Update on Economics of Raleigh Lake Project in Ontario

Core Viewpoint - International Lithium Corp. (ILC) is optimistic about the recovery in lithium prices and its implications for the Raleigh Lake project, highlighting significant price increases since June 2025 [1][2]. Price Recovery - Lithium Carbonate prices have surged from USD 8,535 per tonne in June 2025 to USD 19,747 per tonne by January 8, 2026, marking a 131% increase. Spodumene Concentrate (SC6) prices rose from USD 630 to USD 1,800 per tonne, a 185% increase [2]. - The current SC6 price in CAD is CAD$2,498.40 per tonne, based on an exchange rate of USD=CAD 1.3880 [2]. Economic Projections for Raleigh Lake - The Preliminary Economic Assessment (PEA) for the Raleigh Lake project indicates a Net Present Value (NPV) of CAD$223.1 million (pre-tax) and CAD$215.1 million (post-tax) at the current SC6 price of CAD$2,498.40 per tonne, with an Internal Rate of Return (IRR) of 33.1% (pre-tax) and 32.7% (post-tax) [4]. - Sensitivity analysis from the PEA shows that at a SC6 price of CAD$2,100 per tonne, the NPV would drop to CAD$122.3 million (pre-tax) and CAD$120.1 million (post-tax) with an IRR of 23.2% (pre-tax) and 23.0% (post-tax) [5]. Project Development and Strategic Focus - ILC is in the process of converting mining claims at Raleigh Lake into a mining lease and is planning further work at the site, including a PEA for rubidium [7]. - The Raleigh Lake project covers 32,900 hectares and is ILC's most significant project in Canada, with excellent access to infrastructure [13][14]. - The company aims to optimize the value of its existing projects while exploring new opportunities, particularly in Southern Africa and Zimbabwe [12][16]. Industry Context - The demand for lithium is driven by the increasing need for high-tech rechargeable batteries, electric vehicles, and energy storage solutions, positioning lithium as a critical resource in the transition to a sustainable economy [10][16]. - ILC's projects are strategically aligned with the growing demand for critical metals, supported by political initiatives in major economies to secure supplies [10].