New Risk • Jun 16
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: CA$137.1m (US$98.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$26m free cash flow). Share price has been highly volatile over the past 3 months (20% average weekly change). Revenue is less than US$1m. Minor Risks Shareholders have been diluted in the past year (24% increase in shares outstanding). Market cap is less than US$100m (CA$137.1m market cap, or US$98.1m). Announcement • Jun 13
Lithium Ionic Corp Comments on Emerita Shareholder Litigation Lithium Ionic Corp. had been aware that a group claiming to be significant shareholders of Emerita Resources Corp. had applied to the Ontario Superior Court of Justice (Commercial List) for leave to commence a lawsuit on behalf of Emerita against Lithium Ionic and others. The application had been commenced in the name of PM Super Fund, which claimed to be an Australian trust. According to the June 8, 2026 press release issued by the Emerita shareholder group, the application was premised on an Application for Enforcement Proceedings commenced by the Ontario Securities Commission on April 9, 2026, against Emerita, certain former directors of Lithium Ionic, and others. Lithium Ionic was not a respondent to the OSC proceeding, and no orders had been sought by the OSC against Lithium Ionic. The application had been brought by a small group of Emerita shareholders. The Emerita shareholder group must obtain permission from the Court before it could sue on behalf of Emerita, which approval had not been obtained. The Board of Directors of Emerita established a Special Committee of independent directors in response to the OSC proceeding. The Emerita shareholder group had acknowledged that its application had been brought contrary to the express request of the Special Committee. Based on the allegations made by the OSC, and facts known to the Company, even if the Emerita shareholder group obtained permission from the court to sue Lithium Ionic in a derivative action, Lithium Ionic did not believe a court would find that Lithium Ionic held the Bandeira Project in trust for Emerita, or order that the Bandeira Project be transferred to Emerita. Lithium Ionic intended to take all steps necessary to protect its interest in the Bandeira Project, including by responding to any lawsuits commenced against Lithium Ionic in relation to the Project. Announcement • Jun 11
Lithium Ionic Places First Long-Lead Equipment Order for Bandeira Substation Transformer and Provides Project Engineering Update Lithium Ionic has placed its first long-lead equipment order at Bandeira, securing the Project’s main substation power transformer, and confirms that overall project engineering has advanced to approximately 65% completion. The transformer order marks the start of long-lead procurement at Bandeira and an important step from engineering into execution. As one of the longer-lead items on the path to construction, ordering it now supports schedule certainty while the Company advances its broader procurement program and continues to refine the Project’s capital cost estimate. First long-lead equipment order placed at Bandeira, securing the Project’s main substation power transformer from Brazilian manufacturer Blutrafos. Overall Engineering has advanced to 65% completion since the Feasibility Study press release from September 17, 2025. Geotechnical drilling (1,352m) completed in the project area to support detailed engineering and design. Project capital cost estimate being updated as part of the ongoing detailed engineering work. The Company has issued its first long-lead equipment order at Bandeira for the main power 138/13.8 kV transformer that will serve the Project’s internal substation, to be supplied by Brazil-based manufacturer Blutrafos. As one of the longer-lead items required ahead of construction, securing it now provides early certainty on a critical-path component and reflects the Company’s transition into the procurement and execution phase of the Project. Lithium Ionic expects to issue further updates as additional long-lead packages move through tendering and award. 
