Lepidico - Quantifying exploration’s dividends

Lepidico recently announced a series of impressive drill results at Helikon 4 (including 34.8m at 1.25% Li2O) that extend the zone of mineralisation there both down dip and along strike to the east towards Helikon 3 and Helikon 2. Drilling will continue, with a view to upgrading the mineral resource estimate at Karibib into the measured and indicated categories, which will form the basis of a new mine plan at Karibib, potentially extending the Phase 1 operating life of the project from 14 to 20 years and complementing the company’s chemical plant front-end engineering and design (FEED) process, which is scheduled for completion in November, once procurement optimisation and design refinements are complete. A final investment decision on the project is then anticipated to be made in early Q1 CY23. This note seeks to quantify the financial effects of incorporating the potential resource at Helikon 4 into Karibib’s mine plan.