Elevra Lithium Ltd (ELV.AX) NAL Expansion Pre-Feasibility Study

Brisbane, Sep 7, 2026 AEST (ABN Newswire) - North American lithium producer Elevra Lithium Limited (ASX:ELV) (NASDAQ:ELVR) (SYAXF:OTCMKTS) announced the results of a Pre-Feasibility Study ("PFS") for the staged North American Lithium ("NAL") Brownfield Expansion in Quebec. The PFS confirms the NAL Expansion as a high-value growth project that is expected to significantly increase annual spodumene concentrate production while reducing unit operating costs and generating attractive returns on capital invested.

Highlights:

- Consistent with the Updated NAL Expansion Scoping Study, the NAL Expansion will be delivered through a three-stage brownfield development, with Stage 1 increasing process plant throughput to the currently permitted rate of 4,500 tpd from mid-CY27, Stage 2 increasing milling capacity to 6,500 tpd from mid CY28, and Stage 3 delivering a permanent crushing solution aligned with increased milling capacity by mid CY29.

- On a post expansion basis, average annual spodumene concentrate production increases to 373 thousand tonnes per annum (ktpa) (nominal SC5.4, post ramp up), nearly double the no expansion scenario ("Base Case") and 10% above the 338 ktpa estimate from May 2026. Production above the 338 ktpa capacity is attributable to improved mill feed grades largely due to benefits of ore sorting equipment.

- Life of mine (LOM) C1 cost of C$876/t (US$649/t) of spodumene concentrate, reducing to C$851/t (US$630/t) post-expansion with AISC of C$918/t (US$680/t).

- The NAL Expansion is fully funded based on the total initial CAPEX remaining unchanged at C$366M (US$271M) (AACE Class 4 estimate with a target accuracy range of +/-40%), including C$73M (US$54M) of contingency, with Stage 1 CAPEX of C$92M (US$68M), Stage 2 CAPEX of C$101M (US$75M) and Stage 3 CAPEX of C$173M (US$128M).

- NAL Expansion delivers a post-tax NPV (8%) of C$3,218M (US2,384M), or an incremental post-tax NPV (8%) of C$943M (US$699M) compared to the C$969M (US$718M) incremental post-tax NPV (8%) declared in May 2026 due primarily to a 4% increase in the mining cost compared to the previous announcement following further detailed haulage modelling.

- The Company's existing NAL Ore Reserves of 47.2Mt at 1.12% Li2O, comprising 0.2MT Proven and 47.0MT Probable Mineral Reserves, solely underpin the NAL Expansion production profile with a revised life of mine of 20 years.

- The PFS demonstrates that the NAL Expansion can increase production, reduce unit costs and generate significant incremental value from an existing operating asset and established infrastructure.

- The NAL Expansion is fully funded through Elevra's Strategic Financing Package announced in May 2026.

Elevra's Managing Director and Chief Executive Officer, Mr Lucas Dow, said:

"The NAL Expansion PFS confirms a compelling value proposition for Elevra, with a high-return brownfield expansion that materially increases production while reducing unit operating costs.

The ability to increase average annual production to 373,000 tonnes post-expansion, while reducing LOM average C1 unit costs post expansion to approximately C$851/t (US$630/t), demonstrates the significant operating leverage available at NAL. The production target and cost profile are underpinned by existing Ore Reserves and historical operating data, providing a strong foundation for the production and financial outcomes outlined in the PFS.

The staged development approach allows us to bring additional production online from mid-2027, by progressively increasing throughput and capturing operating efficiencies while managing project execution and prudent capital deployment."

Study Confirms Compelling Economics for NAL Expansion

The PFS confirms a compelling economic case for the staged expansion of NAL, with the project expected to materially increase spodumene concentrate production while reducing unit operating costs and generating significant incremental value from an existing operating asset.

The PFS estimates an expansion-only post-tax NPV8% of C$943MM (US$699M), post-tax IRR of 49.9% and post-tax payback period of 34 months.

The expansion requires initial capital expenditure of C$366 M (US$271M), with total sustaining expenditure of C$527M (US$390M) over the expansion case. The financial analysis is unlevered and based on the Mineral Reserves estimated as part of the PFS.

The PFS establishes an average annual production rate of 348ktpa (5.4% Li2O spodumene concentrate) and an average annual post-expansion production rate of 373ktpa (5.4% Li2O spodumene concentrate).

Importantly, 100% of the Production Target is underpinned by Proven and Probable Ore Reserves. No Inferred Mineral Resources are included in the economic analysis or Production Target. The PFS states that the economic analysis was based on Measured and Indicated Mineral Resources only, with Inferred Mineral Resources excluded as too geologically speculative for mining and economic considerations to be applied.

Study Confirms Strong Operating Metrics for NAL Expansion

The PFS demonstrates significant operating leverage from increasing the scale of NAL's existing operation.

Average annual post-expansion spodumene concentrate production is expected to increase from 199ktpa in the base case to 373ktpa post-expansion, while LOM average production increases from 196ktpa to 348ktpa.

LOM C1 operating costs are estimated at C$876/t (US$649/t) of concentrate, compared with C$1,048/t (US$776/t) for the base case, while the post-expansion C1 cost is estimated at C$851/t (US$630/t).

LOM AISC is estimated at C$954/t (US$707/t)4, reducing to C$918/t (US$680/t) post-expansion.

The PFS estimates total LOM operating expenditure of C$5.95B (US$4.41B) for the expansion case, with the cost estimates supported by actual NAL operating information including salaries, consumables, maintenance costs and established contracts.

Staged Expansion Delivery

The NAL Expansion Project has been designed as a three-stage brownfield development that progressively increases production and reduces unit costs while leveraging existing infrastructure.

Stage 1

Stage 1 is expected to deliver an initial 15-20% increase in annual spodumene concentrate production within NAL's existing 4,500 tpd milling permit, together with a reduction in unit operating costs.

Stage 2

Stage 2 will expand downstream milling, flotation and filtration capacity to 6,500 tpd, with additional feed initially supported by a temporary mobile crushing circuit. Production from Stage 2 is expected to commence in mid CY28.

Stage 3

Stage 3 will replace the temporary and existing crushing circuits with a new crushing circuit capable of supporting the targeted 373ktpa post-expansion production profile, together with additional ore sorting capacity. Completion is expected in mid CY29.

The staged development approach was adopted to reduce execution risk, bring forward production growth and stage capital deployment.

Pre-Feasibility Study Metrics

Analysis of the financial model on the key economic assumptions indicates that the Project is robust in terms of operational and financial metrics. The Project is most sensitive to changes in commodity prices, exchange rates, head grades and recoveries, with the key Project assumptions and outputs shown in the Table 1* (please note that any reference to Base Case means NAL on an unexpanded or "as is" basis).

*To view tables and figures included in the announcement, please visit:
https://abnnewswire.net/lnk/WJ1Y05FW

About Elevra Lithium Limited

Elevra Lithium Limited is a North American lithium producer (ASX:ELV) (NASDAQ:ELVR) OTCMKTS:SYAXF) with projects in Quebec, Canada, United States, Ghana and Western Australia. In Quebec, Elevra's assets comprise North American Lithium (100%) and a 60% stake in the Moblan Lithium Project in Northern Quebec. In the United States, Elevra has the Carolina Lithium project (100%) and in Ghana the Ewoyaa Lithium project (22.5%) in joint venture with Atlantic Lithium. In Western Australia, the Company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium.

   

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