STANDARD LITHIUM LTD.

Background

Standard Lithium is a near-commercial lithium company dedicated to the sustainable development of a portfolio of lithium-brine bearing properties in the United States. The Company places a strong emphasis on partnerships and collaborative relationships, focusing on projects characterized by high-grade resources, robust infrastructure, skilled labor, and streamlined permitting processes. Through the application of fully integrated DLE and purification technology, the Company aims to achieve commercial-scale lithium production.

The Company’s primary focus is on two key projects within the Smackover Formation in southern Arkansas: the South West Arkansas Project and the Lanxess Property Project. These projects are strategically located in a region known for its long-standing mineral extraction and energy industries. The South West Arkansas Project, developed in collaboration with Equinor, is central to the Company’s portfolio due to its scale and high-quality lithium-brine resources. The Lanxess Property Project, including the LANXESS 1A Project, represents the first commercial lithium extraction initiative on the extensive brine leases operated by LANXESS.

In addition to its Arkansas projects, the Company is pursuing development opportunities within the Smackover Formation in its East Texas properties, also supported through its partnership with Equinor. The Equinor Transaction includes a significant gross investment of up to $160 million across both the South West Arkansas Project and the East Texas properties. Furthermore, the Company holds interests in mineral leases in the Mojave Desert, San Bernardino County, California.

Standard Lithium currently does not own any producing properties and, as such, has no operating income or cash flow from its properties. The Company’s operations are primarily funded through equity financings.

For additional details on the development of these projects, refer to the sections “General Development of the Business – Three Year History,” “General Development of the Business – Trends and Outlook,” and “Mineral Properties” below.

Flagship Projects

The Company has two independent development properties within the Smackover Formation in southern Arkansas: the South West Arkansas Project and the Lanxess Property Project. The South West Arkansas Project, developed in collaboration with Equinor, is central to the Company’s portfolio. Additionally, in partnership with Equinor, the Company is pursuing development opportunities within the Smackover Formation in East Texas.

The resource development of brine leases located in southwest Arkansas (the “South West Arkansas Project”) is maintained pursuant to an option agreement dated December 29, 2017 between TETRA and the Company (the “TETRA 1st Option Agreement”) to acquire certain rights to conduct brine exploration and production and lithium extraction activities on approximately 27,262 net mineral acres of brine leases and deeds located in Columbia and Lafayette Counties, Arkansas.

Under the TETRA 1st Option Agreement, the Company paid TETRA $0.5 million on January 28, 2018, $0.6 million by December 29, 2018, $0.7 million on January 31, 2020, and $0.8 million on December 29, 2020. Under the TETRA 1st Option Agreement, the Company is required to pay additional annual payments of $1.0 million by each annual anniversary date beginning on the date that is 48 months following the date of the TETRA 1st Option Agreement, until the earlier of the expiration of 10 years from the date of the agreement or the execution of a limited mineral assignment, or, if the Company exercises the option. During the lease period, as specified in the TETRA 1st Option Agreement, at any time following the commencement of commercial production of the lithium, the Company agreed to pay a royalty of 2.5% (minimum royalty $1.0 million) to TETRA. On October 31, 2023, the Company exercised its option to acquire brine production rights pursuant to the TETRA 1st Option Agreement at the South West Arkansas Project.

South West Arkansas Project Background

All of the Company’s activities in southern Arkansas relate to brine leases that overlie the Smackover Formation in a region with a long history of commercial scale brine processing. Historical published brine data and current unpublished brine data from within and adjacent to the Company’s two areas of interest lead the Company to believe that lithium-bearing brines are present.

The South West Arkansas Project brine lease area has been historically drilled for oil and gas exploration, and approximately 2,041 exploration and production wells have been completed in the Smackover Formation in or immediately adjacent to the Company’s lease area. A portion of these wells had available petro-physical logs of the Smackover Formation brine-bearing zone. On January 28, 2019, the Company announced a maiden inferred mineral resource of 802,000 tons of lithium carbonate equivalent (“LCE”) at the South West Arkansas Project.

On October 12, 2021, the Company announced the results of a Preliminary Economic Assessment (“PEA”) and updated inferred mineral resource estimate on the South West Arkansas Project. The results of the PEA led to the commencement of a PFS at the South West Arkansas Project on May 2, 2022.

On August 8, 2023, the Company announced the results of a PFS on the South West Arkansas Project 1. On September 18, 2023, the Company filed a PFS and updated the mineral resource for its South West Arkansas Project. See “Mineral Properties – South West Arkansas Project” below.

On May 7, 2024, the Company entered into the Equinor Transaction whereby Equinor acquired interests in two Standard Lithium formerly wholly-owned subsidiaries, one of which holds Standard Lithium’s South West Arkansas Project (“SWA Lithium”) and the other holds the East Texas properties (“Texas Lithium”). Pursuant to the terms of the Equinor Transaction, Equinor acquired a 45% interest in each of the former subsidiaries for an initial cash payment of $30 million to the Company and the commitment to invest up to an additional $130 million as follows:

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Equinor will solely fund the first $40 million and $20 million of development costs for SWA Lithium and Texas Lithium, respectively, after which all additional capital expenditures would be funded on a pro-rata basis; and

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Standard Lithium is to receive $40 million in milestone payments associated with SWA Lithium and $30 million in milestone payments associated with Texas Lithium subject to FIDs being made by certain dates (“Financial asset – FID”).

The Company will maintain majority ownership and operatorship pursuant to a development services agreement at each of the South West Arkansas Project and the East Texas properties.

On September 20, 2024, the Company announced that SWA Lithium (as defined below) was awarded a $225 million grant from the U.S. Department of Energy (the “DOE”) for the South West Arkansas Project. On January 16, 2025, the Company announced that SWA Lithium finalized the $225 million grant from the DOE, which will support construction of Phase 1 of the South West Arkansas Project.

1 See NI 43-101 technical report titled “NI 43-101 Technical Report, South West Arkansas Project” with an effective date of August 8, 2023 and available under the Company’s SEDAR+ profile atwww.sedarplus.ca

On October 28, 2024, the Company announced that SWA Lithium LLC had entered into a license agreement with KTS to deploy and use KTS' Li-ProTM Lithium Selective Sorption ("Li-Pro LSS") technology at SWA Lithium LLC’s commercial plant for the SWA Phase 1 Project.

On December 19, 2024, the Company announced that SWA Lithium, in partnership with KTS, successfully designed, built, commissioned, and operates, a pilot DLE plant at the South West Arkansas Project. The pilot DLE plant is processing brine to confirm engineering design parameters and provide samples of battery-quality lithium carbonate for use in the qualification process with potential off-take partners. Concluding operation of the pilot, the Company expects to produce approximately 1,000 gallons (3,785 liters) of concentrated and purified lithium chloride solution (“6% LiCl solution”).The 6% LiCl solution will be sent off-site to potential carbonate equipment vendors who are expected to produce approximately 30 kg of battery-quality lithium carbonate.

Lanxess Property Project Background

The Lanxess South Plant in southern Arkansas (the “Lanxess Property Project”) centers on the development of the Lanxess 1A Project, which marks the first commercial lithium extraction initiative on the extensive brine leases operated by LANXESS in Arkansas. LANXESS operates three existing brine processing facilities for bromine extraction, covering over 150,000 acres of unitized brine leases in southern Arkansas. The Lanxess 1A Project is strategically located at the Lanxess South Plant near El Dorado, Arkansas.

Brine has been continuously extracted for bromine production since 1957 on the Lanxess Property. LANXESS operates three brine processing facilities, South, Central and West on the Lanxess Property. On September 6, 2023, the Company announced a measured and indicated resource of 2,816,000 tons LCE, at an average lithium concentration of 148 mg/L and a proven and probable reserves of 208,000 tons LCE with an average lithium concentration of 217 mg/L.

Standard Lithium has been successfully operating an industrial-scale DLE Demonstration Plant at the Lanxess 1A Project location for over four years. This Demonstration Plant plays a crucial role as a testing and optimization facility, refining the commercial blueprint for scalable and replicable DLE processes. In Q4 of 2023, the Company completed a DFS for the Lanxess 1A Project, which is planned to be situated at the Lanxess South Plant. This innovative project aims to produce battery-quality lithium carbonate by utilizing DLE technology to extract lithium from an existing bromine production operation.

The Company may advance toward an FID for the Lanxess 1A Project, with the timing contingent upon ongoing project definition, brine fee and royalty establishment, and the completion of project financing initiatives.

The development of the Lanxess 1A Project is governed by an amended and restated memorandum of understanding dated February 23, 2022 (the “Amended and Restated MOU”) with LANXESS, signed on February 23, 2022. This Amended and Restated MOU builds on earlier agreements, including the initial memorandum of understanding from May 4, 2018, and the joint venture term sheet from November 9, 2018, which focused on evaluating the commercial viability of lithium extraction from brine produced as part of LANXESS’s bromine operations.

On December 1, 2023, LANXESS announced its decision to participate as a brine supplier and infrastructure provider for the Lanxess 1A Project, opting not to acquire an equity interest in the Company’s wholly owned subsidiary which currently holds the Lanxess Property Project (the “Project Company”). This decision grants Standard Lithium the flexibility to explore other project-level equity investments and offtake arrangements while retaining full ownership of the Project Company.

Under the cooperative framework with LANXESS, the parties are focusing on the Lanxess 1A Project as the initial step. This framework is expected to include a brine supply and disposal agreement, a lease agreement for the production facility site, and the provisioning of certain infrastructure services. These agreements, which are currently under negotiation, will form the basis of the operational framework for the Lanxess 1A Project.

In Q1 of 2019, the Company initiated mini-pilot scale process work, using tail brine collected from operating facilities in southern Arkansas. This work and data collected formed the basis for the design of the full-scale, fully automated, modular Demonstration Plant, aimed for continuous 24/7 operation. The Company engaged Zeton Inc. (“Zeton”) to build the Demonstration Plant. The Demonstration Plant was constructed by Zeton in three phases and the final modules were transported to and installed at LANXESS’ south plant facility in southern Arkansas in mid-October 2019. The Company and their contractors completed initial installation of the Demonstration Plant at LANXESS’ south plant facility in southern Arkansas. During November and December 2019, a semi-permanent all-weather structure was installed to enclose the Demonstration Plant, and an office/control room and an analytical laboratory were also installed. The plant’s primary focus is to test, trial and optimize the most effective DLE process for the specific brine conditions. Since October 2022, the Company has been testing the KTS proprietary Li-Pro LSS technology at the Demonstration Plant alongside the Company’s proprietary LiSTR process.

On May 19, 2020, the Company announced full-time operation of the Demonstration Plant. The plant is designed to process up to 50 USGPM of tail brine, extract the lithium, with the aim of producing a high quality, concentrated lithium chloride intermediate product. This product can then be converted into battery quality lithium carbonate, either via conventional OEM processes, or via the proprietary SiFT technology the Company is developing. As of July 15, 2020, the Company’s SiFT pilot plant was operational and represents the next generation of lithium carbonate crystallization, promising higher purities and more consistent product specifications, all requirements of the next generations of lithium-ion batteries.

This Demonstration Plant, as pictured below, serves as a testing and optimization facility, refining the commercial blueprint for scalable and replicable DLE processes. The focus is on extracting lithium from LANXESS’s post bromine extraction tail brine, yielding a high-purity lithium chloride (LiCl) solution. This LiCl solution can then undergo further refinement into battery-quality lithium carbonate or lithium hydroxide. The highly automated three-story Demonstration Plant is complemented by adjacent separate buildings housing the control room, office and an analytical laboratory, ensuring precise and monitored lithium extraction processes. The resulting high-purity lithium chloride solution can either be processed further at the Company’s on-site carbonation pilot plant or sent to a third party for refining using OEM technology.

On September 1, 2021, the Company announced completion of the installation of the SiFT lithium carbonate plant, with all major connections made to the existing Demonstration Plant and the installation of a new weatherproof enclosure.

On September 6, 2023, the Company announced the results of a DFS on the Lanxess Property Project. On October 18, 2023, the Company filed a DFS for its Lanxess Property Project 2. See “Mineral Properties – Lanxess Property Project” below.

Lithium Brine Processing R&D Project

Standard Lithium is focused on continuously improving its lithium extraction and refining technologies through its technical group.

This work centers on several areas: (i) pre-treating brines using filtration technologies; (ii) selectively extracting lithium from pre-treated brine to produce concentrated lithium salt solutions; (iii) purifying and crystallizing these solutions to produce battery-grade lithium products; and (iv) de-risking the technology by designing, building, and operating progressively larger pilot and pre-commercial plants.

As part of these efforts, the Company entered into a joint development agreement with Koch Engineered Solutions to support the commercial deployment of its projects. In March 2024, Standard Lithium installed a commercial-scale lithium extraction column—referred to as a LiPRO™ LSS unit—at its Demonstration Plant near El Dorado, Arkansas. This column, supplied by KTS, is the same size and design as those planned for the Company’s commercial projects, including the Lanxess Phase 1A and South West Arkansas Project.

On April 24, 2024, the Company announced that it had successfully commissioned a commercial-scale DLE column at its DLE facility, which is one of the largest continuously operating DLE facilities in North America. The Company further announced that during a representative period of continuous operation, the commercial-scale column exceeded design parameters, achieving an average lithium recovery of 97.3%.

The lithium extraction column has been integrated with the Demonstration Plant for testing and optimization. This step is intended to provide validation and information necessary for ongoing project financing processes, as well as for the FEED and DFS studies for the South West Arkansas Project.

This work, carried out at project sites and various other locations in the United States and Canada, supports the Company’s efforts to advance its projects toward commercial-scale production.

Carbon Capture Project

On September 14, 2021, the Company announced that it was undertaking and funding a pilot project in southern Arkansas to test a novel carbon capture technology. The pilot project is being conducted with the owner of the technology, Aqualung, and a pilot carbon capture unit was installed at a natural gas processing site in southern Arkansas owned and operated by Mission Creek Resources LLC. The pilot project will take a slipstream of flue gas for processing through the Aqualung pilot unit. The resulting concentrated carbon dioxide (“CO 2”) stream will then be used in the Company’s ongoing research and development (“R&D”) program to understand how CO 2 may be permanently sequestered by the Company as part of normal brine reinjection activities. This R&D program will then expand to consider how CO 2 may also be used as an alternative reagent at several points in the Company’s process flowsheet.

The Company believes the patent-protected Aqualung carbon capture systems (“CCS”) technology, developed by the Norwegian University of Science and Technology (“NTNU”), is an innovative approach with the ability to deliver a cost effective, scalable, modular decarbonization solution.

The Aqualung CCS technology results from over 20 years of research at NTNU and is based on a membrane system that selectively extracts CO 2 from a wide range of CO 2 sources emitted by hydrocarbon-burning energy sources. It produces a high purity CO 2 gas stream that can either be sequestered or reused.

2 See NI 43-101 technical report titled “NI 43-101 Technical Report for the definitive feasibility study for commercial lithium extraction plant at Lanxess South Plant” with an effective date of August 18, 2023 and available under the Company’s SEDAR+ profile at www.sedarplus.ca.

The Company has invested $2.5 million in Aqualung as part of a $10 million strategic equity round that included Nasdaq listed, Golar LNG, London-based shipowner, Global Ship Lease and Geneva-based metals trading services group, MKS Pamp. Dr. Andrew Robinson, President and COO of the Company also joined the board of Aqualung.

On January 31, 2023, the Company installed its carbon capture pilot plant in Southern Arkansas to assess sustainable production practices in collaboration with its investment partner, Aqualung. The pilot plant signifies the beginning of the Company’s research and development activities focused on CO 2 sequestration methods.