Lithium Ionic Announces Agreement to Sell its Salinas Group of Lithium Properties to PLS for US$37.5 Million in Cash, Retaining a 2.0% Royalty on Future Spodumene Sales

Non-dilutive proceeds strengthen the balance sheet ahead of a Bandeira construction decision, while the retained royalty preserves shareholder exposure to the potential future development of Baixa Grande under the ownership of a premier lithium producer

TORONTO, Aug. 12, 2026 (GLOBE NEWSWIRE) — Lithium Ionic Corp. ( TSXV: LTH; OTCQX: LTHCF; FSE: H3N ) (“Lithium Ionic” or the “Company”) is pleased to announce that its wholly-owned subsidiaries Salit Mineração Ltda and Neolit Minerals Participações Ltda (“Neolit”) and its affiliates have entered into a definitive agreement August 12, 2026 with PLS Brasil Mineração Ltda., a wholly owned subsidiary of PLS Group Limited (ASX: PLS) (“PLS”), one of the world’s largest hard-rock lithium producers, for the sale of the Company’s Salinas group of lithium properties, which includes the Baixa Grande lithium resource (collectively, “Salinas”), located in Minas Gerais, within Brazil’s globally significant Lithium Valley (the “Transaction”). The purchase agreement provides for an aggregate purchase price of US$37.5 million. Separately, Lithium Ionic, through its wholly-owned subsidiary Neolit, shall retain a 2.0% royalty on future spodumene sales from Baixa Grande. The Transaction is expected to result in the Baixa Grande deposit being evaluated for integration with PLS’s adjacent Colina Project.

A welcome email is on its way. If you don't see it, please check your junk folder.

Blake Hylands, P.Geo., CEO of Lithium Ionic, commented, “Salinas demonstrates the value our team creates through disciplined exploration. We entered the district in early 2023 and, in under two years, advanced it from first drill holes to a spodumene mineral resource. This Transaction crystallizes that value for shareholders without dilution, at a constructive point in the lithium cycle, and the Royalty keeps shareholders exposed to Baixa Grande’s potential future development under PLS, one of the largest hard-rock lithium operators in the world. PLS is a natural fit as the acquirer of Baixa Grande given its neighbouring Colina Project. We are pleased to see it pass to a leading lithium producer rapidly growing its presence in the Lithium Valley, and with a strengthened balance sheet, we are squarely focused on advancing Bandeira toward a construction decision and becoming a near-term, low-cost lithium producer.”

The Transaction comprises the sale of the ten mineral claims and certain associated assets.

The purchase price consists of US$37.5 million in cash, comprising (i) US$30.0 million payable at closing, and (ii) US$7.5 million payable on the earlier of (a) a positive FID for PLS’ Colina Project, and (b) December 31, 2029 (the “Deferred Consideration”). Completion of the Transaction is subject to the satisfaction of closing conditions customary for a transaction of this nature. The Transaction is expected to close within 10 business days.