Jiangsu Lopal Tech. Group (02465) plans to acquire lithium mine exploration lease and related assets located in Australia for 14.85 million Australian dollars.

Jiangsu Lopal Tech. Group (02465) announced that the company, through its overseas wholly-owned subsidiary Lopal Tech Perth Pty Ltd (referred to as "Lopal Tech Perth" or "Buyer"), has signed a Tenements and Mineral Rights Sale Agreement with Global Lithium Resources Limited (referred to as "GL1") and MB Lithium Pty Ltd (referred to as "MB Lithium", collectively with "GL1" known as the "Sellers"). According to the agreement, Lopal Tech Perth will acquire lithium mining exploration leases and related assets held by GL1 and MB Lithium in Australia for a transaction price of 14.85 million Australian dollars. The lithium mining project will require further exploration, mining license applications, ore separation, and mining capacity construction, with an estimated investment of over 200 million US dollars and a projected production period of 2-3 years. The target of the transaction is a lithium mining exploration lease located in the Pilbara region of Western Australia, approximately 150 kilometers southeast of Port Hedland. Since obtaining the mining rights in 2019, GL1 has been conducting exploration work on one of the core mining rights, E45/4309, completing a total of 734 reverse circulation drill holes and 7 diamond drill holes, with a footage of over 102.5 kilometers. According to the Marble Bar lithium mining project mineral resource estimation report prepared in accordance with JORC standards in 2022, the project has an ore resource of 18 million tons, with an average lithium oxide grade of 1.0%. This transaction is an important move for the company to deepen its upstream resource layout in its core business of lithium iron phosphate cathode materials. The company's lithium iron phosphate business has been steadily expanding its production and sales scale, overseas production capacity is steadily advancing, and the demand for stable supply of upstream lithium resources and cost control is increasing. Through this transaction, the company will further enhance its lithium resource security capability, strengthen raw material supply stability and anti-cyclical fluctuation capability, enhance the level of industrial chain integration and overall competitiveness, in line with the company's long-term development strategy and the interests of all shareholders.