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Fireside Chat to Discuss Equinor Partnership

On May 8, 2024, Standard Lithium (SLI) and Equinor (EQNR:NYSE) announced the closing of a strategic partnership to accelerate development SLI’s South West Arkansas (SWA) and East Texas lithium projects in the Smackover formation. Management believes the partnership validates SLI’s Direct Lithium Extraction (DLE) flowsheet and experience and the resource potential of its world-class lithium-brine resources in Arkansas and Texas. Equinor is an international energy company and has operated in the US onshore and offshore oil & gas industry for more than three decades. The partnership combines its expertise producing hydrocarbons and managing production facilities with SLI’s DLE and flowsheet experience gained from its Phase 1A project in southern Arkansas. The implied valuation for SLI’s South West Arkansas and East Texas projects based Equinor’s US$160 investment suggests a ~US$295 million upfront valuation for the two projects. Equinor’s $160 million commitment includes US$30 million paid to SLI upon closing, US$60 million, representing a US$33 million carry by Equinor for SLI’s portion, and US$27 million for Equinor’s share of work programs at SWA (US$40 million) and East Texas (US$20 million), and up to US$70 million of payments due SLI subject to both partners taking positive Final Investment Decisions (FID). SLI will own 55% of both projects and remain operator and Equinor will own 45%. The total consideration to SLI under the terms is ~US$133 million. Front End Engineering and Design studies (FEED) and Definitive Feasibility Studies (DFS) are progressing at SWA. The partners will jointly work on plans for additional drilling to define the subsurface reservoir and resource understanding, a well field design for brine production, design and phasing the processing facility, project financing, and permitting. SLI is targeting a production level of battery-quality lithium (LiOH2) in the 30,000-35,000 tons per year range at the SWA project. SLI has conducted a near four-year exploration program leasing and drilling test wells to evaluate the lithium concentrations in the Smackover Brine in East Texas. It has tested the highest known lithium-in-brine grades in North America on its acreage (up to 806 mg/l, including significant potash and bromine concentrations). The partners will work together to lease additional acreage, drill additional exploration wells, and define development projects. An initial resource estimate is anticipated in the next 12 months. SLI’s target is to establish a recourse-based production capacity of 100,000+ tons per year of lithium carbonate (LCE). Join us for a fireside chat on Tuesday, May 14, 2024, at 11:00 am ET with Salah Gamoudi, SLI’s CFO. We will discuss the Equinor strategic partnership’s impact on advancing the SWA and East Texas projects and the recent commissioning of the first commercial scale DLE column at SLI’s Phase 1A project. Those interested can register for the event via the link in our full report.