226 Million Loyalty Options Offered at A$0.05 Exercise Price, Expiring 2028

Background to the Offer

Lake Resources N.L. (ASX, LKE), a lithium developer focused on its flagship Kachi Project in Argentina, has issued a replacement prospectus for a pro-rata, non-renounceable bonus loyalty options offer to its eligible shareholders. This replacement document supersedes the original prospectus lodged on 10 October 2025, reflecting updated share and option counts and aligning the terms of the loyalty options with those issued in a recent placement.

Key Features of the Loyalty Options

The offer grants one loyalty option for every ten fully paid ordinary shares held as at 7, 00pm (AEST) on 17 October 2025, the record date. These options are issued for nil consideration, exercisable at an exercise price of A$0.05 each, and expire at 5, 00pm (AEST) on 14 October 2028. The company intends to seek quotation of these options on the ASX, subject to meeting the exchange's eligibility criteria, though this is not guaranteed.

Capital Structure and Potential Dilution

As of the replacement prospectus date, Lake Resources has approximately 2.27 billion shares and 283.6 million options on issue. The offer could add up to roughly 226.8 million loyalty options, increasing the total options on issue to over 510 million if fully subscribed. Should all loyalty options be exercised, the company’s share count would rise to nearly 2.5 billion, representing about a 9% increase. However, the offer is non-renounceable, meaning shareholders cannot trade or transfer their entitlement, and the company does not expect any change in control as a result.

Use of Funds and Strategic Intent

While the loyalty options themselves are issued for free, exercise of these options would generate capital inflows of approximately A$11.3 million if all are exercised. Proceeds are earmarked for advancing the Kachi Project, including environmental impact assessment approvals, power solution optimization, and strategic alternative processes. The timing and extent of capital raised depend on shareholder decisions to exercise options over the next three years.

Regulatory and Jurisdictional Considerations

The offer is available only to shareholders with registered addresses in Australia, New Zealand, the UK, Canada (British Columbia only), Singapore, the US, Hong Kong, and Argentina. US shareholders must return a signed investor certificate to participate. The prospectus includes comprehensive risk disclosures, reflecting the speculative nature of mining investments and the specific challenges of operating in Argentina, including political, financial, and regulatory risks.

Outlook and Market Implications

Lake Resources’ loyalty options offer represents a strategic move to reward existing shareholders while preserving flexibility for future capital raising. The updated terms and alignment with recent placement options suggest a streamlined approach to shareholder incentives. Market participants will watch closely for ASX’s decision on quotation eligibility and shareholder uptake of the options, which will influence the company’s funding trajectory and share price dynamics amid ongoing development of the Kachi lithium project.