The Brownsville Pre-Feasibility Study demonstrates that Lithium Universe’s strategy of replicating the proven Jiangsu lithium refinery model can deliver stronger economics than the previously completed Bécancour Definitive Feasibility Study, while maintaining the same conservative long-term lithium pricing assumptions. Importantly, the study has retained the identical forecast prices of US$1,170/t for SC6 spodumene concentrate and US$20,970/t for battery-grade lithium carbonate used in the Bécancour DFS, allowing investors to make a true “apples-to-apples” comparison between the two projects.

Despite ongoing inflationary pressures and geopolitical uncertainty impacting global construction markets, including recent volatility associated with the Middle East conflict, Brownsville delivers a pre-tax NPV8 of approximately US$787 million compared with US$718 million for Bécancour. Annual EBITDA has increased to approximately US$161 million from US$148 million, reflecting the project’s lower operating cost structure and strategic feedstock advantages.

While capital costs have increased in comparison, the Company has deliberately adopted a more conservative approach to project risk management. The Brownsville estimate includes a contingency allowance of approximately US$130 million compared with US$51 million in the Bécancour DFS. This larger contingency recognises current uncertainty in equipment pricing, construction markets, freight costs, and broader macroeconomic conditions, providing a more robust capital framework for future development.

Operating costs are estimated to be approximately US$365 per tonne lower than Bécancour. The primary drivers are Brownsville’s lower labour costs, estimated to be around 24% below Québec levels, together with lower natural gas and soda ash costs. These benefits more than offset higher electricity prices and recent increases in sulphuric acid costs driven by global supply disruptions and energy market volatility.

An additional competitive advantage is the Company’s binding long-term offtake agreement in Nigeria, which provides spodumene concentrate at a 7.5% discount to market pricing. Combined with Brownsville’s logistics advantages and lower operating costs, this strengthens project margins and positions the refinery as a highly competitive future supplier of battery-grade lithium carbonate into the growing North American battery and energy storage markets.