Lithium Energy Nets US$21.7M from Solaroz Sale, Advances Queensland Drilling

Solaroz Sale Completion and Financial Position

Lithium Energy Limited (ASX, LEL) has successfully completed the early sale of its remaining interest in the Solaroz Lithium Brine Project in Argentina, receiving US$21.7 million in cash on 15 December 2025. This follows an earlier tranche 1 payment of US$33.8 million in April 2025, bringing total proceeds close to US$55.5 million. Additional deferred consideration of US$4.5 million is contingent on lithium carbonate prices exceeding US$23,000 per tonne within a specified timeframe.

The sale marks a significant milestone as Lithium Energy transitions away from its main undertaking to focus on a diversified portfolio of resource projects. The company ended the quarter with a robust cash balance of A$68.5 million, underpinning ongoing exploration and development activities.

ASX Trading Suspension and Reinstatement Efforts

Following the disposal of the Solaroz Project, Lithium Energy’s securities remain suspended from trading on the ASX. The exchange requires the company to demonstrate sufficient operational scale and advancement of its remaining projects before reinstatement. Lithium Energy is actively engaging with ASX and preparing submissions to meet these criteria, leveraging progress across its graphite and gold-copper assets.

Capricorn Gold-Copper Belt Project, Exploration Intensifies

In Queensland, the Capricorn Gold-Copper Belt Project is gaining momentum. Recent geophysical surveys at the Bajool Prospect have identified a large, deep chargeable zone interpreted as a potential porphyry copper-molybdenum system. Follow-up drilling is scheduled to commence in February 2026, targeting mineralisation at Limonite Hill and broader geophysical anomalies.

Additionally, re-assays of historical rock chip samples from the Mt Usher area confirm significant gold potential, with multiple samples exceeding 1g/t gold and associated base metal anomalism. Lithium Energy plans comprehensive exploration including drone magnetic surveys, airborne electromagnetic surveys, and reverse circulation drilling to further delineate targets.

Graphite Projects, Resource Development and BAM Strategy

Lithium Energy’s 100% owned Burke, Mt Dromedary, and Corella Graphite Projects collectively hold a substantial high-grade graphite inventory exceeding 4.4 million tonnes. The company has commenced in-fill resource development drilling at Burke and Mt Dromedary, aiming to upgrade combined mineral resources and support feasibility studies.

Complementing exploration, Lithium Energy is advancing a vertically integrated Battery Anode Material (BAM) manufacturing strategy. Plans include establishing a BAM Pilot Plant in Queensland to produce spherical purified graphite (SPG) and coated SPG (CSPG) products for lithium-ion battery applications. This initiative aims to leverage the high-quality graphite resources to capture value further along the battery supply chain.

White Plains Lithium Brine Project, Early Signs of Promise

In the United States, Lithium Energy’s White Plains Lithium Brine Project in Utah has revealed encouraging signs of lithium mineralisation. Geophysical surveys have delineated two aquifers, including a deeper target aquifer suitable for lithium brine extraction. Shallow auger sampling confirmed lithium concentrations up to 100 mg/l in the upper aquifer.

The company has submitted a permit application to drill the first priority target in the deeper aquifer, aiming to validate the resource potential. The project’s location in a mining-friendly jurisdiction with established infrastructure adds strategic value.

Corporate and Governance Updates

During the quarter, Executive Director Peter Smith resigned for personal reasons and was replaced by Company Secretary Victor Ho, who was appointed as an Executive Director. The company continues to invest in technical capacity, hiring additional geological and support staff to advance its exploration programs.

Expenditure during the quarter focused on exploration and evaluation activities, personnel, and corporate administration, consistent with the company’s strategic priorities.