European Lithium Limited, known hereafter as European Lithium or the Company, announced the execution of the Shareholders Agreement with Obeikan Group for Investment Company (Obeikan Group). This milestone sets the stage for European Lithium and its affiliated entities to collaboratively embark on the development and operation of a substantial lithium hydroxide processing facility in the Kingdom of Saudi Arabia.

The plant's primary purpose will be to process spodumene concentrate sourced from the Wolfsberg Lithium Project situated in Austria, marking a significant advancement in European Lithium's strategic initiatives and expansion efforts within the global lithium market.

The 50/50 Joint Venture aims to focus on the development, construction, and commissioning of a lithium hydroxide processing plant. This facility will be dedicated to the conversion of lithium spodumene concentrate sourced from the Wolfsberg project. According to the Shareholders Agreement, Arabian New Energy, the newly formed entity, will enjoy exclusive rights to procure spodumene extracted from the current resource at Wolfsberg (Zone 1). The plant's development is slated to align with specific initial capacity and product standards, as stipulated by European Lithium's binding Long Term Supply Agreement with BMW.

According to the Shareholders Agreement, contingent upon the successful commissioning of the Plant, the Wolfsberg Project's Zone 1 will supply lithium spodumene concentrate to the joint venture company throughout the mine's current resource lifespan, at a negotiated discounted rate, subject to agreed-upon floor and ceiling prices. Additionally, a Development Committee will be established to facilitate collaborative decision-making on all significant matters concerning the Plant's development. Upon Critical Metals Corp (CRML) finalizing the Deed of Assignment and signing the Shareholders Agreement, both agreements will become legally binding on all involved parties.

Tony Sage, Executive Chairman of EUR, celebrated a significant milestone for the Wolfsberg project, following BMW's recent $US15m commitment. He highlighted their partnership with dedicated stakeholders aimed at establishing the first European production of spodumene and hydroxide. With these milestones achieved, Sage anticipated smoother progress in finalizing the updated DFS for separated projects and securing construction funding over the next two quarters. The newly formed Arabian New Energy Board plans to appoint a leading ECPM for overseeing hydroxide plant construction, emphasizing funding organization within Saudi Arabia to advance the project's development.

Abdallah Obeikan, CEO of the Obeikan Investment Group, expressed satisfaction with the agreement reached with European Lithium. He emphasized the mutual benefits anticipated for all stakeholders through this partnership. Obeikan highlighted the synergy between European Lithium's technical expertise and Obeikan's industrial knowledge, coupled with the robustness of Saudi Arabian financial markets. This strategic collaboration aims to support Vision 2030 goals, advancing the development of a new industry within the Kingdom of Saudi Arabia, thereby contributing to economic diversification and sustainable growth initiatives.