Core Lithium Ltd.

Core Lithium Ltd. is a junior lithium producer headquartered in Perth, Australia, operating primarily in Australia. The company's portfolio consists of 2 projects, comprising 1 exploration and 1 suspended project, in addition to several early-stage exploration prospects. Key assets include Finniss Lithium Operation. The organization's business model centers on the 100% ownership of a singular, large-scale operation currently maintained in a state of readiness for restart. This approach is supported by extensive, dedicated infrastructure, including a 1 million tonne per annum dense media separation processing plant and a proven, efficient logistics chain connecting the operational site to a major port via 88km of sealed roads. This logistical setup provides a distinct competitive advantage as it is not shared with other major mining companies. Processing capabilities were demonstrated by achieving a record monthly recovery rate of 65% and the ability to produce a high-quality, coarse-grained concentrate. In response to market conditions, the company also adopted a flexible strategy of extracting and selling a secondary fines product, showcasing adaptability in its production and sales model. The operational framework is designed to preserve asset value during market downturns while being positioned for a rapid restart with minimal capital expenditure when conditions improve, leveraging its established infrastructure and proven operational performance.

The current strategic focus is on executing a comprehensive restart plan designed to enhance future operational efficiency and cost-effectiveness. This strategy, expected to conclude in the first half of calendar year 2025, involves a detailed bottom-up assessment of the cost base, a thorough review of the future operating model, and studies to optimize the processing strategy and mine scheduling. A key element of the long-term growth plan is to expand the resource inventory within trucking distance of the existing processing plant through targeted exploration. The organization also aims to deliver value by advancing earlier-stage exploration assets with untested potential for other commodities. Capital allocation is guided by a disciplined approach to spending, prioritizing low-cost investments in exploration to build and realize shareholder value while maintaining a primary focus on the restart strategy. This methodical approach is intended to position the business to capitalize on a market recovery by resuming operations from a lower cost base and with higher productivity.

Executive leadership was renewed with the June 2024 appointment of Paul Brown as Chief Executive Officer, a mining engineer with over 2 decades of experience in senior roles at Mineral Resources Ltd and Fortescue Ltd. The finance function is led by Chief Financial Officer James Virgo, a chartered accountant with over 12 years of experience, who was permanently appointed in May 2024. The board is overseen by co-founder and Non-Executive Chair Greg English, who has over 30 years of mining engineering and legal experience. Governance practices were refined following a 'first strike' on the 2023 remuneration report; the board responded by engaging external consultants, increasing the transparency of incentive metrics, introducing a deferred component to short-term incentives for the new CEO, and extending the long-term incentive performance period to 3 years. The board structure includes an Audit Committee, a Nomination and Remuneration Committee, and a Risk and Sustainability Committee, which provide specialized oversight. During the fiscal year, the board convened for 18 meetings to guide the company through its strategic transition.

Environmental management initiatives include the successful handling of an above-average wet season through the construction of new water storage facilities and connecting infrastructure. The organization integrated drone technology for applying flocculant to sediment basins, a method that enhanced treatment efficacy, improved safety, and achieved cost savings. Social responsibility is demonstrated through a community grants program that awarded over $65,000 in fiscal year 2024 to support local projects in education, sports, and arts. The company maintains a 24/7 community feedback hotline and developed a specific traffic management plan to address road usage concerns. Governance and workplace initiatives feature the implementation of a human resources information system to improve transparency and process efficiency. The company also conducted a risk assessment of its suppliers against the Global Slavery Index to ensure an ethical supply chain and deployed online learning modules covering workplace conduct and safety, which were completed by 77% of the workforce.

Subsequent to the fiscal year-end, in September 2024, the company entered into agreements with Lithium Australia Ltd to acquire 7.6 million shares in Charger Metals NL, resulting in a 9.8% ownership stake. In a separate agreement, the organization arranged to purchase Lithium Australia's 30% free-carried interest in the Bynoe Project, an exploration license designated EL30897. This acquisition remains subject to a 60-day pre-emptive right held by Charger Metals NL, which owns the remaining 70% of the joint venture. The corporate structure includes several wholly-owned operational subsidiaries, namely Sturt Exploration Pty Ltd, DBL Blues Pty Ltd, Lithium Developments Pty Ltd, Uranium Generation Pty Ltd, Lithium Developments (Grants NT) Pty Ltd, and Bynoe Lithium Pty Ltd. These entities facilitate the group's exploration and development activities. The recent transactions reflect a strategic initiative to consolidate interests in prospective areas adjacent to existing operations.