Standard Lithium and Equinor Forge $160 Million Lithium Partnership

Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV:SLI) (NYSE American:SLI) (FRA:S5L), a prominent player in near-commercial lithium development, has finalized a significant strategic alliance (the “Transaction”) with Equinor ASA (NYSE: EQNR), a multinational energy giant known for its leadership in renewables and low-carbon solutions. The objective of this partnership is to accelerate the progress of Standard Lithium's extensive and environmentally sustainable lithium projects located within the Smackover Formation.

The Transaction encompasses Equinor's commitment of up to US$160 million, representing its entire gross project-level investment and indicating its 45% ownership interest in the two entities. This investment entails a US$30 million cash infusion to Standard Lithium upon closure, alongside Equinor's sole funding of a US$60 million work program, constituting a US$33 million carry for Standard Lithium and US$27 million for Equinor at the South West Arkansas Project (SWA) and East Texas (ETX) properties (ETX and SWA collectively referred to as the “Projects”). Additionally, there's potential for up to US$70 million in payments to Standard Lithium, contingent upon both parties reaching positive Final Investment Decisions. Standard Lithium and Equinor will hold 55% and 45% ownership stakes in the Projects, respectively, with Standard Lithium retaining operational control.

Dr. Andy Robinson, Director, President, and COO, expressed: “We are thrilled to have finalized this agreement and embarked on a promising new collaboration with Equinor. Our partnership with a global energy leader underscores the caliber of our team, our DLE flowsheet, our expertise, and the exceptional lithium-brine resources we possess in Arkansas and Texas. We stand at a pivotal juncture in our Company’s evolution, and this alliance with Equinor will play a pivotal role in further mitigating risks and advancing these significant projects. We’ve witnessed that robust, mutually beneficial partnerships are paramount for successful project implementation and operation in the lithium sector over the past decade, and we are confident that we have allied with the right partner to propel SLI and the lithium industry in Arkansas and Texas to new heights.”

Transaction Highlights:

•   The partnership between Standard Lithium and Equinor is strategically aligned and complementary. It combines SLI’s unmatched expertise in DLE and Smackover brine processing, along with world-class assets, with a global energy major boasting extensive experience in sub-surface assessment and production, project development, financing, construction, and operations.

•     The collaboration significantly reduces project execution risks at Standard Lithium’s Projects, including SWA development and project execution.

•    The Transaction immediately bolsters Standard Lithium’s financial standing. Moreover, the cost carry component on agreed project development expenditures at the Projects delivers additional benefits, ensuring no dilution to existing shareholders.

•      Equinor, as a partner, brings a proven track record of project excellence to the table.

•     There is a strong alignment between Standard Lithium and Equinor in developing a sustainable lithium business, adhering to high standards of environmental and social responsibility.

Standard Lithium CEO, Robert Mintak, remarked, “Securing this partnership with Equinor marks a significant milestone for Standard Lithium. We have always emphasized the importance of forging strategic alliances with companies that share our vision and offer complementary expertise. Equinor’s ethos and principles resonate with ours, emphasizing innovation, integrity, and responsible development to drive the global energy transition forward. Through this collaboration, we are poised to expedite our advancements and play a meaningful role in shaping the future of sustainably sourced lithium.”

Morten Halleraker, senior vice president for New Business and Investments in Technology, Digital, and Innovation at Equinor, expressed, “We eagerly anticipate collaborating with Standard Lithium to explore opportunities within the Smackover Formation. Leveraging Standard Lithium’s operational expertise and combining it with Equinor’s strengths in sub-surface assessment and project execution, we envision significant growth potential for sustainably sourced lithium, serving as a catalyst for the energy transition.”