Announcement • Sep 08

Smackover Lithium Announces Positive Preliminary Economic Assessment for the Franklin Project

Smackover Lithium, the partnership between Standard Lithium Ltd. through its subsidiaries, and Equinor, through subsidiaries of Equinor ASA, announced the positive results of a Preliminary Economic Assessment (the “PEA”) for the Franklin project in the northeast region of Texas, USA. The PEA for the partnership’s first Project area in the East Texas region of the Smackover highlights the globally significant size and high quality of its brine position. The PEA contemplates annual production capacity of up to 70,000 tonnes of battery-quality lithium carbonate and roughly 65,000 tonnes per annum of average production over a 20-year modelled operating life, with an average lithium concentration of 515 mg/L. Initial production could begin in the early 2030’s with additional potential for a longer operating life and further expansion, though this is not modelled in the PEA. The PEA leverages Definitive Feasibility Study for the South West Arkansas Project. Due to the similarity of the brines within Standard Lithium’s suite of projects, it is possible to apply key elements of the SWA Project process flowsheet and costing to improve understanding and accelerate the PEA process for the Franklin Project. Average annual lithium cash operating costs of $4,226/t projected over the operating life, and average annual all-in costs, inclusive of cash operating cost, royalties, sustaining capital and closure costs, of $5,054/t. Lithium initial capital cost estimate of USD 3,500 million, including contingencies of 20%. This estimate takes into consideration SWA Project costs and uses established methodologies and scaling factors that result in a capital intensity of $49,945/t and incorporates Standard Lithium’s continual Demonstration Plant learnings. Increased Mineral Resource size and a portion of the Mineral Resource converted from Inferred to Indicated as compared to the Maiden Inferred Resource Report. The new Indicated Resource is 1.77 million tonnes lithium carbonate equivalent at an average lithium concentration of 562 mg/L for 0.59 km3 of brine volume, while the upgraded Inferred Resource is 2.13 million tonnes lithium carbonate equivalent at an average lithium concentration of 572 mg/L for 0.70 km3 of brine volume. The PEA includes an Indicated and Inferred bromide Mineral Resource of 2.66 and 3.15 million tonnes at an average bromide concentration of 4,483 and 4,501 mg/L, respectively, an increase and upgrade from the Maiden Inferred Resource Report. There is also an Inferred potash (as potassium chloride) Mineral Resource of 15.06 million tonnes at an average potassium concentration of 11,291 mg/L. Brine mineral leasing has been ongoing since 2022 in the Project area now encompassing 44,541 hectares (110,064 acres), an increase of 37% from the 32,455 hectares (80,199 acres) highlighted in the Maiden Inferred Resource Report. A total 30,994 hectares (76,588 acres) gross mineral area has been leased to support the Mineral Resource. The PEA also considers a scenario based on co-located bromine commercial opportunity of 50,000 tonnes per year. Potash was added to the U.S. Geological Survey Critical Mineral List in 2025. This PEA does not assume any potash recovery, production or economic contribution, but does highlight another possible source of future upside subject to technical, economic and market evaluation. All model outputs are expressed on a 100% ownership basis with no adjustments for financing assumptions. Standard Lithium's economic interest in the Project is 55%. Mineral Resources have been reported in accordance with the 2014 Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources & Mineral Reserves. Smackover Lithium, a 55:45 owned partnership between Standard Lithium and Equinor, with Standard Lithium as the developer and operator, is seeking to develop a greenfield lithium extraction and chemicals production facility in the East Texas region of the Smackover Formation. The Franklin Project is its first defined project in East Texas. The Project area is contained in east Hopkins, Franklin, and west Titus counties. The centre of the Franklin Project is located approximately 4.5 km south of the city of Mount Vernon. The main access to the Project site is via east-west interstate Highway 30 connecting Texas to Arkansas. The Project area is also accessible by the state highways and the nation-wide rail network that passes through surrounding towns. Brine mineral leasing has been ongoing since 2022 and the Mineral Resource underlies a total of 1,196 separate brine and brine-sourced mineral leases as of July 20, 2026. The 44,541 hectare (110,064 acre) Project area consists of 30,994 gross brine mineral hectares (76,588 gross brine mineral acres) leased by Smackover Lithium. Smackover Lithium is currently developing multiple projects in the Smackover Formation, including the SWA Project. The SWA Project is a direct lithium extraction and lithium-only project that is well advanced in terms of metallurgical testing, has published a Definitive Feasibility Study and is preparing for a Final Investment Decision in late 2026. The Franklin Project brine is sufficiently similar to the SWA Project brine from a metallurgical perspective. This means that the lithium process flowsheet for the Franklin Project will likely be similar to the SWA Project. The PEA is designed on this basis, including use of the same direct lithium extraction technology, a critical part of the overall flowsheet. The Franklin Project is anticipated to produce a higher lithium recovery per brine volume processed because of the greater lithium concentration in the feed brine, resulting in potentially improved economics. A third-party vendor with extensive expertise in the Smackover Formation was engaged for a treatability study of Franklin Project brine to provide a preliminary assessment of the brine compatibility with its lithium selective sorption process. The trials achieved the target lithium retention as well as the target sodium, potassium, calcium and magnesium rejection with the limited quantity of brine that was processed. The PEA contemplates annual production capacity of up to 70,000 tonnes of battery-quality lithium carbonate and 1.29 million tonnes of total lithium carbonate production over a 20-year modelled operating life.

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