EQS-Adhoc: Vulcan Energy Resources Limited: Definitive feasibility study shows significantly improved economic metrics for Phase One of Vulcans Zero Carbon Lithium Project

Vulcan Energy Resources Limited has concluded the Definitive Feasibility Study (DFS) for the Phase One development of Vulcans Zero Carbon Lithium Project. Vulcan aims to be the worlds first integrated lithium chemicals and renewable energy producer with net zero greenhouse gas emissions. Vulcan aims to be the first integrated, renewable heat and power, lithium extraction and lithium hydroxide refining project, to supply the battery electric vehicle industry from Europe, for Europe. The DFS and Resource-Reserve update was based on newly acquired data from the Company's geothermal production and reinjection wells and lithium extraction pilot plant, engineering studies, newly acquired seismic data, and state-of-the-art modelling and simulation techniques.  The main results of the study are as follows:

• Targeting 24Ktpa Lithium Hydroxide Monohydrate (LHM) p.a. production from EU, for EU.
• Targeting >300GWh/a renewable power, >250GWh/a renewable heat production p.a.
• >250% increase in estimated NPV₈: 3.9Bn pre-tax, 2.6Bn post-tax. 
• 34% estimated IRR pre-tax, 26% IRR post-tax.
• 1,496M estimated CAPEX, increase broadly in line with larger project size and inflation.
• Low estimated OPEX of 4,359/t LHM.
• Targeted 3.5-year payback (Integrated Project). Target start of production end-2025.
• Net zero per tonne estimated LHM carbon footprint: a world first in the lithium industry.
• Zero Scope 1 fossil fuels. Net water consumption very low.
• Increase in Resources and Reserves relative to Integrated Phase One PFS: the largest lithium Resource in EU at 26.6Mt Lithium Carbonate Equivalent (LCE).

This DFS confirms the economic viability of the Vulcan Energy Resources Ltd. business model. The economic metrics for Phase One of the Company's Zero Carbon Lithium Project are significantly improved compared to the assumptions in the Pre-Feasibility Study (PFS) released in January 2021.

As these latest studies demonstrate the technical and economic feasibility as well as the sustainability of the Company's business model, Vulcan Energy Resources Ltd. expects a positive signal effect for the financing of the further implementation of the Zero Carbon Lithium Project.