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Sigma Lithium Receives Initiation Letter of Arbitration BY LG-Es from Icdr

Legal & Disputes

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SIGMA LITHIUM RECEIVES INITIATION LETTER OF

ARBITRATION BY LG-ES FROM ICDR

São Paulo , Brazil – (March 19, 2024) – Sigma Lithium Corporation (“Sigma Lithium ” or the “Company”)

(NASDAQ: SGML, BVMF: S2GM34, TSXV: SGML) , a leading global lithium producer dedicated to powering the

next generation of electric vehicles with carbon neutral, socially and environmentally sustainable lithium

concentrate, announces today that the Company and its subsidiary, Sigma Mineração S.A., have received on

March 18 th, 2024 an Initiation Letter of Arbitration by LG Group subsidiary, LG Energy Solution, Ltd. (“LG-ES”)

from the International Centre for Dispute Resolution of the American Arbitration Association.

In its request for arbitration, LG -ES is alleging that Sigma Lithium is in breach of certain provisions in connection

with the Term-Sheet dated October 5, 2021 relating to offtake arrangements for the purchase of lithium

concentrate from the Company . The Term -Sheet was subject to, amongst other things , completion of the

negotiation of definitive written agreements between the parties.

The Company believes the claims are completely without merit and intends to defend its interests vigorously. The

Company is subject to confidentiality obligations regarding these matters, and it will abstain from commenting

further on these proceedings unless required by applicable law.

Sigma Lithium continues to maintain a good relationship with LG Group, welcoming on a site visit from March

11th to March 13th 2024 a delegation from LG Group’s trading affiliate LX International organized by KOMIR (a

mining agency under Korea’s Ministry of Trade, Industry, and Energy) with the purpose of initiating a

commercial relationship.

ABOUT SIGMA LITHIUM

Sigma Lithium (NASDAQ: SGML, BVMF: S2GM34, TSXV: SGML) is a leading global lithium producer dedicated to

powering the next generation of electric vehicle batteries with carbon neutral, socially and environmentally

sustainable lithium concentrate.

Sigma Lithium operates at the forefront of environmental and social sustainability in the EV battery materials

supply chain and is currently producing Quintuple Zero Green Lithium concentrate from its Grota do Cirilo

Project in Brazil. Phase 1 of the project entered commercial production in 2Q23 and has an annual capacity of

270,000 tonnes of concentrate (36,700 LCE annually). The Company is currently evaluating a decision to

expand production via a Phase 2 concentrate line and associated mine which would add another 250,000

tonnes of annual Quintuple Zero Green Lithium capacity. The project produces lithium concentrate at its state-

of-the-art Greentech lithium plant that uses 100% renewable energy, 100% recycled water and 100% dry -

stacked tailings.

Please refer to the Company’s National Instrument 43-101 technical report titled "Grota do Cirilo Lithium Project

Araçuaí and Itinga Regions, Minas Gerais, Brazil, Amended and Restated Technical Report" issued June 12, 2023,

which was prepared for Sigma Lithium by Homero Delboni Jr., MAusIMM, Promon Engenharia; Marc -Antoine

Laporte, P.Geo, SGS Canada Inc; Jarrett Quinn, P.Eng., Primero Group Americas; Porfirio Cabaleiro Rodriguez,

(MEng), FAIG, GE21 Consultoria Mineral; and Noel O' Brien, B.E., MBA, F AusIMM (the “Updated Technical

Report”). The Updated Technical Report is filed on SEDAR and is also available on the Company’s website.

For more information about Sigma Lithium, visit https://www.sigmalithiumresources.com/

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FOR ADDITIONAL INFORMATION PLEASE CONTACT

Matthew DeYoe, EVP Corporate Affairs & Strategic Development

+1 (201) 819-0303

[email protected]

Daniel Abdo, Director, Investor Relations

+55 11 2985-0089

[email protected]

Sigma Lithium

Sigma Lithium

@sigmalithium

@SigmaLithium

FORWARD-LOOKING STATEMENTS

This news release includes certain "forward -looking information" under applicable Canadian and U.S. securities legislation,

including but not limited to statements relating to timing and costs related to the general business and operational outlook of

the Company, the environmental footprint of tailings and positive ecosystem impact relating thereto, donation and upcycling of

tailings, timing and quantities relating to tailings and Green Lithium, achievements and projections relating to the Zero Tai lings

strategy, achievement of ramp-up volumes, production estimates and the operational status of the Groto do Cirilo Project, and

other forward -looking information. All statements that address future plans, activities, events, estimates, expectations or

developments that the Company believes, expects or anticipates will or may occur is forward -looking information, including

statements regarding the potential development of mineral resources and mineral reserves which may or may not occur.

Forward-looking information contained herein is based on certain assumptions regarding, among other things: general economic

and political conditions; the stable and supportive legislative, regulatory and community environment in Brazil; demand for lithium,

including that such demand is supported by growth in the electric vehicle market; the Company’s market position and future

financial and operating performance; the Company’s estimates of mineral resources and mineral reserves, includi ng whether

mineral resources will ever be de veloped into mineral reserves; and the Company’s ability to operate its mineral projects

including that the Company will not experience any materials or equipment shortages, any labour or service provider outages or

delays or any technical issues. Although management believes that the assumptions and expectations reflected in the forward-

looking information are reasonable, there can be no assurance that these assumptions and expectations will prove to be correct.

Forward-looking information inhere ntly involves and is subject to risks and uncertainties, including but not limited to that the

market prices for lithium may not remain at current levels; and the market for electric vehicles and other large format batte ries

currently has limited market share and no assurances can be given for the rate at which this market will develop, if at all, which

could affect the success of the Company and its ability to develop lithium operations. There can be no assurance that such

statements will prove to be accurate, as ac tual results and future events could differ materially from those anticipated in such

statements. Accordingly, readers should not place undue reliance on forward -looking information. The Company disclaims any

intention or obligation to update or revise any forward-looking information, whether because of new information, future events

or otherwise, except as required by law. For more information on the risks, uncertainties and assumptions that could cause our

actual results to differ from current expectations, please refer to the current annual information form of the Company and other

public filings available under the Company’s profile at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX

Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.