Mr. Blake Hylands reports

LITHIUM IONIC REPORTS SIGNIFICANT ENGINEERING AND COMMERCIAL PROGRESS AT BANDEIRA

Lithium Ionic Corp. has provided a development update on its 100-per-cent-owned Bandeira lithium project, located in Minas Gerais, Brazil's globally significant Lithium Valley.

Bandeira is rapidly advancing to construction-ready status:

• Overall engineering has advanced to 48-per-cent completion since the feasibility study press release from Sept. 17, 2025;
• Basic engineering complete on major design packages, including plant engineering and primary civil engineering;
• Detailed engineering on raw water and drainage is in the final stage;
• Infrastructure and long-lead tenders are being deployed as per the project schedule;
• Commercial momentum is accelerating as the company has received multiple offtake and debt financing term sheets, and is advancing toward binding agreement(s).

Blake Hylands, PGeo, chief executive officer of Lithium Ionic, commented: "Bandeira is now firmly in the execution phase. With a technically robust and optimized feasibility study in hand, our focus has shifted to disciplined delivery -- advancing engineering, securing the right commercial partnerships and preparing the project for construction. Importantly, this progress is unfolding in a materially stronger lithium market than when our feasibility study was completed, which reinforces our confidence in the project's long-term value. Our objective is clear: to bring Brazil's next high-quality, low-cost lithium operation into production with the right foundations in place."

Site development and engineering continues to progress

Engineering activities at Bandeira continue to advance across multiple parallel work streams as the project advances toward construction. Total project engineering is currently 48 per cent complete. Basic plant engineering has been completed by Lycopodium, establishing key equipment selection, layout and design criteria for the processing facility. Primary civil engineering for roads, plant areas and buildings is complete with detailed engineering for raw water services and drainage at the final stages.

Mine access and site infrastructure engineering are progressing in an integrated manner. Basic engineering for the mine access, site infrastructure and supporting surface facilities is also substantially completed, supporting the launch of mine underground contractor and mine fleet tendering. Underground mine development planning is advancing, with NCL Ingenieria y Construccion SpA mobilized to complete the detailed underground mine plan and schedule, targeted for April, 2026.

Lithium Ionic expects to provide continuing updates as engineering advances and key tendering and execution milestones are reached.

Procurement and tendering activity is on schedule

As engineering advances, the project has entered a structured procurement and contractor engagement phase. Major tendering activities aligned with completed engineering packages are under way, including earthworks, drainage, mine access development and site infrastructure. To date, 23 per cent of infrastructure procurement packages have been tendered, supporting the project execution phase and confirming capital cost estimates.

Offtake and financing negotiations advance to the binding stage

Lithium Ionic is in advanced offtake discussions with parties across North America, Europe, China and Japan with lead parties having completed due diligence including concentrate testing and site visits. The company has received multiple term sheets from interested counterparties and is working toward reaching a binding agreement in the near future.

The company's strategic focus remains maximizing long-term value while securing a financing-ready offtake agreement that will support project debt. The offtake negotiations are taking place in parallel with project debt discussions, ensuring a cohesive project financing solution.

Strengthening the execution team

Lithium Ionic continues to strengthen its leadership and technical capacity, adding key personnel and specialist oversight to support construction readiness and long-term operating discipline.

Key additions and engagements include a director of environmental, social and governance and permitting to lead regulatory co-ordination and community engagement, and an Aracuai-based community relations manager to support local stakeholder interface. A director of finance has been recruited to support project cost control and financing readiness.

In addition, independent technical support has been expanded through the engagement of underground mining specialist Jon Treen (Fuse Advisors) and SRK Consulting, which is auditing geotechnical models and assumptions supporting underground mine design.

RTEK International DMCC, engaged as strategic adviser since April, 2025, has further expanded its technical support as the project advances through detailed engineering and execution planning, including additional capacity across key engineering disciplines such as electrical and instrumentation.

Permitting and ESG update

Lithium Ionic continues to integrate ESG principles directly into the engineering and regulatory advancement of the Bandeira project. Environmental performance considerations are embedded in mine layout, process design and infrastructure planning to minimize surface disturbance, optimize water use and support long-term operational resilience. Key design elements include dry-stacked tailings, maximized water recovery, utilization of low-carbon hydroelectric power and a compact operational footprint.

On Jan. 26, 2024, the company formally submitted its environmental licensing application for the Bandeira project to the State Foundation for the Environment, supported by comprehensive environmental studies and technical documentation prepared in accordance with the regulatory framework of the State of Minas Gerais.

FEAM conducted a site inspection in September, 2024, followed by a request for supplementary information in October, 2024, which was fully addressed by the company in November, 2024. In February, 2025, FEAM issued a favourable technical opinion confirming the project's environmental viability and recommending approval of the environmental licence based on the adequacy of the proposed mitigation and control measures.

Following the enactment of Brazil's new Environmental Permitting Law (law No. 15,590/2025 -- LGLA) in February, 2026, Lithium Ionic has continued to engage constructively with state authorities to ensure full alignment under the updated regulatory framework. The environmental permitting process remains active, and all requirements identified by the relevant authorities are being addressed under the new leadership of the company's director of ESG and permitting.

In parallel, complementary regulatory approvals continue to advance. Water rights for both the Piaui and Jequitinhonha rivers have been secured, and the required explosives purchasing authorization has been obtained from the Brazilian Army, further supporting overall project readiness.

Lithium market rebound significantly enhances project economics

Since the release of the company's updated feasibility study in September, 2025, lithium market conditions have strengthened materially. According to Fastmarkets, the assessed price for spodumene concentrate (6 per cent Li2O, delivered to Asia) has increased by more than 125 per cent, rising from approximately $800 (U.S.) per tonne in September, 2025, to greater than $1,800 (U.S.) per tonne in February, 2026. This current pricing environment is outperforming the near-term price scenario used in the project economic plan.

This sharp recovery in spodumene pricing reflects a meaningfully more supportive market backdrop as the company advances permitting, progresses advanced-stage offtake discussions and continues execution planning toward construction. Longer-term lithium fundamentals remain underpinned by sustained growth in electric vehicle adoption and energy storage deployment, reinforcing the strategic value of bringing a high-quality spodumene mine into production.

About Lithium Ionic Corp.

Lithium Ionic is a Canadian lithium development company focused on responsibly advancing its 100-per-cent-owned Bandeira lithium project in Minas Gerais, Brazil, a region coined the Lithium Valley that is emerging as a world-class hardrock lithium district. The company is executing on a focused development strategy centred on engineering derisking, permitting advancement, commercial planning and construction readiness, with the goal of becoming a near-term producer of high-quality spodumene concentrate for global battery supply chains.

Qualified person

The technical information in this news release has been reviewed and approved by Blake Hylands, chief executive officer and director of Lithium Ionic, who is a qualified person as defined in National Instrument 43-101. Mr. Hylands is not considered independent of the company.

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