Lake Resources (LKE) Investor Update summary

DFS and Reserve Update

• Brine grade increased from 205 mg/L to 249 mg/L, with reserves showing further increase to nearly 270 mg/L, enabling more efficient lithium extraction and reduced brine pumping requirements.

• Total resource increased 12% to 11.1 Mt LCE, with measured resource up from 3.0 to 4.2 Mt LCE, confirming the project as one of Argentina's largest lithium deposits.

• CapEx reduced by 16% to $1.16 billion, driven by technology improvements, brine upgrades, and supply chain optimizations.

• DLE technology advancements (Lilac Gen 4) improved recovery rates from ~80% to ~90%, reduced DLE CapEx by 39% and Opex by 40%, and halved the number of required DLE modules.

• Number of production and injection wells reduced by 22%, further lowering costs and power requirements.

Operating Costs and Power

• OpEx improved to just under $5,900/ton LCE, with 55% attributed to power costs, and a 28-30% reduction in non-power OpEx due to technology and process improvements.

• Power requirements dropped from 82 MW to 57 MW, with grid power solution secured and alternative energy sources being considered to further reduce costs.

• Current OpEx assumes full cost for grid extension's second phase, with potential for future cost sharing.

• Plant footprint reduced by 15-20%, with significant reagent consumption savings.

• Single-phase plant construction approach adopted, eliminating interim power solutions and accelerating commissioning by six months.

Financials and Market Outlook

• Project NPV (pre-tax) is $1.5 billion with a pre-tax IRR of 22.5% and a 4.5-year payback period; post-tax NPV10 is $1.01 billion and IRR is 19.7%.

• Long-term lithium price assumption revised to just over $21,000/ton, with average battery grade lithium carbonate price forecasted at ~$20,500/t over the life of mine.

• Project economics benefit from Argentina's RIGI regime, offering tax and customs incentives and regulatory stability for 30 years.

• Sensitivity analysis shows strong resilience to CapEx and OpEx variations, with lithium price being the most significant driver.

• Market fundamentals indicate a supply deficit by decade's end, with lithium demand projected to grow at a 10% CAGR through 2035.