Lithium Ionic working toward construction at Bandeira

Executive Summary

• Lithium Ionic Corp. reports that engineering at its 100%-owned Bandeira lithium project in Brazil has reached 48% completion, with basic plant and primary civil engineering finished.
• The company has received multiple term sheets for offtake and debt financing, advancing toward binding agreements, while strengthening its executive team with new hires in ESG, finance, and community relations.
• Lithium market conditions have improved significantly since the September 2025 feasibility study, with spodumene concentrate prices rising over 125% to over $1,800/tonne, enhancing the project's economic outlook.

Key Details

• Engineering Progress:
  • Total project engineering is 48% complete.
  • Basic engineering is complete for major design packages, including plant engineering and primary civil engineering (roads, plant areas, buildings).
  • Detailed engineering for raw water and drainage is in the final stage.
  • Underground mine development planning is advancing; NCL Ingenieria y Construccion SpA is mobilized to complete the detailed underground mine plan and schedule, targeted for April 2026.
• Procurement and Tendering:
  • 23% of infrastructure procurement packages have been tendered to date.
  • Tendering activities are underway for earthworks, drainage, mine access development, and site infrastructure.
  • Mine underground contractor and mine fleet tendering are launching.
• Commercial and Financing:
  • The company has received multiple offtake and debt financing term sheets from parties in North America, Europe, China, and Japan.
  • Lead parties have completed due diligence, including concentrate testing and site visits.
  • The company is advancing toward binding offtake agreements to support project debt financing.
• Management and Technical Support:
  • Added a Director of Environmental, Social and Governance (ESG) and permitting.
  • Added an Aracuai-based community relations manager.
  • Recruited a Director of Finance for cost control and financing readiness.
  • Engaged Jon Treen (Fuse Advisors) as an independent underground mining specialist.
  • SRK Consulting is auditing geotechnical models for underground mine design.
  • RTEK International DMCC has expanded technical support in electrical and instrumentation disciplines.
• Permitting and ESG:
  • Environmental licensing application submitted on Jan. 26, 2024.
  • FEAM issued a favourable technical opinion in Feb. 2025 recommending approval.
  • Water rights for the Piaui and Jequitinhonha rivers have been secured.
  • Explosives purchasing authorization obtained from the Brazilian Army.
  • Design elements include dry-stacked tailings, maximized water recovery, and low-carbon hydroelectric power.
• Market Conditions:
  • Spodumene concentrate (6% Li2O, delivered to Asia) price increased by >125% from ~$800/tonne (Sept 2025) to >$1,800/tonne (Feb 2026).
  • Current pricing outperforms the near-term price scenario used in the project economic plan.

Notable Quotes

• "Bandeira is now firmly in the execution phase. With a technically robust and optimized feasibility study in hand, our focus has shifted to disciplined delivery -- advancing engineering, securing the right commercial partnerships and preparing the project for construction. Importantly, this progress is unfolding in a materially stronger lithium market than when our feasibility study was completed, which reinforces our confidence in the project's long-term value. Our objective is clear: to bring Brazil's next high-quality, low-cost lithium operation into production with the right foundations in place." — Blake Hylands, CEO