Announcement PDF corelithium.com.au Australia’s newest lithium producer Q1 FY24 quarterly update Gareth Manderson (CEO) 27 October 2023 Q1 FY24 Quarterly Update corelithium.com.au Important and cautionary notes • This presentation has been prepared by Core Lithium Ltd (“Core”, “Company”) and provides a general overview of the Company and its strategy. • This presentation does not purport to be all-inclusive or to contain all the information that you or any other party may require to evaluate the prospects of the Company. None of the Company, any of its related bodies corporate or any of their representatives assume any responsibility for, or makes any representation or warranty, express or implied, with respect to the accuracy, reliability or completeness of the information contained in this presentation and none of those parties have or assume any obligation to provide any additional information or to update this presentation. The information in this presentation should be read in conjunction with Core’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au. • To the fullest extent permitted by law, the Company, its respective affiliates and representatives, related bodies corporate, officers, employees, partners, agents and advisers make no representation or warranty (express or implied) as to the currency, accuracy, reliability, reasonableness or completeness of the information in this presentation and expressly disclaims all responsibility and liability for any loss or damage arising in respect of your reliance on the information contained in this presentation (including your reliance on the accuracy, completeness or reliability of that information), or any errors in or omissions from this presentation, including any liability arising from negligence. • The Finniss Lithium Project as described in this presentation is at the production stage, and potential investors should understand that mineral exploration, development and mining are high-risk undertakings. There is no guarantee that the Finniss Lithium Project can be economically exploited. • This document contains statements which may be in the nature of forward-looking statements. No representation or warranty is given, and nothing in this presentation or any other information made available by the Company or any other party should be relied upon as a promise or representation, as to the future condition of the respective businesses and operations of the Company. • Competent Person Statements • Core confirms that it is not aware of any new information or data that materially affects the information included in previous announcements (as may be cross referenced in the body of this announcement) and that all material assumptions and technical parameters underpinning the Mineral Resource estimates, Ore Reserve estimates, production targets and forecast financial information continue to apply and have not materially changed. This release contains “forward-looking information” that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to feasibility studies, the Company’s business strategy, plan, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, and Mineral Resources and Reserves. • Currency • Unless otherwise stated, all cashflows are in Australian dollars, are undiscounted and are in real terms (not subject to inflation/escalation factors), and all years are calendar years. C1 Operating Costs references in USD throughout this presentation have been derived by converting AUD using an exchange rate of 0.70 AUD/USD. • Forward‐looking Statements • Generally, this forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘likely’,’ believe’, ’estimate’, ‘expect’, ’intend’, ’may’, ’would’, ’could’, ’should’, ’scheduled’, ’will’, ’plan’, ’forecast’, ’evolve’ and similar expressions. Persons reading this release are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to general business, economic, competitive, political and social uncertainties; the actual results of current exploration, development and construction activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of lithium; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accident, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. This list is not exhaustive of the factors that may affect forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information. The Company disclaims any intent or obligations to or revise any forward-looking statements whether as a result of new information, estimates, or options, future events or results or otherwise, unless required to do so by law. Statements regarding plans with respect to the Company’s mineral properties may contain forward-looking statements in relation to future matters that can be only made where the Company has a reasonable basis for making those statements. • Past Performance • Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. 2 Q1 FY24 Quarterly Update corelithium.com.au Core – Our Value Proposition Achieved first production in under five years from maiden Resource discovery by pursuing a ‘Minimum Viable Project’ strategy Leveraged to EV thematic – Australia’s newest producing lithium mine which is located 88km from Darwin Port Currently operating the Grants open pit which is our starter operation. BP33 is the cornerstone asset for Core which is targeting a Final Investment Decision in Q1 CY24 Secured offtake with some of the world’s largest battery companies, including Ganfeng Lithium and Yahua $202.1 million of cash and nil debt Refreshed senior management team who have strong experience in developing and operating resources projects Track record of exploration success and attractive pipeline of greenfield and brownfield exploration opportunities in the Finniss mineralised district 3 Q1 FY24 Quarterly Update corelithium.com.au Q1 FY24 Highlights Operations Sales & Marketing Exploration & Development Corporate & Financial Safety & Sustainability BP33 Cash balance of One reportable safety incident (hand injury)3 Total Material Moved 8% Increase (Compared to Q4FY23) Spodumene concentrate production of 20,692t (Q4FY23: 14,685t) Recovery of Lithium 50% Second and final spodumene concentrate shipment into additional agreements 13,100t shipment in early July First shipment into Ganfeng contract 10,000t (Q4FY23: 49%) Average realised price Concentrate grade 5.0% (Q4FY23: 5.4%) C1 unit cost of $904/t Site works advancing in parallel with updated feasibility study 10,155t and no debt (as at 30 September 2023) Critical Risk Management (CRM) Program continues to be rolled out across the business BP33 Measured and Indicated Resource upgraded to $107.9m raised 89% through Institutional placement and SPP raises (net of costs) Wet season preparation and investment in water management infrastructure well underway Executive team complete following the appointments of Pierre Malan as EGM Development & Exploration and Paul Benjamin as EGM Commercial & Marketing 2nd round of community of total resource2 US$2,560/t Second shipment into Ganfeng contract early October1 $202.1m $25m exploration program continues grants open to community groups across greater Darwin region (Q4FY23: $902/t) 1. Subsequent to quarter end. 2. Refer “BP33 Mineral Resource upgraded to 89% Measured and Indicated” 16 October 2023.Core Lithium confirms that the Company i s not aware of any new information or data that materially affects the Mineral Resource Estimates cross referenced in this report and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. 3. A driller's offsider sustained a hand injury. See full Quarterly Activities report for details. 4 5 corelithium.com.au Q1 FY24 Quarterly Update Finniss operational update Ramp up continuing. Improvements in both mining and processing Management commentary Quarterly Operating Performance • Concentrate production of 20,692t at an average 5.0% Li2O grade with all products meeting customer specification • Mining performance improved ending the quarter strongly: o mining productivity improvement led to an 8% increase in TMM compared to previous quarter; o blasting and dig unit availability improvement led to record ore extraction in September; o the plant saw a more consistent ore feed with improved operations in the pit. Q3 FY23 Q4 FY23 Q1FY24 3,589 14,685 20,692 47 49 50 Production Spodumene concentrate produced tonnes Recovery % Sales • Grants pit wall stability monitoring continues with second radar installed DSO Shipments tonnes 14,774 – – • Wet season preparedness is well progressed and includes haul road upgrades and investment in water storage facilities and new dewatering equipment Spodumene Concentrate Shipments tonnes – 5,423 23,424 Concentrate grade shipped % n/a 5.4 5.2 Lithium fines shipped tonnes – – 15,002 • As at 30 September there were 164,796t of ore on the ROM pad • Recovery of 50% achieved for the quarter compared to 49% previous quarter with adjustments to screen sizing, reagent set points and other process parameters • Agreement finalised with one customer to allow acceptance of concentrate with a minimum grade of 4.5%. A similar agreement is being finalised with our second for the FY24 period. • Test work and trials to improve plant recoveries continued as a priority Q1 FY24 Quarterly Update 6 corelithium.com.au Finniss operational update…cont. Costs broadly in line, cash impacted by shipment timing and QP adjustment Quarterly Operating Performance • C1 unit costs of $904/t were broadly in line with the previous quarter • The build up in ore on the ROM pad, resulted in $985/t being deferred to inventory Cost of production • Before inventory movements, cash operating unit cost of $1,889/t were 11% higher than the previous quarter, due to a lower strip ratio, resulting in a higher proportion of the mining costs being expensed (rather than capitalised) Cash operating unit cost • Closing cash of $202.1 million included $107.9 million in proceeds from the equity raise and SPP in August • The operating cash outflow of $25.97 million reflects: • o the timing of shipments, with 8,527t of concentrate at the Darwin port at 30 September, which was included in the early October shipment; and o the repayment of $27.7 million to Yahua, in respect of a QP adjustment. The QP adjustment resulted from the significant fall in the lithium spodumene price between the date of prepayment and the end of the quotational period. Excluded from the cashflows in the quarter are the cash receipts relating to the 13,100t shipment in July. These tonnes were part of the prepayment arrangement with Yahua with the cash received in Q4FY23. Q3 FY23 Q4 FY23 Q1FY24 A$/t 2,386 1,691 1,889 Inventory and other (non-cash) A$/t (198) (789) (985) C1 unit cost A$/t FOB 2,188 902 904 C1 unit cost plus royalties A$/t FOB 2,323 1,416 1,067 Q1 FY24 Quarterly Update Recovery improvement trials seeing uplift Improvement projects Trial sales of fines product (complete) Process control optimisation (underway) Crusher screen change out (complete) Met test work (underway) Mica classifier commissioned (complete) Rolls crusher refurbishment (underway) Product quality projects (underway) Study feasibility of installing a filter or belt press (initiated) Flotation study in progress (initiated) Assess merits of selling DSO (not commenced) corelithium.com.au 7 Q1 FY24 Quarterly Update Recovery improvement trials seeing uplift Recoveries continue to improve, ~55% achieved in October Spodumene concentrate production (tonnes) vs recovery (%), (RHS) corelithium.com.au 8 Q1 FY24 Quarterly Update FY24 guidance on track Higher tonnes at lower grade for same Lithium unit production • Operation on track to reach production, unit cost and capex guidance for FY24 • Current product strategy will see higher volumes of concentrate at a lower grade, with the overall lithia units expected to be within the range implied by the original guidance (80,000-90,000t at 5.5%) • Net revenue outcome is expected to be within range implied by original guidance: • Lower grade and discounts expected to be offset by higher tonnes. • ROM stocks to build over Q2FY24 and be drawn down in Q3FY24 • Fines sales expected to be 85,000 to 95,000t of fines at a grade of ~ 1% Li2O at no incremental mining or processing costs – subject to market conditions • Finniss sustaining capital of $20-25 million for water management civil work, site infrastructure, ROM extension and haul roads • Studies and exploration expenditure to define, extend and discover new resources $35-45 million • BP33 remains on track for a Final Investment Decision in 1Q CY24 o Early works budget of $45-50 million corelithium.com.au 9 Q1 FY24 Quarterly Update corelithium.com.au BP33: Site works well underway 3D Design for BP33 Box Cut Wide end of BP33 Box Cut (October 2023) Box cut length 288m Box cut depth 40m (design) 354,390t excavated (393,348t total) 10 Q1 FY24 Quarterly Update BP33: Site works Box Cut – Tunnel Liner foundations under construction (October 2023) Concrete batch plant (with cooling) now on site. Footings for tunnel liners now being installed. corelithium.com.au 11 Q1 FY24 Quarterly Update BP33: Site works Lay down area (October 2023) All 2,062 steel tunnel segments for the covered box cut have been delivered to site. 800t of steel reinforcing for arch footings. corelithium.com.au 12 Q1 FY24 Quarterly Update corelithium.com.au Increase in Resource confidence at BP33 February 2023 October 2023 • Measured & Indicated Increased to 89% of 10.5Mt @1.53% Li2O • Grade increased, from 10.1Mt @ 1.48% Li2O to 10.5Mt @ 1.53% Li2O NOTES: 1. Refer ASX release 16 October 2023. Core Lithium confirms that the Company is not aware of any new information or data that materially affects the Mineral Resource Estimates and Exploration Results cross referenced in this report and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The BP33 Mineral Resource announced on 6 March 2023 is comprised of Measured Resource 2.85Mt @ 1.46Li2O, Indicated Resource 4.09Mt @ 1.53Li2O and Inferred Resource 3.17Mt @ 1.45Li2O. Total BP33 Mineral Resource of 10.1Mt @ 1.48Li 2O. 13 Q1 FY24 Quarterly Update corelithium.com.au Project pipeline and sustaining growth Near-term priority Project Discovery Resource Definition Development Grants Resources: 2.91Mt @ 1.47% Li2O Production until late CY25 Progress open pit expansion study Progress study work and reserve definition drilling Grants Open pit extension / underground Resource included in Grants BP33 Resources: 10.5Mt @ 1.48% Li2O Complete FS / Early works. Infill drilling planned to convert inferred resources to measured and indicated. Targeting FID Q1 CY24 and first production in CY26 Carlton Resources: 6.2Mt @ 1.38% Li2O Drilling ongoing at Carlton to support additional resource definition. Study work expected to be completed by end of CY24 Hang Gong Resources: 3.5Mt @ 1.16% Li2O Progress study work / further drilling Lees-Booths Resources: 2.7Mt @ 1.11% Li2O Progress study work / further drilling Sandras, Bilatos, Penfolds, Ah Hoy Resources: 5.3Mt @ 1.01% Li2O Finniss District, Shoobridge, Anningie-Barrow Creek Production / Extension Drilling to expand resource Exploration drilling NOTES 1 ASX Release: "Significant increase to Finniss Mineral Resources" dated 18 April 2023. Total Mineral Resources of 30.6Mt @ 1.31% Li2O. Measured Mineral Resource 6.98Mt @ 1.45% Li2O / Indicated Mineral Resource 12.4Mt @1.33% Li2O. Inferred Mineral Resource 11.3Mt @ 1.21% Li2O. Core Lithium confirms that the Company is not aware of any new information or data that materially affects the Mineral Resource Estimates cross referenced in this report and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. For full details refer to Appendix A. 14 Q1 FY24 Quarterly Update Our priorities for FY24 • Safe Operations & Critical Risk Management program • FY24 spodumene production guidance - 80,000t to 90,000t • Finniss Operations improvement: Recovery and mining productivity • Deliver into offtake contracts • Execute exploration plan for FY24 • Complete BP33 underground Feasibility Study (Q1 CY24) • FID for BP33 underground in (Q1 CY24) • Fine-tune strategy for regional exploration and growth • Continue local Community Grants Program • Identify further opportunities for local business and groups to mutual benefit • HSE systems and processes that are fit for purpose and reflect our risk profile • Learning from first operations activities to enhance Critical Risk Management EMPLOYER OF THE FUTURE • Contemporary approach to workforce management- role design & engagement • Ways of working that deliver on safe, sustainable, cost-effective production outcomes 4 • Aspire to create systems of work that foster diversity • Continue to build an experienced operational team OPERATIONAL DELIVERY 1 SUSTAINED GROWTH 2 ENVIRONMENT, SOCIAL, GOVERNANCE 3 corelithium.com.au 15 Q1 FY24 Quarterly Update Appendix corelithium.com.au 16 17 FINNISS MINERAL RESOURCES Mineral Resource Estimate for the Finniss Lithium Operation (0.5% Li2O cut-off) Measured Indicated Inferred Total Mineral Resource Tonnes (Mt) Li2O % Tonnes (Mt) Li2O % Tonnes (Mt) Li2O % Tonnes (Mt) Li2O % Contained Metal (kt) Grants* 1.93 1.50 0.61 1.49 0.37 1.27 2.91 1.47 42.7 BP33 2.85 1.44 6.51 1.55 1.14 1.59 10.50 1.53 160.1 Carlton 2.20 1.38 2.69 1.39 1.29 1.37 6.18 1.38 85.5 Hang Gong - - 1.51 1.18 1.95 1.14 3.46 1.16 40.0 Sandras - - 1.17 0.92 0.57 0.82 1.73 0.89 15.4 Lees# - - 0.88 1.24 0.35 1.05 1.23 1.19 14.6 Ah Hoy - - 0.67 1.16 0.38 1.17 1.05 1.16 12.2 Booths# - - 0.80 1.05 0.70 1.06 1.50 1.05 15.8 Bilatos - - - - 1.92 1.03 1.92 1.03 19.9 Penfolds - - - - 0.57 1.04 0.57 1.04 5.9 Total 6.98 1.44 14.8 1.37 9.20 1.18 31.10 1.33 412.1 Li2O Note: Totals within this table are subject to rounding. * Net decrease due to mining depletion. # Re-classified with no additional data.’ The above Mineral resource is current at the time of release on 18 April 2023. ASX Release: "Significant increase to Finniss Mineral Resources" dated 18 April 2023. Total Mineral Resources of 30.6Mt @ 1.31% Li2O. Measured Mineral Resource 6.98Mt @ 1.45% Li2O / Indicated Mineral Resource 12.4Mt @1.33% Li2O. Inferred Mineral Resource 11.3Mt @ 1.21% Li2O. Core Lithium confirms that the Company is not aware of any new information or data that materially affects the Mineral Resource Estimates cross referenced in this report and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. corelithium.com.au | 17 Q1 FY24 Quarterly Update corelithium.com.au 18