Leo Lithium Ltd.

Leo Lithium Ltd. is a junior lithium development company headquartered in West Perth, Australia, operating primarily in Africa. The business model has transitioned from a single-asset developer to an entity focused on identifying and acquiring new value-accretive investment opportunities. The organization leverages a retained, highly skilled technical team with proven expertise in developing top-tier mining operations from construction to commissioning. This core competency is a key differentiator, with a track record of delivering a major project under budget and with high-quality results. The company's approach involves applying this specialized building expertise to add significant value to acquired assets. Risk management has shifted from operational and sovereign risks to acquisition and market-related risks associated with identifying and integrating new projects. The enterprise's competitive positioning is based on its team's demonstrated development capabilities, which has been positively received by potential counterparties.

The company's strategic direction is centered on acquiring a new asset to deliver shareholder value, leveraging its retained team's development expertise. Management is actively evaluating opportunities where it can apply its proven building capabilities to create significant value. Capital allocation philosophy is disciplined, demonstrated by the decision to return a substantial portion of recent divestment proceeds to shareholders. The use of remaining funds for any potential acquisition is subject to shareholder approval, ensuring alignment with investor interests. A clear timeline has been established: if a suitable acquisition is not significantly progressed by the third quarter of 2025, the remaining funds will be distributed to shareholders. Near-term priorities include maintaining rigorous cost controls while pursuing acquisition targets. The long-term objective is to re-establish an operational footing through a value-accretive transaction, with a clear alternative path of capital return if a suitable opportunity is not identified.

Executive leadership is headed by an Executive Chairman with over 30 years of international mining industry experience, including prior CEO roles at other publicly listed resource companies. The board of directors was restructured in 2024 and now comprises 4 members, including 3 non-executive directors. Governance is structured through 3 key committees: Audit and Risk, Remuneration and Nomination, and Sustainability, each with defined membership and chairpersons. The board demonstrates active oversight, having convened 12 directors' meetings during the year. The governance framework showed responsiveness to shareholder feedback, as evidenced by a board restructure and remuneration review following a "first strike" vote at the 2024 Annual General Meeting. Management's approach is guided by a team with a proven track record in project development, which is now being leveraged to identify new investment opportunities.

The organization's governance framework includes a board-level Sustainability Committee established to guide and measure performance. In 2023, the company developed and implemented several key corporate policies to ensure open and transparent conduct, including specific policies for Environmental, Health and Safety, Sustainability, and Risk Management. Social engagement frameworks were formalized through a Community Engagement Plan, a Sponsorship and Donations Procedure, and a Grievance and Dispute Resolution Procedure. A key achievement prior to the asset divestment was a strong safety record, with the project team surpassing 6.7 million hours worked without a lost-time injury, demonstrating a robust health and safety leadership system. This performance was achieved with a peak construction workforce of 2,000 staff. The company's approach to ESG is structured to ensure that business is conducted in a responsible manner, guided by these established policies and board-level oversight.

The company's corporate structure underwent a fundamental change in 2024 with the complete divestment of its primary operational interest. On November 26, 2024, the entity completed the sale of its remaining 40% shareholding in Mali Lithium BV to its joint venture partner, GFL International Co, Ltd, effectively exiting the joint venture arrangement. This transaction was preceded by a Memorandum of Understanding involving the company, GFL International Co, Ltd, and Firefinch Limited, which settled all outstanding disputes. A related Deed of Covenant and Release was executed with Firefinch Limited, resolving all claims pertaining to the 2022 Demerger Deed. The group includes a wholly-owned subsidiary, Leo Lithium Australia Pty Ltd, which was incorporated in July 2023. As of the last notice provided on July 7, 2022, Firefinch Limited was a substantial shareholder, holding 17.61% of the issued capital.