Announcement • Jul 01

Power Issues Cash Notice to Ultra Lithium for Loan Repayment

Power Minerals Limited advised that it has issued a cash notice to Ultra Lithium Inc. for the full repayment of the amounts outstanding under a convertible loan agreement (CLA) between the two companies. The Cash Notice was issued under the CLA and demands that Ultra Lithium repay AUD 1,098,246 within 10 business days of receipt of the notice (Debt). Failure to pay within this timeframe will constitute a default under the CLA and will allow Power to initiate enforcement actions to recover the Debt, including by enforcing the security interests held against Ultra Lithium's Argentinian and Canadian mineral projects (Security Interests). Power Minerals and Ultra Lithium entered into a binding term sheet on 11 May 2023 (BTS) which contemplated the entry into the CLA. In accordance with the BTS, Power attempted to complete the BTS transaction. However, as per PNN ASX announcement dated 19 July 2023, Power confirmed that it had identified key matters of concern, which, in conjunction with Ultra Lithium's lack of substantive engagement in respect of the BTS transaction, had caused serious concerns as to whether the BTS transaction would complete. Under the CLA, Power advanced an interest-bearing loan of AUD 1.13 million to Ultra Lithium on 12 May 2023. The loan, together with accrued interest, is repayable on demand by the Company at any time by the issue of shares in Ultra Lithium Inc. or in cash at any time after 30 June 2024. On 25 October 2023, Power received a pre- payment of AUD 150,000 under the CLA. On 1 July 2024, Power issued a Cash Notice to Ultra Lithium demanding full repayment of the Debt. The Debt specified in the Cash Notice as AUD 1,098,246 already accounts for the pre-payment of AUD 150,000 received in October 2023. The Cash Notice also specified that the Debt must be repaid within 10 business days of receipt of the Cash Notice. If Ultra Lithium fails to repay the Debt in accordance with the Cash Notice, Power will issue a default notice in accordance with the CLA. If Ultra Lithium defaults in respect of repayment of the Debt, Power intends to enforce recovery of the Debt to ensure full repayment under the CLA, including by enforcing its rights under the Security Interests. The CLA and BTS between Power and Ultra Lithium will remain in full force and effect until the claim for repayment under the CLA is resolved to the reasonable satisfaction of Power.

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