Tibet Zhufeng's Lithium Extraction Project in Argentina Enters Final Approval Stage, Funding Risks Remain

Tibet Zhufeng: The environmental impact assessment report of the annual production of 30,000 tons of lithium carbonate salt lake lithium extraction project of the Argentine subsidiary has completed the public hearing and entered the final approval and issuance process. Recently, Tibet Zhufeng announced that after the completion of the statutory public hearing on May 28, 2024 (local time, similarly hereinafter) for this environmental impact assessment report, the statutory procedures for the environmental impact assessment review of the "annual production of 30,000 tons of lithium carbonate salt lake lithium extraction construction project" (the "30,000-ton scale project") controlled by the company's Argentina Lithium Potassium Co., Ltd. ("Argentina Lithium Potassium Company") have been fulfilled, and it will then enter the final approval and issuance process of the relevant departments for the environmental impact assessment report.

As of the end of 2023, the balance of "monetary funds" in the company's audited consolidated financial statements was 21.6261 million yuan, which is a significant gap from the estimated investment amount of 2.7 billion yuan for the project. If the environmental impact assessment report is approved, there is still a risk that the project may not be completed on schedule due to unsmooth progress in related financing and insufficient required funds.