Dr. Thomas Benson reports

LITHIUM AFRICA TO ADVANCE SPRINGBOK PROJECT TO PRODUCTION TARGETED FOR 2027

Lithium Africa Corp. has elected to advance the Springbok project in the Northern Cape province, South Africa, toward the production of spodumene concentrate, targeting first production in H2 2027. The company had been evaluating a direct shipping ore (DSO) sale of the existing stockpile of previously mined pegmatite at Norrabees I (see news release dated June 8, 2026). It has instead elected to process that material, together with newly mined pegmatite, through an on-site dense media separation (DMS) plant. The decision follows the company's review of two-stage DMS testwork on a 13-tonne bulk sample of stockpile material completed by a third party. Mining at Norrabees I is already permitted under the project's existing mining permit. Construction of the DMS plant will require additional approvals, and the company has commenced that process.

Highlights

• From DSO to DMS. The company has moved from a planned stockpile sale to on-site DMS processing to produce spodumene concentrate, with first production targeting H2 2027. The decision follows a review of third party two-stage DMS testwork on a 13-tonne bulk sample stockpile material, which has not yet been verified by a qualified person.
• Permitted mine within a district-scale (greater than 50 km wide) land position. Springbok hosts a five-hectare mining permit over the historical Norrabees I mine, within a 1,675-square-kilometre prospecting right.
• Initial mineral resource estimate (MRE) targeted for H1 2027; preliminary economic assessment (PEA) to follow. First drill results at Norrabees I, within the mining permit, returned 7.5 metres at 1.97 per cent lithium oxide (Li2O) from 18.5 m downhole (including 6.0 metres at 2.27 per cent Li2O) and 4.0 m at 2.25 per cent Li2O from 2.0 m downhole, with individual samples up to 4.11 per cent Li2O (see news release dated Sept. 30, 2026; true widths not yet known). These results, historical drilling and continuing drilling are expected to support the MRE and the PEA to be prepared in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.
• Project-level financing prioritized. The company is in preliminary, non-binding discussions with a number of potential counterparties regarding project-level financing for Springbok, including offtake, vendor financing and project-level equity, and is targeting a financing decision in H1 2027.
• Small-scale production intended to support exploration. Cash flow from a modest DMS operation is intended to help fund exploration across the project and at the company's broader African portfolio.

Thomas Benson, PhD, chief executive officer of Lithium Africa, commented: "Self-funding exploration through small-scale mining is a uniquely African way to explore for lithium, and it is how we intend to unlock the Springbok district. Lithium projects that can target production in 2027 are few and far between, and we believe Springbok is one of them: a permitted mine, with feeder material ready on surface. Our plan is designed to deliver real, non-dilutive value for Lithium Africa shareholders while advancing sustainable economic development in the Northern Cape."

Shift from stockpile sale to DMS processing

Earlier in 2026, the company evaluated a sale of the Norrabees I stockpile as DSO (see news release dated June 8, 2026). In assessing alternatives to a sale, the company reviewed two-stage DMS testwork on a 13-tonne bulk sample of stockpile material that was completed by a third party, which has not been verified by the company's qualified person. On the basis of that review, the project's permitted status and the availability of previously mined material on surface, management concluded that processing stockpile and newly mined material through an on-site DMS plant to produce a spodumene concentrate represents the preferred development route for the project. The company has not completed a PEA or any other economic analysis of mineral resources in respect of the project, and there are no current mineral resources at the project. The company intends to complete a PEA for the project, targeted for H1 2027 following the initial MRE. As part of the PEA, the company intends to analyze the composition of the existing stockpiles as potential commissioning feed for the plant and to have the DMS testwork verified by a qualified person. The company's decision to advance Springbok toward production is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and such production decisions are historically associated with a higher risk of economic and technical failure.

A permitted mine within a district-scale potential land position

The project is held by Namli Exploration & Mining Pty. Ltd., in which the company holds a 70-per-cent interest. Namli holds a five-hectare mining permit (NC10950MP) covering the historical Norrabees I mine, where the company's first drilling intersected high-grade spodumene from near surface, within a 1,675-square-kilometre prospecting right (NC13301PR). Construction of the DMS plant will require additional approvals, including environmental authorization for the processing area. The company has commenced this process.

Pathway to an initial MRE and PEA

The company's first drill results at Norrabees I intersected high-grade spodumene mineralization from near-surface within the mining permit, including 7.5 m at 1.97 per cent Li2O from 18.5 m downhole and 4.0 m at 2.25 per cent Li2O from 2.0 m downhole, with individual samples up to 4.11 per cent Li2O (see news release dated Sept. 30, 2026; true widths not yet known). These results, historical drilling (subject to verification by a qualified person) and continuing drilling are expected to support an initial MRE prepared in accordance with National Instrument 43-101 expected for H1 2027. The company intends to engage an independent qualified person to prepare a PEA incorporating the MRE, the DMS testwork, the existing stockpiles as potential plant commissioning feed, and a mine and process plan following completion of the MRE.

Project-level financing

The company is engaged in preliminary non-binding discussions with a number of potential counterparties regarding financing at the project level. The options under discussion include offtake agreements, which may include prepayment arrangements, as well as vendor financing and project-level equity. The company's interest in Springbok is held outside the company's 50/50 joint venture with GFL International Co. Ltd., an affiliate of Ganfeng Lithium, which provides the company flexibility to structure financing at the project level. The company is targeting a project financing decision in H1 2027. There can be no assurance that any financing will be completed on acceptable terms, or at all.

Indicative timeline

• Q4 2026: continuing regional drilling within the prospecting right, infill drilling within the mining permit, environmental permitting and financing discussions;
• H1 2027: initial MRE and PEA; targeted project financing decision; targeted start of construction, subject to receipt of permits and approvals, and completion of financing;
• H2 2027: targeted first production of spodumene concentrate.

Qualified person

The scientific and technical information in this news release has been reviewed and approved by Benjamin Gelber, PGeo, a consultant to the company who is not independent of the company, and a qualified person as defined by National Instrument 43-101.

About Lithium Africa Corp.

Lithium Africa is a lithium exploration and development company building a portfolio of hard-rock lithium assets across Africa. The company holds the Springbok project in South Africa directly and its exploration interests in West and Southern Africa, including the Adzope district in Ivory Coast, through a 50/50 joint venture with GFL International Co. Ltd., an affiliate of Ganfeng Lithium.

We seek Safe Harbor.