Winsome delivers positive NI 43-101 compliant PEA including MRE for Adina Lithium Project

Press Release

Sep 17, 2024

• The PEA¹ provides a compelling case to develop Adina through repurposing the processing facility at Renard
• Processing throughput of 4,650 tonnes per day (“tpd”) for a dense media separation (“DMS”) operation for the duration of the Life of Mine (“LOM”)
• Average lithium recovery of 67.2% with an average process plant feed grade of 1.24% Li₂O (average process plant feed grade of 1.47% Li₂O over the first 5 years of production)
• Peak production of 332.1 kt spodumene concentrate at 5.5% Li₂O content (“SC5.5”) in year 4; average yearly SC5.5 production of 255.9 kt over the LOM
• 60.3% Pre-Tax Internal Rate of Return (“IRR”), 42.9% After-Tax IRR; C$1.7 Billion Pre-Tax Net Present Value₈ (“NPV”), C$1.0 Billion After-Tax NPV₈; After-Tax Payback Period 1.8 years from start of LOM
• Start-up capital cost of C$394.5 Million (includes access road construction direct and indirect costs of C$ 84.3 Million and overall project contingency of C$67.1 Million), start-up capital cost of C$350 Million including Clean Technology Manufacturing Investment Tax Credit (“CTM-ITC”) with NPV/capital cost ratio over 2.5
• LOM average C1 Operating Cost and All-In Sustainable Cost (pre royalties) per tonne of concentrate (SC5.5) at C$831/t (US$615/t) and C$967/t (US$716/t), respectively
• The Project is expected to generate over C$10.0 Billion of gross revenue and C$1.6 Billion in carbon, provincial and federal taxes and Québec mining duties as well as well as create over 500 jobs during construction and 600 direct jobs during operations
• The MRE comprises a tonnage of 60.5 million tonnes at a grade of 1.14% Li₂O in the Indicated category and 15.9 million tonnes at a grade of 1.17% Li₂O in the Inferred category at Winsome’s flagship Adina Lithium Project.

VAL-D’OR, QC, Sept. 17, 2024  – Lithium explorer and project developer Winsome Resources (ASX: WR1) (Winsome or the Company) is pleased to announce the positive results of a Preliminary Economic Assessment (“PEA”) on its 100% owned Adina Lithium Project (“Adina”), based on the proposed acquisition of the Renard diamond mine (“Renard”)(together, ”the Project”) and on a National Instrument 43-101 – Standards of Disclosure for Mineral Projects (”NI 43-101”) compliant Mineral Resource Estimate (“MRE”). The full technical report, which is being prepared in accordance with NI 43-101, will be available on SEDAR+ (www.sedarplus.ca) under the Company’s issuer profile within the next 45 days.

This independent study was prepared by Synectiq Inc. (”Synectiq”) under the supervision of Kim-Quyên Nguyên, VP Projects of Winsome Resources Ltd., and included the contributions of other recognized lithium project expertise such as Global Commodity Solutions, DRA Global Limited (”DRA”) and G Mining Services Inc. (”GMS”).

“The detailed inputs to this study mean it provides a robust basis from which to advance the development of Adina. In particular the outcome that the existing and well-maintained Renard facility can be repurposed for a relatively modest capital cost to develop our hard-rock spodumene resource is a major benefit. Importantly it offers a significant commercial advantage that will see the facility operate through market fluctuations and commodity cycles.

“The ease of mining mineralized material at Adina via an initial low strip open pit along with the simple DMS flowsheet results in a competitive operating cost estimate which optimisation may improve further.

“Winsome has a clear pathway to production outlined by the study, underpinned by well-planned strategic initiatives like the exclusive option to acquire Renard. Given the global challenges facing the market, we believe our approach, combined with our world-class Adina asset, is positioning the Company for long-term returns to shareholders, stakeholders and importantly First Nations in the Eeyou Istchee James Bay region and the Province of Québec.

“Winsome Resources is proud to have achieved this key milestone, marked by positive results. Winsome sincerely thanks all the teams who contributed to this success. Thanks to their expertise, enabled Winsome to achieve this important objective. The Company will now proceed to the next stage of development of its Adina Lithium Project. The team will focus on advancing the Project while continuing to conduct due diligence in preparation for acquiring Renard.”, comments Chris Evans, Managing Director.

“We are especially pleased to quantify the economic benefits that the Project could bring to Québec and its host communities. We intend to pursue our discussions with all stakeholders and First Nations, in order to improve our Project and collaboratively plan sustainable operations that respect communities and the environment.”, comments Geneviève Morinville, VP Sustainability and Regulatory Affairs.

“This success reflects everyone’s commitment, and we are grateful for all our efforts. This step is crucial for Winsome Resources. The PEA allows us to thoroughly analyze the Project and make informed decisions at each subsequent phase. We’re delighted to see that the results are positive and encouraging for the future, and we’d like to thank all those who worked so hard to achieve our objectives”, comments Carl Caumartin, General Manager Canada.

“Having progressed from a grassroots outcrop discovery to 75+Mt of mineralized pegmatite and completing a PEA within two years demonstrates the quality of work accomplished by our dedicated team. We are thankful to everyone who contributed to achieving this significant milestone, including Winsome’s geological crew and our partners Forage Nouchimi-RJLL, Heli Explore, MSA Labs, SGS Canada, Services MNG and Technominex.” adds Antoine Fournier, VP Exploration.

To learn more about the mineral resource estimate and results of the PEA for the Adina Lithium Project, consult Winsome’s full press release dated September 17th, 2024 https://winsomeresources.ca/wp-content/uploads/2024/09/20240806-WR1-2024-PEA-Announcement-FINAL_ENG.pdf

This press release has been authorized for issue by the Managing Director of Winsome Resources Limited.

ABOUT WINSOME RESOURCES

Winsome Resources (ASX: WR1) is a Canadian focused exploration and development company with several projects in the Eeyou Istchee James Bay region of Québec. Our flagship project is Adina, a 100% owned lithium resource considered a tier-one asset in a low-risk mining jurisdiction and one of the most capital efficient projects in North America with competitive operating costs. The hard rock spodumene lithium deposit is near surface with a +20 year project life and a substantial Mineral Resource.

The Company recently acquired an exclusive option to purchase the Renard Operation, a mining and processing site located approximately 60 kilometres south (in a straight line) of Adina. The facility has an established airport, power station, water treatment plant, workshops, processed mineralized material storage and substantial camp. It also has several mineral processing and operating permits which may advance Winsome’s pathway to lithium production. Importantly Renard already includes extensive production facilities including Dense Media Separation (DMS), upfront jaw, cone, high-pressure grinding rolls and mineralized material sorting circuits necessary for spodumene concentrate production.

In addition to our portfolio of lithium projects in Québec, including the Cancet, Sirmac-Clapier and Tilly Projects, Winsome Resources owns 100% of the offtake rights for lithium, caesium and tantalum from the Case Lake Project in Eastern Ontario owned by Power Metals Corp (TSXV:PWM), as well as a 19.6% equity stake in PWM.

Winsome is led by a highly qualified team with strong experience in lithium exploration and development as well as leading ASX listed companies.

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