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Lithium Ionic: 2024 Year-in-Review, Setting Stage for a Pivotal 2025

Corporate Updates

Lithium Ionic: 2024 Year-in-Review, Setting Stage for a Pivotal 2025

TORONTO, ON, January 8, 2025 – Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N)

("Lithium Ionic" or the "Company") is pleased to present a summary of its key accomplishments

in 2024 - a transformative year defined by major milestones across exploration, engineering and

project development, alongside continued expansion of ESG and sustainability initiatives. These

achievements have firmly positioned the Company for a pivotal 2025, with its flagship Bandeira

Lithium Project in Brazil’s Lithium Valley set to transition to the construction phase.

Key 2024 Developments:

Flagship Bandeira Lithium Project: Progressing Towards Construction in 2025

 With a 161% increase in mineral resource estimates, Bandeira remains the fastest

growing hard rock lithium deposit in the Americas with additional resource increases

expected in 2025.

 Delivered a robust NI 43-101 Feasibility Study outlining a 14-year mine life, strong

project economics and bottom-quartile operating costs.

 Drilled 8,200 metres in 2024, with results to be incorporated into an updated NI 43-101

mineral resource estimate (“MRE”) expected in early 2025.

 Secured a non-binding Letter of Interest (LOI) for up to US266M from the Export-Import

Bank of the United States (EXIM), establishing a clear pathway for full project financing.

 Strengthened project funding with a non-dilutive US$20M royalty financing supporting

the balance sheet and early development activities into 2025.

 Strengthened leadership in preparation for project development with key technical and

governance appointments.

Baixa Grande Project (formerly referred to as “Salinas”): A Second Growth Engine

 Announced a maiden MRE of 14.76Mt in April 2024, with significant exploration upside.

 Completed 6,600 metres of drilling in 2024, which is currently being modelled into an

updated MRE expected in early 2025.

 Remains a key development asset, with mineral deposit open at depth and extents,

representing a significant opportunity for further growth supporting regional production

capacity.

Ongoing Strategic Land Acquisitions Strengthened its Position in the Lithium Valley

 Acquired the remaining 15% of Salinas properties, achieving full 100% ownership.

 Expanded the Company’s land holdings by approximately 3,000 hectares through an

option agreement for additional claims in the Itinga group of properties, increasing its

total land position to ~17,000 hectares (see July 3, 2024, press release).

 Demonstrated success by the Lithium Ionic team in acquiring exploration tenements and

generating tangible resources and exploration targets for further development.

Sustainability and ESG

 Reinforced its commitment to responsible development by joining the United Nations

Global Compact and becoming a member of the International Lithium Association.

 Strengthened alignment with best standard practices by actively participating in IRMA

Self-Assessing Mining Group meetings and progressing toward adoption of international

standards (IFC, IFRS S1/S2, TCFD).

 Introduced key policies, including ESG, Diversity and Inclusion, and Human Rights,

embedding global best practices to enhance corporate commitments.

 Advanced community and environmental initiatives, including the revitalization of public

spaces and reclamation initiatives that involved planting over 2,000 native seedlings.

Blake Hylands, P.Geo., CEO of Lithium Ionic, commented, “2024 has been a defining year for

Lithium Ionic, highlighted by substantial mineral resource growth and engineering milestones. At

our flagship Bandeira Project, we’ve made remarkable progress, moving closer to a construction

decision while establishing a clear funding pathway. Meanwhile, the Salinas claims which were

acquired in 2023 have exceeded expectations with the maiden mineral resource estimate at Baixa

Grande further strengthening our portfolio and long-term growth strategy. This significant mineral

resource growth is a testament to the strong geological understanding of this region by our

exploration team, and as a result we have set ourselves apart as one of the fastest growing hard

rock lithium deposits in the Americas. As a company that only formed in 2022, I’m incredibly proud

of the speed and efficiency with which our team has laid the foundation for success, advancing

all critical pillars towards the development phase. Looking ahead, 2025 is set to be another pivotal

year as we prepare to build a mine and realize our vision of becoming a leading lithium producer

in Brazil’s Lithium Valley - a region that has only begun to show its strategic importance on a

global stage.”

Bandeira: Key Milestones Towards Construction Stage

The Bandeira Lithium Project continued to establish itself as one of the most promising lithium

assets in Brazil’s Lithium Valley. From 2023 to 2024, the mineral resources at Bandeira grew

significantly, increasing by 161.4% to 41.9 Mt grading 1.35% Li ₂O. Beyond this growth, drilling

conducted since the March 2024 MRE cut-off has further demonstrated the Project’s potential

with excellent intercepts such as:

▪ 64.7m grading 1.39% Li2O (ITDD-24-276, October 8, 2024)

▪ 40m grading 1.46% Li2O (ITDD-24-259, April 29, 2024)

▪ 24.1m grading 1.86% Li2O (ITDD-24-256, April 29, 2024)

▪ 20.4m grading 2.13% Li2O (ITDD-24-260, April 29, 2024)

In May 2024, the Company released a Feasibility Study outlining a 14-year mine life producing

an average of 178,000 tonnes of high- quality 5.5% Li₂O spodumene concentrate annually (see

press release from May 29, 2024). The study highlighted exceptional economics, including a low

CAPEX of US$266 million, a post -tax NPV of US$1.3 billion, and an IRR of 40%. Additionally,

Bandeira’s on-site operating costs of US$444/t position the project as highly resilient to volatile

lithium market conditions.

Project engineering activities ramped up following the Feasibility Study, with the initiation of basic

and detailed engineering and selection of key EPCM service providers, well positioning the

Company for a transition to the construction and development phase (see press release dated

October 22, 2024). Additionally, the Company also welcomed key technical talent to its leadership

team and Board, strengthening its ability to deliver on its strategic objectives (see press releases

dated February 1, 2024 and September 3, 2024).

In May 2024, a critical milestone was achieved with the granting of a water rights permit by the

Minas Gerais Institute of Water Management (IGAM) (see press release from May 2, 2024). This

permit guarantees sufficient water supply to meet the operational demands of the future Bandeira

operation, addressing one of the most essential needs for mining projects.

Following the Feasibility Study, the Company prioritized project financing efforts, and by the end

of November 2024, it had secured a non-binding Letter of Interest (“LOI”) for US$266M in debt

financing for the development of Bandeira. This significant milestone further validates the

Project’s viability and sets the stage for full project funding.

The Company is on the verge of achieving another pivotal milestone with the expected imminent

approval of the Licença Ambiental Concomitante (“LAC”) license, which will authorize construction

to begin. The LAC application was submitted in late 2023 and is in the final stages of approvals.

with all information requests satisfied by the Company.

Baixa Grande: A Second Growth Engine

The Baixa Grande deposit, part of the Salinas group of properties, has been a key growth driver

for Lithium Ionic since its acquisition in early 2023. On April 4, 2024, the Company announced a

maiden MRE outlining 5.86Mt of Measured and Indicated (“M&I”) resources grading 1.09% Li₂O

and 8.90Mt of Inferred resources grading 0.97% Li ₂O; this based on drilling data up until

November 2023. Subsequent drilling conducted into 2024 returned excellent results highlighting

the strong growth potential of the deposit, including:

▪ 15m grading 1.53% Li2O (BGDD-24-133, April 23, 2024)

▪ 19m grading 1.15% Li2O (BGDD-24-131, April 23, 2024)

▪ 14m grading 1.32% Li2O (BGDD-24-140, April 23, 2024)

▪ 10.2m grading 1.44% Li2O (BGDD-24-135, April 23, 2024)

A total of 6,600 metres were drilled at Baixa Grande in 2024, with the data now being incorporated

into an updated MRE expected in early 2025.

The strategic importance of the Salinas properties was further underscored by Pilbara Minerals’

acquisition of the Colina deposit in August 2024, located adjacently to the west of Baixa Grande.

This marked Pilbara’s first venture into the Americas and reinforced the quality and global

competitiveness of the lithium deposits in Brazil’s Lithium Valley.

While the Company remains focused on advancing Bandeira to near -term production, Baixa

Grande is poised to play a significant role in Lithium Ionic’s long -term growth and production

strategy, contributing to the overall strength and diversification of its portfolio.

Gearing up for Construction Start in 2025:

Lithium Ionic is entering 2025 with clear objectives , foremost among them maintaining strong

momentum at Bandeira to quickly establish this project as the region’s next significant lithium

producer. Key milestones at Bandeira this year include the anticipated granting of a construction

permit in the near-term and advancing detailed engineering to support a production decision. The

Company is committed to progressing through the due diligence process with EXIM, aiming to

finalize a definitive project financing package that will support commencement of construction in

the second half of the year.

Simultaneously, exploration and drilling activities will continue at Bandeira, Baixa Grande, and

other high-priority regional targets to further expand mineralization and improve mineral resource

classification, to continue reinforcing the long-term growth potential of the Company’s portfolio.

Lithium Ionic extends its gratitude to shareholders for their ongoing support and looks forward to

delivering a transformative year, driving value creation for all stakeholders in 2025.

On behalf of the Board of Directors of Lithium Ionic Corp.

Blake Hylands

Chief Executive Officer, Director

About Lithium Ionic Corp.

Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in

Brazil. Its Itinga and Salinas group of properties cover ~17,000 hectares in the northeastern part

of Minas Gerais state, a mining-friendly jurisdiction that is quickly emerging as a world-class hard-

rock lithium district. Its Feasibility-stage Bandeira Project is situated in the same region as CBL’s

Cachoeira lithium mine, which has produced lithium for +30 years, as well as Sigma Lithium

Corp.’s Grota do Cirilo project, which hosts the largest hard-rock lithium deposit in the Americas.

Qualified Persons

The technical information in this news release has been prepared by Carlos Costa, Vice President

Exploration of Lithium Ionic and Blake Hylands, CEO and director of Lithium Ionic, who are both

“qualified persons” as defined in NI 43- 101. Mr. Costa and Mr. Hylands have both read and

approved the content in this news release.

Investor and Media Inquiries:

+1 647.316.2500

[email protected]

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward -statements.” Such forward -

looking statements involve known and unknown risks, uncertainties and other factors that may

cause the Company’s actual results, performance or achievements, or developments to differ

materially from the anticipated results, performance or achievements expressed or implied by

such forward-looking statements. Although the Company believes, in light of the experience of its

officers and directors, current conditions and expected future developments and other factors that

have been considered appropriate that the expectations reflected in this forward -looking

information are reasonable, undue reliance should not be placed on them because the Company

can give no assurance that they will prove to be correct. When used in this press release, the

words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or

“should” and the negative of these words or such variations thereon or comparable terminology

are intended to identify forward- looking statements and information. The forwar d-looking

statements and information in this press release include information relating to the mineralization

and prospectivity of the Company’s mineral properties, the economic viability of Bandeira, the

financing of the Project, the development of the Company’s mineral properties, the Company’s

exploration program and other mining projects and prospects thereof, the Company’s ability to

obtain the requisite permitting and approvals and the timing thereof, the Company’s ability to

increase the mineral resource estimates at its projects, the Company’s ability to obtain financing,

the timing of MREs, the impact of the Company’s ESG and other initiatives and the Company’s

future plans. Such statements and information reflect the current view of the Company. Risks and

uncertainties that may cause actual results to differ materially from those contemplated in those

forward-looking statements and information. By their nature, forward-looking statements involve

known and unknown risks, uncertainties and other facto rs which may cause our actual results,

performance or achievements, or other future events, to be materially different from any future

results, performance or achievements expressed or implied by such forward-looking statements.

The forward-looking information contained in this news release represents the expectations of the

Company as of the date of this news release and, accordingly, is subject to change after such

date. Readers should not place undue importance on forward-looking information and should not

rely upon this information as of any other date. The Company undertakes no obligation to update

these forward-looking statements in the event that management’s beliefs, estimates or opinions,

or other factors, should change.

Information and links in this press release relating to other mineral resource companies are from

their sources believed to be reliable, but that have not been independently verified by the

Company.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the

policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press

release.