Up to A$4,023,642, reflecting the issue of up to 321,891,357 fully paid ordinary shares at $0.0125 per share with 321,891,357 free attaching listed options exercisable at $0.03 and expiring 12 January 2026, with listing subject to meeting ASX Listing Rules. The Company has the right to accept overs.

The Placement is to Sophisticated and Professional Investors Only as defined in the Corporations Act 2001. SP Corporate Advisory and Ignite Equity are appointed as Joint Lead Managers. GBA Capital is appointed as Co-Manager.

Placement

• Placement to raise up to $3.0 million (with ability to accept overs), via the issue of up to 240,000,000 fully paid ordinary shares at $0.0125 per share with one (1) free attaching listed option for every one (1) share issued under the Placement, exercisable at $0.03 per share, with an expiry of 12 January 2026 (Options); and

Entitlement Offer

• The Company will also undertake a non-renounceable 1 for 10 Entitlement Offer to raise up to $1,023,642 via the issue of up to 81,891,357 fully paid ordinary shares at $0.0125 per share with one (1) free attaching listed option for every one (1) share issued under the Entitlement Offer, exercisable at $0.03 per share, with an expiry of 12 January 2026 (Options). Participants in the Placement will not participate in the Entitlement Offer.

The Placement and Entitlement Offer is not underwritten. Further details will be outlined in the Entitlement Offer Prospectus to be lodged on the ASX at the completion of the Placement in accordance with the indicative timetable below.

The Placement will occur as a two tranche placement up to A$3.0 million, via the issue of:

• Tranche 1 A$2,559,100 via the issue of 204,728,000 fully paid ordinary shares at an issue price of $0.0125) of the Placement will be under the Company’s 25% placement capacity under Listing Rules 7.1/7.1A; and
• Tranche 2 of A$440,900 via the issue 35,272,000 fully paid ordinary shares at an issue price of $0.0125 is to be subject to shareholder approval.

*Please note offer price is $0.0125 per share, representing a discount of 21.9% to the current share price of $0.016 and a discount of 9.5% to the 30-day VWAP prior to 24 October 2024 of $0.0138.

Lithium Universe is committed to addressing the 'Lithium Conversion Gap' in North America by developing a mine-to-battery-grade lithium carbonate strategy in Québec, Canada. The company's mission is to support the supply chain requirements of original equipment manufacturers (OEMs), particularly in the automotive sector, by converting spodumene supply into lithium chemicals for EV battery plants across North America.

Lithium Universe's business model focuses on converting spodumene supplies under "take or pay" agreements with OEMs. These agreements incorporate protective pricing mechanisms, such as floor and ceiling prices, to ensure stable margins and mitigate market volatility. This strategy guarantees payback for the LU7 refinery while providing OEMs with a reliable and sustainable supply of lithium chemicals.

The Lithium Universe Strategy

• Positive and Robust PFS: Bécancour Refinery Preliminary Feasibility Study (PFS) remains strong even in a low pricing environment.
• Counter-Cyclical Approach: LU7 follows a counter-cyclical strategy—developing the project to be ready for a price recovery.
• Closing the Lithium Conversion Gap: Focused on resource growth and expanding end-market projects.

The Financial Modelling

• Pre-tax NPV8%: Economically viable with a pre-tax NPV of approximately US$779 million.
• Pre-tax IRR: Estimated at 23.5% with a payback period of 3.5 years.
• Price Assumptions: Based on US$1,170/t for spodumene concentrate (SC6) and US$20,970/t for battery-grade lithium carbonate (Li2CO3).
• Operating Costs: Around US$3,976/tonne, with a capital cost estimate of US$494 million.
• Annual Financial Projections: Expected annual revenue of approximately US$383 million and EBITDA of around US$147 million.
• Break-even Points: Project breaks even at around US$780/t (SC6) and US$14,000/t (Li2CO3).

The Design

• Solution to Global Lithium Conversion Failures: LU7 offers a remedy to worldwide lithium conversion challenges and startup problems.
• Proven Technology: Utilises Jiangsu Refinery's established operating technology and industry expertise.
• Production Capacity: Capable of producing up to 18,270 tonnes/year of green battery-grade lithium carbonate.
• Simplified Plant Design: Smaller, off-the-shelf-style plant that is easier to operate compared to larger, more complex facilities.
• Focus on Lithium Carbonate Production: Aimed at serving the LFP battery market.
• Proven Assumptions: Design assumptions are based on real-world operational data and experience, not speculative.

The Location

• Québec as a Strategic Hub: Positioned as an ideal trans-Atlantic lithium conversion centre, comparable to China.
• Global Feedstock: Sourcing feedstock from Canada, Brazil, and Africa, with the North American market as the end target.
• Cost Advantages: Significant savings from cheap green energy, reduced transport costs, and US/Canada tariff benefits.
• Environmental Impact: 95% reduction in greenhouse gas (GHG) emissions, thanks to Hydro Québec's renewable energy.

Next Steps

• Offtake Discussions: Ongoing negotiations with interested OEMs.
• Definitive Feasibility Study (DFS): LU7 continues to advance towards a full DFS.

DFS for Becancour Lithium Refinery and detailed design - $2.00m

Land Options Costs - $0.50m

Exploration - $0.20m

Corporate, working capital and offer costs - $1.30m

Total Use of Funds - $4.00m