Lithium Plus Minerals Boosts Lei Deposit Resource by 34% as Bynoe Lithium Project Nears Production

Lei Deposit Sees Resource Expansion Driven by Additional Drilling and Enhanced Geological Confidence

Lithium Plus Minerals has upgraded the Mineral Resource Estimate for the Lei Deposit primary pegmatite following further drilling since the maiden estimate in December 2023. The updated figure of 5.22 million tonnes at 1.50% Li2O reflects a 28% increase in tonnage and a 0.07% rise in grade compared to the previous 4.09 million tonnes at 1.43% Li2O. This results in a 34% growth in contained lithium dioxide, underscoring significant resource expansion as geological understanding improves.

The resource increase stems mainly from drilling extending the mineralised pegmatite at depth and along plunge, along with infill drilling that enhanced geological confidence and enabled resource reclassification. Two new drillholes expanded geological control over the pegmatite, with notable intercepts including 10 metres at 1.69% Li2O from 614 metres depth at BYLDD019 and 34 metres at 1.69% Li2O from 396 metres depth at BYLDD037. This drilling reduced pierce-point spacing from about 100 metres to roughly 50 metres in central orebody areas, substantially improving pegmatite geometry definition and lowering uncertainty about internal waste zones.

Indicated Resource Share Rises to 55%, Reflecting Stronger Estimation Confidence

The updated estimate now classifies 55% of total resources as Indicated, compared to the December 2023 estimate, with no Measured resources reported yet. Indicated resources total 2.85 million tonnes at 1.49% Li2O for 42.55 kilotonnes of contained metal, while Inferred resources stand at 2.37 million tonnes at 1.51% Li2O for 35.88 kilotonnes. This increased confidence results from denser drilling that better defines pegmatite geometry and reduces uncertainty regarding internal waste and barren margins.

The company enhanced geological and grade continuity along principal anisotropy directions through updated variography and Ordinary Kriging estimation. A detailed structural remodelling improved representation of pegmatite geometry, orientation, and internal structure. The mineral resource model was rebuilt with revised parent block dimensions that more accurately capture variable thickness and contact relationships of the mineralised pegmatite. Rotating the model into the main pegmatite trend improved alignment between geological interpretation, variogram structure, and interpolation, yielding a more consistent grade distribution.

Resource Model Adjustments Reflect True Mining Width and Grade Patterns

A significant update to the resource model involves including both the higher-grade pegmatite core and the surrounding low-grade pegmatite skin within a single estimation domain. Earlier estimates excluded the low-grade skin, which must be mined for economic extraction, effectively imposing a bottom-cut on grade distribution and exaggerating nugget effects in variography. The new approach captures realistic mining geometry and geological continuity, introducing smoother grade transitions at short ranges and improving variogram continuity while reducing nugget effects.

This results in a more stable and realistic Ordinary Kriging estimate that better reflects the deposit’s natural characteristics. The company assessed resource sensitivity across various cut-off grades, finding modest changes in grade and tonnage, indicating the deposit is dominated by consistently mineralised pegmatite rather than isolated high-grade zones. The selected 0.5% Li2O cut-off is therefore technically sound and representative.

Low-Capital Direct Shipping Ore Plan Targets Early Cash Flow

Lithium Plus Minerals is advancing plans for a low-capital underground lithium mine approximately 80 kilometres by road from Darwin Port on the Cox Peninsula. The strategy focuses on a Direct Shipping Ore (DSO) operation where ore will be crushed and screened onsite before transport to port, designed to generate near-term cash flow while minimizing upfront capital investment.

The DSO product will be shipped to Canmax’s lithium processing facility in China for conversion into lithium hydroxide or carbonate. This off-site processing arrangement defers significant capital expenditure on local processing infrastructure while progressing toward lithium production. The upgraded Lei Resource Estimate strengthens the foundation for ongoing mining and development studies assessing the technical and economic viability of this low-capex DSO operation, supporting advancement toward a development decision.

Exploration Targets Highlight Significant Growth Potential Beyond Lei Deposit

Exploration Targets have been identified at multiple pegmatite bodies within the Bynoe project area, signaling strong additional upside beyond the existing Lei Deposit resource. Targets have been estimated for the Lei Deposit primary pegmatite at depth, the Lei secondary pegmatite located about 170 metres east of the primary, and the Perseverance pegmatite, all prepared in line with Clause 17 of the JORC Code. These areas have yet to be fully drilled but geological interpretation supports potential for further mineralisation.

The presence of multiple pegmatite bodies at varying depths and distances within Bynoe underscores the geological prospectivity of the Cox Peninsula district. The Lei secondary pegmatite and Perseverance pegmatite offer opportunities to expand mineral inventory through targeted exploration. The company plans to evaluate these targets further as field work begins, potentially increasing total project resources and extending mine life scenarios.

Bynoe Field Work to Begin After Quarter End

Field activities at the Bynoe Lithium Project are set to commence after the quarter ended 30 June 2026. Operations will focus on advancing exploration and development across the project, building on the updated Lei Resource Estimate and identified exploration targets. This marks a key milestone in progressing toward a production decision.

The timing follows completion of the resource upgrade, providing updated technical data to guide exploration targeting and development planning. Planned activities include drilling to test exploration targets at depth and lateral extensions, plus site investigations supporting mining and development studies. The company has not disclosed the scope, duration, or budget for the upcoming field work in its quarterly update.

Strong Cash Position Supports Project Progress and Near-Term Operations

As of 30 June 2026, Lithium Plus Minerals reported a cash balance of $2.409 million, providing funding capacity for near-term project and administrative activities. Details on cash usage during the quarter, burn rate, or how long the balance will support planned work were not disclosed. This liquidity underpins exploration, development studies, and corporate operations as the Bynoe project advances.

The financial position reflects the capital-intensive nature of lithium project development, which requires substantial expenditure on drilling, resource definition, engineering, and environmental assessments. The adequacy of current funds to cover planned field work and studies depends on activity scope and timing. Investors may watch for announcements on capital raises or alternative funding if expenditures exceed available resources.

Strategic Partnerships and Market Dynamics Support Development Pathway

Lithium Plus Minerals’ partnership with Canmax for lithium processing in China is a key element of its commercialisation strategy. Securing an offtake agreement for DSO processing reduces project risk, enabling focus on cost-effective ore production and logistics. The Bynoe project’s location approximately 80 kilometres from Darwin Port offers logistical advantages for maritime transport to China, lowering costs and supporting the low-capex model.

Global lithium demand continues to grow, driven by electric vehicle batteries and energy storage needs. The company’s development timeline aiming for near-term cash flow from DSO production aligns with market trends. However, specific assumptions on lithium pricing, demand forecasts, or Canmax contract terms have not been disclosed, which are relevant for economic feasibility analysis.

Resource Estimate Prepared with Industry-Standard Methodologies and JORC 2012 Compliance

The updated Lei Resource Estimate complies with JORC Code 2012 standards, ensuring technical rigor and industry best practices. The estimation incorporated updated variography, Ordinary Kriging, and structural remodelling reflecting the expanded geological dataset. Sensitivity analysis across cut-off grades supports the 0.5% Li2O threshold, confirming consistent mineralisation rather than isolated high-grade zones.

Improved pierce-point spacing from 100 metres to 50 metres in central orebody areas demonstrates a disciplined resource definition approach. This denser drilling enabled reclassification of portions from Inferred to Indicated, reflecting greater geological confidence per JORC 2012 criteria. Including both mineralised core and low-grade pegmatite skin in the estimation domain provides a realistic mining geometry assessment, materially improving upon previous estimates that excluded peripheral material necessary for mining.