NEW AND NOVEL LOW TEMPERATURE IP-PROTECTED METHOD FOR PRODUCING LITHIUM SULFIDE DEVELOPED IN PARTNERSHIP BETWEEN STANDARD LITHIUM AND TELESCOPE INNOVATIONS LITHIUM PRODUCTS FROM STANDARD LITIHIUM’S ARKANSAS DEMONSTRATION PLANT USED TO MAKE NEXT GENERATION LITHIUM SULFIDE PRODUCT FOR USE IN SOLID STATE BATTERIES VANCOUVER, British Columbia, June 03, 2025 (GLOBE NEWSWIRE) -- Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV:SLI) (NYSE American:SLI), a leading near-commercial lithium company, i ...

Core Insights - The Arkansas Oil and Gas Commission has approved a 2.5% royalty rate for lithium extraction from brine, marking a significant milestone for lithium development in Arkansas [1][2][3] Company Overview - Standard Lithium is a leading near-commercial lithium development company focused on sustainable lithium-brine properties in the U.S., particularly in Arkansas and Texas [4] - The company aims for commercial-scale lithium production using a Direct Lithium Extraction process [4] - Standard Lithium is partnered with Equinor to advance the South West Arkansas project, which is a greenfield initiative [4][6] Project Details - The Reynolds Unit of the South West Arkansas Project is expected to have a production capacity of 22,500 tonnes per year of battery-quality lithium carbonate, with full commercial production anticipated by 2028 [3] - The total proposed royalty compensation for brine owners, including the brine fee, is approximately 3% based on current lithium prices [2] Industry Context - The approval of the royalty rate establishes a precedent for other lithium development companies operating in Arkansas, potentially encouraging further investment in the sector [1][3]

Core Viewpoint - 2025 is identified as a pivotal year for Standard Lithium, with significant milestones expected to shape the company's future and the lithium industry as a whole [2] Financial and Operational Highlights - The company finalized a $225 million grant from the U.S. Department of Energy to support the South West Arkansas Project [2][5] - Cash and working capital stood at $31.6 million and $31.3 million, respectively, as of March 31, 2025, with no term or revolving debt obligations [11] Project Developments - The South West Arkansas Project received special designation as a critical mineral production project under Executive Order 14241 [5] - Approval was granted for the brine production unit, named the Reynolds Unit, for Phase I of the South West Arkansas Project [5] - A royalty application was submitted to establish a lithium royalty for the Reynolds Unit [5] - Extensive field and reservoir testing was conducted, including drilling new wells and re-entering existing ones for detailed reservoir testing [5] - The final test of the field-pilot plant at the South West Arkansas Project demonstrated over 99% lithium recovery from brine [5] Strategic Initiatives - The company launched Smackover Lithium as the new name for its joint venture with Equinor, focusing on DLE projects in Southwest Arkansas and East Texas [5] - Continuous strategic additions to the board of directors were made, including the appointment of Karen G. Narwold as an independent member [5]

Core Viewpoint - Smackover Lithium, a joint venture between Standard Lithium and Equinor, has applied for a lithium royalty in Arkansas, which is crucial for the success of its South West Arkansas Project [1][3]. Group 1: Royalty Application Details - SWA Lithium LLC has submitted an application to the Arkansas Oil and Gas Commission to establish a lithium royalty for the Reynolds Unit, with a hearing scheduled for May 28, 2025 [1]. - The proposed royalty is set at 2.5% of the total lithium produced, based on the average FastMarkets North American Index Price for technical grade lithium carbonate, which is competitive compared to global projects [2]. - The total proposed royalty compensation, including a brine fee of $65.05 per acre per year, amounts to approximately 3% based on current lithium prices [2]. Group 2: Economic Impact and Project Development - The establishment of a fair royalty is seen as essential for the project's success, providing generous compensation to brine owners and encouraging resource development [3]. - The proposed royalty rate is expected to facilitate capital investment, infrastructure improvements, job creation, and tax revenue, benefiting the Smackover region and Arkansas as a whole [3]. Group 3: Company Background - Standard Lithium is focused on sustainable lithium development, with a portfolio of high-grade lithium-brine properties in the U.S., particularly in Arkansas and Texas [4]. - The company aims for commercial-scale lithium production through a Direct Lithium Extraction process and is advancing the South West Arkansas project in partnership with Equinor [4]. - Equinor is committed to long-term value creation in a low-carbon future, with a diverse portfolio that includes oil, gas, renewables, and low-carbon solutions [6].

Core Insights - Smackover Lithium's South West Arkansas Project has been designated as a priority under Executive Order 14241, highlighting its strategic importance for national security and energy independence [1][2] - The project is one of only three domestic lithium initiatives and the sole Direct Lithium Extraction project included in the initial selected projects list, indicating strong federal support [2][3] - The project aims to enhance domestic lithium production, reduce reliance on China, and create high-quality jobs while ensuring environmentally responsible development [3][5] Company Overview - Standard Lithium is focused on sustainable lithium development, with a portfolio of high-grade lithium-brine properties in the U.S., particularly in Arkansas and Texas [5] - The company employs a Direct Lithium Extraction process to achieve commercial-scale lithium production, positioning itself as a leader in the critical minerals sector [5] - Standard Lithium is partnered with Equinor to advance the South West Arkansas project, which is a greenfield initiative aimed at bolstering domestic lithium supply [5][7] Project Details - The SWA Project has been included on the Federal Permitting Dashboard, ensuring increased transparency and predictability in the permitting process [2] - The project is supported by the Department of Energy's Office of Manufacturing and Energy Supply Chains, marking it as a significant initiative in the U.S. critical minerals landscape [2][3] - The streamlined permitting process is expected to enhance the project development timeline, facilitating the delivery of a sustainable lithium source [3]

Financial Data and Key Metrics Changes - For the three months ended December 31, 2024, the company reported a net loss of $24.7 million, primarily driven by an impairment of California assets [25] - The company reduced the carrying value of California properties to zero, resulting in a $19.7 million impairment expense [26] - General and administrative expenses decreased to approximately $2.7 million from $6.8 million, demonstrating a significant reduction in corporate overhead [27] - The company closed 2024 with a working capital balance of approximately $27.5 million and cash of approximately $31.2 million [28] Business Line Data and Key Metrics Changes - The company has shifted focus towards its highest grade and highest potential return projects in Southwest Arkansas and East Texas, ceasing material future capital expenditures towards California properties [26] - The demonstration plant expenses decreased from approximately $2 million to $0.8 million, reflecting improved operational efficiency [27] Market Data and Key Metrics Changes - The company has commenced a rigorous project finance and customer offtake selection process for the first phase of the Southwest Arkansas project, indicating a proactive approach to securing funding and partnerships [11] - The East Texas assets have shown the highest lithium concentrations per liter of brine in the company's portfolio, with a significant area of interest identified [13] Company Strategy and Development Direction - The company aims to prioritize resources and activities that will produce the highest returns for shareholders, focusing on the most economic resources in Southwest Arkansas and East Texas [14] - A strategic partnership with Equinor has been established to accelerate progress and enhance project development [6][7] - The company plans to use the demonstration plant in Union County as a testbed for technology development and process improvement [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the support received from local, state, and federal leadership regarding the Southwest Arkansas project [11] - The company anticipates a positive outcome regarding the Arkansas royalty rate by the end of the second quarter of 2025 [42] - Despite uncertainties in pricing and demand, the company remains committed to advancing asset development with a focus on operational efficiency [34] Other Important Information - The company has finalized a $225 million DOE grant, which is seen as a significant vote of confidence for the Southwest Arkansas project [10] - The company has identified an area of interest spanning over 185,000 acres in East Texas, with plans to publish a maiden inferred resource report in the third quarter of 2025 [12][13] Q&A Session Summary Question: Potential benefits from the US administration's executive order on increasing American mineral production - Management views the executive order positively, believing it may facilitate regulatory approvals and open avenues for additional funding [37] Question: Expected timeline for the final outcome on the Arkansas royalty structure - Management is confident of a positive outcome by the end of the second quarter of 2025 [42] Question: Status of the Lanxess project - Management indicated that while the Lanxess project remains important, the focus is currently on developing higher-grade resources in Southwest Arkansas and East Texas [44] Question: Scope of potential offtake agreements - The company initially approached around 40 potential counterparties for offtake agreements, narrowing down to advanced discussions with several key players [51] Question: Impact of learnings from Southwest Arkansas on East Texas projects - Management aims to leverage institutional knowledge and relationships developed in Southwest Arkansas to streamline project development in East Texas [58]

Core Viewpoint - Standard Lithium Ltd. is making significant progress in advancing its corporate objectives and derisking its projects, particularly focusing on the South West Arkansas (SWA) Project in partnership with Equinor and Koch Technology Solutions [3][5]. Corporate Updates - The company is prioritizing the execution of the SWA Project, which aims for an initial production capacity of 22,500 tonnes per year of battery-quality lithium carbonate [5]. - A rigorous project finance and off-take process has commenced for the SWA Project, with a banking advisor selected to lead this initiative, expected to conclude in Q3 and Q4 of 2025 [5]. - The Smackover Lithium Joint Venture (JV) with Equinor is actively expanding its mineral leasing program in East Texas, now covering a total area of 185,000 acres [5]. - The first project area in East Texas, approximately 67,000 acres centered on Franklin County, has been identified, with the highest known lithium brine grades in North America reported at a maximum of 806 mg/L [5]. - The company plans to publish a maiden Inferred Resource Report for this lithium resource in Q3 of 2025 [5]. - The Demonstration Plant in Union County is being utilized for technology development and to demonstrate the Direct Lithium Extraction (DLE) technology for the SWA Project [5]. - While commercial development at the Lanxess Projects is not ruled out, the company's primary focus remains on the SWA Project and East Texas JV opportunities [5]. Company Overview - Standard Lithium is a near-commercial lithium development company focused on sustainable development of high-grade lithium-brine properties in the U.S., particularly in Arkansas and Texas [6]. - The company aims for sustainable, commercial-scale lithium production through a scalable and fully integrated DLE and purification process [6].

Core Viewpoint - Standard Lithium Ltd. is progressing towards a final investment decision and construction of its South West Arkansas project, supported by a $225 million grant from the U.S. Department of Energy, while also expanding its leasehold in East Texas [2][5]. Financial and Operational Highlights - The company finalized a $225 million grant from the U.S. Department of Energy for the South West Arkansas project, which will support the construction of Phase 1 [5]. - Extensive field and reservoir testing at the South West Arkansas project demonstrated better reservoir properties than previously assumed [2][5]. - The company achieved over 99% lithium recovery from brine during pilot field testing of its Direct Lithium Extraction (DLE) technology [5]. - A commercial-scale DLE column was installed and has been operating continuously, achieving a lithium recovery efficiency of 95.4% [5]. Strategic Developments - The company launched a joint venture named Smackover Lithium with Equinor to develop DLE projects in Southwest Arkansas and East Texas [5]. - A license agreement was entered into with Koch Technology Solutions to utilize their Li-Pro Lithium Selective Sorption technology for the SWA project [5]. - The company made strategic additions to its board of directors, including the appointment of Karen G. Narwold as an independent member [5][6]. Financial Position - As of December 31, 2024, the company reported cash and working capital of $31.2 million and $27.5 million, respectively, with no term or revolving debt obligations [12].

Core Viewpoint - Standard Lithium Ltd. has appointed Karen G. Narwold as an independent member of its board of directors, bringing over 30 years of executive leadership experience in the manufacturing and chemicals sector, particularly in lithium production [1][2]. Company Overview - Standard Lithium is a near-commercial lithium development company focused on sustainable development of high-grade lithium-brine properties in the United States, particularly in the Smackover Formation located in Arkansas and Texas [4]. - The company aims to achieve commercial-scale lithium production through a scalable and fully integrated Direct Lithium Extraction (DLE) and purification process [4]. - Standard Lithium is advancing several key projects, including the South West Arkansas project in partnership with Equinor and the Phase 1A project with LANXESS Corporation [4]. Board Member Profile - Karen G. Narwold has extensive experience in legal, governance, regulatory affairs, and operational matters, having previously served as Chief Administrative Officer and General Counsel at Albemarle Corporation [2]. - Narwold is NACD Directorship Certified® and holds degrees in political science and law from the University of Connecticut [3].

Core Insights - Smackover Lithium, a joint venture between Standard Lithium and Equinor, has successfully completed a critical technical milestone for the South West Arkansas project, confirming the engineering design for commercialization [1][3] - The DLE field-pilot plant achieved over 99% lithium recovery from brine, significantly exceeding the design criteria of 95% [4] - Large volumes of DLE product have been sent to third-party vendors for conversion into battery-quality lithium carbonate, which will be used in the qualification process with potential off-take partners [1][4] Company Overview - Standard Lithium is focused on sustainable lithium development, operating a large-scale Demonstration Plant in Arkansas, processing over 28 million gallons of Smackover brine [3][8] - The company aims to achieve commercial-scale lithium production through a fully integrated Direct Lithium Extraction and purification process [8] - Smackover Lithium, formed in May 2024, is developing two DLE project companies in southwest Arkansas and east Texas, with Standard Lithium holding a 55% interest [6][8] Technical Achievements - The DLE field-pilot plant processed over 2,385 barrels (100,170 gallons) of brine and completed over 497 DLE cycles [4] - Approximately 970 gallons (3,672 liters) of concentrated lithium chloride solution (6% LiCl) has been produced and sent to three potential carbonate equipment vendors [4] - The vendors are expected to produce around 27 kg of battery-quality lithium carbonate by May 2025 [4]