Lithium Ionic Announces Definitive Feasibility Study Results for Bandeira Lithium Project, Minas Gerais, Brazil Updated Study Demonstrates Longer Mine Life, Lower Capital Costs, and Stronger Economics
Lithium Ionic Announces Definitive Feasibility Study Results for Bandeira Lithium
Project, Minas Gerais, Brazil
Updated Study Demonstrates Longer Mine Life, Lower Capital Costs, and Stronger
Economics
TORONTO, ON, September 17, 2025 – Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FSE:
H3N) (“Lithium Ionic” or the “Company”) is pleased to announce results from the updated
Feasibility Study (“FS” or the “Study”) for its 100% -owned Bandeira Lithium Project (“Bandeira”
or the “Project”), located in Minas Gerais, Brazil , conducted in partnership with R -TEK
International (“RTEK”; see press release dated April 2, 2025 ). This updated FS incorporates a
larger mineral resource and reserve and optimized mine and plant design, positioning Bandeira
to be one of the lowest-cost hard rock spodumene projects globally.
Highlights of the Updated Feasibility Study:
Project Snapshot
Post Tax IRR 61%
Post Tax NPV8% US$1.45B
CAPEX US$191M
OPEX US$378/t spodumene concentrate
Mine Life 18.5 years
Pay Back 2.2 years
Compared to the May 2024 Feasibility Study:
Stronger Economics
Post-tax NPV8% improved to US$1.45 billion, compared to US$1.31 billion in the May
2024 FS (the “Prior Study”) despite applying more conservative commodity price
assumptions based on Fastmarkets’ long-term forecast.
Post-tax IRR increased to 61%, up from 40%.
Payback period reduced to 2.2 years, compared to 3.4 years previously.
Tangible CAPEX and Operating Cost Reductions
Site operating cost of US$378/t spodumene concentrate 5.2% (“SC5.2”).
Initial CAPEX reduced by ~28% to US$191 million (including contingency), versus
US$266 million in the Prior Study, through:
o Simplified surface facilities and proven modular plant design supported by RTEK.
o Optimized mine scheduling to generate earlier cash flow.
o Streamlined fleet and equipment selection leveraging local supply chains.
Longer Mine Life
Mine life of 18.5 years, up from 14 years in the Prior Study, supported by a 6 million
tonne increase in proven and probable reserves from the 2024 drill campaign.
Average annual life-of-mine (“LOM”) rate of production of 177,000 tpa of spodumene
concentrate.
Optimized Flowsheet
Plant flowsheet incorporates proven technology supported by RTEK’s operational track
record at multiple hard rock spodumene deposits.
More conservative metallurgical recovery of 65% aligned with hard rock dense media
separation (DMS) peer producers.
Responsible Environmental Design
Bandeira’s mine plan is designed to minimize land disturbance and water consumption,
supported by a long-term underground mining strategy that reduces dust and noise.
Optimized processing flowsheet and dry -stacked tailings are expected to reduce overall
water consumption and facilitate faster site rehabilitation.
Dry stacking ensures enhanced safety and lower environmental risk versus conventional
wet tailings storage.
Blake Hylands , P.Geo., Chief Executive Officer of Lithium Ionic, commented, “This updated
Feasibility Study reflects the incredible effort of our team and the expertise of RTEK, who together
have optimized every aspect of Bandeira. What was already a robust project is now even stronger
- delivering a longer mine life, lower capital requirements and significantly improved project
economics. These results reinforce Bandeira’s position as one of the most competitive hard-rock
lithium projects globally, situated in Brazil’s Lithium Valley, a region recognized for producing
some of the world’s highest-quality spodumene concentrate. As demand for lithium continues to
grow to support global supply chains and the energy transition, Bandeira is exceptionally well
positioned to play a key role as a low-cost, reliable supplier.”
Table 1. Bandeira FS – Summary of Key Results and Assumptions Compared to May 2024
Feasibility Study (all figures in USD unless otherwise stated)
Feasibility Studies May 2024 Sept. 2025
Project Economics
Post - Tax NPV8 $1.31 B $1.45 B
Post - Tax IRR 40% 61%
Pre - Tax NPV8 $1.57 B 1.72 B
Pre - Tax IRR 44% 68%
Annual Gross Revenue – LOM Average $417 M $343 M
Average Annual After-Tax Free Cash Flow
(after repayment of initial capital) $286 M $208 M
Payback 41 months 26 months
Production Profile
Total Project Life (LOM) 14 years 18.5 years
Total LOM production (ore mined) 17.2 Mt 23.2 Mt
Total concentrate production (LOM) 2,493 kt SC5.5
(338 kt LCE)
3,198 kt SC5.2
(411 kt LCE)
Nominal Plant Capacity 1.30 Mtpa 1.50 Mtpa
Average plant throughput 1.23 Mtpa 1.29 Mtpa
Run-of-Mine grade, Li2O (mine diluted) 1.16% 1.10%
Average Annual Production of Spodumene
Concentrate
178 ktpa
(SC5.5)
177 ktpa
(SC5.2)
Metallurgical Recovery 68.9% 65.3%
CAPEX & OPEX
Initial Capital Costs $266M $191M
Sustaining CAPEX $81M $100M
Site Operating costs (5.2% Basis) $420/t $378/t
Bandeira Updated Feasibility Study Results
The updated Feasibility Study builds on the 2024 Prior Study, incorporating an expanded mineral
resource estimate while lowering both capital and operating costs. The design was developed
with the support of experienced consulting groups including RTEK, Promon, RETA, and GE21.
The 30% increase in Measured & Indicated resources at Bandeira (see May 6, 2025, press
release) has increased Proven and P robable reserves by 6.0Mt (please see below for further
details), extending the mine life by 4.5 years. The updated mine plan presents a lower -risk
production scenario, enabling faster time to revenue and a shorter project payback period.
With RTEK’s expertise, the processing plant and surface facilities were streamlined using
industry-standard equipment and proven prefabricated modular process plant segments,
reducing fabrication and installation costs. Drawing on experience from two plants manufactured
in 2024 and many others throughout recent years, RTEK brings proven designs, implementation
and commissioning expertise that minimizes startup risk and ensures predictable implementation
and operating costs.
The FS applies more conservative spodumene price forecasts provided by Fastmarkets and fully
accounts for updated royalties, taxes, and transportation charges, yet still delivers materially
improved economics, highlighted by a higher NPV and significantly stronger IRR compared to the
2024 Prior Study.
Project Location and Infrastructure
The Bandeira property covers 157 hectares, representing only approximately 1% of the
Company’s large 14,668 -hectare land package in the northern region of Minas Gerais State,
Brazil, within the renowned "Lithium Valley" (see Figure 1). This area is recognized for its
significant concentration of lithium -bearing pegmatites, making it one of the most promising
lithium-producing regions globally. The Project benefits from excellent local infrastructure, which
is critical for the efficient development and operation of the future mining activities.
The Bandeira site is well-connected via major highways, facilitating the transport of materials and
personnel. The project site is approximately 570 kilometers from the port of Ilhéus in Bahia, which
serves as a key logistical point for exporting lithium concentrate to international markets, including
Shanghai, China. The proximity to Araçuaí provides access to essential services and amenities,
enhancing operational efficiency.
A key infrastructure component for the Bandeira Project was secured in October 2023 through an
agreement with Cemig Distribuição S.A. (“Cemig”). This agreement facilitates the construction
and electrification of essential power infrastructure, including three kilometers of new transmission
lines and a new substation adjacent to the future Bandeira mine and will ensure that the Project
will be powered by low -cost, renewable hydroelectric power, aligning with the Company’s
commitment to operating sustainably.
Figure 1. Lithium Ionic Claims Map Showing Bandeira Project Location
Mining Operations
The updated Bandeira mine plan is centered on sub-level stope mining to deliver consistent, high-
grade material to the processing plant. A key advantage of this underground approach is the
reduced surface footprint and minimized environmental impact, achieved by limiting waste
movement. The optimized mine sequence prioritizes near-surface ore, allowing material to feed
the plant earlier in the development cycle.
The operating model begins with engaging a proven mining contractor for the initial development
phase, transitioning to an owner-operated team to minimize life-of-mine operating costs.
Figure 2. ROM to Plant Feed and Li2O grade, %
Figure 3. Annual Production of Spodumene Concentrate grading 5.2% Li2O
Mineral Processing
The process plant flowsheet follows the same proven design principles as peer operations
adjacent to Bandeira, ensuring reliability and consistency. The design remains simple,
incorporating crushing, sorting, screening, dense media separation (DMS), and dewatering.
RTEK’s modular design approach uses industry-standard equipment pre-assembled on structural
steel at an off -site facility, reducing on -site assembly time and costs. In addition, layout
optimizations lower capital intensity by minimizing earthworks and civil construction requirements
for plant assembly.
Figure 4: Bandeira Process Flow Diagram
Figure 5: Bandeira 3D View of Mineral Processing Plant
Capital Costs
Initial capital costs for the Bandeira Project are estimated at US$ 191 million including
contingency, reduced by approximately 28 % from the Prior Study which had a CAPEX of $266
million. The sustaining capital over the 18.5-year mine life is projected at $100 million. A
breakdown of the capital costs is presented in Table 2.
Table 2. Project Capital Costs (CAPEX) Breakdown
Initial CAPEX $191M
Mine $59.2M
Mining Equipment $18.5M
Equipment Purchase $27.2M
Equipment Financing ($9.6M)
Capitalized Interest on Equipment Financing $0.9M
Underground Development & Infrastructure $37.9M
Mining Pre-Operational Costs $2.8M
Surface $107.3
Services $66.9
Supply $35.2
Surface Pre-Operational Costs $5.2
Owner’s Cost $4.9M
Contingency $19.6M
LOM Sustaining CAPEX $100M
SUDENE Federal Tax Incentive (%, reduction in Corporate Income Tax) 75%
*Discrepancies in the totals are due to rounding effects.
Operating Costs
The operating costs of the Bandeira Project are estimated to be US$4 2.35 per tonne of ore
processed. Total site operating costs are estimated at US$378 per tonne of 5.2% Li2O spodumene
concentrate produced, placing it competitively among the global lithium industry. A breakdown of
the operating costs is presented in Table 3.
Table 3. Project Operating Costs (OPEX)
Operating costs (per tonne of ore processed) $42.3/t
Mining $26.2/t
Processing $13.5/t
SG&A $2.7/t
Operating costs (per tonne of 5.2% Li2O spodumene concentrate produced) $378/t
Mining $190/t
Processing + Tailings handling $98/t
SG&A $19/t
Capitalized Mining and Underground Primary Development $70/t
Other costs
Transportation costs to customer destination
(Project Mine Site to Shanghai Port, China) $119/t
*Discrepancies in the totals are due to rounding effects.
Project Economics and Sensitivities
The after-tax NPV8% for the Bandeira Project is US$1.45 billion with a post-tax IRR of 61%, based
on Fastmarkets’ 2025 long-term spodumene concentrate (“SC6”) price forecast, which assumes
US$1,400/t SC6, CIF China, at production start expected in H2 2027 and a LOM average of
US$2,200/t SC6, CIF China.
Sensitivity analyses completed as part of the FS demonstrate that the Project's value is strongly
influenced by the selling price of spodumene concentrate. As demonstrated in Figure 6, while
capital (CAPEX) and operational (OPEX) costs impact the Net Present Value (NPV), their effects