Northern Lithium Ltd: Northern Lithium successfully concludes 60-day long term pump tests and demonstration scale Direct Lithium Extraction trials

Detailed design engineering now underway for construction of first production boreholes and commercial scale DLE plant, underpinned by strong response to fundraising

*** Key Points ***

• Successful completion of 60-day long term pump tests and in-field demonstration scale Direct Lithium Extraction (DLE) trials
• Further confirmation of consistent, economically viable concentrations of lithium in brines at relatively shallow drilling depths with strong flow rates and significant long-term yield potential
• 1:15 scale DLE plant designed, constructed, installed and operated at Ludwell Farm, Co. Durham by Evove and RSE
• >300 hours of stable operation in production mode and 3.5 million litres of Northern Lithium live brines processed
• Strong DLE trial results with 92% end-to-end lithium recovery rates achievable and 96.5% purity of lithium chloride/sulfate product produced
• Detailed design engineering for first operational production unit now underway to meet target date of first commercial lithium supply from end of 2027.
• Discussions underway with potential off-take and industry partners
• Excellent fundraising progress, with GBP3.45 million first tranche closed above expectations
• Marketing for a second tranche of up to a further GBP2.5 million to start shortly

DURHAM, England, June 2, 2025 /PRNewswire/ -- Northern Lithium Ltd. ("Northern Lithium or the Company") is pleased to announce the successful conclusion of its recent programme of long term 60-day pump tests and Direct Lithium Extraction ("DLE") trials, which sought to further prove the commercial viability of lithium extraction from brines under the Northern Pennine Orefield in Co. Durham, Northeast of England.

Nick Pople, Northern Lithium Managing Director, said, "The results of these recent trials are a great step forward for our unique partnership established to deliver a secure, sustainable supply of lithium for the UK using Northern Lithium's UK lithium brines, Evove's UK developed advanced DLE technology and RSE's UK process engineering expertise."

Detailed analysis and interpretation of data collected over the 60-day pump testing period has confirmed and strengthened the results achieved during initial 30-day tests in 2024. In particular, the tests have provided:

(i) further confirmation of consistent, economically viable concentrations of lithium in the brines abstracted throughout the test period, underpinning the input assumptions used in the Company's current project economic model, and

(ii) confirmed the commercial suitability of the sub-surface hydrogeological formation, through a sustained programme of simultaneous abstraction and reinjection of brines at higher flow rates and for a longer period than previously tested.

In a UK first, the demonstration scale trials of Evove Ltd's ("Evove") unique next-generation advanced Direct Lithium Extraction (DLE) technology was a resounding success, proving the plant design and meeting critical production KPIs, including lithium recovery rates and product purity levels. The project is believed to be one of only a handful that have been concluded at this scale world-wide outside China.

Trial data was collected by Evove to inform the design of several process efficiency innovations, most notably the cascade operation of ultra selective nanofiltration membranes which are at the heart of this next-generation DLE system. The membranes' proven capability to remove nearly all impurities (especially calcium and magnesium) at the start of the DLE process creates significant efficiencies that translate to superior economics and a viable business case for decentralised production.

Evove's modelling, derived from 78 million data points gathered through the processing of 3.5 million litres of Northen Lithium brines, indicates a commercial end-to-end lithium recovery rate of up to 92% from raw brine to final battery-grade product, surpassing the initial project target modelled at 80%, and a purity of lithium chloride/sulfate product produced of up to 96.5%. This exceptional purity simplifies the midstream conversion process to lithium carbonate and lithium hydroxide products used in electrical batteries, proving the suitability of Northern Lithium brines and Evove's DLE process, using combined membrane filtration and ion exchange stages, to meet domestic lithium demand and, critically, indicating lower capex and processing costs.

Nick Pople said, "We have made considerable progress over the past year and are pleased that our recent long term pump tests and demo scale DLE trials have provided further proof of concept on our targeted path to first commercial production of lithium by the end of 2027. In the current geopolitical climate, it is encouraging that the UK government is recognising that the UK has an urgent need to secure its own domestic lithium supply. The results of our recent tests and trials have confirmed that Northern Lithium now has the opportunity and potential to scale up supply, within the next decade, to significantly more than our current base case target of 10,000 tonnes of battery-grade lithium delivered per year from a series of production sites across the Northern Pennine Orefield."

Chris Wyres, CEO of DLE technology firm Evove, said, "We are delighted that Evove's advanced filtration technology is helping bring the Northern Lithium project to commercial reality. From the first brine processing at industrial scale in our DLE Test Centre in Widnes in 2023 to delivering fully operational demonstration scale in-field DLE trials this year is a remarkable testament to the unique partnership between Northern Lithium, engineering firm RSE and Evove."

Northern Lithium and Evove will now proceed with detailed design engineering for the first fully functioning commercial scale DLE production unit, with operation targeted for end of 2027. In parallel, samples of lithium product produced from the recent trials will be used in discussions with potential off-take partners.

Sam Rushworth, MP for Bishop Auckland, said, "Northern Lithium's continued progress towards commercial production and delivery of a domestic supply of lithium at scale, is good news for economic growth and creating jobs in an area that has suffered from de-industrialisation. Beyond the jobs created on site, this opens new economic opportunities in County Durham and the North East and is important to the government's forthcoming Industrial and Critical Minerals Strategy which aims to create a secure and sustainable supply of critical minerals for the UK."

FUNDRAISING

In September 2024, the Company set out to raise up to GBP6 million to fund its operations and next stage development programme through to the end of Q1 2026, aiming to raise an initial tranche ("Tranche 1") of up to GBP2.0 million to fund activities in H1 2025. Tranche 1 was closed at GBP3.45 million in Q1 2025, ahead of the 60-day pump tests and demo scale DLE trials. Marketing for a second tranche of funding ("Tranche 2"), of up to GBP2.5 million, will commence shortly.

Nick Pople added, "The success of our fundraising to date reflects not just confidence in the progress we are making at Northern Lithium, but also a growing acceptance that the UK needs to develop its own secure and sustainable domestic lithium supply. We are confident that Northern Lithium is well placed to play a key part in meeting the UK's fast-rising demand for lithium, across everything from EVs and low carbon infrastructure to key elements of defence equipment."

Tranche 2 will be deployed through the rest of 2025 and beginning of 2026 to cover an additional drilling programme along with the preparation and submission of full planning and permitting applications in readiness for next phase of commercial development work in 2026 and 2027. The Company will be assessing fundraising requirements for 2026 and beyond later this year.

NOTES TO EDITORS

UK demand for lithium

It is forecast that the UK will need up to 80,000 tonnes of Lithium Carbonate Equivalent (LCE) per year by 2030 and as much as 135,000 tonnes per year by 2040. The Advanced Propulsion Centre UK said in its Q3 2024 Quarterly Automotive Demand Forecast (January 2025) that Battery Electric Vehicle (BEV) production in the UK is expected to top 1.1 million per annum by 2035 creating a demand for over 93 GWh of automotive batteries, from just 13 GWhs of demand in 2024.

In 2024 381,970 new fully electric cars were sold in the UK, a 20% market share of all new cars registered that year. More fully electric cars were sold in 2024 than any other and 21% more than 2023. The first quarter of 2025 closed with 21% of all new cars being fully electric, signifying a steady rise in the market share.

Battery requirements for grid scale energy storage are also increasing exponentially, adding to the supply chain pressure for lithium. Forecasts suggest global demand for lithium-ion batteries for grid scale energy storage could overtake EVs by 2050. The National Grid ESO, the electricity system operator for Great Britain, is forecasting that the UK will need nearly 200GWh of energy storage by 2050 against 5 GWh of operational grid-scale battery energy storage capacity at the end of 2024.

According to the International Lithium Association's report "Lithium 2040" (May 2025), global lithium demand is expected to grow from 1.3Mt LCE today to between 3.6Mt and 5.2Mt LCE by 2040.

About Northern Lithium

Established in 2017, Northern Lithium is a privately-owned innovative critical minerals development company, based in County Durham, Northeast of England, focused on delivering a secure domestic supply of lithium from the North East for UK gigafactories and the UK's electric vehicle and power storage industries, using sustainable extraction and production techniques.

Northern Lithium has up to 45 years' exclusive development, appraisal and production rights covering mineral rights owned by the Church Commissioners for England across circa. 240 sq kms (60,000 acres), of the North Pennine Orefield.

The Company is at the forefront of delivering a secure, sustainable domestic supply of lithium at scale for the UK, using its own UK sourced lithium brines, UK developed advanced DLE (Direct Lithium Extraction) technology and UK process engineering expertise. www.northernlithium.co.uk.

About Evove

Evove deploys advanced technology to reduce the cost and environmental impact of the filtration and separation of fluids in lithium, data centres and food & beverage production, as well as in desalination and the treatment of industrial water. www.dle.technology

For more information please contact:

Northern Lithium

Nick Pople, Managing Director
e: [e-mail]
t: [phone]

Richard Barton, RB Advisors
e: [e-mail]
t: [phone]

Evove

Andrew Walker
e: [e-mail]
t: [phone]

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