Lithium carbonate and spodumene concentrate pricing update

BRISBANE, April 01, 2022 - Allkem Ltd. (ASX|TSX: "AKE", the "Company") provides an update on expected June quarter pricing for lithium carbonate and spodumene products.

Lithium carbonate

Strong market conditions continue to positively impact the price received for lithium carbonate from the Olaroz Lithium Facility. The June quarter FY22 average price received for lithium carbonate is expected to be approximately US$35,000/t FOB¹ on sales of approximately 3,500 tonnes.

The preliminary March quarter FY22 sales price was approximately US$27,236/t FOB, 9% higher than the previous guidance.

Spodumene

Similarly strong conditions in the spodumene market are supporting advanced discussions for spodumene concentrate pricing in the June quarter of approximately US$5,000/t SC6% CIF on sales of approximately 50,000 tonnes.

March quarter sales of spodumene concentrate were completed at a price of approximately US$2,218/t SC6% CIF DMT which includes tonnes that were delayed from the December quarter.

March quarter report

The March quarter sales prices for lithium carbonate and spodumene concentrate are preliminary and indicative. The final prices will be provided in the March Quarterly Report which will be released on 14 April, 2022.

This release was authorised by Mr Martin Perez de Solay, CEO and Managing Director of Allkem Ltd..

¹ "FOB" (Free On Board) excludes insurance and freight charges included in "CIF" (Cost, Insurance, Freight) pricing. Therefore, the Company's reported prices are net of freight (shipping), insurance and sales commission. FOB prices are reported by the Company to provide clarity on the sales revenue that is recognised by SDJ, the joint venture company in Argentina

IMPORTANT NOTICES

This investor ASX/TSX release (Release) contains general information about the Company as at the date of this Release. The information in this Release should not be considered to be comprehensive or to comprise all of the material which a shareholder or potential investor in the Company may require in order to determine whether to deal in Shares of Allkem. The information in this Release is of a general nature only and does not purport to be complete. It should be read in conjunction with the Company's periodic and continuous disclosure announcements which are available at allkem.co and with the Australian Securities Exchange (ASX) announcements, which are available at www.asx.com.au.

Forward Looking Statements

Forward-looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performances or achievements expressed or implied by such forward-looking statements, including but not limited to, the risk of further changes in government regulations, policies or legislation; the risks associated with the continued implementation of the merger between the Company and Galaxy Resources Ltd., risks that further funding may be required, but unavailable, for the ongoing development of the Company's projects; fluctuations or decreases in commodity prices; uncertainty in the estimation, economic viability, recoverability and processing of mineral resources; risks associated with development of the Company Projects; unexpected capital or operating cost increases; uncertainty of meeting anticipated program milestones at the Company's Projects; risks associated with investment in publicly listed companies, such as the Company; and risks associated with general economic conditions.

Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this Release to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based. Nothing in this Release shall under any circumstances (including by reason of this Release remaining available and not being superseded or replaced by any other Release or publication with respect to the subject matter of this Release), create an implication that there has been no change in the affairs of the Company since the date of this Release.

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