Lepidico Ltd. advised that it has made the final staged deposit payment to Abu Dhabi Ports Company PJSC (ADP) under the Musataha Agreement, the contract that secures the land for the Phase 1 Chemical Plant within the Khalifa Industrial Zone Abu Dhabi (KIZAD) for an initial term of 25 years. Infrastructure development works to establish access, utilities and services to the 57,000m2 lot allocated for the Phase 1 chemical conversion plant are progressing apace. Lepidico management inspected development works on 6 March 2022.

Access road works are nearing completion, which will allow electrical power, natural gas and industrial water utilities, and sewer and drainage services to be established to the site boundary. The Khalifa deep water container terminal where lithium mica concentrates from Namibia will be imported is just 15km by road from the site. Environment Agency - Abu Dhabi (EAD) has reissued the environmental approval to construct the chemical plant, which is renewed annually.

Site investigation geotechnical and geophysical works for the chemical plant have been completed, with final reports issued to Lycopodium for its Front End Engineering and Design works which remain on schedule for completion in June. The site layout has been finalised and pre-development application submitted to allow infrastructure tie-ins to be finalised. Demonstration plant operations continue to progress well, with raw lithium hydroxide production, which started in early February scheduled to complete next week.

Lithium hydroxide refining and by-product manufacture is scheduled to complete in April. Virtual demonstration plant tours have been run for both lenders and equity investors with further tours planned. First demonstration plant product samples are also being prepared for dispatch to customers for assessment.

Broad interest is being received for all the high value (lithium, caesium and rubidium) and bulk products (SOP, silica and gypsum), with samples sent out as they become available.