Clean Lithium developer LKE confirms to increase the Kage Lithium Mine Project to 50, 000 tons of Lithium Carbonate equivalent per year

January 19, 2022, Clean Lithium developer Lake Resources NL ((LKE) confirmed that the base production in the final feasibility study and investment decision of the Kachi (Kachi) lithium mine will be increased to 50, 000 tons of lithium carbonate equivalent per year.

As the drilling results are expected to improve resource estimates, the final feasibility study will increase the annual production of lithium carbonate equivalent from 25500 tons to 50000 tons.

The factors driving this formal decision are as follows:

1. The demand of potential underwriting partners for reliable environment-friendly high-purity lithium carbonate supply chain is increasing.

two。 The Export Credit Agency and the International Banking Group have expressed financial support for the project. The UK and Canadian export credit agencies have indicated that they are willing to provide project debt financing that can meet 70% of the capital needs of the project (ASX announcement of August 11, 2021);

3. The supportive investment policy of the Argentine government. The Argentine government has announced a measure to reduce export taxes as part of its strategic plan for mining development.

4. Technology partner Lilac Solutions has confidence in the scalability and cost-effectiveness of its modular lithium direct extraction technology.

Mr. Steve Promnitz, Managing Director of Lake, said: "due to the growing demand and the huge shortage of lithium supply, Lake is currently focused on the large-scale production of high-purity lithium carbonate with environmental, social and (ESG) benefits."

"Lake has received intentional financial support from a number of international banks supported by export credit agencies and export credit agencies in the UK and Canada to expand the scale of the Kachi project. At the same time, Lilac Solutions, Lake's technology partner, is also focused on promoting the expansion of the Kachi project."

Stu Crow, chairman of Lake, said the independence of Lake and the Kage project added to the strategic attractiveness of underwriting.

"because of our high-quality resources, leading technology and important financing partnerships, we are in a very good position to ensure the best off-take agreements consistent with these expansion plans," he said. and create maximum value for our stakeholders.

The company will provide up-to-date basic details, including updated resources / reserves, operating parameters and financial estimates, when the final feasibility study is to be released in mid-2022.

According to public data, LKE is a clean lithium mine developer that uses clean direct extraction technology to develop its flagship Kage (Kachi) project to produce sustainable, high-purity lithium. The company's project is located in the lithium triangle, where 40% of the world's lithium mines are produced and at the lowest cost. This approach makes Lake Resources an efficient, responsible, environmentally friendly and cost-competitive high-purity lithium supplier that can easily expand to meet the needs of first-tier electric vehicle manufacturers and battery manufacturers.