Ms. Anna Hartley reports

SIGMA LITHIUM NEGOTIATING AGREEMENT WITH MINAS GERAIS STATE GOVERNMENT TO SETTLE NOTIFICATION BY REGIONAL ENVIRONMENTAL STATE BODY; COINCIDES WITH 2Q PRODUCTION TARGET BEAT

Yesterday, Sigma Lithium Corp. started negotiating a TAC agreement or terms for adjustment of procedures (termo de ajuste de conduta) with the state government of Minas Gerais.

The negotiations follow a notification by the Vale do Jequitinhonha branch of SUPRAM, the Minas Gerais environmental state body, which is based in Diamantina, issuing fines totalling approximately $540,000 (U.S.). Several fines were related to environmental issues that occurred from 2013 to 2022.

The company vehemently denies any wrongdoing, as outlined in the key claims raised by SUPRAM Jequitinhonha in connection to the company's operation. In this regard, Sigma Lithium confirms that:

• The company has not misrepresented any information filed with the environmental authorities since 2018.
• The company has not commercially sold any lithium materials prior to May, 2023.
• The company denies the claims alleged by SUPRAM that two houses located outside of the licensed area are negatively impacted by its activities.

As a result, yesterday, Sigma Lithium started negotiating a TAC agreement directly with the state government of Minas Gerais in Belo Horizonte, which has regulatory authority in the matter. The company has agreed to a settlement to be established by the TAC agreement, in addition to the payment of up to $540,000 (U.S.) for the above-mentioned fines. The fines are not due for at least 120 days.

In parallel to negotiating the TAC agreement, Sigma Lithium has filed a significant amount of factual and quantitative environmental evidence supporting its defence to the claims related to its current operations with FEAM, the environmental state regulator in Minas Gerais.

The company has built significant goodwill with the state government of Minas Gerais because of its pivotal role as growth engine of the Vale do Jequitinhonha, having created 19,000 job positions, which benefit 80,000 people in what is the poorest region of the state.

TAC agreement with state of Minas Gerais

The TAC agreement is a standardized form of agreement between regulators and corporates in Brazil. It translates into terms for adjustment of procedures. The adjustments of environmental procedures must be mutually agreed between the regulatory body (federal or state) and the company.

Sigma Lithium estimates that the execution of the proposed adjustments of environmental procedures under the TAC agreement will require an estimated capex of approximately $1-million (U.S.) to enable the resumption of the activities that have been partially and temporarily suspended by the auditors of SUPRAM Jequitinhonha.

A significant majority of publicly traded companies in Brazil have TAC agreements with various regulators (both federal and state), which are used to resolve corporate and environmental matters, as a TAC agreements provide legal certainty for the company, by clearly outlining actions to be undertaken, as well as deadlines for their execution, which are mutually agreed.

Another "fake news" campaign is launched following the notification, coinciding with sigma lithium's positive production results and re-election of board of directors

Prior even to the conclusion of the TAC agreement, yet another negative on-line "fake news" media campaign was launched against the company, disseminating false, inaccurate and misleading information.

More importantly, the timing of the campaign followed a recurrent pattern, emerging immediately after Sigma Lithium made positive news announcements: that it beat its Q2 (second quarter) production guidance and the election and/or re-election by an overwhelming majority of the votes at the company's annual general meeting.

Sigma Lithium remains in close contact with the appropriate securities authorities regarding the coincidental timing of the negative news flow, including FINRA (U.S. regulator).

About Sigma Lithium Corp.

Sigma Lithium is the largest producer of lithium oxide concentrate in the Americas (1) and dedicated to industrializing socially and environmentally sustainable lithium materials to supply global producers of batteries for energy security.

The company runs one of the world's largest lithium production sites -- the fifth-largest industrial-mineral complex for lithium oxide concentrate -- at its Grota do Cirilo operation in Brazil. Sigma Lithium is at the forefront of environmental and social sustainability in the electric battery materials supply chain. The company's greentech industrial plant combines the reuse of 100 per cent of water, zero use of toxic chemicals, zero tailings and the use of 100-per-cent-renewable electricity. For more than two years Sigma Lithium has not experienced an accident with lost time.

Sigma Lithium currently has a nameplate capacity to produce 270,000 tonnes of lithium oxide concentrate on an annualized basis (approximately 38,000 to 40,000 tonnes of LCE) at its mine and state-of-the-art greentech industrial plant. The company has initiated a phase 2 expansion designed to close to double production capacity to 520,000 tonnes

(1) USGS (United States Geological Survey).

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