Cosmos Advances Lithium Extraction Testing in Bolivia’s Lithium Triangle

• Exclusive option to acquire EAU Lithium Pty Ltd progressing
• Initial synthetic brine testing completed using Vulcan Energy’s VULSORB® A-DLE technology
• Natural brine testing underway on samples from Salar de Coipasa and Pastos Grandes
• Focus on sustainable lithium extraction aligned with Bolivia’s national development goals
• Corporate updates include cash position of $678,000 and share registry change

Strategic Positioning in the Lithium Triangle

Cosmos Exploration Limited (ASX, C1X) continues to make strides in its strategic ambition to enter the world-class Lithium Triangle through its exclusive option to acquire EAU Lithium Pty Ltd. This private Australian company is at the forefront of testing advanced lithium extraction technologies in partnership with Bolivia’s state-owned Yacimientos de Litio Bolivianos (YLB). The Lithium Triangle, spanning Bolivia, Chile, and Argentina, holds over half of the world’s identified lithium resources, with Bolivia alone estimated to contain the largest known lithium resource globally.

Cosmos’ focus is on high-magnesium brines from Bolivia’s Salar de Coipasa, Salar de Empexa, and Salar de Pastos Grandes. These salars represent emerging opportunities for sustainable lithium development, distinct from the more mature Salar de Uyuni, and are well-suited to innovative extraction methods that reduce environmental impact.

Technology Testing Progress

During the quarter ending 30 June 2025, EAU Lithium completed initial test work on synthetic brine formulations replicating Bolivian brine chemistry at Vulcan Energy Resources’ laboratory in Germany. This testing employed Vulcan’s proprietary VULSORB® Adsorption-Type Direct Lithium Extraction (A-DLE) technology, designed to overcome the challenges posed by Bolivia’s high-magnesium brines, which have historically been difficult to process economically with conventional methods.

Following this, testing on natural brine samples from Salar de Coipasa and Salar de Pastos Grandes is now underway. The final results, expected after completion and formal review, will be critical in assessing the technology’s viability and scalability under real-world conditions. Successful validation could pave the way for industrialisation agreements with local communities and the Bolivian government, supporting long-term, sustainable lithium production aligned with Bolivia’s national development strategy.

Corporate and Financial Updates

Alongside its technical progress, Cosmos reported several corporate updates this quarter. The company changed its registered office to Subiaco, Western Australia, and transitioned its share registry services to Xcend Pty Ltd. Financially, Cosmos ended the quarter with $678,000 in cash, having spent $90,000 on exploration and evaluation and $280,000 on administration and corporate costs. Notably, $73,000 of these payments were related party transactions, primarily remuneration for directors and services provided by SmallCap Corporate Pty Ltd.

Cosmos also received $250,000 from equity securities issued to directors, approved by shareholders earlier in May 2025. The company remains actively engaged with financiers and shareholders to secure further funding for ongoing exploration and development activities.

Global Context and Outlook

The lithium sector is witnessing rapid evolution, with major players like Rio Tinto investing heavily in lithium projects deploying Direct Lithium Extraction (DLE) technologies. Rio Tinto’s recent US$900 million partnership with Chile’s Codelco to develop the Salar de Maricunga project underscores the growing importance of scalable and sustainable lithium extraction methods. This project is comparable in scale and lithium grade to Bolivia’s Pastos Grandes, highlighting the global relevance of Cosmos’ focus area.

Geopolitical factors, including tightened Chinese export controls on lithium processing technologies, further elevate the strategic value of Western-developed DLE technologies like Vulcan’s VULSORB®. Cosmos, through its partnership with EAU Lithium and Vulcan Energy, is well positioned to contribute to securing sustainable lithium supply chains outside China, aligning with global clean energy transitions.

Bottom Line?

As Cosmos awaits final test results, the company stands at a pivotal juncture in advancing sustainable lithium extraction from one of the world’s largest undeveloped resources.

Questions in the middle?

• Will the final natural brine test results validate Vulcan’s VULSORB® technology for commercial scale?
• How will negotiations with Bolivia’s government and local communities progress toward industrialisation agreements?
• What impact will evolving geopolitical export controls have on Cosmos’ technology deployment and market positioning?