INCREASES MINERAL RESERVES BY 63%, TRIPLES NPV TO US$ 15.3 BILLION AND SECURES US$ 100 MILLION DEBT FINANCING

INVESTOR VIDEO CONFERENCE CALL
December 6, 2022 at 10AM (EST)
Registration Hyperlink for Zoom video name beneath:
https://us06web.zoom.us/j/83014247697
Zoom Assembly ID: 830 1424 7697

HIGHLIGHTS OF PLANNED PRODUCTION EXPANSION

• Sigma Lithium publicizes constructive financial outcomes of its research to probably triple built-in manufacturing (the “Manufacturing Enlargement Research”) of Battery Grade Sustainable Lithium Focus from 270,000 tpa (36,700 tpa LCE) commencing in 2023 to 768,000 tpa (104,200 tpa LCE) within the second 12 months on the Firm’s 100% owned Grota do Cirilo Venture (the “Venture”).

• The Venture enlargement might probably place Sigma Lithium as one of many world’s largest totally built-in lithium producers (from mine to lithium supplies).

• The Manufacturing Enlargement Research demonstrated strong Venture economics, highlighted by an after-tax NPV_8% of US$ 15.3 billion, incorporating manufacturing from Section 1 (nearing commissioning initiation) mixed with Section 2 and Section 3.

• Whole Capex for the Venture enlargement is estimated at US$ 155 million and could possibly be totally funded as follows:

• The Development of the Venture enlargement may probably be initiated with earthworks and ordering of lengthy lead objects within the first quarter of 2023, as soon as a last choice is made by the Firm.

• On the expanded capability, the important thing economics of the Venture are as follows:

SIGNING DEFINITIVE AGREEMENTS FOR UP TO US$100 MILLION DEBT FINANCING

• Sigma Lithium additionally publicizes signing of definitive agreements for as much as US$100 million senior secured pre-export financing (the “Debt Financing”) with Synergy Capital, one of many Firm’s present shareholders, based mostly within the United Arab Emirates.

• The Debt Financing will totally fund the Firm till August 2023, together with the initiation of detailed engineering and the initiation of development of the Venture Enlargement.

• The Debt Financing has a 4-year maturity date and rate of interest of BSBY plus 6.95% every year (12-month Bloomberg Quick Time period Financial institution Yield Index).

• The preliminary drawdown of $60 million beneath the Debt Financing is anticipated to shut this 12 months.

MINERAL RESERVES INCREASED BY 63% AND MINERAL RESOURCE INCREASE

• Elevated confirmed and possible mineral reserves by 63% to 54.8 Mt of lithium spodumene, whereas sustaining excessive grade at 1.44% lithium oxide.

• Whole Venture measured and indicated mineral assets (inclusive of reserves) elevated to 77.0 Mt grading 1.43% lithium oxide and 12.1 Mt of inferred mineral assets grading 1.45% lithium oxide.

• Elevated Venture life to 20 years (on the present deliberate manufacturing charge).

• Section 3 confirmed and possible mineral reserve estimate of 21.2 Mt, whereas sustaining a excessive grade at 1.45% lithium oxide.

VANCOUVER, BC, Dec. 4, 2022 /PRNewswire/ — SIGMA Lithium Company (“Sigma Lithium” or the “Firm“) (NASDAQ: SGML, TSXV: SGML), devoted to powering the subsequent technology of electrical automobiles with high-purity lithium environmentally and socially sustainable lithium, is happy to announce the constructive financial outcomes of its research (“Manufacturing Enlargement Research”) for a possible built-in manufacturing enhance of Battery Grade Sustainable Lithium Focus from 270,000 tpa (36,700 tpa LCE) commencing in 2023 to 768,000 tpa (104,200 tpa LCE) within the second 12 months on the Firm’s 100% owned Grota do Cirilo Venture (the “Venture”), at the moment in development in Minas Gerais, Brazil.

The Manufacturing Enlargement Research demonstrated strong Venture economics, highlighted by an after-tax NPV_8% of US$15.3 billion, incorporating manufacturing from Section 1 (nearing commissioning initiation) mixed with Section 2 and Section 3.

Battery Grade Sustainable Lithium Focus manufacturing enlargement could possibly be achieved by the addition to the Greentech Lithium Plant of a single bigger further dense media separation module paired with a proportional crushing module. Improve in mining feedstock for the built-in manufacturing enlargement of the Greentech Lithium Plant shall be achieved by the development of the Section 2 and Section 3 Mines.

Sigma Lithium additionally publicizes the signing of definitive agreements for as much as US$100 million senior secured pre-export financing (the “Debt Financing”) with Synergy Capital, one of many Firm’s present shareholders, based mostly within the United Arab Emirates.

“With Section 1 quickly progressing in direction of manufacturing within the close to time period, we’re delighted to share the excellent achievements of our staff in direction of rising near-term manufacturing of Battery Grade Sustainable Lithium on two essential fronts: completion of technical research for Venture Enlargement and debt financing,” says Ana Cabral-Gardner, Co-CEO and Co-Chairperson of Sigma Lithium. “Extra importantly, we will be capable of stay on the low finish of the associated fee curve.”

Co-CEO and Co-Chairperson Calvyn Gardner provides, “We’re very proud of the outcomes of the Section 2 and three enlargement plans at Grota do Cirilo, which cements Sigma Lithium as probably one of many largest lithium producers globally. Additional, our potential to proceed to keep up the excessive grades of the mineral assets, as we develop built-in manufacturing demonstrates the numerous further progress potential of the Firm.”

Sudhir Maheshwari, Managing Companion of Synergy Capital says: “We’re extraordinarily happy that our multi-year partnership with Sigma Lithium has reached a serious milestone, because the Firm is about to begin lithium manufacturing in a number of months.”

The technical report for the Manufacturing Enlargement Research (the “Up to date Technical Report”) might be filed on SEDAR (www.sedar.com), EDGAR (www.sec.gov) and the Firm’s company web site inside 45 days of this information launch. Readers are inspired to learn the Up to date Technical Report in its entirety, together with all {qualifications} and assumptions associated to the Up to date Technical Report introduced on this information launch.

Desk 1: Mixed Venture Financial Evaluation

Desk 2: Annual Mixed Venture Built-in Estimated Income and Working Prices

US$100 MILLION DEBT FINANCING

The Debt Financing will totally fund the Firm till August 2023, together with the initiation of detailed engineering and initiation of development of the Venture enlargement. The Debt Financing can also be anticipated to fund working capital necessities for the complete commissioning interval of the Greentech Plant in addition to for common company functions.

The preliminary drawdown of $60 million beneath the Debt Financing is anticipated to shut this 12 months. The remaining drawdown is topic to sure remaining circumstances precedent.

The Debt Financing is accessible by means of a multi-draw time period mortgage and contemplates a 48-month maturity date and a borrowing charge of 12-month BSBY plus 6.95% every year (which can be elevated by an extra 3.5% every year to the extent that there’s a delay within the satisfaction of sure circumstances subsequent).

• The Debt Financing is a senior secured obligation, secured by, amongst different issues, all belongings of Sigma Brazil together with a pledge of all the shares of Sigma Brazil, in addition to a assure from the Firm till sure launch circumstances are met.

• Quantities borrowed beneath the Debt Financing have to be repaid by 50% of web money generated from export receivables generated from working and investing actions of the Firm.

• Moreover, the Debt Financing have to be completely repaid partly, to the extent any further debt financing is raised by Sigma Brazil exceeding the edge of roughly US$ 120 million.

• The Debt Financing is in any other case due in full on the Maturity Date, topic to the prior prevalence of an occasion of default or change of management transaction.

The definitive agreements for the Debt Financing embody different customary financing phrases and circumstances, together with these associated to safety, charges, prepayment premiums, representations, warranties, covenants, and circumstances.

MAIDEN PHASE 3 MINERAL RESERVES AND UPDATED MINERAL RESOURCES

The Section 3 mineral reserve has been declared on account of the constructive financial outcomes of the evaluation to be printed within the Up to date Technical Report. The Section 3 mineral useful resource was up to date after Sigma Lithium accomplished an extra 13 drillholes (3,531 meters), which enabled the conversion of earlier Inferred mineral useful resource estimates into the Indicated class down-dip and on the high of the south zone of the deposit. The extra drilling additionally allowed the Firm’s geological and metallurgical engineering marketing consultant, SGS Canada Lakefield (“SGS”), to mannequin two small satellite tv for pc zones, one within the hanging wall of the north zone and one within the hanging wall of the south zone.

Desk 3: Maiden Section 3 Mineral Reserve Estimate

Word: 
1.  Mineral Reserves have been estimated utilizing Geovia Whittle 4.3 software program and following the financial parameters listed beneath:
2.  Sale value for Lithium focus at 6% Li2O = US$3,500/t focus FOB Mine.
3.  Mining prices: US$2.43/t mined.
4.  Processing prices: US$10.7/t ore milled.
5.  G&A: US$4.00/t ROM (run of mine).
6.  Alternate charge US$1.00 = R$5.30.
7.  Mineral Reserves are the financial portion of the Measured and Indicated Mineral Assets.
8.  94% Mine Restoration and three% Mine Dilution
9.  Remaining slope angle: 35°to 52° based mostly on Geotechnical Doc introduced in Part 16.
10.  Strip Ratio = 16.01 t/t (waste)/mineral reserve..
11.  Mineral Reserves have been categorized utilizing the 2014 CIM Definition Requirements. The Certified Individual for the estimate is Porfírio Cabaleiro Rodriguez, BSc. (MEng), FAIG, an worker of GE21.
12.  The estimate of Mineral Reserves could also be materially affected by environmental, allowing, authorized, title, taxation, socio-political, advertising and marketing, or different related points.

Desk 4: Up to date Section 3 Mineral Useful resource Estimate

Word:
1.  Mineral Assets usually are not Mineral Reserves and would not have demonstrated financial viability. Inferred mineral assets are unique of the Measured and Indicated assets.
2.  Mineral Assets have an efficient date of October 31, 2022 and have been categorized utilizing the 2014 CIM Definition Requirements. The Certified Individual for the estimate is Mr. Marc-Antoine Laporte, P.Geo., an SGS Canada worker.
3.  A hard and fast density of two.72 t/m3 was used to estimate the tonnage from block mannequin volumes.
4.  Mineral Assets are reported assuming open pit mining strategies, and the next assumptions: lithium focus (6% Li2O) value of US$1,500/t, mining prices of US$2.20/t for mineralization and waste, crushing and processing prices of US$10.70/t, common and administrative (G&A) prices of US$4.00/t, metallurgical DMS restoration of 60%, 2% royalty cost, pit slope angles of 55º, and an general cut-off grade of 0.5% Li2O.
5.  All Assets are introduced undiluted and in situ, constrained by steady 3D wireframe fashions, and are thought of to have affordable prospects for eventual financial extraction.
6.  Tonnages and grades have been rounded in accordance with reporting pointers. Totals might not sum as a result of rounding.
7.  The estimate of Mineral Assets could also be materially affected by environmental, allowing, authorized, title, taxation, socio-political, advertising and marketing, or different related points.
8.  Mineral Assets are inclusive of Mineral Reserves

Desk 5: Up to date Consolidated Venture Mineral Reserves

Word: 
1.  Mineral Reserves have been estimated utilizing Geovia Whittle 4.3 software program and following the financial parameters listed beneath:
2.  Sale value for Lithium focus at 6% Li2O = US$1,500/t focus FOB Mine (Xuxa and Barreiro); US$3,500/t focus FOB Mine (NDC).
3.  Mining prices: US$2.20/t mined (Xuxa); US$2.19/t (Barreiro); US$2.43/t mined (NDC).
4.  Processing prices: US$10.7/t ore milled (Xuxa, Barreiro and NDC).
5.  G&A: US$4.00/t ROM (run of mine) (Xuxa, Barreiro and NDC).
6.  Alternate charge US$1.00 = R$5.00 (Xuxa and Barreiro); R$5.30 (NDC).
7.  Mineral Reserves are the financial portion of the Measured and Indicated Mineral Assets.
8.  82.5% Mine Restoration and three.75% Mine Dilution (Xuxa); 95% Mine Restoration and three% Mine Dilution (Barreiro); 94% Mine Restoration and three% Mine Dilution (NDC)
9.  Remaining slope angle: 34° to 72° (Xuxa); 35° to 55° (Barreiro); 35° to 52° (NDC) based mostly on Geotechnical Doc introduced in Part 16.
10.  Strip Ratio = 16.6 t/t waste/mineral reserve (NDC); 12.5 t/t waste/mineral reserve (NDC); 16.0 t/t waste/mineral reserve (NDC).
11.  Mineral Reserves have been categorized utilizing the 2014 CIM Definition Requirements. The Certified Individual for the estimate is Porfírio Cabaleiro Rodriguez, BSc. (MEng), FAIG, an worker of GE21.
12.  The estimate of Mineral Reserves could also be materially affected by environmental, allowing, authorized, title, taxation, socio-political, advertising and marketing, or different related points.

Desk 6: Up to date Consolidated Venture Mineral Assets 

Word:
1.  Mineral Assets usually are not Mineral Reserves and would not have demonstrated financial viability. Inferred mineral assets are unique of the Measured and Indicated assets.
2.  Mineral Assets have an efficient date of October 31, 2022 and have been categorized utilizing the 2014 CIM Definition Requirements. The Certified Individual for the estimate is Mr. Marc-Antoine Laporte, P.Geo., an SGS Canada worker.
3.  Mineral Assets are reported assuming open pit mining strategies, and the next assumptions: lithium focus (6% Li2O) value of US$1,500/t, mining prices of US$2.20/t for mineralization and waste, crushing and processing prices of US$10.70/t, common and administrative (G&A) prices of US$4.00/t, metallurgical DMS restoration of 60%, 2% royalty cost, pit slope angles of 55º, and an general cut-off grade of 0.5% Li2O.
4.  All Assets are introduced undiluted and in situ, constrained by steady 3D wireframe fashions, and are thought of to have affordable prospects for eventual financial extraction.
5.  Tonnages and grades have been rounded in accordance with reporting pointers. Totals might not sum as a result of rounding.
6.  The estimate of Mineral Assets could also be materially affected by environmental, allowing, authorized, title, taxation, socio-political, advertising and marketing, or different related points.
7.  Mineral Assets are inclusive of Mineral Reserves

QUALIFIED PERSONS

The technical and scientific info associated to geology and mineral useful resource estimates on this information launch has been reviewed and accepted by Marc-Antoine Laporte P.Geo., M.Sc., of SGS. Mr. Laporte is a Certified Individual as outlined by Nationwide Instrument 43-101 and is unbiased of Sigma Lithium.

The mining and mineral reserve estimates on this information launch have been reviewed and accepted by Porfirio Cabaleiro Rodriguez P.Eng, Mining Engineer of GE21 Consultoria Mineral Brazil. Mr. Rodriguez is a Certified Individual as outlined by Nationwide Instrument 43-101 and is unbiased of Sigma Lithium.

The monetary info on this information launch has been reviewed and accepted by Noel O’Brien B.E., MBA, F AusIMM, who’s a Certified Individual as outlined by Nationwide Instrument 43-101 and is unbiased of Sigma Lithium.

ABOUT SIGMA LITHIUM

Sigma Lithium (NASDAQ: SGML, TSXV: SGML) is a Canadian firm devoted to powering the subsequent technology of electrical car batteries with environmentally sustainable and high-purity lithium.

Sigma Lithium is at the moment in development at its wholly owned Grota do Cirilo Venture in Brazil, which features a state-of-the-art, green-tech processing plant that makes use of 100% renewable power, 100% recycled water and 100% dry-stack tailings. The undertaking additionally represents one of many largest and highest-grade onerous rock lithium spodumene deposits within the Americas.  Sigma Lithium has been on the forefront of environmental and social sustainability within the EV battery supplies provide chain.

For extra details about Sigma Lithium, go to https://www.sigmalithiumresources.com/

ABOUT SYNERGY CAPITAL

Synergy Capital is a specialist personal fairness supervisor investing throughout the capital construction within the industrial, metals and infrastructure sectors globally. The agency focuses on essential sectors that generate sturdy constructive human and financial impression, that are central to enabling the net-zero carbon transition and the event of sustainable infrastructure and resilient traceable provide chains. For extra info, go to: www.synergycapital.co.uk

Synergy Administration (DIFC) Restricted is regulated by the Dubai Monetary Providers Authority (DFSA).

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FORWARD-LOOKING STATEMENTS

This information launch contains sure “forward-looking info” beneath relevant Canadian and U.S. securities laws, together with however not restricted to statements regarding the final enterprise and operational outlook of the Firm; and different forward-looking info. All statements that deal with future plans, actions, occasions, estimates, expectations or developments that the Firm believes, expects or anticipates will or might happen is forward-looking info, together with statements concerning the potential improvement of mineral assets and mineral reserves which can or might not happen. Ahead-looking info contained herein relies on sure assumptions concerning, amongst different issues: common financial and political circumstances (together with however not restricted to the impression of the continuance or escalation of the army battle between Russia and Ukraine, and financial sanctions in relation thereto); the secure and supportive legislative, regulatory and group surroundings within the jurisdictions the place the Firm operates; the flexibility to acquire required financing on acceptable phrases; anticipated developments and results in respect of the COVID-19 pandemic and post-pandemic; demand for lithium, together with that such demand is supported by progress within the electrical car market; the Firm’s market place and future monetary and working efficiency; the Firm’s estimates of mineral assets and mineral reserves, together with whether or not mineral assets will ever be developed into mineral reserves; and the Firm’s potential to develop and obtain manufacturing at its mineral initiatives. Though administration believes that the assumptions and expectations mirrored within the forward-looking info are affordable, there may be no assurance that these assumptions and expectations will show to be right. Ahead-looking info inherently includes and is topic to dangers and uncertainties, together with however not restricted to that the Firm might not develop its mineral initiatives right into a industrial mining operation; the market costs for lithium might not stay at present ranges; and the marketplace for electrical automobiles and different massive format batteries at the moment has restricted market share and no assurances may be given for the speed at which this market will develop, if in any respect, which may have an effect on the success of the Firm and its potential to develop lithium operations. There may be no assurance that such statements will show to be correct, as precise outcomes and future occasions may differ materially from these anticipated in such statements. Accordingly, readers mustn’t place undue reliance on forward-looking info. The Firm disclaims any intention or obligation to replace or revise any forward-looking info, whether or not due to new info, future occasions or in any other case, besides as required by regulation. For extra info on the dangers, uncertainties and assumptions that would trigger our precise outcomes to vary from present expectations, please consult with the present annual info type of the Firm and different public filings obtainable beneath the Firm’s profile at www.sedar.com.

Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts duty for the adequacy or accuracy of this information launch.

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SOURCE Sigma Lithium