Vulcan Energy Resources (VUL) Status update summary

Project Overview and Strategic Direction

• Project Ludwig (Phase Two) leverages the Lionheart blueprint, focusing on scalable, low-cost, and sustainable lithium carbonate and renewable heat production in Germany, using proprietary DLE technology and in-house drilling capabilities.

• Ludwig targets 21,100 tpa lithium carbonate and 3,125 GWh heat annually over a 30-year life, using only 12% of the total resource base, and is designed to be net-energy-positive.

• The project integrates upstream and downstream facilities, consolidating extraction, conversion, and refining on one site, with a closed-loop brine system and renewable heat integration for capital and operational efficiency.

• Ludwig will only proceed to final investment decision after successful Lionheart startup, ensuring risk management and optimal capital allocation.

• Asset-level financing and strategic partnerships are central, with minority equity processes and public funding pursued to minimize dilution and support development.

Financial and Economic Highlights

• Ludwig’s PFS shows a post-tax NPV8 of €1.7 billion and IRR of 20.2%, with a pre-tax NPV8 of €2.6 billion and IRR of 25.0%, over a 30-year life.

• Estimated CAPEX is €1.26 billion, about 15% lower than Lionheart’s for equivalent capacity, with C1 production costs at €4,101/t LCE, placing Ludwig in the lowest quartile globally.

• Annual average nominal revenue is projected at €563 million, with a 15% CAPEX contingency and 10% operating cost contingency included in the model.

• Both Lionheart and Ludwig are positioned in the bottom 10% of global lithium production costs, driven by geothermal energy and low impurities.

• Strategic equity process for Ludwig will bring in asset-level investment, supporting project development and minimizing dilution.

Resource and Technical Foundation

• Indicated lithium mineral resources for Ludwig and Therese licenses increased by nearly 90% since 2023, now at 1,251 kt LCE; inferred resources at 2,230 kt LCE.

• Maiden geothermal resource for Ludwig and Therese licenses totals nearly 500 PJ, with 193 PJ Indicated and 295 PJ Inferred.

• Field development plan includes 14 production and 14 injection wells across five sites, with 16 km of pipelines and a closed-loop brine system.

• Proprietary VULSORBⓇ direct lithium extraction technology and integrated process design underpin project efficiency and product flexibility.

• All resource and production targets are based on Indicated Mineral Resources, with estimates prepared and audited by an independent Competent Person in accordance with JORC and Australian Geothermal Reporting Codes.