Highlighted by 2.2M tonnes of Lithium Carbonate Equivalent (“LCE”) at an average lithium grade of 668 mg/L, 15.4M tonnes of potash and 2.6M tonnes of bromide at the Inferred Resource CategoryLEWISVILLE, Ark., Sept. 24, 2025 (GLOBE NEWSWIRE) -- Smackover Lithium, a Joint Venture (“JV”) between Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV: SLI) (NYSE.A: SLI) and Equinor (“Equinor”) (OSE: EQNR) (NYSE: EQNR), announced today a maiden inferred resource for its Franklin Project (the “Project” ...

Standard Lithium Ltd. (NYSEAMERICAN:SLI) is one of the Best Mining Stocks to Buy According to Hedge Funds. On September 4, Raymond James lifted the price objective on the company’s stock to $4.00 from $2.75, while maintaining an “Outperform” rating. The firm believes that the increasing maturation of Standard Lithium Ltd. (NYSEAMERICAN:SLI)’s projects as well as model adjustments are the key factors responsible for the increased valuation. Notably, the firm sees the company as a leader in Direct Lithium Ex ...

Core Viewpoint - The Definitive Feasibility Study (DFS) for the Smackover Lithium project indicates robust economic potential, with a projected unlevered pre-tax Internal Rate of Return (IRR) of 20.2% and a Net Present Value (NPV) of $1.7 billion, confirming the project's status as a world-class asset for lithium production in the United States [4][6][9]. Project Overview - Smackover Lithium is a joint venture between Standard Lithium (55% ownership) and Equinor (45%), focused on developing a lithium extraction facility in southwestern Arkansas, covering approximately 30,000 acres of brine leases [5][64]. - The project aims to produce 22,500 tonnes per annum (tpa) of battery-quality lithium carbonate, marking the first commercial lithium production in the Smackover Formation, with initial production targeted for 2028 [6][17]. Economic Highlights - The DFS estimates an unlevered pre-tax NPV of $1.7 billion and an IRR of 20.2%, based on a lithium carbonate price of $22,400 per tonne [6][9]. - Average cash operating costs are projected at $4,516 per tonne, with all-in costs estimated at $5,924 per tonne [31][33]. - Total capital expenditures (CAPEX) are estimated at $1.45 billion, including a 12.3% contingency [6][27]. Resource Assessment - The total Measured and Indicated Resource is estimated at 1,177,000 tonnes lithium carbonate equivalent (LCE) at an average concentration of 442 mg/L, with Proven Reserves of 447,000 tonnes LCE at an average concentration of 481 mg/L [39][44][50]. - The project has a minimum operating life of 20 years, with potential for significant expansion based on resource modeling [6][8]. Development Timeline - The project is targeting a Final Investment Decision (FID) by the end of 2025, with construction expected to commence in 2026 and first production in 2028 [17][61]. Environmental and Regulatory Considerations - The project has received a $225 million grant from the U.S. Department of Energy, necessitating compliance with the National Environmental Policy Act (NEPA), with an environmental assessment already initiated [57][59]. - The project has strong support from local communities and government entities, enhancing its prospects for timely permitting and development [59].

Company Overview - Standard Lithium Ltd. is a leading near-commercial lithium development company focused on sustainable development of high-grade lithium-brine properties in the United States [3] - The company aims for sustainable, commercial-scale lithium production using a scalable and fully integrated Direct Lithium Extraction and purification process [3] - Key projects are located in the Smackover Formation in Arkansas and Texas, with a partnership with Equinor ASA on the South West Arkansas project [3] Leadership Appointment - Michael Lutgring has been appointed as General Counsel effective August 18, 2025 [1] - Lutgring brings over two decades of legal and strategic advisory experience, previously serving as Vice President and Deputy General Counsel at Albemarle Corporation [2] - His experience includes leading legal support for global supply chain operations and playing a pivotal role in significant corporate initiatives, including a $6.2 billion acquisition and a $3.2 billion divestiture [2]

Financial Data and Key Metrics Changes - For the second quarter ended June 30, 2025, the company reported a net loss of approximately $4 million compared to a net gain of $128.3 million during the same quarter in 2024, primarily due to a one-time gain from the sale of a 45% interest in two project areas in 2024 [11][12] - General and administrative expenses decreased by $4.5 million, reflecting cost-sharing with joint ventures and strong corporate cost management [12] - The company ended the quarter with strong cash and working capital positions of $33.8 million and £30.6 million respectively [13][14] Business Line Data and Key Metrics Changes - The company completed all planned fieldwork for the first phase of the Southwest Arkansas project, achieving a lithium concentration of 660 mg/L from the Leicester well, the highest recorded to date [9] - Phase one of the Southwest Arkansas project plans for 22,500 tonnes per year of battery-quality lithium carbonate, with first production expected in 2028 [10] Market Data and Key Metrics Changes - The Southwest Arkansas project was selected as one of the first critical mineral production projects under Executive Order 14,241, which aims to increase American mineral production [5] - The company received a $225 million grant from the DOE's Office of Manufacturing and Energy Supply Chains, reinforcing its project development timeline [6] Company Strategy and Development Direction - The company is focused on advancing lithium development projects in partnership with Equinor, with a final investment decision targeted by the end of 2025 [4][16] - The company is also exploring next-generation battery materials, having developed a new process for producing battery-quality lithium sulfide [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the critical milestones achieved in the second quarter and the support from local and federal governments for securing critical minerals production in the U.S. [16] - The company believes it is well-positioned to deliver significant value to shareholders and communities as it progresses towards a final investment decision [16] Other Important Information - The company strengthened its senior management team with two new VP hires, enhancing its capabilities and execution of growth strategy [7] Q&A Session Summary Question: Regarding DOE funding opportunities - Management indicated ongoing support from the DOE and the White House for direct lithium extraction projects, but it is premature to comment on specific funding avenues [19][20] Question: Details on remaining milestone payments - The milestone payments from Equinor are $40 million for Southwest Arkansas and $30 million for East Texas, which will be used to fund the company's share of the projects [21][23] Question: Future expenditures related to Southwest Arkansas - Management expects to be fully funded for commitments prior to FID at Southwest Arkansas through existing cash, Equinor funding, and prudent use of the ATM program [24] Question: Offtake agreements and pricing discussions - The company is in discussions with multiple parties regarding offtake agreements, focusing on both structure and pricing mechanisms, with confidence in concluding discussions by Q4 [43][44] Question: Updates on geological modeling and resource mapping - Management stated that drilling work has refined their understanding of the resource position, with a maiden resource report expected to provide further insights [46][49] Question: Debt financing discussions - Discussions with export credit agencies and commercial banks are progressing well, with confidence in achieving the previously indicated debt financing range [53][54]

Core Viewpoint - Standard Lithium Ltd. has made significant progress in its lithium development projects, particularly the South West Arkansas (SWA) Project, and is on track for a Final Investment Decision by the end of 2025 [2][7]. Financial and Operational Highlights - As of June 30, 2025, the company reported cash and working capital of $33.8 million and $30.6 million, respectively, with no term or revolving debt obligations [13]. - The Arkansas Oil and Gas Commission approved a 2.5% royalty rate for Phase I of the SWA Project, marking a precedent for lithium development in Arkansas [4]. - The SWA Project achieved the highest lithium concentration reported to date from the area, with a sample showing 616 mg/L lithium in brine [3]. Project Development Milestones - The company completed all fieldwork for the first phase of the SWA Project and is advancing discussions on off-take and project financing [2]. - A Definitive Feasibility Study for the SWA Project and a Maiden Inferred Resource Report for East Texas properties are expected to be released in the third quarter of 2025 [3]. - The SWA Project received special designation as a critical mineral production project under Executive Order 14241, emphasizing its importance to U.S. mineral production [5]. Management and Strategic Developments - The company strengthened its senior management team with new appointments, including Daniel Rosen as Vice President of Strategy and Investor Relations and Tim Sobel as Vice President of Health, Safety, Social and Environment [8]. - Standard Lithium is advancing next-generation solid-state battery materials in partnership with Telescope Innovations Corp., utilizing a new conversion process for lithium hydroxide [6].

[Condensed Consolidated Interim Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statements of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) Total assets increased by **$15.9 million** to **$275.4 million** by June 30, 2025, with shareholders' equity also rising by **$15.8 million** | Metric | Dec 31, 2024 (in thousands) | Jun 30, 2025 (in thousands) | Change (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Total Assets | $259,496 | $275,399 | +$15,903 | | Current Assets | $33,305 | $37,443 | +$4,138 | | Non-current Assets | $226,191 | $237,956 | +$11,765 | | Total Liabilities | $31,439 | $31,547 | +$108 | | Shareholders' Equity | $228,057 | $243,852 | +$15,795 | | Cash | $31,177 | $33,787 | +$2,610 | | Investment in Joint Ventures | $146,158 | $152,164 | +$6,006 | | Financial asset - FID | $48,138 | $51,421 | +$3,283 | [Condensed Consolidated Interim Statements of Comprehensive (Loss) Income](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Comprehensive%20%28Loss%29%20Income) The company reported a **net loss of $6.5 million** for the six months ended June 30, 2025, a significant shift from **$120.6 million net income** in 2024, primarily due to the absence of a large deconsolidation gain | Metric (Six months ended June 30) | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------ | :------------------ | :-------------------- | | Net (loss) income | $(6,532) | $120,606 | $(127,138) | | Basic (loss) earnings per share | $(0.03) | $0.67 | $(0.70) | | Diluted (loss) earnings per share | $(0.03) | $0.66 | $(0.69) | | Loss from operations | $11,658 | $18,107 | $(6,449) | | Gain on deconsolidation of subsidiaries | $— | $164,099 | $(164,099) | | Fair value gain on financial asset - FID | $3,283 | $391 | +$2,892 | | Investment loss from Joint Ventures | $(2,244) | $(158) | $(2,086) | [Condensed Consolidated Interim Statements of Changes in Equity](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) Total equity increased by **$15.8 million** to **$243.9 million** by June 30, 2025, driven by share issuances and compensation, partially offset by a net loss | Metric (Six months ended June 30) | Dec 31, 2024 (in thousands) | Jun 30, 2025 (in thousands) | Change (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Total equity | $228,057 | $243,852 | +$15,795 | | Share capital | $235,782 | $254,832 | +$19,050 | | Reserves | $36,040 | $38,313 | +$2,273 | | Accumulated deficit | $(37,849) | $(44,381) | $(6,532) | | Shares issued under ATM (gross proceeds) | $12,706 (2024) | $18,484 (2025) | +$5,778 | | Share-based compensation | $3,251 (2024) | $3,286 (2025) | +$35 | [Condensed Consolidated Interim Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Overall cash increased by **$2.6 million** to **$33.8 million** by June 30, 2025, driven by increased financing from share issuances, despite higher investing cash outflows | Metric (Six months ended June 30) | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------ | :------------------ | :-------------------- | | Net cash used in operating activities | $(7,040) | $(9,054) | +$2,014 | | Net cash (used in) provided by investing activities | $(8,239) | $23,594 | $(31,833) | | Net cash provided by financing activities | $17,859 | $12,365 | +$5,494 | | Net change in cash | $2,610 | $26,977 | $(24,367) | | Cash, end of period | $33,787 | $38,667 | $(4,880) | | Joint Venture capital contributions | $(8,250) | $— | $(8,250) | | Proceeds from issuance of shares | $18,484 | $12,706 | +$5,778 | [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20STATEMENTS) [1. Nature of Operations](index=6&type=section&id=1.%20Nature%20of%20Operations) Standard Lithium Ltd. explores and develops US lithium brine properties, with significant joint venture investments, and its shares are listed on TSXV and NYSE American - Principal operations: Exploration and development of lithium brine properties in the USA[9](index=9&type=chunk) - Significant investments in two joint venture arrangements for lithium brine projects and production facilities[9](index=9&type=chunk) - Common shares listed on TSX Venture Exchange (TSXV) and NYSE American, LLC under symbol "SLI"[9](index=9&type=chunk) [2. Basis of Presentation](index=6&type=section&id=2.%20Basis%20of%20Presentation) Interim financial statements are prepared under IAS 34, supplementing annual IFRS, with a fiscal year-end change to December 31 and retrospective presentation currency shift from CAD to USD [Statement of compliance](index=6&type=section&id=Statement%20of%20compliance) The interim financial statements are prepared in accordance with IAS 34 and IFRS Accounting Standards, on a going concern basis - Prepared in accordance with IAS 34, Interim Financial Reporting[10](index=10&type=chunk) - Should be read in conjunction with audited consolidated financial statements for the six-month fiscal period ended December 31, 2024, prepared under IFRS Accounting Standards[10](index=10&type=chunk)[11](index=11&type=chunk) - Prepared on a going concern basis[11](index=11&type=chunk) [Basis of presentation (currency, functional currency)](index=6&type=section&id=Basis%20of%20presentation%20%28currency%2C%20functional%20currency%29) Financial statements are presented in USD; Standard Lithium's functional currency is CAD, subsidiaries' is USD, with foreign currency items translated at reporting date rates - Presented in United States dollar (USD)[13](index=13&type=chunk) - Functional currency of Standard Lithium is Canadian dollar (CAD), while functional currency of all subsidiaries is USD[13](index=13&type=chunk) - Foreign currency denominated monetary assets and liabilities are translated using the rate of exchange prevailing at the reporting date, with gains or losses included in earnings[13](index=13&type=chunk) [Change in fiscal year-end](index=7&type=section&id=Change%20in%20fiscal%20year-end) Fiscal year-end changed from June 30 to December 31, 2024, to align reporting with business management - Fiscal year-end changed from June 30 to December 31, effective November 18, 2024[14](index=14&type=chunk) - Reason for change: To align reporting cycle with business management[14](index=14&type=chunk) [Change in presentation currency](index=7&type=section&id=Change%20in%20presentation%20currency) Presentation currency changed retrospectively from CAD to USD, effective July 1, 2024, due to USD-denominated assets/liabilities and industry consistency - Presentation currency changed from CAD to USD, effective July 1, 2024, applied retrospectively[15](index=15&type=chunk) - Reason for change: Most significant assets and liabilities are USD-denominated, and for consistency with peer companies in the mining industry[15](index=15&type=chunk) - Amounts for June 30, 2024, and prior periods were remeasured in USD based on average rates[17](index=17&type=chunk) [Critical accounting estimates and judgments](index=7&type=section&id=Critical%20accounting%20estimates%20and%20judgments) Financial statements require management judgments, estimates, and assumptions, continuously evaluated, though actual results may differ - Preparation of financial statements requires management judgments, estimates, and assumptions[18](index=18&type=chunk) - Estimates are continuously evaluated based on experience and expectations of future events[18](index=18&type=chunk) - Actual results may differ from these estimates[18](index=18&type=chunk) [3. Summary of Material Accounting Policies](index=7&type=section&id=3.%20Summary%20of%20Material%20Accounting%20Policies) Significant accounting policies in these interim financial statements are consistent with those disclosed in the consolidated financial statements for the six-month fiscal period ended December 31, 2024 - Significant accounting policies are consistent with those disclosed in the consolidated financial statements for the six-month fiscal period ended December 31, 2024[20](index=20&type=chunk) [4. Deconsolidation of Subsidiaries](index=7&type=section&id=4.%20Deconsolidation%20of%20Subsidiaries) Standard Lithium deconsolidated SWA Lithium and Texas Lithium on May 7, 2024, after Equinor acquired a 45% interest, recognizing a **$164.1 million** gain and now using the equity method | Metric (Three and six months ended June 30, 2024) | Amount (in thousands) | | :------------------------------------------------ | :-------------------- | | Fair value consideration received | $30,000 | | Financial asset – FID | $46,695 | | Fair value of investment | $147,023 | | Less: net assets | $(59,619) | | Gain on deconsolidation of subsidiaries | $164,099 | - Equinor acquired a 45% interest in SWA Lithium and Texas Lithium on May 7, 2024, leading to their deconsolidation[21](index=21&type=chunk)[22](index=22&type=chunk) - The Company retained a 55% interest and now accounts for these as joint ventures using the equity method[22](index=22&type=chunk)[24](index=24&type=chunk) [5. Equity Method Investment in Joint Ventures](index=8&type=section&id=5.%20Equity%20Method%20Investment%20in%20Joint%20Ventures) Investment in joint ventures increased to **$152.2 million** by June 30, 2025, from **$146.2 million**, primarily due to capital contributions, despite a **$2.2 million** loss | Metric (Six months ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Balance, December 31, 2024 | $146,158 | N/A | | Capital contributions | $8,250 | $— | | Loss from investment in Joint Ventures | $(2,244) | $(158) | | Balance, June 30, 2025 | $152,164 | N/A | | Company's share of net loss (6 months) | $2,244 | $158 | - Equinor agreed to solely fund the first **$40.0 million** and **$20.0 million** of development costs for SWA Lithium and Texas Lithium, respectively[26](index=26&type=chunk) - Standard Lithium is to receive **$40.0 million** and **$30.0 million** in milestone payments for SWA Lithium and Texas Lithium, respectively, contingent on final investment decisions[26](index=26&type=chunk) [6. Investment in Aqualung](index=9&type=section&id=6.%20Investment%20in%20Aqualung) Equity investment in Aqualung increased to **$5.4 million** by June 30, 2025, from **$2.3 million**, primarily due to a **$2.8 million** fair value gain from an Aqualung equity transaction | Metric (in thousands) | Dec 31, 2024 | Jun 30, 2025 | Change | | :-------------------- | :----------- | :----------- | :----- | | Balance | $2,335 | $5,350 | +$3,015 | | Effect of change in fair value | N/A | $2,752 | +$2,752 | | Effect of foreign exchange translation | N/A | $263 | +$263 | - Aqualung is a privately held entity developing carbon capture technology[28](index=28&type=chunk)[29](index=29&type=chunk) - Investment classified as a financial asset measured at fair value through profit or loss[28](index=28&type=chunk) - Fair value gain of **$2.8 million** recorded during the six months ended June 30, 2025, primarily due to an equity transaction by Aqualung[29](index=29&type=chunk) [7. Exploration and Evaluation Assets](index=10&type=section&id=7.%20Exploration%20and%20Evaluation%20Assets) Exploration and evaluation assets remained stable, increasing slightly from **$26.446 million** to **$26.452 million** by June 30, 2025, with minor evaluation costs | Metric (in thousands) | Dec 31, 2024 | Jun 30, 2025 | Change | | :-------------------- | :----------- | :----------- | :----- | | Commercial Plant Evaluation (Lanxess 1A) | $6,000 | $6,000 | $0 | | Exploration and Evaluation | $20,446 | $20,452 | +$6 | | Total | $26,446 | $26,452 | +$6 | [8. Demonstration Plant](index=10&type=section&id=8.%20Demonstration%20Plant) Operating costs for the DLE Demonstration Plant decreased for the three and six months ended June 30, 2025, primarily due to lower personnel and test work expenses | Cost Category (in thousands) | 3 months ended Jun 30, 2025 | 3 months ended Jun 30, 2024 | 6 months ended Jun 30, 2025 | 6 months ended Jun 30, 2024 | | :--------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Personnel | $842 | $1,265 | $1,488 | $2,278 | | Reagents | $18 | $4 | $40 | $17 | | Repairs and maintenance | $25 | $8 | $56 | $18 | | Supplies | $204 | $419 | $302 | $711 | | Test work | $6 | $240 | $9 | $342 | | Office trailer | $16 | $27 | $23 | $44 | | Other | $26 | $46 | $74 | $65 | | **Total costs** | **$1,137** | **$2,009** | **$1,992** | **$3,475** | [9. Share Capital](index=11&type=section&id=9.%20Share%20Capital) Share capital increased significantly due to common share issuances under the ATM program and share-based compensation, with options and RSUs rising, while DSUs decreased [Authorized capital](index=11&type=section&id=Authorized%20capital) The company is authorized to issue an unlimited number of common voting shares without nominal or par value - Authorized to issue an unlimited number of common voting shares without nominal or par value[33](index=33&type=chunk) [At-the-market (ATM) equity program](index=11&type=section&id=At-the-market%20%28ATM%29%20equity%20program) The ATM program allows issuance of up to **$50 million** in common shares, with **25.3 million** shares issued for **$40.9 million** gross proceeds by June 30, 2025 | Metric (Six months ended June 30) | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Common shares issued under ATM | 11,162,960 | 9,186,700 | | Average price per share | $1.66 | $1.38 | | Gross proceeds (in thousands) | $18,484 | $12,706 | | Net proceeds (in thousands) | $18,037 | $12,143 | - ATM program allows issuance of up to **$50 million** of common shares[33](index=33&type=chunk) - Total of **25,327,409** common shares issued under ATM program for gross proceeds of **$40.9 million** as at June 30, 2025[36](index=36&type=chunk) [Options](index=11&type=section&id=Options) The balance of outstanding options increased to **12.7 million** by June 30, 2025, with a weighted average exercise price of **$2.40** | Metric | Dec 31, 2024 | Jun 30, 2025 | Change | | :-------------------------------- | :----------- | :----------- | :----- | | Balance of options | 10,647,246 | 12,678,698 | +2,031,452 | | Weighted average exercise price | $2.80 | $2.40 | $(0.40) | | Options granted (6 months) | N/A | 2,556,452 | N/A | | Options expired (6 months) | N/A | (525,000) | N/A | | Weighted average fair value of options granted (6 months) | $0.76 (2024) | $1.10 (2025) | +$0.34 | [Long-term Incentive Plan (RSUs, DSUs)](index=12&type=section&id=Long-term%20Incentive%20Plan%20%28RSUs%2C%20DSUs%29) The Long-term Incentive Plan allows for options, RSUs, and DSUs, not exceeding 10% of outstanding shares, with RSUs converting to common shares upon vesting | Metric | Dec 31, 2024 | Jun 30, 2025 | Change | | :-------------------------------- | :----------- | :----------- | :----- | | Balance of RSUs | 1,780,614 | 3,208,452 | +1,427,838 | | RSUs Granted (6 months) | N/A | 1,463,192 | N/A | | Balance of DSUs | 2,425,609 | 2,294,394 | (131,215) | | DSUs Granted (6 months) | N/A | 501,856 | N/A | | Conversion of DSUs to common shares (6 months) | N/A | (633,071) | N/A | - Plan allows for issuance of options, RSUs, and DSUs, not exceeding 10% of outstanding common shares[40](index=40&type=chunk) - RSUs convert automatically into common shares upon vesting[40](index=40&type=chunk) - DSUs may be redeemed upon retirement or termination[40](index=40&type=chunk) [Share-based compensation expense](index=13&type=section&id=Share-based%20compensation%20expense) Total share-based compensation expense for the six months ended June 30, 2025, was **$3.286 million**, a slight increase from **$3.251 million** in the prior year | Award Type (in thousands) | 3 months ended Jun 30, 2025 | 3 months ended Jun 30, 2024 | 6 months ended Jun 30, 2025 | 6 months ended Jun 30, 2024 | | :------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Options | $868 | $347 | $1,756 | $1,157 | | RSUs | $643 | $— | $987 | $— | | DSUs | $355 | $223 | $543 | $2,094 | | **Total** | **$1,866** | **$570** | **$3,286** | **$3,251** | [10. Related Party Transactions](index=13&type=section&id=10.%20Related%20Party%20Transactions) Key management compensation for the six months ended June 30, 2025, was **$3.5 million**, consistent with prior year, with related party receivables and payables also increasing | Metric (in thousands) | 6 months ended Jun 30, 2025 | 6 months ended Jun 30, 2024 | | :-------------------- | :-------------------------- | :-------------------------- | | Management and director fees | $982 | $1,508 | | Share-based compensation | $2,563 | $2,017 | | **Total compensation to key management** | **$3,545** | **$3,525** | | Metric (in thousands) | Jun 30, 2025 | Dec 31, 2024 | Change | | :-------------------- | :----------- | :----------- | :----- | | Receivables – related parties (Joint Ventures) | $1,739 | $1,274 | +$465 | | Accounts payable – related parties (Joint Ventures) | $4,000 | $4,000 | $0 | | Accounts payable – related parties (Management and directors) | $795 | $397 | +$398 | - Incurred **$6.0 thousand** in research and development services from Telescope Innovations Corp. for the six months ended June 30, 2025[46](index=46&type=chunk) [11. Financial Instruments and Financial Risk Management](index=14&type=section&id=11.%20Financial%20Instruments%20and%20Financial%20Risk%20Management) Financial assets, including FID and Aqualung investments, are measured at fair value using Level 3 unobservable inputs, with the company managing credit, liquidity, and foreign exchange risks [Fair value hierarchy](index=14&type=section&id=Fair%20value%20hierarchy) The fair value hierarchy categorizes inputs into three levels, with Financial asset – FID and Investment in Aqualung classified as Level 3, and no transfers between levels - Fair value hierarchy based on three levels of inputs: Level 1 (quoted prices), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[48](index=48&type=chunk) - Financial asset – FID and Investment in Aqualung are classified as Level 3[49](index=49&type=chunk)[51](index=51&type=chunk) - No transfers between Levels 1, 2, or 3 during the periods ended June 30, 2025, and December 31, 2024[49](index=49&type=chunk) [Financial asset - FID](index=14&type=section&id=Financial%20asset%20-%20FID) The Financial asset – FID increased to **$51.4 million** by June 30, 2025, with fair value determined by discounted cash flow, primarily increasing due to the passage of time | Metric (in thousands) | Dec 31, 2024 | Jun 30, 2025 | Change | | :-------------------- | :----------- | :----------- | :----- | | Financial asset – FID | $48,138 | $51,421 | +$3,283 | | Fair value gain (6 months) | $391 (2024) | $3,283 (2025) | +$2,892 | - Fair value determined using a probability-weighted discounted cash flow methodology[52](index=52&type=chunk) - Increase in fair value primarily attributable to the passage of time[52](index=52&type=chunk) [Investment in Aqualung](index=14&type=section&id=Investment%20in%20Aqualung) Investment in Aqualung increased to **$5.4 million** by June 30, 2025, with fair value determined by market inputs and company-specific information, and a gain from an equity transaction | Metric (in thousands) | Dec 31, 2024 | Jun 30, 2025 | Change | | :-------------------- | :----------- | :----------- | :----- | | Investment in Aqualung | $2,335 | $5,350 | +$3,015 | | Fair value gain (6 months) | $— (2024) | $2,752 (2025) | +$2,752 | - Fair value determined using observable market-based inputs and company-specific information, considering market trends and comparable public companies[28](index=28&type=chunk)[29](index=29&type=chunk)[53](index=53&type=chunk) - Gain primarily resulted from an equity transaction completed by Aqualung[29](index=29&type=chunk)[53](index=53&type=chunk) [Risk management framework](index=15&type=section&id=Risk%20management%20framework) The Board of Directors oversees the risk management framework, which identifies, analyzes, controls, and monitors risks, with policies regularly reviewed - Board of Directors has overall responsibility for risk management framework[54](index=54&type=chunk) - Framework identifies, analyzes, sets limits, controls, and monitors risks[54](index=54&type=chunk) - Policies are reviewed regularly to reflect changes in market conditions and company activities[54](index=54&type=chunk) [Credit risk](index=15&type=section&id=Credit%20risk) Credit risk primarily stems from cash deposits, with maximum exposure equal to total financial assets, and most cash held with two institutions exceeding insurance coverage - Credit risk arises principally from cash deposits[56](index=56&type=chunk) - Maximum credit risk is the total of financial assets (cash and financial asset – FID)[56](index=56&type=chunk) - Substantially all cash is held with two financial institutions, with amounts exceeding insurance coverage[56](index=56&type=chunk) [Liquidity risk](index=15&type=section&id=Liquidity%20risk) Liquidity risk is managed through careful working capital management, aiming to ensure expenditures do not exceed available resources, with working capital at **$30.6 million** | Metric (in thousands) | Jun 30, 2025 | Dec 31, 2024 | Change | | :-------------------- | :----------- | :----------- | :----- | | Working capital | $30,605 | $27,533 | +$3,072 | - Manages liquidity risk by careful management of working capital[57](index=57&type=chunk) - Objective is to ensure expenditures do not exceed available resources[57](index=57&type=chunk) [Foreign exchange risk](index=16&type=section&id=Foreign%20exchange%20risk) The company is exposed to foreign exchange risk from USD-denominated assets and liabilities, not using derivatives, where a 10% CAD/USD change would impact comprehensive loss by **$2.2 million** | USD Denominated Assets/Liabilities (in thousands) | Jun 30, 2025 | Dec 31, 2024 | | :------------------------------------------------ | :----------- | :----------- | | Cash | $21,528 | $8,057 | | Investment in Aqualung | $5,350 | $2,335 | | Accounts payable | $44 | $47 | - Exposed to currency risk through USD-denominated assets and liabilities[59](index=59&type=chunk) - Does not use derivative instruments to reduce foreign currency risk[59](index=59&type=chunk) - A 10% increase/decrease in CAD relative to USD would result in a change of approximately **$2.2 million** in comprehensive loss for the year to date[59](index=59&type=chunk) [12. Capital Management](index=16&type=section&id=12.%20Capital%20Management) Capital management aims to safeguard project pursuit and maintain a flexible common equity structure, with plans to fund operations and projects using existing cash and other financing - Objectives: Safeguard ability to pursue exploration/development and maintain flexible capital structure[62](index=62&type=chunk) - Current capital structure: Common equity, no long-term debt or revolving credit facility[62](index=62&type=chunk) - Equinor fulfilled its **$60.0 million** sole funding commitments for joint ventures in Q2 2025[61](index=61&type=chunk) - Plans to spend existing cash and utilize other financing for projects and administrative costs[64](index=64&type=chunk) [13. Contingencies](index=16&type=section&id=13.%20Contingencies) The company faces a securities class action lawsuit alleging misrepresentations regarding its LiSTR DLE technology, which it intends to defend vigorously, with no provision recorded due to an uncertain outcome - Securities class action lawsuit filed on January 27, 2022, alleging misrepresentations regarding LiSTR DLE technology and lithium recovery percentage[65](index=65&type=chunk) - Company intends to vigorously defend against the action[66](index=66&type=chunk) - No provision recorded as of June 30, 2025, due to no probable outcome that can be reasonably determined[66](index=66&type=chunk) [14. Subsequent Events](index=18&type=section&id=14.%20Subsequent%20Events) Subsequent to June 30, 2025, the company issued **3.475 million** common shares under its ATM program, generating **$9.1 million** in gross proceeds and **$8.9 million** net proceeds | Metric | Amount | | :-------------------------------- | :----- | | Common shares issued under ATM | 3,475,000 | | Average price per share | $2.62 | | Gross proceeds (in thousands) | $9,100 | | Net proceeds (in thousands) | $8,900 |

Core Insights - Smackover Lithium, a joint venture between Standard Lithium and Equinor, has reported the highest lithium concentration to date from its South West Arkansas Project, with a measurement of 616 mg/L lithium in brine [1][4]. Company Developments - The Lester well, completed in Q2 2025, marks the conclusion of all sub-surface exploration activities for Phase 1 of the SWA Project [2]. - The average lithium concentration from three brine samples taken from the Lester well was 582 mg/L, indicating significantly higher than expected lithium concentrations [3][7]. - Dr. Andy Robinson, President and COO of Standard Lithium, expressed optimism regarding the results, which exceeded initial expectations of approximately 500 mg/L [4]. Future Plans - With fieldwork completed, the Smackover Lithium team is focused on finalizing the Front-End Engineering Design (FEED) study, with a Definitive Feasibility Study anticipated later in Q3 2025 [5]. - The completion of these studies is seen as a significant milestone, paving the way for off-take negotiations and project financing, with a Final Investment Decision targeted by the end of 2025 [5]. Joint Venture Overview - Smackover Lithium is a joint venture formed in May 2024, with Standard Lithium holding a 55% interest and Equinor holding 45% [11]. - The joint venture is developing two Direct Lithium Extraction (DLE) Project Companies in southwest Arkansas and east Texas [11]. Company Background - Standard Lithium is focused on sustainable development of high-grade lithium-brine properties in the U.S., particularly in the Smackover Formation [12][13]. - The company aims to achieve commercial-scale lithium production through a scalable Direct Lithium Extraction and purification process [13].

Core Viewpoint - Standard Lithium is currently not a lithium miner as it has not yet started extracting lithium, but it saw a 6% increase in stock price following a recommendation from Raymond James [1][3]. Group 1: Analyst Coverage - Raymond James initiated coverage of Standard Lithium with an outperform rating and set a 12-month price target of $2.75 [3][4]. - The analyst highlighted that Standard Lithium is a leader in Direct Lithium Extraction and is focused on advancing its lithium-brine projects in the U.S. [4]. Group 2: Stock Valuation and Market Performance - Despite the outperform rating, the price target of $2.75 represents less than 2% potential upside from the stock's trading price of $2.71 at the time of the recommendation [5][6]. - Following the recommendation, the stock price increased to $2.88, raising questions about the rationale behind the buy recommendation given the limited upside [5][6]. Group 3: Comparison with Competitors - Standard Lithium is currently unprofitable, while there are profitable lithium companies such as Albemarle, SQM, and Rio Tinto available for investment [6].

Core Insights - Standard Lithium Ltd. has appointed Daniel Rosen as Vice President of Strategy and Investor Relations and Tim Sobel as Vice President of Health, Safety, Social and Environment (HSSE) [1][2] Leadership Appointments - Daniel Rosen brings over 13 years of experience in corporate strategy, finance, and capital markets, having previously played a key role in the integration of Arcadium Lithium into Rio Tinto [2][3] - Tim Sobel has over three decades of experience in HSSE leadership, previously serving as Vice President of HSSE for the Americas at DP World, overseeing HSSE strategy across more than 40 operations [3] Company Overview - Standard Lithium is focused on the sustainable development of high-grade lithium-brine properties in the United States, aiming for commercial-scale lithium production through a scalable DLE and purification process [4] - The company's flagship projects are located in the Smackover Formation in Arkansas and Texas, with a partnership with Equinor on the South West Arkansas project [4]