Lithium Royalty Corp. (TSX: LIRC) (“LRC”) is pleased to report that Winsome Resources Limited (“Winsome”) announced the completion of a scoping study for its 100%-owned Adina Lithium Project (the “Adina Project”) located in Québec, Canada. The study highlights the Adina Project as one of the most capital-efficient hard-rock lithium projects in North America. The scoping study is a significant milestone for Winsome and for the 4.0% gross overriding revenue royalty (GOR) that LRC owns over the Adina Project.

“Lithium Royalty Corp. congratulates Winsome Resources on the release of its maiden scoping study on the Adina Project, which cements the project as one of the most competitive, scalable, and simple spodumene projects in the Americas. We believe that the progress of the Adina Project through its development to eventual production will uncover substantial value to LRC,” said Ernie Ortiz, President and CEO of LRC.

Key Highlights of the Scoping Study

  • Low Start-Up Capital Cost of US$260 Million – The Adina Project benefits from an estimated start-up capital cost of approximately US$260 million, mainly due to Winsome’s ability to leverage the existing infrastructure at the nearby Renard mine, over which Winsome has secured an option to acquire out of insolvency. This exclusive option to repurpose and use the Renard facility offers significant cost savings to Winsome, avoiding the need to incur higher expected construction costs associated with a greenfield development at the Adina Project. The capital efficiency of this project positions Adina to potentially be one of the most attractive lithium projects in North America.
  • Opportunity for Growth – The scoping study for the Adina Project contemplates mining 31.2Mt of indicated mineral resource from the total indicated mineral resource of 61.4Mt and 4.6Mt of inferred mineral resource from the total inferred mineral resource of 16.5Mt. Furthermore, Winsome anticipates upgrading its mineral resource estimate in the first half of 2025, providing potential growth to the mineral resource for the Adina Project. The scoping study assumes 1.7Mtpa of milled annual production for the Adina Project, below the 2.2 Mtpa nameplate capacity for the state-of-the-art fully-covered DMS-only processing facility at Renard. Upside to these study assumptions has the potential to increase the mine life and production throughput at the Adina Project.
  • Competitive C1 Operating Cost of US$598/t (FOB) and AISC of US$693/t (FOB) – The Winsome scoping study estimates a C1 operating cost of US$598 per tonne (FOB) of spodumene concentrate over the 17-year active production period of the Adina Project. Additionally, the scoping study contemplates using a simple dense media separation processing method, which Winsome expects will further reduce operating costs while enabling Winsome to produce a high-quality, coarse concentrate. Winsome’s study also forecasts All-In Sustaining Costs (AISC) averaging US$693 per tonne (FOB) over the active production period for the Adina Project. This includes all expenses related to sustaining capital, mining, processing, and transportation costs. The estimated AISC highlights the potential for strong cash flow from the project, and suggests that the Adina Project has the potential to be financially resilient, even in fluctuating lithium commodity price environments.
  • Creation of 600 Jobs in the Province of Québec – Winsome anticipates that the Adina Project will create approximately 600 jobs during its operational phase, and contribute to economic development and employment in the Eeyou Istchee James Bay region and the Province of Québec. Winsome has reiterated that it is committed to working closely with local stakeholders, including First Nations communities, to enable the project to deliver long-term benefits for the region.
  • Meaningfully Positive Implications for LRC – Winsome’s scoping study for the Adina Project underscores the benefits of LRC’s strategy of targeting assets that are high-grade, low cost, with low levels of technical complexity. Winsome has referenced on page 14 of the scoping study that undiscounted gross royalty payments to LRC over the 21-year mine life have the potential to reach approximately US$300 million. The pit design in Winsome’s scoping study incorporated the 4.0% GOR royalty that LRC owns over the Adina Project.

Key Life-of-Mine Statistics from Winsome Scoping Study:

 

Figure

Units

Renard plant - Targeted throughput

1.7

Mtpa

Renard plant - Nameplate throughput capacity

2.2

Mtpa

Production target - Indicated mineral resource

31.2

Mt

Indicated mineral resource

61.4

Mt

Production target - Inferred mineral resource

4.6

Mt

Inferred mineral resource

16.5

Mt

Mine life

21

Years

Production target - Average annual concentrate production

256

ktpa

Projected LRC GOR royalty undiscounted cashflow

$296

USD millions

About Lithium Royalty Corp.

LRC is a lithium-focused royalty company organized in Canada, which has established a globally diversified portfolio of 35 revenue royalties on mineral properties that are related to the electrification and decarbonization of the global economy. The Company’s royalty portfolio is focused on the battery supply chain for the transportation and energy storage industries and is underpinned by mineral properties that produce or are expected to produce lithium and other battery materials. LRC is a signatory to the Principles for Responsible Investment; the integration of ESG factors and sustainable mining are considerations in our investment analysis and royalty acquisitions.

Forward-Looking Information

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, including statements with regard to the potential expected from the royalty acquired from Winsome Resources Limited (“Winsome”). Forward-looking information involves known and unknown risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those described under “Risk Factors” in LRC’s Annual Information Form dated March 27, 2024, and in particular risks summarized under the “Risks Related to Mining Operations” heading. Forward-looking information is based on management’s beliefs and assumptions and on information currently available to management. These assumptions include, but are not limited to, the following: estimates of commodity prices, particularly lithium-related products; the accuracy of public statements and disclosures made by Winsome as the owner, developer and operator of any lithium project based on the mining rights underlying the royalties held by LRC, including with respect to mineral resources, mineral reserves, construction timelines, production estimates and other related matters; the economic viability of Winsome’s Adina lithium project; that Winsome’s Adina lithium project will be developed, transitioned into production and successfully achieve production ramp up, in each case, in accordance with Winsome’s expectations; no adverse development relating to Winsome’s Adina lithium project; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated, intended or implied. Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, you are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.

Contact Information for Inquiries:

Jonida Zaganjori Investor Relations (647) 792-1100 jonida@lithiumroyaltycorp.com

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