Leo Lithium (LLL) AGM 2024 Presentation summary

Proposed transaction overview

• Sale of remaining 40% shareholding in Mali Lithium BV and interest in the Goulamina Project to Ganfeng for US$342.7 million (A$519 million), equating to A$0.43 per share.

• Payment split into three tranches: US$10.5m deposit received, Tranche 1 (US$161m) expected by October 2024, Tranche 2 (US$171.2m) by June 2025.

• Leo to exchange future offtake rights for a 1.5% gross revenue Trailing Product Sales Fee (TPSF) from Goulamina, capped at 500,000tpa for 20 years.

• Proceeds from Tranche 1 and deposit to be distributed to shareholders in January 2025; Tranche 2 proceeds in July 2025 unless shareholders approve alternative use.

• Additional A$11.5m from Firefinch to be returned to shareholders upon receipt.

Rationale for and against the transaction

• Sale provides certainty of value and lowest risk profile amid challenging circumstances and declining lithium stock prices.

• Ongoing TPSF offers long-term revenue potential, but shareholders lose direct exposure to Goulamina's future upside.

• Ganfeng, a leading lithium battery supply chain player, will fully fund the project post-transaction.

• Risks of not proceeding include exposure to Mali's security, sovereign, and regulatory risks, and potential reduction in joint venture interest.

• If not approved, Leo remains a minority owner with ongoing funding and operational risks.

Intended use of funds and distribution plan

• Tranche 1 distribution (A$0.15–0.182 per share) to shareholders in January 2025, including deposit and Firefinch payment if received.

• Tranche 2 proceeds to be distributed in July 2025 unless shareholders approve value-accretive investments.

• Any dividend from the sale will be declared from 2024 profit and paid in FY2025.

• Shareholder approval required for any capital return or alternative investment use.