Standard Lithium Ltd. (Standard Lithium) announced that the company has signed an option agreement with TETRA Technologies Inc. (TETRA) to acquire the rights to conduct exploration, production and lithium extraction activities on up to 33,000 acres of brine leases located in an area where the Smackover Formation is known to be highly productive in southern Arkansas, USA. Up to 33,000 acres of brine leases in key brine production fairway in southern Arkansas, adjacent to producing Albemarle leases; Historical data from Standard Lithium lease area shows 370-424 mg/L lithium in brines (Moldovanyi and Walter, 1992); Arkansas currently produces the equivalent of 42.6 million m3 (9,380,000,000 gallons) of brine per year (based on Arkansas Oil and Gas Commission reported average brine production from 2010-2016), almost entirely from the Smackover Formation; Low risk, well understood geology and chemistry; Significant infrastructure, roads, power, water, trained workforce in region; and Existing brine extraction, processing and re-injection permitting regime. Under the terms of the Option Agreement with TETRA, the Company will be granted the rights in consideration for a series of cash payments, as well as certain ongoing royalties tied to lithium production from the properties. In consideration of the execution of the Option Agreement, the Company has made a non-refundable cash payment to TETRA of USD 500,000, with further cash payments owing to TETRA as follows: USD 500,000 on or before the date that is thirty (30) calendar days following the Agreement Date; an additional USD 600,000 on or before the date which is twelve (12) months following the Agreement Date; an additional USD 700,000 on or before the date which is twenty-four (24) months following the Agreement Date; an additional USD 750,000 on or before the date which is thirty-six (36) months following the Agreement Date; and an additional annual payment of USD 1,000,000 on or before each annual anniversary of the Agreement Date, beginning with the date that is forty- eight (48) months following the Agreement Date, until the earlier of the expiration of the 10 year exploratory period or, if the company exercises the option, the company begins payment of the Royalty. Upon commercial production, the company will pay TETRA a 2.5% royalty on gross revenue derived from the sale of lithium produced from the properties, subject to a minimum annual royalty payment of USD 1,000,000.