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]

Project Update - SWA Lithium, a joint venture between Standard Lithium Ltd and Equinor ASA, has successfully commenced drilling a new well named Lester-1 into the Smackover Formation at the South West Arkansas Project [1] - The well is currently at a depth of approximately 8,000 feet (2,438 meters) with a targeted total depth of 9,600 feet (2,926 meters) [1] - The drilling aims to retrieve core samples from the Upper, Middle, and Lower Smackover Formation limestone for reservoir testing and brine sampling [2] - The data gathered from Lester-1 will inform the Front End Engineering Design (FEED) and Definitive Feasibility Studies (DFS) expected to be completed by mid-2025 [2][6] Field Program - SWA Lithium is conducting an extensive field program at four wells in the proposed first area of operation, including well re-entry, hydraulic testing, and brine sampling [5] - Reservoir properties have shown better performance than previously gathered in the preliminary feasibility study, with higher lithium concentrations in brine samples [5] - Large volumes of brine have been collected from the International Paper Company (IPC-1) for field-based pilot testing [5] Company Overview - Standard Lithium is a near-commercial lithium development company focused on sustainable lithium-brine projects in the US, particularly in the Smackover Formation [8] - The company prioritizes high-grade resources, robust infrastructure, and streamlined permitting for its projects [8] - Standard Lithium is developing the SWA Project in a 55:45 joint venture with Equinor and has identified additional prospective lithium brine areas in East Texas [9] Industry Context - Equinor, a partner in the SWA Lithium joint venture, is an international energy company with a portfolio including oil and gas, renewables, and low-carbon solutions [11] - Equinor aims to become a net-zero energy company by 2050 and is leveraging its US energy portfolio to support Direct Lithium Extraction (DLE) projects [11]

Core Insights - SWA Lithium, a joint venture between Standard Lithium and Equinor, has successfully designed, built, and is now operating a pilot Direct Lithium Extraction (DLE) facility in Arkansas to confirm engineering designs for the South West Arkansas Project [1][2] - The pilot plant is processing brine from the SWA Project and will produce battery-quality lithium carbonate samples for qualification with potential off-take partners [1][2] Company Developments - The pilot DLE plant utilizes real-time brine from the IPC well and employs the same flowsheet as the planned commercial lithium facility, producing an intermediate lithium chloride solution [2] - Approximately 1,000 gallons (3,785 liters) of a 6% lithium chloride solution is expected to be produced, which will be sent to three vendors for conversion into battery-quality lithium carbonate [3] - The produced lithium carbonate will be used for initial qualification phases with potential off-take partners and to inform vendor selection for the commercial facility [3] Strategic Partnerships - The collaboration with Koch Technology Solutions (KTS) has been crucial for the engineering design and optimization of the commercial facility [3] - The pilot plant's success reflects the commitment to local partnerships, particularly with Mission Creek Resources LLC [3] Future Outlook - The pilot DLE plant's operation is expected to continue until late January 2025, after which sufficient operational experience and design data will be gathered [3] - The project aims to become the first new lithium-from-brine operation in North America in over 50 years, highlighting its significance in the lithium industry [3]

Core Insights - SWA Lithium, a joint venture between Standard Lithium and Equinor, has successfully designed, built, and is now operating a pilot Direct Lithium Extraction (DLE) facility in Arkansas to confirm engineering designs for the South West Arkansas Project [1][2] - The pilot DLE plant is processing brine from the SWA Project to produce battery-quality lithium carbonate samples for qualification with potential off-take partners [1][2] Company Developments - The pilot DLE plant utilizes real-time brine from the IPC well, employing the same flowsheet as the planned commercial lithium facility [2] - Approximately 1,000 gallons (3,785 liters) of a 6% lithium chloride solution is expected to be produced, which will be sent to three vendors for conversion into battery-quality lithium carbonate [3][4] - The produced lithium carbonate will be used for initial qualification phases with potential off-take partners and to inform vendor selection for the commercial facility [3] Technology and Collaboration - The pilot plant employs KTS Li-Pro™ Lithium Selective Sorption technology, reflecting the collaboration with Koch Technology Solutions [3] - The ongoing operation of the pilot DLE plant is expected to continue until late January 2025, gathering sufficient operational experience and design data [3] Strategic Goals - The project aims to become the first new lithium-from-brine operation in North America in over 50 years, highlighting the commitment to local partnerships and community engagement [3] - The company is focused on sustainable, commercial-scale lithium production through a fully-integrated DLE and purification process [10]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a net loss of $4.8 million, or $0.03 per basic share, compared to a net loss of $7.3 million, or $0.04 per basic share in Q1 2024, indicating a reduction in net loss driven by operational efficiencies [19][20] - General and administrative expenses were reduced by approximately $0.2 million, despite an increase in back-office activities and a larger executive team [20] - Share-based compensation expenses decreased by approximately $1.1 million due to changes in compensation structures aimed at long-term value creation [21] Business Line Data and Key Metrics Changes - The company is focused on advancing its largest and highest-grade projects within the SMACOVER formation, with a key derisking event being the agreement with Koch Technology Solutions for the deployment of Li-Pro LSS technology [11][12] - The demonstration plant in Arkansas has run nearly 10,000 operational cycles, achieving lithium recoveries consistently exceeding 95% [13] Market Data and Key Metrics Changes - In East Texas, recent drill results yielded lithium concentrations up to 806 milligrams per liter, with an average concentration of 644 milligrams per liter, indicating significant resource potential [16] Company Strategy and Development Direction - The company aims to evolve from a developer to a producer, delivering a low-cost, environmentally-friendly domestic source of lithium to meet global energy transition needs [6][7] - The focus is on securing necessary funding through various means, including offtake agreements, low-cost project debt, and a conditional $225 million grant from the Department of Energy [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in securing a satisfactory resolution regarding the Arkansas royalty process by midyear, which should not impact project schedules [32] - The company remains focused on derisking and advancing its portfolio of projects despite uncertainties in lithium demand and pricing [26][28] Other Important Information - The company has converted its reporting currency from Canadian dollars to U.S. dollars to align with its U.S.-focused operations and improve comparability with peers [18] Q&A Session Summary Question: Next steps regarding the Arkansas royalty process - Management expressed disappointment over the initial application rejection but remains confident in a satisfactory resolution by midyear, which should not impact project schedules [32] Question: Update on the DOE award - Management indicated that finalizing the DOE grant is a high priority and both parties are motivated to complete it by year-end, with confidence in finalization by mid-January [33] Question: Insights on the royalty structure rejection - Management noted that the rejection was due to a need for more clarity on benchmarking against other jurisdictions and additional background information [37] Question: Structure and timing of the DOE grant - The DOE grant is a conditional award that does not require repayment, and management is currently negotiating terms and conditions [40] Question: Update on potential offtake customers - The company is engaged in informal discussions with potential offtakers and plans to initiate a more structured dialogue to establish firm offtake agreements [46] Question: Implications of potential future lithium price increases - Management expects that improved pricing would facilitate future capital raises but does not anticipate changes to capital costs or project cost structures [53]