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Equinor Partnership Adds Weight to SLI's March toward Becoming a Major Domestic Lithium Supplier

We hosted a fireside chat with CFO Salah Gamoudi on May 14, 2024, to discuss Standard Lithium’s goals of becoming a major domestic supplier of battery-quality lithium from its projects in Arkansas and East Texas and its strategic partnership with Equinor. This report contains a transcript of the conversation, which can be accessed on demand. On May 8, 2024, Standard Lithium and Equinor (EQNR: NYSE) announced a strategic partnership to develop Standard Lithium’s South West Arkansas and East Texas lithium projects. The partnership includes an investment by Equinor of up to $160 million (gross), reflecting its 45% ownership interest in the two projects. Standard Lithium owns 55% and retained the operator role. Equinor’s investment includes US$30 million paid to Standard Lithium upon closing, a US$60 million work program funded by Equinor at the South West Arkansas and East Texas projects, and up to US$70 of milestone payments due upon successful Final Investment Decisions (FIDs) at the projects. The Equinor partnership combines their skillsets developed from a long history producing oil & gas with Standard Lithium’s history developing the DLE technology and flow sheets to recover battery-quality lithium from brine produced from the Smackover Formation. The Equinor brand could enhance the projects’ financeability for full development, including negotiating offtake agreements with customers. Standard Lithium’s goal is to complete a South West Arkansas Definitive Feasibility Study (DFS) during 1H25. The funding is expected to help Standard Lithium solidify the acreage position in its area of interest for East Texas. The South West Arkansas and East Texas project areas have tested high lithium concentrations in the Smackover brine. In fact, the concentration from East Texas test wells sampled the highest confirmed lithium-grade brine (806 mg/L and an average of 644 mg/L) in North America. High concentrations are correlated with lower capital and operating costs per ton of lithium produced thereby enhancing project economics. Standard Lithium’s project areas are essentially closed-loop systems located in jurisdictions with favorable regulatory agencies that have decades of experience with the oil & gas industry. Smackover brine will be produced from the subsurface, processed for lithium extraction in surface facilities and the tail brine will be reinjected into the reservoir. In April 2024, Standard Lithium commissioned and began operating the only commercial-scale Direct Lithium Extraction (DLE) column in North America. During a two-week performance period in April, the Li-Pro™ LSS DLE process achieved average lithium recovery of 97.3% and rejected more than 99% of contaminants. The column is identical to those that will be used in the commercial development of South West Arkansas and East Texas as well as the Phase 1A project that is not part of the Equinor partnership.