Six High-Priority Drilling Sites Identified as Pantera Advances Smackover Project

Subsurface Modelling Advances Project Readiness

Pantera Lithium Limited (ASX: PFE) has taken a decisive step forward in its Smackover Lithium Brine Project by completing comprehensive 3D subsurface geological modelling. This work, integrating well data, seismic lines, and petrophysical analysis, has pinpointed six high-priority drilling locations within the Smackover Formation in Southwest Arkansas. The modelling confirms thick, laterally extensive lithium-rich zones, validating the project's scale and quality and marking a transition from exploration to resource definition.

Supported by industry experts and advanced technology partners like SLB and Matrix Solutions, Pantera's geological insights provide a robust foundation for upcoming drilling campaigns. This technical progress is critical in a sector where subsurface certainty can significantly de-risk development and attract investment.

Legislative Tailwinds from Arkansas Senate

Adding momentum to Pantera's technical achievements, the Arkansas Senate has introduced Senate Bill 568, a landmark piece of legislation designed to stimulate lithium resource development within the state. The bill proposes substantial fiscal and regulatory incentives, including CAPEX and OPEX relief, which could materially lower development costs for projects like Pantera's.

While still pending approval by the full legislature and the governor, SB568 signals strong state-level support for lithium, aligning with broader U.S. federal initiatives aimed at securing critical mineral supply chains. This legislative environment enhances Pantera’s competitive positioning alongside established industry players such as ExxonMobil and Standard Lithium, who have also received regulatory approvals for lithium units in Arkansas.

Regulatory Approvals and Federal Support

The Arkansas Oil and Gas Commission has unanimously approved the state’s first lithium units, a regulatory milestone that sets a precedent for Pantera and others in the region. This approval, coupled with the U.S. government’s critical minerals initiatives that fast-track select lithium projects, underscores a favorable policy landscape for domestic lithium production.

Pantera’s project benefits from this regulatory clarity and federal backing, which not only reduces operational risks but also enhances the project's economic profile. The company is now well positioned to engage with strategic partners and advance drilling plans, leveraging both government incentives and a strong commercial outlook.

Financial Position and Next Steps

During the quarter ending 31 March 2025, Pantera reported exploration expenditure of approximately A$742,000, with no mining production activities undertaken yet. The company maintains a solid cash position of A$1.36 million, supporting its near-term operational needs as it finalizes drilling permits and negotiates well surface locations.

Looking ahead, Pantera is focused on progressing discussions with potential strategic partners to unlock the full value of its Smackover project. The combination of advanced geological modelling, supportive legislation, and regulatory approvals sets the stage for Pantera to emerge as a key player in the U.S. lithium supply chain.