Concern of Fairness and TVR

The Firm has made vital progress with the Pre-Feasibility Examine (“PFS”) on the flagship challenge, Laguna Verde, and seen encouraging outcomes from the Direct Lithium Extraction (“DLE”) pilot plant in Chile and shall be producing battery-grade lithium carbonate for potential strategic companions to judge. The Firm can be pursuing a twin itemizing on the Australian Inventory Alternate (“ASX”) and goals to be buying and selling on the ASX in This fall 2024.

Highlights of the Interval:

Operational:

Company:

• Board modifications:

  • Government Chairman Steve Kesler assumed the duties of CEO on an interim foundation, following the resignation of CEO, Aldo Boitano in April.

  • The seek for a brand new CEO is properly underway and the chosen candidate shall be introduced sooner or later.

• ·Money place:

  • The Firm’s money place on the interval finish, together with proceeds acquired from Mortgage Notes shortly after interval finish, was £2.1 million.

Publish-period Highlights:

• Operational:

  • Pump assessments and a reinjection properly at Laguna Verde, deliberate to be undertaken in This fall 2024, will assist outline the brine extraction and reinjection wellfield design and the sustainable manufacturing fee required for the PFS.

  • A plant location research was accomplished by Worley for the Laguna Verde challenge and concluded that the DLE and eluate focus needs to be undertaken at challenge website and the purification and carbonation near Copiapo which is at a decrease elevation with good technical assist domestically accessible. This latter plant can be expanded sooner or later to additionally course of concentrated eluate from the Viento Andino challenge.

  • Completion of the primary stage of manufacturing of concentrated eluate from the Firm´s DLE pilot plant which has been shipped for conversion to battery-grade lithium carbonate by course of companions in North America.

Company:

• ASX Itemizing:

  • The Firm is in search of to dual-list on the Australian Securities Alternate (“ASX”). Though the Firm introduced an extension to the ASX IPO timetable on 20 September 2024, to permit it to deal with some procedural issues raised by ASX, the intention stays to finish the IPO earlier than the yr finish. An related capital elevate is deliberate to allow completion of the PFS and continuance of different work programmes. However, the Firm continues to contemplate its funding choices on an ongoing foundation as part of its regular follow.

• ·CEOL Course of:

  • The Authorities has streamlined the CEOL course of, saying an replace on the finish of Septemberprioritising six salt flats for lithium improvement together with Laguna Verde, the Firm’s flagship challenge, as having essentially the most beneficial circumstances to advance lithium exploration and extraction. CEOL purposes to be submitted by 31^st December 2024.

• Native stakeholders:

  • CTL attended a seminar organised by CESCO alongside native indigenous communities. The President of the Colla Pai-Ote group publicly endorsed CTL’s Laguna Verde challenge as the way in which ahead for the lithium business in Chile, which was broadly reported within the Chilean media.

  • CTL’s DLE carousel tools is now put in on the College of Atacama as a part of an ongoing partnership. The DLE tools shall be accessible for analysis programmes. The long-term collaboration between the College and CTL will assist nurture the abilities required for fostering the lithium business within the Atacama area.

Steve Kesler, Government Chairman and Interim CEO, CleanTech Lithium stated:

“The primary half of 2024 has seen vital operational and strategic progress on our lithium tasks in Chile. This consists of the manufacturing of top quality lithium chloride eluate with low impurities from our DLE pilot plant, which has a capability to supply one tonne monthly of lithium carbonate equal. A drilling, pump testing and reinjection programme was began at Laguna Verde geared toward updating the JORC useful resource estimate, offering information for the PFS and growing of a maiden reserve estimate.

“The Firm can be within the means of itemizing on the ASX change, which can assist its future improvement, because it enters potential strategic accomplice discussions and progresses in direction of manufacturing. While this course of has been delayed, the ASX market is properly versed within the lithium sector and a significant variety of the Firm’s current shareholders have Australian hyperlinks.

“With the PFS properly underway and challenge improvement ongoing, backed by the robust assist from native indigenous communities and aligned with the aims of Authorities’s Nationwide Lithium Technique, we look ahead to the longer term with confidence.”

CHAIRMAN AND INTERIM CEO REVIEW

The next overview is a glance again on the highlights from the primary half of 2024:

Enterprise Technique

CleanTech Lithium continues to make nice strides in assembly the target of turning into a number one provider of battery-grade lithium carbonate to assist the world’s transition to scrub power. The progress made in direction of constructing sustainable lithium tasks in Chile the place the Firm is planning to make use of Direct Lithium Extraction (“DLE”) powered by renewable power immediately addresses the Chilean Authorities’s ambition to drive optimistic change in sustainability and social and financial improvement.

The ‘Nationwide Lithium Technique’, proposed by the President of Chile in late April 2023, goals to make sure Chile stays a high producer and provider of lithium – a crucial element for batteries in Electrical Automobiles and power storage methods (“ESS”). The established mining jurisdiction is at the moment the most important provider of copper on this planet and one of many largest suppliers of battery grade lithium. To maneuver to a world run on clear power, new lithium tasks are wanted, and Chile has the established infrastructure, business experience and workforce to carry tasks like CleanTech Lithium’s into manufacturing within the subsequent few years.

New tasks should be in-built the correct means and the Authorities has prescribed using DLE (or related sustainable applied sciences) for all new lithium improvement tasks going ahead. CleanTech Lithium’s technique is to play a major function in aiding the Chilean authorities to attain this ambition. The Firm believes it’s most the superior improvement stage DLE firm working in Chile and the achievements made within the first half of 2024 is proof of this. It is extremely encouraging to see the Firm’s DLE Pilot Plant producing samples of battery-grade lithium carbonate which can quickly be examined by potential strategic companions.

The Firm’s enterprise technique is targeted on delivering long-term sustainable development and returns for all stakeholders, constructed on 4 pillars:

• develop the Firm’s superior lithium tasks (Laguna Verde, Viento Andino) and progress the early-stage exploration tasks (Arenas Blancas and Llamara) in Chile;

• utilise modern applied sciences, together with DLE and, the place attainable, renewable power to sustainably produce lithium carbonate;

• produce business battery-grade lithium carbonate with excessive lithium recoveries and brief manufacturing time; and

• provide immediately into the EV and battery storage market through strategic companions and offtake agreements.

To this finish, the Firm’s fast aims are as follows:

• replace the JORC useful resource estimate for Laguna Verde on completion of the 2024 drilling campaigns and declare a maiden reserves estimate;

• full deliberate hydrogeological research and metallurgical assessments at Laguna Verde, together with finishing a brand new reinjection properly and pump assessments to supply the info required to additional advance modelling of the sub-surface aquifer and design the extraction and reinjection wellfields;

• ship a Pre-Feasibility Examine (“PFS”) on the Laguna Verde Mission and begin the Definitive Feasibility Examine (“DFS”) quickly afterwards;

• full the method take a look at work on the DLE Pilot Plant and make battery grade lithium carbonate accessible for provide to potential offtake and strategic companions to begin product qualification;

• proceed the required work to finish the environmental baseline research that commenced in 2022 and undertake the research required to allow submission of the EIA in 1H 2025;

• enter right into a Particular Lithium Operation Contract (CEOL) with the Chilean State in relation to the Laguna Verde and Viento Andino Initiatives to commercially promote lithium;

• proceed to collaborate with the native indigenous communities, universities and different native stakeholders to make sure long-term assist for the tasks, and

• enter into substantive discussions with potential offtake and strategic companions with a view to reaching settlement on a future enterprise relationship, together with establishing a funding bundle for the development phases of the Laguna Verde Mission, together with fairness participation, debt and different buildings, to carry the challenge on stream and begin promoting lithium carbonate on the earliest attainable alternative.

Abstract of Firm Exercise

Within the first six months of the yr, CleanTech Lithium made additional progress towards delivering its PFS. This included commencing a five-well drilling programme at Laguna Verde, the commissioning of its DLE pilot plant and first manufacturing of extremely concentrated eluate for additional processing to make battery-grade lithium carbonate. The PFS is instrumental to assist discussions with potential strategic companions. The Firm can be in search of to dual-list on the Australian Securities Alternate (“ASX”). Though the Firm introduced an extension to the ASX IPO timetable on 20 September 2024, to permit it to deal with some procedural issues raised by ASX, the intention stays to finish the IPO earlier than the yr finish. However, the Firm continues to contemplate its funding choices on an ongoing foundation as part of its regular follow.

Operations

Well being and Security

The Firm maintains a zero-harm security tradition targeted on steady enchancment to attain an damage free and wholesome work atmosphere, with no misplaced time incidents (“LTIs”), main incidents, or close to misses reported within the first half of 2024.

5-Properly Drilling Programme at Laguna Verde

The Firm commenced a 5 properly drilling programme at Laguna Verde largely geared toward changing Inferred useful resource to further Measured & Indicated useful resource which can then have technical and financial modifying components utilized from the PFS to find out a maiden reserve. The programme was designed in collaboration with Montgomery & Associates, a number one worldwide hydrogeology and useful resource analysis consultancy.

The drill programme started in Q1 2024, with the graduation of wells LV07 and LV11 and suspended in Might on the onset of the winter shut-down interval, with the plan to recommence in October. The programme may even embody further pump testing and reinjection testing in This fall 2024 with outcomes serving to to calibrate the hydrogeological mannequin of the basin. This mannequin will assist additional outline the brine extraction and reinjection wellfield design and the sustainable manufacturing fee from Laguna Verde. Montgomery & Associates have been engaged to handle the drill programme, JORC useful resource and reserves reporting and design of the extraction and reinjection wellfields.

Laguna Verde is the Firm’s most superior challenge and has a complete JORC useful resource of 1.8 million tonnes LCE, of which 1.1 million is within the Measured and Indicated class. Laguna Verde’s Scoping Examine, introduced in January 2023, highlighted strong economics, with an NPV₈ of US$1.8bn, an IRR of 45.1%, web cashflows of US$6.3 billion and a low working prices of US$3,875/t for 30 years of manufacturing at 20,000 tpa LCE.

Drilling programmes at Laguna Verde since 2022

DLE Pilot Plant Commissioning and Manufacturing

The Firm´s one-tonne monthly DLE pilot plant (provided by Sunresin) is positioned in Copiapó, Chile, roughly 250km from Laguna Verde, and completed commissioning in late March. On the R&D centre the place the pilot plant is positioned, brine from the Laguna Verde challenge is saved in a big 243,000 litre vessel outdoors the pilot plant after which fed into an indoor tank having handed via filtration to take away suspended solids. It’s then fed into the DLE columns proven within the picture under, that are crammed with adsorbent designed to be selective for lithium molecules. Lithium, as lithium chloride, is adsorbed from the brine, earlier than desorption with water to create a purified lithium chloride eluate.

DLE Pilot Plant at R&D Centre in Copiapó, Chile (30 x approx. 3m columns to supply as much as 1 tonne monthly of LCE)

Testing of a variety of commercially accessible adsorbents recognized that the adsorbent provided by Lanshen carried out the perfect on the Laguna Verde brine ensuing within the number of this adsorbent. The DLE Pilot Plant commenced operation in Q2 2024, producing top quality concentrated eluate. In Might, the Firm reported the important thing DLE efficiency metrics for the primary batch of 24m³ of concentrated eluate produced on the pilot plant. The restoration of lithium from the brine was 94% within the adsorption stage and 88% into the eluate. The lithium grade within the feed brine of 197mg/L was concentrated to 710mg/L within the eluate, or a 3.6X focus issue. These outcomes exceeded the Firm’s expectations. The eluate was additional concentrated by reverse osmosis to 2,194mg/l.

For the primary stage of manufacturing, a complete quantity of 1,196m³ of brine from the Laguna Verde Mission was processed on the DLE pilot plant with a complete of 14 cycles accomplished. Every cycle represents a quantity of brine being fed first via filtration to take away suspended solids, then into DLE columns that are crammed with adsorbent designed to be selective for lithium molecules. Lithium, as lithium chloride, is adsorbed from the brine, earlier than desorption with water to create a purified lithium eluate.

Averaged throughout the 14 cycles, the restoration fee achieved by adsorption of lithium from the brine was 95% and the restoration fee of desorption from the adsorbent was 93%. The overall restoration fee into eluate averaged 88% and was extremely constant as proven within the determine under. The temperature of the brine and desorption water, utilizing the common ambient temperature in Copiapó in the course of the March to June interval of operation, was within the vary of 20^oC to 25^oC indicating that good efficiency was achieved with out the necessity to warmth options in both adsorption or desorption.

Pilot Plant Complete Restoration Price

The eluate manufacturing fee was comparatively secure after the preliminary ramp up interval reaching a mean of two.8 kg LCE per hour demonstrating that the design capability of the pilot plant of 1 tonne LCE monthly was comfortably achieved. Selectivity of the adsorbent is one other key efficiency parameter for a DLE operation. DLE primarily acts as a purification stage, recovering lithium chloride from the brine while rejecting different impurities. For all the foremost ions within the brine, aside from boron, the rejection fee was very excessive, exceeding 99%.

DLE Efficiency – Rejection of Main Impurities

The downstream conversion of lithium chloride answer to battery grade lithium carbonate is properly established within the lithium business. Quite than spending capital on setting up a lithium carbonate conversion plant, the Firm determined to accomplice with Conductive Power, an Alberta, Canada firm to undertake this conversion at its current facility in Chicago.

An preliminary 200L batch of concentrated eluate, was shipped to Conductive Power in Might. This batch was used as a trial earlier than organising the conversion course of that may be used for processing bigger volumes of eluate produced by our DLE pilot plant into battery grade lithium carbonate. Conductive Power accomplished the set-up test-work producing lithium carbonate of 99.75% purity which is battery grade. This course of includes focus of the concentrated eluate to 18,000mg/l Li by ahead osmosis adopted by ion change to take away the hint impurities of calcium, magnesium and boron after which carbonation with sodium carbonate to supply battery grade lithium carbonate.

On completion of this trial, the Firm subsequently shipped batches of concentrated eluate from the pilot plant, with a complete of 88m³ shipped by late July, which is equal to roughly one tonne of lithium carbonate.

The downstream plant is being commissioned with lithium carbonate manufacturing anticipated in October 2024. This can present the Firm with the capability to provide vital portions of battery-grade lithium carbonate samples to potential strategic companions and offtakers to begin product qualification.

Pilot Plant Inauguration

In Might, the DLE pilot plant was formally inaugurated in Copiapó with a ceremony attended by varied regional authorities, indigenous group leaders, teachers, and enterprise representatives. Attendees on the ceremony included the Presidential Delegate of the Atacama Area, Luis Pino, Regional Councillor Javier Castillo; CORFO Director Rosa Roman, CORPROA President Andres Rubilar; miners’ union president Joel Carrizo; indigenous group representatives Christian Milla and Ercillia Araya.

DLE Pilot Plant Inauguration Might 2024

DLE inauguration occasion Might 2024 with Steve Kesler, Government Chairman and Interim CEO and Ercilia Araya, President of the Colla-Ote group

Pre-Feasibility Examine at Laguna Verde

The PFS will outline the optimum configuration for the Laguna Verde challenge, paving the way in which for a DFS and discussions with strategic companions. Information from the DLE pilot plant and the drilling and subject programmes are being integrated into the PFS which is being led by Worley, a world engineering companies firm, from their Santiago workplace.

As a part of that course of, in July, Worley accomplished a plant location research, and CTL has engaged varied consultants to conduct research on port entry, water provide, energy entry and lithium market dynamics. The plant location research recognized the perfect configuration for a manufacturing facility able to producing 20,000 tonnes of battery-grade lithium carbonate every year. This supplied a trade-off evaluation between finding your entire plant at Laguna Verde versus splitting plant services between Laguna Verde and the close by mining centre of Copiapó. The choice of finding the DLE plant and eluate focus phases on the Laguna Verde website, and the carbonation plant at Copiapó was extremely beneficial, ensuing within the choice to proceed with this selection. A concentrated eluate with 6% lithium, the utmost focus earlier than lithium salts start to precipitate, shall be transported to Copiapó for impurity removing and carbonation phases. This configuration leads to a minor enhance in volumes transported whereas benefiting from Copiapó’s well-developed infrastructure and higher entry to a talented workforce. In response to the plant design, roughly 70% of the operational workforce shall be employed on the carbonation plant, subsequently finding it in Copiapó offers main benefits in hiring an area work drive together with variety outcomes resembling larger feminine participation, whereas contributing to the native financial system. The footprint on the challenge website, which is at 4,300m above sea stage, shall be significantly diminished, from energy provide, storage, camp and plant services, development section impacts, and environmental impacts.

The carbonation plant in Copiapó would finally be expanded to additionally deal with concentrated eluate from the Viento Andino challenge.

Company Developments

Particular Lithium Working Contracts (CEOLs)

Following the declaration of the Nationwide Lithium Technique in April 2023, the Authorities clarified that it will search majority management of strategic lithium belongings within the Salar de Atacama and Salar de Maricunga however that non-strategic salars might be developed by non-public sector pursuits with out the necessity for state firm participation. Because of this, the Chilean Authorities requested that the Firm withdraw its preliminary utility for CEOLs for Laguna Verde and Viento Andino (previously Francisco Basin) and apply via the brand new formal course of. CTL´s challenge areas had been outlined as non-strategic and the Firm entered the method in June 2024 on a 100% possession foundation for Laguna Verde and Viento Andino. Functions for RFIs has additionally been made for 3 different lithium prospects in joint ventures with different events that are at the moment topic to confidentiality.

The Authorities supplied an extra replace to the CEOL utility course of on the finish of September, prioritising six salt flats for lithium improvement together with Laguna Verde, the Firm’s flagship challenge, as having essentially the most beneficial circumstances to advance lithium exploration and extraction. The Authorities is anticipated to announce an extra replace later this yr on further salt flats for lithium improvement. The Ministry of Mining will award one CEOL per salt flat with corporations solely thought-about in the event that they meet sure standards. CTL´s Expressions of Curiosity (“RFI“) utility immediately addressed every of those key standards and because the Firm has a dominant licence place within the Laguna Verde basin it’s the solely Firm that meets the mining concession space requirement. The standards set out by the Authorities recognises the standing of the Firm´s progress on the Laguna Verde challenge and places in place a transparent path to award a CEOL and the challenge’s improvement into manufacturing, which is focused for 2027.

The Chilean Authorities will now begin indigenous group consultations associated to those six salars. Extra to different standards, CTL has developed a powerful relationship with indigenous communities positioned within the environment areas, based mostly on early engagement together with a collaborative alliance signed in December 2023 to co-design the challenge´s EIA. The Firm can be working with the regional College to advertise native alternatives for future tasks. The following stage of the CEOL course of is for corporations to submit CEOL purposes by December thirty first 2024.

Acquisition of Laguna Verde LicencesIn April 2024, the Firm accomplished the acquisition of 23 Laguna Verde licences, beforehand topic to an choice settlement. This now provides the Firm full possession and management over all 108 mining licences inside Laguna Verde. The Board believes this acquisition enhances potential returns to shareholders and de-risks the challenge because it advances. Full possession of those licences has additionally facilitated the deliberate ASX itemizing.
Renaming of Francisco Basin and Salar de Atacama

In June the Firm introduced it had renamed the Francisco Basin challenge as Viento Andino. This was to make clear the challenge is positioned outdoors a close-by nationwide park of an identical title. In the course of the interval, the Firm additionally introduced the Salar de Atacama licences have been renamed the ‘Arenas Blancas’ challenge to recognise that these fall outdoors of the Salar de Atacama space thought-about by Authorities as ´strategic´ to be managed by the State entity Codelco. These Area Blanca licences are proven right here.

Map of licence areas in Arenas Blancas

ESG and Group Engagement:

In January, the Firm hosted a world seminar on the Universidad de Atacama titled “Lithium: World Challenges. Native Points, Decarbonization, Sustainability and Participation” introduced collectively famend worldwide teachers and business leaders to discover the essential function lithium performs in world decarbonization and the transition to a inexperienced financial system.

The Firm has additionally partnered with the College of Atacama, which has seen the set up of the Firm’s laboratory DLE carousel on the campus. This initiative permits college students to conduct their very own testing and analysis, supporting the event of a workforce for the longer term and regional financial improvement.

Publish-period finish, CTL participated within the Centre for Copper and Mining Research (“CESCO”) seminar in Santiago, a distinguished annual seminar for the mining sector in Chile and acquired public assist from the native indigenous group for its Laguna Verde challenge. Native and nationwide media coated the endorsement made by the President of Colla-Ote Communities, Ercilia Araya, as seen within the press chopping under. On the seminar the Firm said if the Authorities need to see three to 4 new lithium tasks in development by 2026, Laguna Verde could be one among these tasks. To realize this, the Firm continues it engagement with the Chilean Authorities as a part of the CEOLs purposes and in a well timed method for the EIA allowing course of.

President of the Colla-Ote Group publicly endorses CleanTech Lithium’s Laguna Verde challenge at CESCO Seminar, August 2024

The Firm remained a signatory of the UN World Compact aligning with the ten guiding ideas. The annual ‘Communication of Progress’ report was submitted in Might 2024.

ASX dual-listing:

On 20 September the Firm introduced an extension to the Australian Securities Alternate (“ASX”) IPO timetable to permit it to deal with sure procedural issues raised by ASX. Though it’s anticipated the ASX IPO will full previous to the year-end, there could be no certainty over the timing. Consequently, as part of regular follow, the Board continues to contemplate different accessible funding choices to supply the required ongoing working capital and to keep up progress on the Firm’s varied capital programmes as described above.

The ASX is a pure match as a dual-listing for CTL given the excessive proportion of its shareholder base designated as Australian domiciled; that base consists of Regal Funds as a major sharesholder which holds roughly 15% of the Firm’s shares in situation.

It’s clear that an Australian itemizing will broaden the shareholder base, enhance the Firm’s profile in Australia and expose the Firm to a deep pool of capital from traders with a superb data of investing in useful resource, and lithium, corporations.

The Firm will proceed to maintain the market knowledgeable of progress as applicable.

Board Modifications:

Along with my duties as Government Chairman, I assumed the function of Interim CEO in April following Aldo Boitano’s resignation. The seek for a brand new CEO is ongoing, and we look ahead to saying the chosen candidate sooner or later.

Lithium Market:

Whereas the worldwide lithium market stays subdued with present oversupply and low costs, there may be clear expectation that market circumstances can have improved considerably by the point the Firm comes into first manufacturing in 2027. Some present high-cost manufacturing is suspending manufacturing, new tasks are being deferred while demand for lithium to be used in batteries, for Electrical Automobiles and ESS continues to develop. The expectation is that lithium costs will begin to recalibrate to a medium and longer-term worth that permits new tasks to be financed. Cannacord Genuity forecasts that pricing to be in extra of US$22,500/t lithium carbonate from 2028 onwards. The scoping research for Laguna Verde and Viento Andino point out that these tasks shall be within the lowest quartile of prices and financial even at immediately´s low costs and extremely enticing at forecast long-term costs.

The Firm has particular benefits in working in Chile which has a free commerce settlement (“FTA”) with the USA and preferential commerce preparations with the EU for crucial minerals resembling lithium. The power to provide battery grade lithium carbonate immediately into these markets with out intermediate processing in China shall be necessary for the Firm in these markets. In the meantime Chinese language corporations are investing in battery provide chain manufacturing in FTA nations to keep up entry to the US market and can more and more search lithium carbonate from FTA compliant nations for these tasks. The Firm is properly positioned to reap the benefits of this dynamic.

Financials:

The Firm’s money place on the interval finish, together with proceeds acquired from Mortgage Notes shortly after interval finish, was £2.1 million.

Within the six months to 30 June 2024, CleanTech continued to prioritise expenditure on its capital programmes with the next progress famous:

• Laguna Verde: Drilling: 5 properly programme; PFS: engineering and feasibility research by Worley, Montgomery have been progressed; Hydrogeological modelling: additional evolution of each the modelling and as has the planning for pump-test and reinjection programmes; EIA: analysis of and improvement of the baseline research stays continues and stays a key aspect of CleanTech’s programmes in Chile

• DLE: pilot plant development, testing and commissioning and preliminary operation prices

• Group Relations: programme and different ESG initiatives.

As well as, the acquisition of 100% of the authorized and useful curiosity within the licences in Laguna Verde licences beforehand held underneath an choice settlement was introduced in April 2024. Refer Notice 12 to the monetary statements for additional particulars.

Administration money prices of roughly £1.9 million had been incurred in the course of the interval (1H 2023: £2.0m million). These money prices, largely mirror £0.5 million for workers prices (1H 2023: £0.5 million), £0.4 million for promotion public and investor relations and journey (1H 2023: £0.7 million), £0.8 million for authorized {and professional} assist together with itemizing and compliance and insurance coverage prices (1H 2023: £0.7 million), the steadiness of £0.2 million includes a wide range of different and basic administrative prices (1H 2023: £0.1 million).

On 30 June 2024, the Firm executed a GBP mortgage word instrument and an AUD mortgage word instrument pursuant to which it issued mortgage notes (“Mortgage Notes”) to subscribers to lift A$3.995 million, roughly £2.1 million, to finance working capital and prices related to ASX admission. Refer Notice 11 to the monetary statements for additional particulars. Previous to getting into into the mortgage word devices the Firm additionally terminated an settlement to situation a convertible mortgage word to a excessive web value who didn’t pay the subscription monies to the Firm regardless of on-going assurances on the contrary.

To assist CleanTech’s plans which goal preliminary manufacturing from Laguna Verde in 2027 the Board has developed a monetary technique to lift the capital wanted. The Firm routinely receives approaches from third events and continues to contemplate as a component its total funding technique. An necessary tenant of that technique is the participation and assist of strategic partnerships. Though strategic partnership discussions are at the moment taking tempo underneath non-disclosure agreements, they’re anticipated to progress additional as soon as the Laguna Verde PFS is accomplished and as soon as the preliminary portions of battery grade lithium from the DLE pilot plant and downstream processes can be found for overview.

Outlook:

The Firm stays properly positioned to display the efficacy of DLE to supply battery grade lithium carbonate from Laguna Verde brine and to ship the PFS later this yr. This can be a crucial step for securing strategic partnerships and future challenge funding. The goal to ship battery-grade lithium carbonate via sustainable, low environmental influence manufacturing, utilising the DLE course of and renewable power, aligns the Firm with the Chilean Authorities’s Nationwide Lithium Technique and standards outlined within the CEOL purposes. We’re properly positioned to be prioritised amongst the non-public sector potential tasks.

Publish the interval finish, the Firm filed purposes for its admission to the ASX. Alongside the dual-listing, CleanTech Lithium is in search of to lift funds to assist the subsequent stage of its improvement, together with the supply of a strategic accomplice, because it progresses in direction of manufacturing.

The Board is happy in regards to the alternatives forward and stay dedicated to delivering worth for our shareholders, companions, and the communities by which we function.

Steve Kesler, Government Chairman and Interim CEO
CleanTech Lithium plc

Condensed Consolidated Assertion of Complete Earnings

The accompanying notes are an integral a part of these unaudited condensed consolidated interim monetary statements.

Condensed Consolidated Assertion of Monetary Place

The accompanying notes are an integral a part of these interim unaudited condensed consolidated monetary statements.

Condensed Consolidated Assertion of Modifications in Fairness

The accompanying notes are an integral a part of these interim unaudited condensed consolidated monetary statements.

Condensed Consolidated Assertion of Consolidated Money Flows

The accompanying notes are an integral a part of these interim unaudited condensed consolidated monetary statements.

Notes to the Monetary Statements

1. GENERAL INFORMATION

CleanTech Lithium Plc (“CTL Plc”, or the “Firm”)

The condensed consolidated interim monetary statements of CleanTech Lithium Plc for the primary six months ended 30 June 2024 had been authorised for situation in accordance with a decision of the Board on 29 September 2024.

CleanTech Lithium Plc was integrated and registered as a non-public firm, initially with the title CleanTech Lithium (Jersey) Ltd, in Jersey on 1 December 2021 with registered quantity 139640. It was subsequently reregistered as a public restricted firm on 20 January 2022 and on 2 February 2022 it modified its title to CleanTech Lithium Plc.

On 14 February 2022, a share-for-share change between the shareholders of CleanTech Lithium Ltd (CTL Ltd, or the U.Ok. entity) and CTL Plc accomplished, leading to CTL Plc buying and turning into the father or mother firm of CTL Ltd and its wholly owned subsidiaries, collectively “CleanTech Lithium Group” or the “Group”.

In the course of the six months to 30 June 2024, there have been no modifications to the construction of the CleanTech Lithium Group.

2. BASIS OF PREPARATION

The condensed consolidated interim monetary statements for the Group have been ready in accordance IAS 34 ‘Interim Monetary Reporting’ per the U.Ok.-adopted worldwide accounting requirements. They’re unaudited and don’t embody all the knowledge required for the preparation of the annual consolidated monetary statements and needs to be learn together with the audited consolidated monetary statements for the yr ended 31 December 2023 of CleanTech Lithium Plc, that may be discovered on the web site: https://www.ctlithium.com. The auditor’s report on these accounts was unmodified but it surely did make reference to materials uncertainties associated to going concern.

The quantities on this doc are introduced in British Kilos (GBP), until famous in any other case. On account of rounding, numbers introduced all through these condensed consolidated Interim monetary statements might not add up exactly to the totals supplied and percentages might not exactly mirror absolutely the figures

A abstract of the numerous accounting insurance policies could be discovered within the Firm’s consolidated monetary statements for the yr ended 31 December 2023, on pages 50 to 53. The accounting insurance policies used to arrange these condensed consolidated interim monetary statements are in step with these. Moreover, there are not any new requirements or interpretations relevant from 1 January 2024 which have a major influence on these condensed consolidated interim monetary statements.

Important accounting judgments, estimates and assumptions

In making ready this interim monetary report, it has been essential to make judgments, estimates and assumptions to kind the idea of presentation, recognition and measurement of the Group’s belongings, liabilities, gadgets of revenue statements, accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates might lead to outcomes that require a cloth adjustment to the carrying quantity of belongings or liabilities affected in future durations.

The numerous judgments, estimates and assumptions made when making use of the Group’s accounting insurance policies are the identical as these utilized to the consolidated monetary statements for the yr ended 31 December 2023. The numerous judgment in assessing the exploration and analysis belongings for the existence of indicators of impairment on the reporting date, that are set out in word 7.

Going Concern

The Group is in a pre-revenue section of improvement and till its transition to income era and profitability the Group shall be required to depend on externally sourced funding to proceed as a going concern, the Board recognises this situation might point out the existence of fabric uncertainties, which can solid vital doubt relating to the Group’s capability to proceed as a going concern. However, the Administrators have a demonstrated document of efficiently elevating capital elevating for tasks and ventures of this nature and are assured in having the ability to safe the funding wanted for the Group to ship on its commitments and proceed as a going concern.

3. ADMINISTRATION EXPENES

Administration bills within the six months to 30 June 2024 totaled £2.8 million, of which roughly £0.9 million displays non-cash gadgets (2023: £1.2 million). Extra particularly, roughly £0.6 million displays a provision made towards VAT in Chile which must be recoverable as soon as manufacturing begins (Notice 8 offers additional element) (2023: £0.6 million). Along with the non-cash VAT provision, roughly £0.6 million has been recorded as a share-based fee for choices traditionally issued and for warrants issued as part of the Mortgage Notes issued within the interval (additional element is about out in Notice 9) (2023: nil), these two gadgets had been off-set by the unrealised acquire on translation of the deferred consideration of 0.3 million (2023: nil).

Of the £1.9 million in money prices, roughly £0.5 million pertains to employees prices (2023: £0.5 million), £0.4 million pertains to promotion, public and investor relations and journey (2023: £0.7 million), £0.8 million pertains to authorized {and professional} (2023: £0.7million ) assist together with itemizing and compliance and insurance coverage prices, the steadiness of £0.2 million includes a wide range of different and basic administrative prices (2023: £0.1 million).

4. SEGMENTAL INFORMATION

The Group operates in a single enterprise section, being the exploration and analysis of mineral properties, actions that are undertaken in Chile the place all of the Group’s non-current belongings are held.

5. INCOME TAX

The accrued revenue tax expense continues to be £nil because the Group stays in a loss-making place. No deferred tax asset is recognised on these losses as a result of uncertainty over the timing of future income and positive aspects.

6. LOSS PER SHARE

The calculation of primary loss per odd share is predicated on the loss after tax and on the weighted common variety of odd shares in situation in the course of the interval.

A diluted loss per share assumes conversion of all probably dilutive Odd Shares arising from the share schemes. Potential odd shares ensuing from the train of warrants and choices have an anti-dilutive impact as a result of Group being in a loss place. Because of this, diluted loss per share is disclosed as the identical worth as primary loss per share.

7. EXPLORATION AND EVALUATION ASSETS

Bills incurred to this point by the Chilean entities on feasibility research, mineral exploration and delineation had been capitalised as “exploration and analysis belongings” inside “non-current belongings” in accordance with the Group’s accounting coverage.

Of the £19.8 million in additions, roughly £15.9 million pertains to the truthful worth of deferred consideration for licences acquired underneath the LV Buy Settlement (refer Notice 12), of which roughly £1.0 million was paid in the course of the interval. An additional £0.1 million displays non-cash share-based funds made to employees and contractors, about which additional element is about out in Notice 9. Different additions mirror the additions related to the capital programmes being undertaken in the course of the interval. These additions have been off-set by unrealised overseas change positive aspects of £0.9 million.

Impairment assessments

The Administrators assess for impairment when information and circumstances counsel that the carrying quantity of an exploration & analysis asset (E&E) might exceed its recoverable quantity. In making this evaluation, the Administrators have regard to the information and circumstances famous in IFRS 6 paragraph 20. In performing their evaluation of every of those components, at 30 June 2024, the Administrators have:

• reviewed the time interval that the Group has the correct to discover the world and famous no situations of expiration, or licences which might be anticipated to run out within the close to future and never be renewed;

• decided that additional E&E expenditure is both budgeted or deliberate for all licences;

• not determined to discontinue exploration exercise as a result of there being an absence of quantifiable mineral useful resource; and

• not recognized any situations the place adequate information exists to point that there are licences the place the E&E spend is unlikely to be recovered from profitable improvement or sale.

Primarily based on the above evaluation, the Administrators should not conscious of any information or circumstances that may counsel the carrying quantity of the E&E asset might exceed its recoverable quantity.

8. TRADE AND OTHER RECEIVABLES

Prepayments and deposits largely mirror pay as you go insurance coverage and different business subscriptions which renew variously and yearly in addition to workplace rental deposit quantities paid.

Though VAT reveals a steadiness of roughly £18k at 30 June 2024, at that date roughly £2.4 million in Chilean VAT recoverable isn’t proven within the desk above. Though the Chilean VAT is anticipated to be eligible for refund in future, as a result of uncertainty over the timing of future manufacturing and revenues, which might set off the Group’s eligibility to get well that VAT, the Administrators have made full provision towards this identical quantity. Accordingly, roughly £0.6 million provision has been mirrored within the revenue assertion for the interval ended 30 June 2024 (refer Notice 3).

Different receivables comprise a number of smaller working capital balances in Chile.

9. SHARE BASED PAYMENTS

On 30 June 2024, a complete of 4,380,181 warrants attaching to Mortgage Notes issued (refer Notice 11) had been granted. No different warrants or choices had been granted, exercised, forfeited or allowed to lapse in the course of the six months to 30 June 2024.

All choices and warrants are granted in Firm’s title. Share choices granted have a weighted common train worth of 47 pence and warrant shares granted have a weighted common train worth of 34 pence.

The truthful worth of every choice granted within the interval was estimated on the grant date utilizing the Black Scholes choice pricing mannequin. The next assumptions have been used:

The overall share choice truthful worth cost in the course of the six months to 30 June 2024 is £198k (2023 £779k), of which roughly £86k has been recorded within the revenue assertion as a non-cash worker expense; the steadiness has been recorded inside E&E. The overall warrant shares truthful worth cost in the course of the six months to 30 June 2024 was roughly £506k (2023: £27k).

As famous, these truthful worth estimates derived thorough Black-Scholes modelling and Monte Carlo simulations are non-cash accounting entries.

10. PAYABLES, PROVISIONS AND ACCRUALS

Commerce and different payables embody routine commerce collectors.

Different taxes and social safety balances largely relate to people-related prices and taxes balances on the interval finish. Accruals embody routine accruals for skilled companies rendered not invoiced at interval finish.

11. LOAN NOTES

Shortly after the interval finish, CleanTech acquired the money generated from issuing Mortgage Notes previous to 30 June 2024.

On 30 June 2024 the Firm executed a GBP mortgage word instrument and an AUD mortgage word instrument pursuant to which it issued mortgage notes to subscribers to lift A$3.995 million, roughly £2.1 million, to finance working capital and prices related to ASX admission. As well as, the Mortgage Notice holders had been granted with a complete of 4,380,181 warrants valued at roughly GBP £506,000 on the date of grant. As there are not any vesting circumstances connected to the warrants, the full worth has been expensed as a non-cash truthful worth accounting adjustment (refer Notice 9)

Though the Mortgage Notes have a maturity date of 30 June 2025, the Firm shall redeem the Mortgage Notes at par along with the relevant premium on the sooner of the Maturity Date or 10 days following completion of any fairness fundraising by the Firm of a minimum of AUD $5.0 million. The premium payable on redemption is dependent upon when redemption happens as follows: the Mortgage Notes carry a premium of 15% if the Mortgage Notes are repaid inside three calendar months; or a premium of 25% if the Mortgage Notes are redeemed between 4 and 6 calendar months; or a premium of 40% if the Mortgage Notes are redeemed between seven and 9 calendar months; or a premium of fifty% if the Mortgage Notes are redeemed between ten and twelve calendar months. The Mortgage Notes are unsecured, nonetheless if they aren’t redeemed on or prior to 3 months from their date of situation, the Firm has agreed to make use of greatest endeavours to grant or procure to grant the word holders a primary rating cost over each all of the belongings and undertakings of the Firm and your entire issued share capital of CTL UK.

12. DEFERRED CONSIDERATION

Laguna Verde Choice buy-out

On 19 April 2024, CleanTech Laguna Verde SpA, an entirely owned Chilean subsidiary of CleanTech Lithium Plc, entered right into a sale and buy settlement (LV Buy Settlement) to accumulate 100% authorized and useful curiosity within the mining licences traditionally held by CleanTech underneath choice underneath the phrases of the LV Choice Settlement. The LV Buy Settlement had the impact of terminating the LV Choice Settlement.

Pursuant to the LV Buy Settlement the consideration payable includes fastened funds totaling US$10.5 million, that are scheduled to happen a varied annual and semi-annual millstone durations over a interval of as much as 5 years from the date of the LV Buy Settlement, and two deferred funds, totaling US$24.5 million, scheduled to happen upon offered manufacturing reaching 10k tonnes of LCE and 35k tonnes of LCE respectively or on the ten^th anniversary of the date of the LV Buy Settlement, whichever is the sooner.

The carrying worth for the LV licences acquired pursuant to the LV Buy Settlement, has been designated as an asset acquisition in accordance with the Group accounting coverage and assigned a good worth in accordance with the ideas of the UK IASs. Equally, the Group has assigned a good worth to the deferred consideration related to the acquisition which is allotted between present and non-current liabilities.

In assessing the suitable foundation on which to find out the truthful worth of the non-current element of the deferred consideration, the Administrators have used a reduction fee of 8% which they consider is reflective of the components that market individuals would think about within the pricing of such a legal responsibility in addition to the foreign money by which the cashflows are denominated. That is in step with the necessities of IFRS 13 – Truthful Worth Measurement.

As described above, the 2 remaining funds of the deferred consideration, totaling USD$24.5m, are required to be made upon reaching sure manufacturing milestones, however in any occasion, are required to be made inside 10 years of execution of the LV Buy Settlement. As a result of uncertainties surrounding the timing of reaching the manufacturing milestones, the Administrators have assumed that the remaining two funds shall be made on the ten^th anniversary of signing the LV Buy Settlement.

13. SUBSEQUENT EVENTS

Issues referring to occasions occurring since Interval finish are reported on within the part entitled Chairman and Chief Government Officer’s Assertion.

**ENDS**

Notes

About CleanTech Lithium

CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) is an exploration and improvement firm advancing lithium tasks in Chile for the clear power transition. Dedicated to net-zero, CleanTech Lithium’s mission is to turn out to be a brand new provider of battery grade lithium utilizing Direct Lithium Extraction know-how powered by renewable power.

CleanTech Lithium has two key lithium tasks in Chile, Laguna Verde and Viento Andino, and exploration stage tasks in Llamara and Arenas Blancas (Salar de Atacama), positioned within the lithium triangle, a number one centre for battery grade lithium manufacturing. The 2 most superior tasks: Laguna Verde and Viento Andino are located inside basins managed by the Firm, which affords vital potential improvement and operational benefits. All 4 tasks have good entry to current infrastructure.

CleanTech Lithium is dedicated to utilising Direct Lithium Extraction with reinjection of spent brine leading to no aquifer depletion. Direct Lithium Extraction is a transformative know-how which removes lithium from brine with increased recoveries, brief improvement lead occasions and no in depth evaporation pond development. www.ctlithium.com

Glossary

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SOURCE: CleanTech Lithium plc

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