Earnings release
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Quarterly Report For Period Ended September 30, 2025 ASX: LKE; OTC: LLKKF lakeresources.com.au For personal use only
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Executive Update Quarterly Highlights Lake Resources (“Lake”) completed a strongly supported capital raise of approximately $12.0 million, excluding costs, significantly increasing liquidity and financial flexibility to advance the Kachi Lithium Brine Project (“Kachi”), which ranks as one of the largest lithium assets in the Lithium Triangle.1 Announced the improved results of the updated Kachi Definitive Feasibility Study (“DFS Addendum”) for Phase One of the globally significant 25,000 tpa Kachi lithium brine project in Argentina including a 16% reduction in CAPEX to US$1,157 million and a 3% improvement in OPEX to US$5,895/t LCE, ranking as one of the lowest on the industry cost curve. 2 Updated lithium ore reserve for 25,000 tpa operational mine plan with 11 production wells, 14 injection wells and a lithium grade of 268 mg/L over the 25-year Life-of-Mine.3 Continued to engage with local officials in Argentina to finalise approval of the Exploitation Environmental Impact Assessment (“Exploitation EIA”) for Kachi.4 Completed YPF Luz Front-End Engineering Design (“FEED”) for the proposed power delivery system to Kachi showing grid power is a viable solution to meet Kachi’s power demands.5 Continued to evaluate and execute on opportunities for organizational right sizing and cost reductions to further ensure calendar year 2025 cash outgoings are ~40% lower as compared to calendar year 2024.6 $18.0 million in liquidity at 30 September 2025 included the benefit of ~$9.5 million tranche 1 of the capital raise (of the total ~$12.0 million capital raise, excluding costs), $3.7 million via the At-the-Market Subscription Agreement (“ATM”) and continued focus on cost controls.7, 8 1Refer to ASX announcement dated 18 August 2025 2Refer to ASX announcement dated 4 August 2025 3Refer to ASX announcement dated 4 August 2025 4Refer to ASX announcement dated 26 March 2024 5Refer to ASX announcement dated 2 July 2025 6Refer to ASX announcement dated 1 July 2024 7Refer to ASX announcement dated 23 July 2025 8Refer to ASX announcement dated 18 August 2025 For personal use only
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Kachi Operational Update DFS Addendum to 2023 Kachi Phase One Definitive Feasibility Study1 In August 2025, Lake published the DFS Addendum incorporating value -engineering outcomes and updated resource data. Improved Economics: CAPEX reduced by ~US$220 million (16%) to US$1,157 million; OPEX was lowered to US$5,895/t LCE (3% reduction), placing Kachi near the low end of the global OPEX cost curve. Robust Financials: Pre-tax NPV₁₀ US$1.47 billion and IRR 22.5% based on long-term price of US$20,500/t LCE. Technical Drivers: Higher brine grades (249 mg/L basis), Lilac Gen-4 ion-exchange technology, and a single-phase 25,000 tpa construction methodology improved recovery and efficiency. Design & ESG Benefits: Fewer wells, lower power demand, modular construction, and reduced freshwater use enhance execution certainty and environmental performance. 1Refer to ASX announcement dated 18 August 2025 For personal use only
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Operational Update – Kachi DFS Addendum Summary For personal use only
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Kachi Operational Update (cont’d) Exploitation Environmental Impact Assessment Lake continued advancing the Exploitation EIA approval process in close coordination with the Catamarca Environmental and Mining Ministries. Efforts during the quarter were focused on technical collaboration to align environmental baselines and mitigation strategies with provincial expectations, particularly in relation to Ramsar- designated wetland zonification within Kachi. Lake is proactively supporting the Ministries by providing hydrological, ecological, and socio -environmental data to ensure that all environmental factors are properly evaluated, documented, and understood by regulatory authorities and local stakeholders. Timing of Exploitation EIA final approval is controlled by the government of Catamarca with which Lake remains in close contact and continuous dialogue. While the government of Catamarca has committed to completing approvals of the EIA by the end of 2025, Lake believes that it is more likely that approvals could move into 2026. Timing and delivery of approvals is determined by the government of Catamarca and not by Lake. For personal use only
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Kachi Operational Update (cont’d) Power Supply Lake continued advancing power supply planning for Kachi in collaboration with YPF Luz as the primary generation and transmission partner. The Company is evaluating alternative energy solutions to ensure long -term reliability, cost efficiency, and sustainability of site operations. Engagement with provincial authorities and local communities remains a priority to ensure that the selected power strategy aligns with regional development goals, environmental standards, and community energy needs, reinforcing Lake’s commitment to responsible and inclusive infrastructure development in Catamarca. For personal use only
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Cash Position and Finance Lake held cash of $18.0 million (US$11.8 million) at 30 September 2025 (including currencies in AUD, USD and Argentine Pesos) with no debt. Quarterly payments to related parties of the entity and their associates: Amounts paid to related parties of Lake and their associates during the quarter were $0.25 million. These amounts relate to fees / salaries (including superannuation) paid to directors during the quarter. As expected, Lake’s cash expenditures for the quarter ending 30 September 2025 were higher than the prior quarter primarily reflecting payment of accrued current liabilities during the quarter. The Company is now expecting calendar year 2025’s total cash expenditures, as compared to calendar year 2024, will be even lower than originally projected with an approximate 40% reduction achieved in calendar year 2025. 1, 2 Corporate 1 Refer to ASX announcement dated 30 January 2025 2 Excluding impact of foreign exchange; refer to ASX announcement dated 30 January 2025 For personal use only
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Cash Position and Finance During the quarter, Lake materially extended its liquidity runway with capital inflows of $13.2 million (pre-expenses) via a successful $12.0 million placement1 (~$2.5 million, received post quarter-end), excluding costs, and $3.7 million via the ATM2, 3; including the additional ~$2.5 million received in October 2025 as part of the recent capital raise, Lake had 30 September 2025 pro-forma liquidity of ~$20.5 million, excluding costs. Lake continues to evaluate and execute on opportunities for organizational right-sizing and cost reductions which are expected to further materially reduce cash outgoings in calendar 2026 as compared to calendar 2025.4 Compared with the 5B forecasted liquidity of 3.38 quarters, Lake expects to have liquidity through 2026 by implementing the planned right-sizing and cost reductions. The recent equity raises provide the capital required for the operational priorities including finalising the Exploitation EIA, exploring and finalising Kachi Project power options and engaging with interested parties as part of the ongoing strategic alternatives process. The Company continues to closely monitor its available cash balance and actively minimise, to the extent possible, total relevant outgoings. Corporate (cont’d) 1Refer to ASX announcement dated 18 August 2025 2Refer to ASX announcement dated 23 July 2025 3Refer to ASX announcement dated 18 August 2025 4Excluding impact of foreign exchange For personal use only
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ASX: LKE; OTC: LLKKF lakeresources.com.au For personal use only