120 m • At design rate 20,000 tpa • Highest quality LC worldwide Jiangsu Li Carbonate Plant Jiangsu Lithium Carbonate Plant CLOSING THE LITHIUM CONVERSION GAP ”Copy and Paste Modular Lithium Refineries that Work” REFINERY BÉCANCOUR LITHIUM CLOSING THE LITHIUM GAP • Replicate the success at Jiangsu • 18,270 tpa green BG lithium carbonate plant • Bécancour, Quebec’s Battery Hub • Same flow sheet, same equipment, same suppliers WHY BECANCOUR, QUEBEC? THE LITHIUM REFINERY • Proximity to Nth American EV battery supply chain • Access to low-cost hydroelectric power • Abundant local spodumene resources • Established industrial park/chemical infrastructure • Strong government incentives from Quebec • Deep water port and shipping routes QUEBEC LITHIUM CONVERSION Why can you compete with China? • Access to Cheap Green Power • Nearby feedstock - Canada, Brazil and Africa • Decrease in transport costs of spodumene • End market North America • US$3,900/t vs China of US$3,500/t LC LU7 LITHIUM STRATEGY Bécancour Lithium Refinery THE LITHIUM REFINERY GOOD LOCATION 30,000 Spodumene Shipments Calciner Cooler Ion Exchange Spodumene Sodium Carbonate Li2CO3 Precipitation Sulphating Kiln Sulphuric Acid Process Liquor Hydrated Lime Mg Precipitation Alpha Spodumene Beta Spodumene Leaching Tank Sodium Sulphate Crystalliser Ball Milling Filter Dryer Sodium Sulphate Product o/flow Centrifuge Hydrated Lime Alumina Silicate Ca Precipitation Sulphuric Acid Wash Water Natural Gas Water Polishing Filter Dryer Battery Grade Lithium Carbonate Product Microniser Cooler PolishingFi lter Battery Grade Centrifuge Repulp CO2 Steam Polishing Filter CO2 LiC Bicarbonate Digestor LC Crystalliser Li Carb Slurry Tank LITHIUM REFINERY FLOW SHEET PURIFICATION PLANT BECANCOUR LITHIUM REFINERY THE LITHIUM REFINERY BÉCANCOUR LITHIUM DFS CLOSING THE LITHIUM GAP • SC6 US$1,170/t LC $20,970/t • Capex US$549 million • NPV8 US$718 million • IRR 21% Payback 3.9 years • EBITDA US$148 million CURRENT LITHIUM PRICE RECOVERY CLOSING THE LITHIUM GAP Prices have increased 2.5x since 2025 DFS CNY/t Lithium Carbonate Battery Grade – China (CNY/t, USD/t) Trading Economics USD/t 23,750 11,100 19,400 16,600 13,900 22,200 8,300 Bécancour DFS LT Forecast Price Assumption Current Spot Price Price During DFS Work PROJECT ADVANCEMENTS • Application 22.5 MW electricity, Hydro Quebec • Environmental survey – no showstoppers • Co-operation with W8banaki First Nation • Previous farm land • Permitting should be straight forward THE LITHIUM REFINERY PROJECT MOU’S • Exclusive supply alumina silicate to Lafarge • Canada’s largest cement producer • Supply of sodium sulphate to Africa • MOU with Polytechnique for training THE LITHIUM REFINERY STRATEGIC BINDING FEEDSTOCK SUPPLY FROM NIGERIA • Strategic 10-year (rolling 5) spodumene supply • Binding Offtake Agreement - Norah Mining Ltd • Supply of 80,000 tpa spod con 6.0% Li₂O equivalent • Norah concentrator is in construction • LU7 will trade to third parties • LU7 to benefit from an 7.5% partner price discount NIGERIA QUEBEC FUNDING STRATEGY THE LITHIUM REFINERY • Strategic partners to own 49% • Target OEM with final LC offtake • Equity from sale injected to project • Debt and Equity of 50/50 • LU7 remains as operator LU7 51% Partner 1, 24% Partner 2, 25% Project Ownership LU7 PROPOSED LITHIUM REFINERY PORT OF BROWNSVILLE TEXAS TESLA LITHIUM HYDROXIDE REFINERY CORPUS CHRISTI LU7 PROPOSED LITHIUM REFINERY PORT OF BROWNSVILLE TEXAS Conventional Sulfuric Acid Proven Process WHY PORT OF BROWNSVILLE? THE LITHIUM REFINERY • Established Chemicals & Energy Infrastructure • Lower-Cost Workforce -25% • Pro-Business Environment • Binational logistics hub (US–Mexico) • Cheaper Supplies and Consumables from Mexico • Foreign Trade Zone & Tax advantages • Deep Water Port for Spodumene Imports • IRA Incentives & Policy Support LU7 Lithium Refinery Site PORT OF BROWNSVILLE, TEXAS • 35 Acres • Power lines to Site • Gas supply to site • Established roadways • Close to Port Berth • 30,000 t Spodumene Shipments LU7 PROPOSED SITE BROWNSVILLE STRATEGY THE LITHIUM REFINERY • Finalize site selection • Option to lease application for site • Preliminary environmental assessment • Suppliers, Utilities and Local Government • Complete Scoping Feasibility Study SILVER EXTRACTION PV SOLAR CELL RECYCLING TECHNOLOGY • Globally 60-78mt accumulated waste PV by 2050 • Australia 1 Mt end-of-life PV worth $1B by 2045 • Only 15% of PV cells today are recycled • Rest ends up in LAND FILL • Valuable silicon, silver, gallium & indium THE PROBLEM TODAY 15% • About 20 grams of Silver – each PV panel • Electrical contacts – flow of electricity • “Fingers" (thin lines) and "busbars" (thicker lines) • >A$67 of Silver in every panel SCRAPING VALUABLE SILVER PV SOLAR CELL Frame Front Glass Encapsulant (EVA) Solar Cell Encapsulant (EVA) Back Sheet • Record demand 680 million ounces in 2024 • Industrial demand surged by 7% • Growth is expected to carry beyond 2025 • Photovoltaics and AI as the fastest- growing drivers SILVER MARKET 2015 2016 2017 2019 2018 2020 2021 Photovoltaics Other Source: Metals Focus, Wisdom Tree, January 2025 Electrical Photovoltaics (Share Right) 2023 2022 2024 2025 Brazing Alloys & solders 700 600 500 400 300 200 100 0 Million ounces Photovoltaic chare 0% 5% 10% 15% 20% 25% 30% 35% Other Electrical • Demand has started to outstrip supply • Market deficit 118 mil oz • Significant silver price increase • US$15/oz in 2018 to US$73/oz 2025 • 380% increase since 2018 • Silver recovery from recycling will become increasing important SILVER PRICE RESPONSES • 3.45 million tonnes in 2025 • 4.49 million tonnes by 2030 growing at CAGR 5.41% pa • Solar panels projected highest growth rate of 7% til 2029 • Silicon dominance in semi-conductor material in solar cells SILICON MARKET 3.45 million 4.49 million 2025 2030 Source: Mordo Intelligence Silicon Metal Market Market Size in Million Tonnes CAGR 5.41% Metal Market • Shredding and grinding PV cells • EVA (binder) is removed by high temperatures • EVA removed by toxic acid chemicals • Low value glass applications – insulation, buildings • Low silicon and silver recovery • Due to complexity, high cost, poor yields TRADITIONAL PV RECYCLING Material Extraction Mechanical Breakdown Initial Dismantling • Microwave Joule Heating Technology (MJHT) • Jet Electrochemical Silver Extraction (JESE) • Layer by layer separation • Preserves materials in cleaner separable form • High value products instead of waste LU7 PV RECYCLING TECHNOLOGY • Microwave Joule Heating Technology (MJHT) • Utilizes Microwave Technology • Selectively heat and delaminates PV cells • Glass panel instead of crushed glass • Silicon sheet instead of crushed powder • High value products instead of waste MICROWAVE DELAMINATION Back Sheet or Glass Plate Solar Cells Glass Plate Microwave Radiation EVA Sheets Microwave Delamination Front Glass EVA EVA Solar Cell Backing Plate MJHT SELECTIVE DELAMINATION Back Sheet or Glass Plate Solar Cells Glass Plate Microwave Radiation EVA Sheets Front Glass EVA EVA Solar Cell Backsheet Front Glass Delamination Front Glass EVA EVA Solar Cell Backsheet Back Sheet Delamination Microwave Delamination Front Glass EVA EVA Solar Cell Backing Plate Back Sheet or Glass Plate Solar Cells Glass Plate Microwave Radiation EVA Sheets Front Glass EVA EVA Solar Cell Backsheet Front Glass Delamination Front Glass EVA EVA Solar Cell Backsheet Back Sheet Delamination Microwave Delamination Front Glass EVA EVA Solar Cell Backing Plate Silicon Wafer Clean Glass Sheet to be Reused Silicon Wafer for Silver Extraction & Silicon Recycling Front Glass Silver (High Purity) Silicon (High Purity) • Jet Electrochemical Silver Extraction (JESE) • Uses electrochemical low-voltage jet to selectively extract silver • Silver dissolves into dilute nitric acid electrolyte • Leaves aluminum and other impurities behind • High purity silver metal recovered from electrolyte via electrochemical deposition SILVER EXTRACTION Anode Cathode Cathode Anode Silver Deposition Silver Extraction SILVER EXTRACTION SILVER DEPOSITION High Purity Silver Solar Cell • Silver removal leaves impurities – adjust voltage • Silver deposited at the same process • Recoveries better than 95% • 96% purity of silver deposited • Dopants can be cleaned off silicon wafer • Silicon wafer high purity for direct reuse • All high value separate products ACHIEVEMENTS Deframe Delamination Solar Panel Delamination EVA Removal Silver Electro Jet Removal Al Junction Box Copper Wires Reusable Glass Sheet High Purity Silicon Feed Solid Silver (High Purity) Macquarie MJHT Technology Macquarie JESE Technology Silver Electro Deposition Silicon Wafer EVA Silicon Wafer RECYCLING TECHNOLOGY • Negates the fine unusable powder – conventional recycling • Layer by layer separation • Preserves material in cleaner separable form • Low energy heating – Microwave Technology • Glass sheet can be reused to make PV cells again • Glass, Silver, Silicon – all at high purity • Higher recoveries, less waste • 3-4 times Value Recovery ADVANTAGES OF TECHNOLOGY LITHIUM REFINERY BECANCOUR QUEBEC PRECIOUS METALS EXTRACTION RECYCLING DIVISION LITHIUM REFINERY DIVISION Extraction of Silver from PV Waste Closing the Lithium Conversion Gap in Nth America CAUTIONARY STATEMENTS Information Required by Listing Rules The Becancour Lithium Refinery Definitive 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 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 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 DFS is based on the material assumptions outlined including that it has been completed in accordance with AACE Principles to a Class 5 level with a nominal level of accuracy of ± 35%, that the financial forecasts rely upon the purchase of third party spodumene concentrate as the feedstock for the plant. The DFS 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 Definitive Feasibility Study (PFS) is based on the material assumptions. These include assumptions about the availability of funding. While Lithium Universe considers all of 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 DFS will be achieved. To achieve the range of outcomes indicated in the DFS, funding of in the order of US$600 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 DFS