Lithium Ionic Corp. (TSX-V: LTH) (OTCQX: LTHCF) (FSE: H3N) is pleased to announce that its wholly-owned subsidiary, Lithium Ionic Bandeira Corp. has executed a definitive royalty agreement with ANRF LI (JSY) Ltd., an affiliate of Appian Capital Advisory LLP granting a 2.25% gross revenue royalty in exchange for upfront cash consideration of US$20,000,000. This agreement is substantially in line with the terms previously disclosed in the Company’s May 30, 2024, news release. Appian is an investment advisor to long-term, value-focused private capital funds that invest solely in mining and mining-related companies.

Lithium Ionic intends to use the proceeds from the Royalty to advance the development and construction of its world-class Bandeira Lithium Project, located within the Lithium Valley in Minas Gerais State, Brazil. Additionally, funds will be allocated for general corporate purposes and working capital requirements. The Lithium Valley is renowned for its significant concentration of lithium-bearing pegmatites and has become a globally significant lithium production center.

Key Terms of the Royalty Agreement

• A 2.25% Life-of-Mine gross revenue royalty on the Bandeira Project
• Upfront purchase price of US$20,000,000 payable to the Grantor upon satisfaction of customary conditions precedent, including the finalization and delivery of security documentation and legal opinions.
• An option for the Company to fully buy-back the Royalty within the first five years of the closing of the Royalty transaction for a fee of US$67,500,000.
• The Royalty obligations will be secured by charges and share pledges over substantially all current and future assets relating to the Project.

Blake Hylands, P.Geo., CEO of Lithium Ionic, commented, “We are pleased to welcome Appian as an important partner as we continue to rapidly advance the Bandeira Project through permitting and towards construction. Their investment will strengthen our financial footing, and their technical expertise will help optimize our development strategies, ensuring we maintain strong momentum as we advance the Bandeira Project towards production.”

Michael W. Scherb, Founder and CEO of Appian, commented, “We are pleased to partner with Lithium Ionic to help the Bandeira Project realize its potential and become an important lithium producer. This collaboration demonstrates the attractiveness of Appian’s credit and royalties offering and reflects our strategic commitment to investing in high-quality mining projects that are well-positioned to meet the increasing global demand for critical resources.”

BMO Capital Markets is acting as financial advisor to Lithium Ionic. Bennett Jones LLP is acting as Lithium Ionic’s legal advisor.

About Lithium Ionic Corp.

Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in Brazil. Its Itinga and Salinas group of properties cover 14,182 hectares in the northeastern part of Minas Gerais state, a mining-friendly jurisdiction that is quickly emerging as a world-class hard-rock lithium district. Its permitting-stage Bandeira Project is situated in the same region as CBL’s Cachoeira lithium mine, which has produced lithium for +30 years, as well as Sigma Lithium Corp.’s Grota do Cirilo project, which hosts the largest hard-rock lithium deposit in the Americas.

About Appian Capital Advisory LLP

Appian Capital Advisory LLP is the investment advisor to long-term value-focused private capital funds that invest solely in mining and mining-related companies. Appian is a leading investment advisor in the metals and mining industry, with global experience across South America, North America, Australia and Africa and a successful track record of supporting companies to achieve their development targets, with a global operating portfolio overseeing nearly 7,000 employees. Appian has a global team of over 80 experienced professionals with presences in London, New York, Toronto, Vancouver, Lima, Belo Horizonte, Montreal, Dubai, Johannesburg and Perth.