Communicators

Vulcan Energy Resources Limited (Vulcan, ASX: VUL, FSE: VUL, the Company) is pleased to announce an update on the European Investment Bank (EIB)’s proposed involvement in the financing of Phase One of its ZERO CARBON LITHIUM™ Project.

Highlights

-          After preliminary due diligence, Vulcan’s Phase One ZERO CARBON LITHIUM™ Project appears potentially suitable for an EIB financing and the Project has advanced to the "Under Appraisal" stage.

-          EIB's proposed financing could amount to up to €500m (~A$825m), pending completion of due diligence, credit approval and legal agreement, and subject to EIB's governing bodies approval. It is expected to serve as a cornerstone to complement ongoing debt funding discussions with leading export credit agencies and international banks.

-          The EIB is the lending arm of the European Union (EU) and one of the largest climate finance providers. The EU seeks to provide support through a financial pathway toward sustainable and resilient domestic supply chain development for Europe to meet the EU’s goals to reduce net greenhouse gas emissions by 55% by 2030 and no net emissions of greenhouse gases by 2050.

-          The Company has already started its debt and project level equity financing process, supported by BNP Paribas, following positive market sounding in 2023 from commercial banks, development banks, and government-backed export credit agencies. This included a A$200 million (~€120 million) non-binding Letter of Support from Export Finance Australia (EFA), and indication of strong ECA support from Canada, Italy, and France during 2023.

-          Vulcan is developing the world’s first integrated renewable energy and ZERO CARBON LITHIUM™ Project in the Upper Rhine Valley, Germany, aiming to decarbonise the lithium supply chain for electric vehicles (EVs) and to supply local communities with renewable heat and power.

-          Phase One of Vulcan’s ZERO CARBON LITHIUM™ Project (Project) is targeting the production of 24,000 tonnes per annum (tpa) of Lithium Hydroxide (LHM), equivalent to 500,000 Electric Vehicles. Vulcan will supply key auto and battery makers in the European supply chain, including its second-largest shareholder, Stellantis.

Furthermore, the EIB notes that:

-          The production of battery grade lithium LHM - a critical raw material (CRM) to be used in particular to for EV batteries - will contribute to the EU's green transition and to the achievement of the European Green Deal ambition to become climate neutral by 2050. As such, the Project is in line with the EU Key Enabling Technologies and Strategic Energy Technology (SET) Plan objectives, contributing to increased EU autonomy and resilience in industrial ecosystems fore- mobility and batteries.

-          The Project falls under Main Policy Priority area (Environment and resources / Sustainable critical raw materials value chain) for projects supporting the sustainable supply and processing of critical primary raw materials with the main objective of building production capacity for the purpose of large-scale competitive commercialisation.

-          The lithium processing plants are eligible for climate action as mitigation. The output of the production plant is battery grade LiOH, which is used to produce battery active material (BAM). The project therefore falls within the scope of the activity '3.4 Manufacture of batteries' in the Taxonomy Climate Delegated act and fulfils the substantial contribution criteria for climate change mitigation, since the 'Manufacture of respective components (battery active materials, battery cells, casings and electronic components)' is also covered. Therefore, the project is eligible under Article 309 point (c) common interest.

-          The energy elements of the Project are in line with EU and EIB policy objectives on climate action (mitigation) and are also fully in line with national RE penetration targets for the electricity grid and for district heating. They will generate both environmental and health benefits, in particular by replacing fossil-fuels with the integration of low-carbon, more sustainable, baseload renewable sources.

Mr. Cris Moreno, Managing Director and CEO stated: “We welcome the support of the EIB. This is a strong and tangible signal of confidence at the European level for the ZERO CARBON LITHIUMTM Project, and of its capability to enable a secure, domestic lithium supply chain for electric vehicle batteries for Europe. This progression in EIB’s financial appraisal is a positive step forward in the sequence of our debt and project level equity financing for Phase One of the Project, which is anticipated to create millions of tonnes of carbon avoidance in the EV supply chain in the years to come. “

About Vulcan

Founded in 2018, Vulcan’s unique Zero Carbon Lithium™ Project aims to decarbonise lithium production, through developing the world’s first net carbon neutral lithium business, with the co-production of renewable geothermal energy on a mass scale. By adapting existing technologies to efficiently extract lithium from geothermal brine, Vulcan aims to deliver a local source of sustainable lithium for Europe, built around a net zero carbon strategy with exclusion of fossil fuels. Already an operational renewable energy producer, Vulcan will also provide renewable electricity and heat to local communities. Vulcan’s combined geothermal energy and lithium resource is the largest in Europe1, with license areas focused on the Upper Rhine Valley, Germany. Strategically placed in the heart of the European electric vehicle market to decarbonise the supply chain, Vulcan is rapidly advancing the Zero Carbon Lithium™ Project to target timely market entry, with the ability to expand to meet the unprecedented demand that is building in the European markets. Guided by our Values of Climate Champion, Determined and Inspiring, and united by a passion for the environment and leveraging scientific solutions, Vulcan has a unique, world-leading scientific and commercial team in the fields of lithium chemicals and geothermal renewable energy. Vulcan is committed to partnering with organisations that share its decarbonisation ambitions and has binding lithium offtake agreements with some of the largest cathode, battery, and automakers in the world. As a motivated disruptor, Vulcan aims to leverage its multidisciplinary expert team, leading geothermal technology and position in the European EV supply chain to be a global leader in producing zero fossil fuel, net carbon neutral lithium while being nature positive. Vulcan aims to be the largest, most preferred, strategic supplier of lithium chemicals and renewable power and heating from Europe, for Europe; to empower a net zero carbon future.

1 According to public, JORC-compliant data. See Upgrade of Zero Carbon Lithium™ Project Resources, 29 September 2023

Corporate Directory

Executive Chair: Dr. Francis Wedin

Managing Director and CEO: Cris Moreno

Deputy Chair: Gavin Rezos

Non-Executive Director: Ranya Alkadamani

Non-Executive Director: Annie Liu

Non-Executive Director: Dr. Heidi Grön

Non-Executive Director: Josephine Bush

Non-Executive Director: Dr. Günter Hilken

Chief Representative GER: Dr. Horst Kreuter

Company Secretary: Daniel Tydde

For and on behalf of the Board

Daniel Tydde | Company Secretary

Media and Investor Relations contact

International:

Annabel Roedhammer, Vice President Communications and Investor Relations | aroedhammer@v-er.eu | +49 (0) 1511 410 1585

Please contact Vulcan’s Legal Counsel Germany, Dr Meinhard Grodde, for matters relating to the Frankfurt Stock Exchange listing on mgrodde@v-er.eu.

Reporting calendar

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward-looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Vulcan operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward- looking statement. No forward-looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Vulcan’s control.

Vulcan does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Vulcan, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by Vulcan. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.