Cape Town, South Africa--(Newsfile Corp. - October 7, 2026) - Lithium Africa Corp. (TSXV: LAF) (FSE: 6MQ) (OTCQB: LTAFF) ("Lithium Africa" or the "Company") is pleased to announce that it has elected to advance the Springbok Project ("Springbok" or the "Project") in the Northern Cape Province, South Africa, toward the production of spodumene concentrate, targeting first production in H2 2027. The Company had been evaluating a direct shipping ore ("DSO") sale of the existing stockpile of previously mined pegmatite at Norrabees I (see news release dated June 8, 2026). It has instead elected to process that material, together with newly mined pegmatite, through an on-site dense media separation ("DMS") plant. The decision follows the Company's review of two-stage DMS testwork on a 13-tonne bulk sample of stockpile material completed by a third party. Mining at Norrabees I is already permitted under the Project's existing Mining Permit. Construction of the DMS plant will require additional approvals, and the Company has commenced that process.
Highlights
- From DSO to DMS. The Company has moved from a planned stockpile sale to on-site DMS processing to produce spodumene concentrate, with first production targeting H2 2027. The decision follows a review of third-party two-stage DMS testwork on a 13-tonne bulk sample stockpile material, which has not yet been verified by a Qualified Person.
- Permitted mine within a district-scale (>50 km wide) land position. Springbok hosts a 5-hectare Mining Permit over the historical Norrabees I mine, within a 1,675 km² Prospecting Right.
- Initial Mineral Resource Estimate ("MRE") targeted for H1 2027; preliminary economic assessment ("PEA") to follow. First drill results at Norrabees I, within the Mining Permit, returned 7.5 m at 1.97% lithium oxide ("Li2O") from 18.5 m downhole (including 6.0 m at 2.27% Li2O) and 4.0 m at 2.25% Li2O from 2.0 m downhole, with individual samples up to 4.11% Li2O (see news release dated September 30, 2026; true widths not yet known). These results, historical drilling, and ongoing drilling are expected to support the MRE and the PEA to be prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
- Project-level financing prioritized. The Company is in preliminary, non-binding discussions with a number of potential counterparties regarding project-level financing for Springbok, including offtake, vendor financing, and project-level equity, and is targeting a financing decision in H1 2027.
- Small-scale production intended to support exploration. Cash flow from a modest DMS operation is intended to help fund exploration across the Project and at the Company's broader African portfolio.
Thomas Benson, Ph.D., Chief Executive Officer of Lithium Africa, commented: "Self-funding exploration through small-scale mining is a uniquely African way to explore for lithium, and it is how we intend to unlock the Springbok District. Lithium projects that can target production in 2027 are few and far between, and we believe Springbok is one of them: a permitted mine, with feeder material ready on surface. Our plan is designed to deliver real, non-dilutive value for Lithium Africa shareholders while advancing sustainable economic development in the Northern Cape."
Shift from Stockpile Sale to DMS Processing
Earlier in 2026, the Company evaluated a sale of the Norrabees I stockpile as DSO (see news release dated June 8, 2026). In assessing alternatives to a sale, the Company reviewed two-stage DMS testwork on a 13-tonne bulk sample of stockpile material that was completed by a third party, which has not been verified by the Company's Qualified Person. On the basis of that review, the Project's permitted status and the availability of previously mined material on surface, management concluded that processing stockpile and newly mined material through an on-site DMS plant to produce a spodumene concentrate represents the preferred development route for the Project. The Company has not completed a PEA or any other economic analysis of Mineral Resources in respect of the Project, and there are no current Mineral Resources at the Project. The Company intends to complete a PEA for the Project, targeted for H1 2027 following the initial MRE. As part of the PEA, the Company intends to analyze the composition of the existing stockpiles as potential commissioning feed for the plant and to have the DMS testwork verified by a Qualified Person. The Company's decision to advance Springbok toward production is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and such production decisions are historically associated with a higher risk of economic and technical failure. See "Cautionary Statement Regarding Production Decision" below.
A Permitted Mine Within a District-Scale Potential Land Position
The Project is held by Namli Exploration & Mining (Pty) Ltd ("Namli"), in which the Company holds a 70% interest. Namli holds a 5-hectare Mining Permit (NC10950MP) covering the historical Norrabees I mine, where the Company's first drilling intersected high-grade spodumene from near surface, within a 1,675 km² Prospecting Right (NC13301PR). Construction of the DMS plant will require additional approvals, including environmental authorization for the processing area. The Company has commenced this process.
Figure 1. Aerial view of the existing stockpile of previously mined pegmatite at Norrabees I, Springbok Project.
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Pathway to an Initial MRE and PEA
The Company's first drill results at Norrabees I intersected high-grade spodumene mineralization from near-surface within the Mining Permit, including 7.5 m at 1.97% Li2O from 18.5 m downhole and 4.0 m at 2.25% Li2O from 2.0 m downhole, with individual samples up to 4.11% Li2O (see news release dated September 30, 2026; true widths not yet known). These results, historical drilling (subject to verification by a Qualified Person) and ongoing drilling are expected to support an initial MRE prepared in accordance with NI 43-101 expected for H1 2027. The Company intends to engage an independent Qualified Person to prepare a PEA incorporating the MRE, the DMS testwork, the existing stockpiles as potential plant commissioning feed, and a mine and process plan following completion of the MRE.
Project-Level Financing
The Company is engaged in preliminary non-binding discussions with a number of potential counterparties regarding financing at the Project level. The options under discussion include offtake agreements, which may include prepayment arrangements, as well as vendor financing and project-level equity. The Company's interest in Springbok is held outside the Company's 50/50 joint venture with GFL International Co., Ltd., an affiliate of Ganfeng Lithium, which provides the Company flexibility to structure financing at the Project level. The Company is targeting a Project financing decision in H1 2027. There can be no assurance that any financing will be completed on acceptable terms, or at all.
Indicative Timeline
- Q4 2026: ongoing regional drilling within the Prospecting Right, infill drilling within the Mining Permit, environmental permitting, and financing discussions.
- H1 2027: initial MRE and PEA; targeted Project financing decision; targeted start of construction, subject to receipt of permits and approvals, and completion of financing.
- H2 2027: targeted first production of spodumene concentrate.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved by Benjamin Gelber, P.Geo., a consultant to the Company who is not independent of the Company, and a Qualified Person as defined by NI 43-101.
About Lithium Africa Corp.
Lithium Africa Corp. is a lithium exploration and development company building a portfolio of hard-rock lithium assets across Africa. The Company holds the Springbok Project in South Africa directly and its exploration interests in West and Southern Africa, including the Adzopé District in Côte d'Ivoire, through a 50/50 joint venture with GFL International Co., Ltd., an affiliate of Ganfeng Lithium. For more information, please visit www.li-africa.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF LITHIUM AFRICA CORP.
Thomas Benson, Ph.D., Chief Executive Officer & Director
For further information regarding the Company, contact:
Jeanne Liu, Corporate Communications at investors@li-africa.com, 1.604.771.7125.
Cautionary Statement Regarding Production Decision
The Company's decision to advance Springbok toward production is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and there are no current Mineral Resources or Mineral Reserves at the Project. As a result, there is increased uncertainty, and there are multiple technical and economic risks of failure associated with this decision, including risks that production may not be achieved on the timeline described, or at all, and that the Project may not be economic. Historically, projects that have proceeded without a feasibility study have a much higher risk of economic or technical failure. The Company's decision is based in part on third-party DMS testwork that was not prepared for the Company, has not been verified by a Qualified Person, and may not be representative of the stockpile or of newly mined material. The PEA, when completed, will be preliminary in nature and may include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Specific risks associated with the Company's production decision include, but are not limited to: 1) the actual production levels may differ materially from estimated amounts, which would materially and adversely affect the Company's ability to generate revenue and cash flow, 2) fluctuations in commodity prices, 3) the absence of current Mineral Resources or Mineral Reserves means that the tonnage, grade and continuity of mineralization to be mined have not been established to the level of confidence normally required to support a production decision, 4) actual capital and operating costs may be materially higher than anticipated, as they have not been estimated to a feasibility level of accuracy, 5) metallurgical recoveries and processing performance may differ materially from those assumed, as metallurgical test work may not be representative of the mineralization as a whole, 6) mining dilution, mining recovery, geotechnical and hydrogeological conditions may differ from those assumed, as mine design and planning have not been completed to a feasibility level of detail, 7) the Company may be unable to obtain, or may experience delays in obtaining, the permits, licenses and approvals required for construction and operation, 8) the Company may be unable to secure the financing required to construct and operate the Project on acceptable terms, or at all, 9) construction and commissioning may be delayed or cost more than anticipated, including as a result of the availability and cost of equipment, contractors, skilled labour, power and water, and 10) the Company may be unable to recover its investment in the Project if production is not achieved or is not economic.
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this news release that are not historical facts may be forward-looking statements within the meaning of applicable securities laws, including statements regarding: the Company's plans to advance Springbok to production and the timing of construction and first production; the processing of stockpile and newly mined material through a DMS plant; the timing and results of an initial MRE and PEA; the evaluation of the existing stockpiles as potential commissioning feed; verification of the third-party DMS testwork; ongoing drilling and the continuity of near-surface mineralization at Norrabees I; the grant of the Mining Right, renewal of the Mining Permit and receipt of other permits and approvals; the timing, structure and completion of Project-level financing; and the use of Project cash flow to fund exploration. Forward-looking statements are based on assumptions, including that permits and approvals are received on expected timelines, that drilling and testwork results are representative, that financing is available on acceptable terms, and regarding lithium prices, costs and exchange rates. They are subject to risks, including that the production decision is not based on a feasibility study, the absence of current Mineral Resources and Mineral Reserves, reliance on third-party testwork not verified by a Qualified Person, permitting and regulatory risk in South Africa, metallurgical and operating risk, financing risk, commodity price volatility, and the other risks described in the Company's public filings under its SEDAR+ profile at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. The Company undertakes no obligation to update forward-looking statements except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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