US$130M Project Financing for Sal de Vida signed

BRISBANE, July 24, 2023 - Allkem Ltd. (ASX|TSX: AKE, "Allkem" or the "Company") advises the signing of a project financing facility with the International Finance Corporation ("IFC") for Allkem's Sal de Vida Project located in Catamarca Province, Argentina.

HIGHLIGHTS

• An IFC project financing facility for the development of Sal de Vida Project Stage 1 ("SDV") has been signed for up to US$130M over a ten-year period consisting of an A loan of up to $100M and B loan of up to $30M. Allkem is in discussions with another lender to increase the project finance facility by a further $50M, for a total financing package of $180M.
• This project financing facility has been structured as a green and sustainability-linked loan. IFC's environmental and social performance requirements are globally recognised and the awarding of a sustainability-linked, green loan to the facility is recognition and validation of the high ESG standards already adopted at Sal de Vida by Allkem.
• A sustainability-linked green loan combines ambitious environmental and social targets. These targets and commitments support the responsible and sustainable development of lithium by Allkem for a greener future and regional economic growth in the province of Catamarca.

Managing Director and CEO, Martin Perez de Solay said, "We are proud to partner with IFC to ensure long-term safe and sustainable operations, responsible products, and thriving communities. We are committed to the highest sustainability standards for Sal de Vida so that it will contribute to the economy of Catamarca via local employment, the development of local supply chains, and community development programs."

PROJECT FINANCING

Due Diligence and Approval

The financing was approved by the Allkem Board of Directors, the IFC Management, and the IFC Board of Directors.

IFC's Performance Standards are globally recognized as a benchmark for environmental and social risk management in the private sector. The SDV project's ambitious sustainability targets-linked to the Sustainable Development Goals ("SDGs")-include reducing Scope 1 and 2 operational greenhouse gas emissions intensity and expanding the use of renewable energy in the production process by 2030.

A robust and detailed environmental assessment was conducted by IFC, including the assessment of brine extraction and water usage and the associated monitoring and mitigation plan. Allkem technical teams participated in the process and have worked to agree to the IFC's Environmental and Social Action Plan ("ESAP") for implementation.

Structure and Key Terms

IFC project financing support of up to US$130M is provided over a ten-year period and contains a two-year grace period. The loan does not benefit from a parent guarantee following the fulfillment of certain conditions and parameters, including the achievement of project Financial Completion. The interest rate is reflective of this type of financing within the region.

About IFC

IFC - a member of the World Bank Group - is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record US$32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.

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

IMPORTANT NOTICES

This investor ASX/TSX release (Release) has been prepared by Allkem Ltd. (ACN 112 589 910) (the Company or Allkem). It 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.

This Release does not take into account the financial situation, investment objectives, tax situation or particular needs of any person and nothing contained in this Release constitutes investment, legal, tax, accounting or other advice, nor does it contain all the information which would be required in a disclosure document or prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act). Readers or recipients of this Release should, before making any decisions in relation to their investment or potential investment in the Company, consider the appropriateness of the information having regard to their own individual investment objectives and financial situation and seek their own professional investment, legal, taxation and accounting advice appropriate to their particular circumstances.

This Release does not constitute or form part of any offer, invitation, solicitation or recommendation to acquire, purchase, subscribe for, sell or otherwise dispose of, or issue, any Shares or any other financial product. Further, this Release does not constitute financial product, investment advice (nor tax, accounting or legal advice) or recommendation, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

The distribution of this Release in other jurisdictions outside Australia may also be restricted by law and any restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

Past performance information given in this Release is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

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.

Not for release or distribution in the United States

This announcement has been prepared for publication in Australia and may not be released to U.S. wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction, and neither this announcement or anything attached to this announcement shall form the basis of any contract or commitment. Any securities described in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except in transactions registered under the U.S. Securities Act of 1933 or exempt from, or not subject to, the registration of the U.S. Securities Act of 1933 and applicable U.S. state securities laws.