Mr. Francis MacDonald reports

COURT APPROVES OPTION TO ACQUIRE THE RENARD MINE SITE

Further to Li-FT Power Ltd.'s news release dated June 24, 2026, that the Superior Court of Quebec has approved the binding call option agreement dated June 23, 2026, with Stornoway Diamonds (Canada) Inc., 11272420 Canada Inc. (1127 Canada) and Deloitte Restructuring Inc. (the monitor), in its capacity as monitor in the CCAA (Companies' Creditors Arrangement Act) proceedings (as defined below).

Pursuant to the option agreement, Li-FT has acquired the sole and exclusive call option to acquire, at its election, the assets comprising the Renard diamond mine, processing facility and associated infrastructure, or all of the issued shares in the capital in Stornoway (the 100-per-cent owner of Renard) or 1127 Canada (the 100-per-cent owner of Stornoway). A summary of the terms of the transaction follows.

Transaction terms

Li-FT may exercise the option for $1 at any time during a two-year period ending June 23, 2028, unless extended by the parties.

The option period will be used to confirm the technical, economic, environmental and social feasibility of repurposing Renard for lithium processing, to determine the optimal transaction structure, and to negotiate definitive acquisition agreements.

As consideration for the option, Li-FT paid a $12-million fee in cash, which is being held in trust by the monitor pending receipt of the authorization of Ministere des Ressources naturelles et des Forets for the postponement of rehabilitation and restoration work at Renard during the option period (the release condition).

If the release condition is not met by Oct. 3, 2026, or such other date agreed upon with the monitor and the secured creditors, the option fee will be returned to Li-FT, and the option will be terminated.

Upon satisfaction of the release condition, the option fee will be distributed by the monitor to the secured creditors pursuant to the CCAA proceedings.

During the option period, Li-FT is solely responsible for care and maintenance (C&M) costs to maintain the Renard mine site in good order (estimated at $18-million annually), and, should Li-FT decide to exercise the option, Li-FT will assume full responsibility for closure and remediation of the Renard mine site.

The transaction remains subject to several conditions, including satisfaction of the release condition, negotiation and execution of an acquisition agreement upon exercise of the option, court approval of the acquisition agreement, and receipt by Li-FT of all required regulatory approvals associated with the transaction, including the approval of the TSX Venture Exchange.

About Renard

Renard is a mining and processing site located in the Eeyou Istchee James Bay region of Quebec, approximately 60 kilometres south of the Adina lithium project and approximately 400 kilometres north of a national railway connection at Chibougamau. Chibougamau is connected by road and rail to the critical mineral and EV battery supply chain hub in Becancour. Renard first produced diamonds in 2016 and its infrastructure includes a fully covered 2.2-million-tonne-per-annum processing facility, the on-site Clarence and Abel Swallow Airport, a 16-megawatt liquefied-natural-gas-fired power station, tailings and water management infrastructure, a maintenance shop, a 330-bed camp, and permanent all-season road access to Chibougamau, and onward connections to the St. Lawrence Seaway and major ports.

About Stornoway Diamonds (Canada) Inc.

Stornoway is a Canadian diamond production, exploration and development company whose principal mineral property is its 100-per-cent-owned Renard diamond mine and processing facility. On Oct. 27, 2023, Stornoway announced that Renard was being placed into care and maintenance pending a recovery in diamond prices and that restructuring proceedings (the CCAA proceedings) under the CCAA before the court had commenced. The stay of proceedings has been extended from time to time and the CCAA proceedings remain continuing.

About Li-FT Power Ltd.

Li-FT is focused on developing a portfolio of hard-rock lithium assets in Canada, with core development assets in both Quebec and the Northwest Territories. The company owns the Adina lithium project in the Eeyou Istchee James Bay region of Quebec and the Yellowknife lithium project in the Northwest Territories. Li-FT also holds early-stage exploration properties in both jurisdictions.

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