Saxon Govt Deems Project of Outstanding Importance

Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector: Mining

2 April 2025

Zinnwald Lithium plc

('Zinnwald Lithium' or the 'Company')

Zinnwald Lithium Recognised as "a Project of Outstanding Importance" by Saxon State Government

Zinnwald Lithium plc, the European focused lithium company developing the integrated Zinnwald Lithium Project (the 'Project') in Germany, is pleased to announce that the Saxon State Government has reaffirmed its strong support for the Project, emphasising its strategic significance in securing a sustainable and independent lithium supply for the Free State of Saxony, the Federal Republic of Germany, and Europe as a whole.

Zinnwald Lithium recently published a Pre-Feasibility Study for the Project that showed a pre-tax NPV of €3.3 billion and IRR of 23.8% on a phased project initially producing 18,000 tonnes per annum of lithium hydroxide scaling up to a peak production of 35,100 tonnes with a mine life in excess of 40 years. This confirms the Project's economic viability and paves the way for further project planning and development.

In a press release published today by the Saxon State Chancellery, Saxony's Economics Minister, Dirk Panter, reiterated the government's commitment to the Project, stating:

"Especially in light of increasing international tensions, reducing raw material dependence is crucial for Saxony, Germany, and the EU. The Zinnwald Lithium project plays an outstanding role in this effort. Ensuring an independent and sustainable supply of critical raw materials like lithium is vital for Saxony's competitiveness as an industrial hub and for the transformation of the mobility and energy sectors."

Minister Panter also emphasised the importance of international investment in large-scale projects such as Zinnwald Lithium and welcomed the Company's successful demonstration of the Project's economic feasibility, which highlights the attractiveness and economic significance of raw material extraction in Saxony and Germany.

The Minister further confirmed that the Saxon government will actively support the Project and has designated it a high priority. This commitment is formally acknowledged in the coalition agreement between the CDU and SPD in the Free State of Saxony. Additionally, the Saxon State Government remains committed to advocating at the federal level for strong support of lithium mining in Saxony, reinforcing the Project's status as a key initiative.

Anton du Plessis, CEO of Zinnwald Lithium, said: "We are delighted to receive this official recognition from the Saxon State Government, which underscores the importance of our project in helping to secure a sustainable supply of lithium for Germany and the EU. Its commitment to supporting the Project at both state and federal levels further strengthens our confidence in bringing the Zinnwald Lithium Project to fruition. We look forward to continuing our close collaboration with the authorities and stakeholders as we advance our plans to become a key supplier of lithium to the European battery and electric vehicle sectors."

The press release by the Saxon State Chancellery can be found at:

https://www.medienservice.sachsen.de/medien/news/1085956

*ENDS*

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Notes

AIM quoted Zinnwald Lithium plc (EPIC: ZNWD.L) is focused on becoming an important supplier of lithium hydroxide to Europe's fast-growing battery sector. The Company owns 100% of the Zinnwald Lithium Project in Germany, which has an approved mining licence, is located in the heart of Europe's chemical and automotive industries and has the potential to be one of Europe's more advanced battery grade lithium projects.