SASKATCHEWAN GOVERNMENT SETS LITHIUM PRODUCTION ROYALTY RATE AT 3%

Executive Summary

• Saskatchewan’s government approved amendments to the Subsurface Mineral Royalty Regulations, fixing the lithium royalty rate at 3 % of brine mineral sales.
• The amendment includes a two‑year royalty holiday for newly productive capacity, improving the economics of EMP Metals’ Project Aurora.
• Management views the new rate as “highly competitive internationally” and expects a positive impact on financial modelling for the project.

Key Details

• The regulatory change was approved on September 24, 2025.
• Royalty framework applies to lithium produced from natural brine aquifers in Saskatchewan, superseding previous lease provisions.
• Crown royalty rate set at 3 % of the value of brine mineral sales.
• New projects receive a two‑year royalty holiday, reducing cash outflows during early production ramp‑up.
• The rate aligns with existing Saskatchewan royalties for potash, salt and sodium sulphate and is positioned as competitive versus other jurisdictions developing lithium from deep brine.
• EMP Metals holds over 205,000 net acres (83,000 ha) of subsurface dispositions and strategic wellbores in Southern Saskatchewan, underpinning the relevance of the royalty change to its portfolio.

Notable Quotes

“This is very welcome news. The government of the province of Saskatchewan has once again proven itself to be supportive of lithium production in the province. This is a highly competitive royalty rate internationally and a two‑year royalty holiday on new production immediately makes a positive impact on financial modelling of what is already a compelling business case for our Project Aurora lithium production project.” – Karl Kottmeier, CEO