Mr. Francis MacDonald reports

LIFT ENTERS INTO BINDING CALL OPTION AGREEMENT FOR THE ACQUISITION OF THE RENARD MINE SITE

Li-FT Power Ltd. has entered into a 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 (Canada)) proceedings (as defined below), pursuant to which Li-FT has been granted the sole and exclusive 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 or 1127 Canada, subject to the approval of the Superior Court of Quebec pursuant to the CCAA.

Highlights:

• The option agreement grants the company the exclusive call option to acquire the assets comprising Renard or, at the election of Li-FT, all issued shares in the capital in Stornoway (the 100-per-cent owner of Renard) or 1127 Canada (the 100-per-cent owner of Stornoway), subject to court approval pursuant to the CCAA.
• Mineral processing at Renard began in 2016. Following the commencement of the CCAA proceedings, Stornoway completed five milling campaigns to recover and process the remaining rough diamonds and terminated its operating activities in January, 2025.
• The Renard process plant has a design capacity of 2.2 million tonnes per annum and may be amenable to process spodumene pegmatite ore from the Adina lithium project.
• Renard's process plant consists of jaw, cone, high-pressure grinding roll, dense media separation and ore-sorting circuits compatible with spodumene concentrate production.
• Renard holds a range of mineral processing and operating permits that may advance Li-FT's intended pathway to lithium production at a previously operating, brownfields site in Quebec and facilitate growth in the Canadian EV (electric vehicle) battery supply chain.
• The potential acquisition of Renard, in which over $900-million of capital has been invested, could materially reduce upfront capital expenditure, project risk and the environmental footprint at the Adina lithium project.

Transaction terms:

• The option agreement and the transactions contemplated thereunder each remain subject to the approval of the Superior Court of Quebec, pursuant to the CCAA. Court approval for the option agreement is being sought at a court hearing scheduled for July 2, 2026.
• Li-FT will have a two-year period from the date of execution of the option agreement, unless extended, to exercise the option for $1. If requested by Li-FT, the parties agree to negotiate, in good faith, a potential extension of the option period for one additional period of 12 months.
• The option period will be used to confirm the technical, economic, environmental and social feasibility of repurposing Renard for lithium processing, determine the optimal transaction structure, and negotiate definitive acquisition agreements. Li-FT may exercise the option at any time during the option period.
• As consideration for the option, Li-FT will pay, within two business days of execution of the option agreement, a $12-million fee in cash, which will be held in trust by the monitor pending receipt of the authorization of Ministere des Ressources naturelles et des Forets (MRNF) for the postponement of rehabilitation and restoration work at Renard during the option period.
• If court approval of the option agreement is not received by July 10, 2026, or such other date agreed by the parties, or if the release conditions are not met within three months following court approval of the option agreement pursuant to the CCAA, 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.
• During the option period, Li-FT will be solely responsible for care and maintenance (C&M) costs to maintain the Renard mine site in good order and, should Li-FT decide to exercise the option, Li-FT will assume full responsibility for closure and remediation of the Renard mine site.
• Subject to receipt of court approval of the option agreement and upon satisfaction of the release conditions, the option fee will be distributed by the monitor to the secured creditors pursuant to the CCAA proceedings and Li-FT will be required to deposit an amount equal to $18-million representing 12 months of estimated C&M costs, with the monitor to be held in trust and used by the monitor, in its discretion, to finance such C&M Costs. Li-FT will be required to similarly finance the second year of C&M costs in advance by deposit in trust with the monitor, as provided for under the option agreement.
• The transaction remains subject to several conditions, including:
  1. Court approval pursuant to the CCAA of both the option agreement and, subsequently, the transaction agreement to be entered into upon exercise of the option in respect of the acquisition of either the assets or the shares in the capital of Stornoway or 1127;
  2. Satisfaction of the release conditions;
  3. Completion of the distribution of cash and cash equivalents to secured creditors in accordance with the court approval;
  4. Li-FT having provided to MRNF a financial guarantee in compliance with the Mining Act (Quebec);
  5. Certain cash collateral in the amount of $5,364,234.75 held by XL Specialty Insurance Company shall have been distributed to the secured creditors or the exercise price will be increased by such amount;
  6. Negotiation and execution of an acquisition agreement upon exercise of the option;
  7. Receipt by Li-FT of all required regulatory approvals associated with the transaction, including the approval of the TSX Venture Exchange.

The company will provide additional updates as the transaction progresses.

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 state-of-the-art, fully covered 2.2-million-tonne-per-annum processing facility, including primary, secondary and tertiary crushing circuits, two dense media separation circuits, and tailings thickening and dewatering circuits;
• The Clarence and Abel Swallow Airport, with 24-hour-per-day operability, a 1.5-kilometre gravel airstrip and a jet fuel station;
• An around-16-megawatt LNG-fired (liquefied natural gas) power station with supporting LNG storage and vaporization infrastructure;
• An existing tailings storage facility, with additional disposal sites identified for future use;
• Water management infrastructure, including a collection system and mine waste water treatment plant;
• A maintenance shop suitable for a wide range of mobile and fixed equipment;
• A 330-bed camp with gymnasium, cafeteria and recreational facilities;
• Access to a permanent, all-season road leading to a national railway connection at Chibougamau, with onward connections to the EV battery supply chain hub in Becancour and major ports on the St. Lawrence Seaway.

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 restructuring proceedings under the CCAA before the court had commenced. The stay of proceedings has been extended from time to time and the CCAA proceedings are 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.

We seek Safe Harbor.