A message from the President of Century Lithium Corp.

Nov 13, 2024

November 13, 2024

On behalf of Century Lithium, I thank you for your support and am pleased to provide an update on our progress and vision for the Company.

This past year was transformative for Century Lithium. In 2024, we realized milestones that few companies our size in the lithium sector have achieved. The most significant steps we’ve made to date are completing the Feasibility Study on Angel Island and producing battery-grade lithium carbonate at our Nevada Pilot Plant. These achievements make our flagship lithium project, Angel Island, one of the most advanced lithium projects in the United States. Our end-to-end process will produce battery-grade lithium carbonate for the growing electric vehicle and battery storage market.

The results of the Feasibility Study, released in April this year, were an impressive net present value, at an 8% discount rate of US$3.1 billion and an internal rate of return of 17.2%. We believe the project economics can be further improved. We are working diligently on optimization at the Pilot Plant and in engineering, targeting specific areas where significant reduction of the estimated capital costs can be made.

With respect to costs, a major component of Angel Island is the chlor-alkali plant. The chlor-alkali plant brings technical and environmental advantages by producing the key reagents for our process onsite. It also creates a substantial economic benefit through the production of surplus sodium hydroxide. As reported in the Feasibility Study, the market for sodium hydroxide in the western United States is currently met largely by foreign imports. Angel Island offers a domestic supply for much of this demand. As projected by the Feasibility Study, surplus sales of sodium hydroxide are a significant offset to cash operating costs. These sales result in a net cash cost for lithium carbonate under $3,000/tonne and would place Angel Island at the low end of the cost curve for lithium producers and developing projects.

Pilot Plant Highlights

The team at our Pilot Plant continues to make strides, successfully making battery-grade lithium carbonate using Century Lithium’s patent-pending chloride leaching process. This achievement strengthens our position as a future end-to-end provider of lithium, demonstrating our ability to produce battery-grade lithium carbonate from claystone. This capability places Century Lithium at the forefront of sustainable and innovative lithium production, aligning well with Nevada’s “Lithium Loop” initiative to support the United States’ clean energy transition.

As part of our current efforts in optimization, we have successfully tested various alternative reagents and equipment at bench and mini-pilot scales. As a result, we are now upgrading the Pilot Plant to reflect these changes, and to evaluate their potential to lower the estimated project costs while continuing to demonstrate the efficiency and technological benefits of our overall process.

Environmental and Permitting Progress

We are pleased to report significant headway in our permitting activities. Most of the required baseline studies are completed and we are working with federal regulators to complete the last steps before the NEPA process. We are currently editing an internal draft Plan of Operations while awaiting key inputs, detailed engineering and the completion of all baseline work. We are also preparing key state permits for water pollution control and air quality. The permitting work underway will ensure that our future operations at Angel Island will align with both regulatory requirements and Century Lithium’s environmental and social stewardship goals.

Strategic Partnerships and Funding for Angel Island

In parallel with the technical advancements at Angel Island, we are actively seeking strategic partnerships with potential end-users and market participants interested in securing a domestic supply of battery-grade lithium carbonate. The surplus of sodium hydroxide produced in our process also presents an additional revenue stream, making Angel Island highly attractive because of its competitive estimated cash cost. We are further exploring government funding opportunities available through the U.S. Department of Energy and U.S. Department of Defense to increase Angel Island’s financing options.

As we head into 2025, we are continuing our efforts to minimize spending and maintain our treasury while remaining focused on the priorities discussed above.

Looking Forward

While 2024 presented challenges across the lithium market, we are encouraged by the resilience and value offered by Angel Island and the technological advancements we have achieved in our process. The focus on clean energy sources and battery materials continues to drive demand for secure, sustainable lithium supplies, and Century Lithium is well positioned to be a leading U.S.-based source for this critical commodity.

We are grateful for your continued support and belief in Century Lithium’s mission. Together, we are building a Company that aims to play an integral role in the clean energy transition. We look forward to sharing our progress as we continue to make strides in the development of Angel Island, deliver value to you, our shareholders, and contribute to a sustainable energy future.

Sincerely,

Bill Willoughby

President & Chief Executive Officer

Century Lithium Corp.

ABOUT CENTURY LITHIUM CORP.

Century Lithium Corp. is an advanced stage lithium company, focused on developing its wholly owned Angel Island project in Esmeralda County, Nevada, which hosts one of the largest sedimentary lithium deposits in the United States. The Company has utilized its patent-pending process for chloride leaching combined with Direct Lithium Extraction to make battery quality lithium carbonate samples from Angel Island lithium-bearing claystone on-site at its Lithium Extraction Facility in Amargosa Valley, Nevada.

Angel Island is one of the few advanced lithium projects in development in the United States to provide an end-to-end process to produce battery grade lithium carbonate for the growing electric vehicle and battery storage market. Angel Island is currently in the permitting stage for a three-phase feasibility-level production plan expected to yield an average of 34,000 tonnes per year of battery grade lithium carbonate over a 40-year mine-life.

Century Lithium trades on both the TSX Venture Exchange under the symbol “LCE” and the OTCQX under the symbol “CYDVF”; and on the Frankfurt Stock Exchange under the symbol “C1Z”. To learn more, please visit centurylithium.com.

ON BEHALF OF CENTURY LITHIUM CORP.
WILLIAM WILLOUGHBY, PhD., PE
President & Chief Executive Officer

For further information, please contact:
Spiros Cacos | Vice President, Investor Relations
Direct: +1 604 764 1851
Toll Free: 1 800 567 8181

[email protected]
centurylithium.com

Cautionary Note Regarding Forward-Looking Statements

This letter contains certain forward-looking statements within the meaning of applicable Canadian securities legislation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” and similar expressions suggesting future outcomes or statements regarding an outlook.

Forward-looking statements relate to any matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, without limitation, statements with respect to the potential development and value of the Project and benefits associated therewith, statements with respect to the expected project economics for the Project, such as estimates of life of mine, lithium prices, production and recoveries, capital and operating costs, IRR, NPV and cash flows, any projections outlined in the Feasibility Study in respect of the Project, the permitting status of the Project and the Company’s future development plans.

These and other forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein. These risks include those described under the heading “Risk Factors” in the Company’s most recent annual information form and its other public filings, copies of which can be under the Company’s profile at www.sedarplus.com. The Company expressly disclaims any obligation to update forward-looking information except as required by applicable law. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place reliance on forward-looking statements or information. Furthermore, Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

https://www.centurylithium.com/