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ASX / MEDIA ANNOUNCEMENT Pilbara Minerals ... Powering a sustainable energy future MARCH 2021 QUARTERLY ACTIVITIES REPORT WEDNESDAY 21 APRIL 2021 PILGANGOORA PRODUCTION INCREASING , SUPPORTING LOW UNIT COSTS AS LITHIUM DEMAND AND PRICING CONTINUES TO RISE STRONGLY ACCESS TODAY'S QUARTERLY INVESTOR , ANALYST AND MEDIA WEBCAST HERE AT 12.00PM ( WST ) / 2.00PM ( AEDT ) ON WEDNESDAY 21 APRIL 2021 : https://webcast.boardroom.media/pilbara-minerals-limited/20210421/NaN606fb4d468f8d4001b9c1be6 KEY POINTS PRODUCTION AND SALES • Record production of 77,820 dry metric tonnes ( dmt ) of spodumene concentrate ( December Quarter 2020 : 63,712 dmt ) . • Annualised production capacity of approximately 330,000 tpa ( dry ) spodumene concentrate achieved across the months of February and March 2021 . • Spodumene concentrate shipments of 71,229 dmt ( December Quarter 2020 : 70,609 dmt ) , with the final March shipment partially completed as a result of port delays beyond Pilbara Minerals ' control . • Tantalite concentrate sales totalled 47,831 lbs ( December Quarter 2020 : 18,541 lbs ) . • Site works commenced on Pilgangoora Stage 1 ( Plant 1 ) improvement projects , to increase spodumene concentrate production up to ~ 380,000 tpa . • Trial ore parcel from mine pit at Plant 2 ( previously the Altura Lithium Project ) processed through Plant 1 , achieving high recovery rates . LITHIUM MARKET • • • Lithium chemicals pricing continued to significantly improve during the Quarter , which is now starting to be reflected in the price received for spodumene concentrate sales . Strong spodumene concentrate demand , both from within existing customer group and from other market enquiries . In late March 2021 , a letter of credit was received ahead of an April 2021 spot sale of spodumene concentrate implying a headline price of US $ 655 / dmt ( SC6.0 , CIF China basis ) , highlighting the recent strong upward trajectory in pricing . CORPORATE • Acquisition of Altura Lithium Operations Pty Ltd ( ALO ) completed on 20 January 2021 , finalising the acquisition of the Altura Lithium Project . • Offtake and Product Prepayment Agreement executed with Yibin Tianyi Lithium Industry Co Ltd , which included receipt of a US $ 15M prepayment during the Quarter to fund Plant 1 improvement projects . • Agreement executed with GLX Digital Limited for the launch of a new digital marketing and sales platform , providing flexibility to sell unallocated or available spodumene concentrate product in an open market . • • Pilbara Minerals reinstated on the S & P / ASX 200 index effective from 22 March 2021 , reflecting the strong increase in its market capitalisation over recent months . Quarter - end cash balance of $ 112.1M , inclusive of $ 8.3M of irrevocable bank letters of credit for shipments completed in late March 2021 . Level 2 , 88 Colin Street West Perth , Western Australia 6005 Phone : +61 8 6266 6266 Fax : +61 8 6266 6288 Web : pilbaraminerals.com.au ASX Code : PLS ACN 112 425 788 1