#1Lithium Australia DELIVERING SUSTAINABILITY TO THE LITHIUM BATTERY INDUSTRY AND PROVIDING SOLUTIONS TOWARDS A ZERO CARBON ECONOMY Investor Presentation | July 2022 ASX:LIT#2Lithium Australia Disclaimer This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in that jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in that jurisdiction. This presentation does not constitute financial product advice and has been prepared without taking into account the recipients' investment objectives, financial circumstances or particular needs, and the opinions and recommendations in this presentation are not intended to represent recommendations to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include, among others, the risk of adverse or unanticipated market, financial or political developments. Certain statements contained in this presentation, including information as to the future financial or operating performance of Lithium Australia Limited (ABN 29 126 129 413) ('the Company') and its projects, are forward-looking statements. Such forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies, involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements, and may include, among other things, statements regarding targets, estimates and assumptions in respect of commodity prices, operating costs and results and capital expenditures, or may be, based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. The Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words 'believe', 'expect', 'anticipate', 'indicate', 'contemplate', 'target', 'plan', 'intends', 'continue', 'budget', 'estimate', 'may', 'will', 'schedule' and other, similar expressions identify forward-looking statements. All forward-looking statements in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include, but are not limited to: competition; mineral prices; ability to meet additional funding requirements; development and operating risks; uninsurable risks; dependence on third-party smelting facilities; factors associated with foreign operations and related regulatory risks; environmental regulation, permitting and liability; battery management, including fire risk; currency risks; effects of inflation on results of operations; factors relating to title to properties; dependence on key personnel, and share-price volatility. They also include unanticipated and unusual events, many of which it is beyond the Company's ability to control or predict. Whilst care has been exercised in preparing and presenting this presentation, to the maximum extent permitted by law, the Company, and its representatives: Make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this presentation; Accept no responsibility or liability as to the adequacy, accuracy, completeness or reasonableness of this presentation; and Accept no responsibility for any errors or omissions from this presentation. 2#3Lithium Australia Why invest in Lithium Australia? >> envirostream 100% LIT Owned Leading Australia's battery recycling industry Opportunity: Over 90% of lithium-ion batteries are currently sent to landfill Current Status: Growth: Operating since 2017, a nationwide network, battery processing facilities in Melbourne and a 99-year EPA licence Increased volume and expand processing to all Australian cities, New Zealand and beyond AVSPC 100% LIT Owned Next generation cathode powders including LFP Opportunity: Current Status: Growth: Increase in global battery demand, LFP becoming the preferred chemistry and opportunity to break China's domination 10+ years' experience in LFP chemistry. DFS in progress, to be completed in early 2023 Build LFP manufacturing facilities to leverage the 7-fold increase² in LFP demand estimated at 2030 - ASX:LIT July 2022 3#4Corporate Snapshot Lithium Australia ASX Ticker LIT 12-Month Share Price (cents) 0.16 35 Share Price (as at 30th June 2022) $0.051 0.14 Shares On Issue 1.03Bn 0.12 W Mandy 30 25 Market Cap $53M 0.10 20 Cash (as at 31st March 2022) $8M 20 0.08 Enterprise Value $45M 15 0.06 10 0.04 Top Shareholders (as at 23rd June 2022) % 0.02 5 BNP Paribas Nominees ACF Clearstream 5.4 0.00 0 Acuity Capital Investment Management 4.4 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Top 20 Shareholders 24.1 ASX:LIT July 2022 - Volume -Close 4 Millions#5Board of Directors - ASX:LIT July 2022 Lithium Australia George Bauk Non-Executive Chairman More than 30 years' experience in the resource industry and 15+ years as a listed company director involved in mining exploration and production both within Australia and overseas. George has a demonstrated background in strategic management, business planning, team building, finance, and capital/debt raising (more than $350 million), and his expertise encompasses a variety of commodities; in particular, critical minerals such as rare earths, lithium, graphite, gold and uranium. Kristie Young Non-Executive Director Over 20 years' experience in industry and business across technical engineering, project evaluation, strategy, business development (BD), growth, marketing, commercial, education, executive search and governance. Over 15 years' experience on boards and committees, including ASX M&A sell side. Diverse background includes BD director roles with PwC and EY, executive search director, senior lecturer in mine finance, mining Phil Thick Non-Executive Director Over 30 years' experience as a senior executive across oil and gas, mining and chemical processing sectors within large multinational, as well as smaller companies. Phil has had a 20-year career with Shell, five years as a director and CEO of Coogee Chemicals, then four years as CEO of New Standard Energy. Phil headed up Tianqi Lithium Australia, one of the world's largest lithium companies and built the world's largest lithium engineer (underground and open hydroxide plant in Kwinana, cut). south of Perth, an investment of nearly A$1 billion. d Recruitment In progress Chief Executive Officer Global executive search commenced by Derwent Executive for a highly experienced operator with connections in the battery materials industry. 5 LO#6Management team - ASX:LIT July 2022 Lithium Australia Stuart Tarrant Chief Financial Officer Stuart is a senior finance professional of more than 20 years' experience, most gained in rapidly growing or changing environments. He has worked within a range of industries, including mineral extraction, mineral exploration, finance and agribusiness. Stuart has specific expertise in fundraising, strategic analysis, governance, and compliance, with a focus on value creation. Andrew Mackenzie GM - Recycling envirostream Andrew is responsible for the operation and expansion of Envirostream. With over 22 years of industrial processing, recycling, and manufacturing experience and a strong focus on building a circular economy of the Australian battery industry. Andrew has developed the industry best practice for safety and production through continuous innovation. Andrew Skalski GM Batteries - VSPC Responsible for progressing VSPC's implementation of its global expansion plans. A mining industry professional with 40 years' international experience in operations and greenfield project development. Andrew graduated from the WA School of Mines with a science degree in extractive metallurgy, he has accumulated extensive experience in project management for gold, copper, magnetite, phosphate, and lithium industries. Andrew Napier - GM Technical Development A minerals engineer with 25 years experience in project and operations roles in the resources industry. Andrew has held several leadership roles in the design, construction, and commissioning of Greenfields and Brownfields process facilities. He is experienced in hydrometallurgical and pyrometallurgical processes in battery material commodities including nickel, cobalt, rare earths, lithium, graphite, and titanium. 6#7100% owned Battery Recycling Facility, Laverton North, VIC Lithium Australia ASX:LIT July 2022 envirostream 7#8Lithium Australia - The Opportunity Lithium-ion batteries (LIB) waste set to increase significantly ■LIBS, when not in use, generate large amounts of energy and pose a significant fire hazard ■In 2016, only 2% of Australia's LIB waste was recycled¹ ■LIB waste growing 20%p.a. Could exceed 100,000t by 2036 (Low case) 1,2 Currently, ~9% of Australia's LIB waste is recycled³ ■ Significant potential for additional recycling volumes. for Envirostream ASX:LIT July 2022 2016 2036 3,300t of actual unrecycled LIB waste 2025 17,800t of expected unrecycled LIB waste 137,600t of expected unrecycled LIB waste Equivalent to filling 1 Olympic sized swimming pool (50m of pool) Equivalent to filling 5 Olympic sized swimming pools (250m of pool) Equivalent to filling 42 Olympic sized swimming pools (2,000m+ of pool) Australian LIB waste Outlook 1,4 envirostream 8#9B-cycle partnership will promote volumes B-cycle is placing accountability on the battery producers ■ Australian government recognises this opportunity with the B-cycle scheme via the Battery Stewardship Council ■ Rebates are provided via the scheme to promote battery recycling ■ Benefits from the rebate scheme as it is accredited by B-cycle to operate across all three collections, sorting, and processing divisions ■ A critical cog in the operation of the B-cycle scheme 0000 B-cycle Battery Recycling Li-Ion + Lithium Australia - ASX:LIT July 2022 envirostream 9#10- The Solution Established recycling business with a national network ■Launched in 2017, Australia's only accredited B-cycle¹ entity to operate battery processing services ■ Safe and efficient recovery of critical materials from end-of-life batteries ■In partnership with VSPC to produce new lithium-ion batteries ■ Envirostream owns and operates EPA-approved battery facilities in Melbourne ■ To meet surging demand, Envirostream plans to expand processing activities nationally for all batteries ASX:LIT July 2022 envirostream Lithium Australia Laverton Battery Recycling Facility Laverton O Melbourne O Campbellfield 10#11Lithium Australia Our Process: 5 key battery recycling steps 1. 2. 3. 4. 5. Collection Storage Sorting Processing Sales $ 00000 - ASX:LIT July 2022 envirostream 11#12Lithium Australia Step 1: Collection Scalable collection solutions ■Innovative collection equipment developed by Envirostream to manage the risks of fire and leakage, including: Bespoke collection bags; and Deposit bins to manage thermal leakage ■Storage solutions demonstrate Envirostream's ethical approach to operations. ■ The EPA-compliant collection solutions have assisted in growing Envirostream's Collection Network by over 500% in the last 18 months January 2021: ~115 drop-off/collection points June 2022: ~715 drop-off/collection points Recycle your batteries here. Denvirostream Battery recycling drop off All brands All types. K Recyc batteri All brand All types + Recycle your atteries HERE. Recycle your batteries HERE. Use FUTURE FORWARD RECYCLE YOUR BATTERIES HERE. FUTURE FORWARD RECYCLE TODAY. ALL BRANDS ACCEPTED. POWER TOMORROW. Top Left: Collection bags, Top Right: Bunnings deposit bin Bottom Left: Envirostream deposit bin, Bottom Right: Deposit bin for FUTURE FORWARDTM initiative ASX:LIT - July 2022 envirostream 12#13Lithium Australia Step 1: Collection (cont'd.) Key partnerships established Envirostream has a current network of reputable partners ■ Partners highly engaged and supportive of Envirostream battery recycling initiatives ■ Partners offer convenient, widely available deposit destinations for the general public BUNNINGS warehouse officeworks Milwaukee® LG Energy Solution M mobile muster ■ Envirostream is also in partnership with Tier 1 EV manufacturers Battery system weight ~700kg (Audi e-tron)1 - ASX:LIT July 2022 envirostream 13#14envirostream Store your batterles here. 1800 72 73.74 www.envirostream.com.au Lith*um Australia Step 2: Storage Leading the industry with innovative solutions Incorrect storage of spent batteries can lead to fire risks ■ Collected batteries delivered to Envirostream's Melbourne facilities are stored to the highest standards Safety procedures and systems are continuously improved to further reduce associated fire risk EPA Approval ■ EPA Victoria-issued operating license in 2021, valid for 99 years¹, allowing processing of more than 500tpa of specified electronic waste ■ The following unique environmental and safety enhancements assisted Envirostream to obtain approval: Thermal-imaging cameras. Firewall protection systems Top: Fireproof box, Bottom: Firewalls at Berwick Road facility ASX:LIT July 2022 envirostream 14#15- Step 3: Sorting Established processes for sorting of mixed batteries ■ Consumers are unable to separate battery types resulting in the collection of mixed batteries ■ An efficient, semi-automated process has been developed to sort mixed batteries into categories including: ⚫ Lithium-ion batteries • Nickel metal hydride batteries • Alkaline batteries • Nickel cadmium batteries Innovative solutions are the key to enhance sorting capacity ASX:LIT July 2022 Sorting line envirostream ALKALINE ALAD Lithium Australia ALKALINE ALKOI Conveyor Sorting bins 15#16Lithium Australia Step 4: Processing Unique processes to maximise recovery of spent batteries Envirostream offers a sustainable solution to the increasing volume of spent batteries Its process recovers over 90% of a lithium-ion battery ■Recovered materials include the active metals which are amalgamated into a mixed metal dust (MMD) sold to be repurposed into new lithium-ion batteries ■Current R&D programs are planned to: Build higher recovery from the current process and enhance product value Build processing for other chemistry batteries Onshore battery processing Steel Copper Aluminium Mixed metal dust (MMD) - ASX:LIT July 2022 envirostream 16#17Lithium Australia Step 5: Sales Maximising value from industry leading processes ■ Saleable product from Envirostream's process includes: MMD (including cobalt and nickel) . Copper Aluminium Steel The high-value mixed metal dust (MMD) is shipped from Envirostream facilities ■MMD is sold for further treatment by : Tier 1 mining companies; and International battery recycling. companies MMD from Envirostream operations envirostream - ASX:LIT July 2022 17#18- ASX:LIT July 2022 Lithium Australia The Market Seizing the Opportunity Envirostream A significant opportunity for growth ■ More than ~90% of lithium-ion battery waste currently goes to landfill in Australia ■LIB waste growing 20%p.a.1 Permitting is no longer a significant barrier to volumes for Envirostream ■Invested heavily and early into a highly innovative battery recycling solution Partnerships with reputable brands/tier 1 EV OEMs have been developed Positioned for Growth ■ High barriers to entry for competition due to stringent requirements for permitting ■ Established partnerships will drive volume increases towards Envirostream envirostream 18#19100% owned Battery Materials pilot plant, Brisbane, QLD Lithium Australia ASX:LIT July 2022 - VSPC 19#20Lithium Australia The Opportunity The world is moving from NCM to LFP as the preferred battery chemistry......... Lithium ferro phosphate (LFP) is the most stable cobalt and nickel free cathode active material and has the following benefits relative to NCM chemistries. ■ Performance: LFP has an improved cycle. life and a higher discharge rate ■ Superior safety: LFP has minimal thermal runaway risks ■ Ethical Supply Chain: LFP does not contain conflict metals such as cobalt ■ Lower cost: LFP has lower raw materials .....and the following EV OEMs have started the shift T TESLA W and manufacturing costs. ASX:LIT - July 2022 Ford BYD VSPC 20 20#21Lithium Australia The Opportunity The industry is seeking a move away from Chinese dominance due to geopolitical pressures 3,500,000 LFP Cathode Materials Forecast¹ 3,000,000 $ >99% Global LFP currently produced in China €2,500,000 Annual Volumes (t) 2,000,000 1,500,000 1,000,000 500,000 0 20A 21A 22F 23F 24F 25F 26F 27F 28F 29F 30F VSPC's initial development of 10,000tpa is modest relative to the market, allowing for further expansion - ASX:LIT July 2022 VSPC Premiums for non- Chinese cathode powders % Government policies and funding seek to secure future access to critical materials 21 221#22Lithium Australia The Solution LFP is currently being produced using a proprietary flowsheet for safe, long life lithium-ion batteries Initial milling Initial spray dry Calcining (raw LFP) Final milling Final spray dry Furnace (final LFP) - ASX:LIT July 2022 10μm 513 10/05/2020 X 2,000 10.0kV SEI WD 9.9mm LFP produced by VSPC (bar = 10 microns). High level overview of VSPC's LFP cathode powder flow sheet VSPC seeks to disrupt China's LFP dominance through commercialising its flowsheet ■ The VSPC flowsheet is expected to have the following advantages: Lower costs of production . Deliver a consistent product . Provide improved ESG fundamentals: No significant process waste-water or solid waste streams VSPC 22 22#23- VSPC History From making very small particles to advanced cathode materials ■ Established in 1999, 100% acquired by Lithium Australia in 2017 ■ 20+ yrs. researching, developing and patenting processes for the manufacture of high-purity, nano-scale materials ■10+ yrs. developing advanced cathode materials including LFP ■ VSPC assets include: An R&D facility (pilot plant) in Brisbane currently capable. of producing 1-2tpa LFP • An integrated, laboratory-scale battery production and testing facility • Protection with IP that includes three families of patents. ASX:LIT July 2022 VSPC Lithium Australia Battery Materials pilot plant, located in Brisbane, Queensland 23#24Lithium Australia Steps towards commercialisation Engineering in progress towards a production target of 2026 ■ Definitive feasibility study (DFS) is in progress with lead engineer Lycopodium ■ DFS activities include early-stage, LFP production expansion ■ Production target is 2026 with locations assessed including Australia and North America PFS Outcomes¹ LFP production rate Life of operation Net Present Value (NPV) Internal Rate of Return (IRR) Payback Period LFP sales revenue EBITDA Free cashflow Plant investment 10,000tpa 13 years US$253m 33% 5 years US$140m p.a. US$66m p.a. US$56m p.a. US$113m p.a. in 2 stages Laboratory at Brisbane's R&D facility - ASX:LIT July 2022 VSPC 24#25- ASX:LIT July 2022 Lithium Australia The Market vi Seizing the Opportunity VSPC A significant opportunity ▪ LFP market expected to grow from ~400,000tpa to ~3,300,000tpa by 2030 (700% change) ■ The electrification of vehicles and benefits of LFP are driving the shift ■ Significant experience (20+ yrs.) researching, developing and patenting processes ■ A proprietary process flowsheet underpinning robust PFS project economics Positioned for Growth ■DFS for LFP manufacturing facility in progress. ■ LFP product testing has commenced through cell manufacturers VSPC 25#26ASX:LIT July 2022 Lithium Australia Additional Opportunities 26#27Lithium Australia LieNAⓇ Proprietary technology to significantly improve metallurgical recovery of lithium from fine and low-grade spodumene Produces lithium phosphate, a direct feed for LFP production ■ A$1.3m grant received to advance the process towards commercialisation ■ Developed by Lithium Australia in conjunction with ANSTO ■LieNA® patent application granted Preparation for pilot plant operation of LieNAⓇ processes is well underway SiLeachⓇ Proprietary technology provides for low-energy recovery of lithium from micas ■Produces lithium phosphate, a direct feed for LFP production Developed by Lithium Australia in conjunction with ANSTO ■ SiLeachⓇ patent application granted Investments Charger Metals NL (ASX: CHR): 9.6 million shares (18.8%1) ■ 30% free carried interest in: • Coates (Ni-Cu-PGE), • Lake Johnston (Li-Au-Ni) Bynoe (Li-Au) projects Galan Lithium Ltd (ASX: GLN): 20% free carried interest in Greenbushes South lithium JV 0.6 million shares owned BlackEarth Minerals NL (ASX: BEM): 13.1 million shares owned ASX:LIT - July 2022 27 27#28ASX:LIT July 2022 Lithium Australia Perth (Head Office) Melbourne envirostream Brisbane VSPC Next Steps Lithium Australia#29Lithium Australia Next Steps > envirostream Leading Australia's battery recycling industry ■ Increase battery volumes through additional partnership agreements and support by B-cycle ■ Arrange longer term offtake agreements for MMD Continue collaboration with EV OEMs to enhance dismantling capabilities ahead of higher volumes Expand processing to all Australian cities, New Zealand and beyond VSPC Next generation cathode powders including LFP Completion of DFS for a 10,000tpa LFP manufacturing facility ■ Development of LFP offtake agreements ■ Targeting production in 2026 ■ Continue to investigate the production of key raw materials, to further increase cost competitiveness ASX:LIT July 2022 - JVSPC 29#30The investment proposition An outstanding portfolio of technologies to improve the supply and security of energy metals to the battery industry ASX:LIT - July 2022 A favourable position to take advantage of significant expansion in the demand for and disposal of lithium-ion batteries A high-performing board and management, ready for the next phase, with a track record of successful project development Lithium Australia 30#31Lithium Australia References 1. Company analysis based on statistics provided by CSIRO https://www.csiro.au/en/research/technology-space/energy/energy- storage/battery-recycling Page 3 2. Source: ICCSino, Nov 2021 forecast, Company analysis Page 8 1. Statistics provided by CSIRO https://www.csiro.au/en/research/technology-space/energy/energy-storage/battery-recycling 2. Projected LIB waste production in 2036: Low case - 100,000t, Best case - 137,600t, High case - ~190,000t 3. B-cycle analysis 4. Company analysis using current % recycled (9%) against forecast LIB volumes from CSIRO statistics Page 13 1. http://www.audi-technology-portal.com/ Page 15 1. ASX announcement, 5 October 2021: EPA Victoria issues Envirostream Australia with 99-year operating licence for battery recycling Page 18 Page 21 1. Statistics provided by CSIRO https://www.csiro.au/en/research/technology-space/energy/energy-storage/battery-recycling 1. ICCSino, Nov 2021 forecast Page 24 1. ASX announcement, 14 April 2021: Lithium Australia PFS vindicates high-value potential of LFP battery materials (location India) Page 28 1. As at 23 June 2022 - ASX:LIT July 2022 31#32Lithium Australia Contact Information Stuart Tarrant Email: [email protected] Level 1, 677 Murray Street West Perth 6005 Western Australia Phone +61 (0) 8 6145 0288 David Tasker Chapter One Advisors Email: [email protected] www.lithium-au.com ASX:LIT - July 2022 32 32