Consolidated Lithium Metals Completes Updated Preliminary Economic Assessment for the Kwyjibo Underground Mining Project | Pre-tax IRR @ 46.5% | Post-tax IRR @ 35.4% 2.67 Hectare Mine Surface Footprint | Processing Facilities Located Offsite | No Residues

Consolidated Lithium Metals Inc. (CLM) announced the Updated Preliminary Economic Assessment (PEA) for its Kwyjibo Rare Earth Oxide Project on July 2, 2026. The assessment outlines a 10-year mine life producing approximately 10,000 tonnes of rare earth oxide (REO) annually. The project features a high-grade resource of 8.48 million tonnes at 2.45% total rare earth oxides (TREO) in the Measured and Indicated category, and 1.825 million tonnes at 3.27% TREO in the Inferred category. Critical REOs, specifically Dy-Tb-Y and NdPr, constitute 45.5% of the deposit.

The project design centers on a compact 2.67-hectare underground mine and an offsite hydrometallurgical complex located approximately 80 km to the south. This configuration eliminates the need for surface crushing and concentrating facilities, thereby reducing the project's environmental footprint. Economic metrics from the PEA include a pre-tax internal rate of return (IRR) of 46.5% and a post-tax IRR of 35.4%. The pre-tax net present value (NPV8) is valued at $2.4 billion CAD, with development capital requirements of $881 million CAD. The project demonstrates a payback period of 1.6 years pre-tax and 2.0 years post-tax.

This release follows a chronological progression of project advancement and financing. In July 2025, CLM entered into a non-binding letter of intent with SOQUEM to earn up to an 80% interest. A definitive agreement was signed in November 2025, accompanied by the announcement of over $17 million in financing. An amendment to the option agreement in February 2026 clarified share caps and regulatory conditions. Two tranches of private placements closed in March and April 2026, raising approximately $8.9 million CAD. In May 2026, an update confirmed that PEA completion was delayed to June or July to address community footprint concerns. A term sheet to acquire the Augustus Lithium Project was signed in June 2026, leading to the release of the updated PEA in July 2026, which confirmed strong economics and a reduced surface footprint.

Consolidated Lithium Metals Inc. (CLM) has released its Preliminary Economic Assessment (PEA), a technical milestone previously scheduled for completion in mid-to-late June 2026. The study presents strong economic results, including a 46.5% pre-tax internal rate of return (IRR) and rapid payback, which materially de-risks the project's financial viability. The plan shifts to an underground mine with a 2.67-hectare surface footprint, a move designed to address community and environmental concerns highlighted in the May 2026 update and smooth the path toward permitting.

However, the $881 million development capital requirement far exceeds the company's current $9.6 million cash balance. This discrepancy highlights the massive future capital raise required to advance the project, which is likely to lead to significant shareholder dilution. While the market impact is expected to be positive, it is viewed as incremental, as the technical study was already priced into the stock's recent consolidation.

Consolidated Lithium Metals Inc. is a Quebec-based critical minerals explorer and developer. Its flagship asset is the Kwyjibo Rare Earth Project, located approximately 125 km northeast of Sept-Îles, Quebec. The company holds an option to earn up to an 80% undivided interest in the project through a phased earn-in agreement with SOQUEM Inc., a subsidiary of Investissement Québec.

The company’s other assets include the Augustus Lithium Project, acquired via term sheet in June 2026, as well as the East Vallée, Baillargé, Preissac-LaCorne, and Vallée Joint Venture properties. Management includes CEO Richard Quesnel, Executive Chairman Brett Lynch, and CFO Ryan Ptolemy, a team with extensive experience in major North American mining operations.