PLS press release7 February 2024PILBARA MINERALS EXTENDS OFFTAKE...

PLS press release
7 February 2024PILBARA MINERALS EXTENDS OFFTAKE AGREEMENT WITH CHENGXIN LITHIUMAustralian lithium producer Pilbara Minerals Limited (ASX: PLS) (Pilbara Minerals) is pleased to announce that it has executed an amendment to its existing offtake agreement with Chengxin Lithium Group (Chengxin) which materially extends and expands the supply of spodumene concentrate to a leading lithium chemical converter.Chengxin is a global integrated lithium chemicals producer with a growing international customer base for lithium battery materials supply. Customers of Chengxin include major supply chain participants within the lithium battery materials industry including; BYD, LG Chemical, SK On, CATL and Hyundai.
Listed on the Shenzhen Stock Exchange, Chengxin has operations across China, Indonesia, Argentina and Zimbabwe.Under an existing short-term agreement with Chengxin signed in 2023, Pilbara Minerals agreed to supply 70,000 tonnes (kt) of spodumene concentrate from the Company’s 100% owned Pilgangoora Operation in financial year 2024 (FY24).The amendment results in a significant extension and expansion of the offtake agreement until the end of calendar year 2026 (CY26). The terms of the amendment are detailed below:
• CY24 - Pilbara Minerals will supply an additional 60kt of spodumene concentrate taking the total supply in CY24 to 85kt.
• CY25 - Pilbara Minerals will supply 150kt of spodumene concentrate.
• CY26 - Pilbara Minerals will supply 150kt of spodumene concentrate.

Consistent with the existing pricing in the agreement, all spodumene concentrate volumes will be sold based on the prevailing market price.This increased supply to Chengxin, is separate to Pilbara Minerals’ strategic partnership process which continues to be progressed in parallel and remains on track to conclude in the March Quarter 2024.
Pilbara Minerals’ Managing Director and CEO, Dale Henderson, said:“We are very pleased to be extending and expanding our relationship with Chengxin, a leading lithium chemical producer and supplier to customers such as BYD, LG Chemical, SK On, CATL and Hyundai.

“This amendment highlights the demand for Pilbara Minerals’ product and is a continuation of our strategy to expand our partnership with leading global lithium producers in the medium term while we progress the development of our long-term downstream partnership strategy.
“Both Pilbara Minerals and Chengxin are committed to the energy transition and are focused on extending our respective positions as high quality, low-cost producers in the growing lithium battery materials market.”
Chengxin’s Chairman, Zhou Yi, said:“We are pleased to be extending our agreement with Pilbara Minerals, a recognised leader in the mining and development of lithium assets. This agreement further deepens our valued partnership with Pilbara Minerals and we look forward to supporting our global customers through the continued provision of high quality and cost-competitive lithium materials.”

About Pilbara MineralsPilbara Minerals is the leading ASX-listed lithium company, owning 100% of the world’s largest, independent hard-rock lithium operation. Located in Western Australia’s resource rich Pilbara region, the Pilgangoora Operation produces spodumene and tantalite concentrates. The significant scale and quality of the operation has attracted a consortium of high quality, global partners including Ganfeng Lithium, General Lithium, POSCO, Yibin Tianyi and Chengxin Lithium.About Chengxin LithiumChengxin Lithium is a leading global company across the lithium value chain, with a diverse product mix including lithium concentrates, lithium chemicals and lithium metals.
Chengxin Lithium operates a number of international facilities and supplies prominent stakeholders within the lithium battery industry including BYD, LG Chemical, SK On, Contemporary Amperex Technology Co. Limited (CATL) and Hyundai. Chengxin Lithium is headquartered in Chengdu, China, and listed on the Shenzhen Stock Exchange (stock code: 002240, stock abbreviation: Chengxin Lithium).Important InformationThis announcement may contain some references to forecasts, estimates, assumptions and other forward-looking statements.

Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions, it can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the business, which could cause actual results to differ materially from those expressed herein.
Guidance as to production, unit costs and capital expenditure is based on assumptions, budgets and estimates existing at the time of assessment which may change over time impacting the accuracy of those estimates. These estimates are developed in the context of an uncertain operating environment including in respect of inflationary macroeconomic conditions, incomplete engineering and uncertainties surrounding the risks associated with mining and project development including the approvals, construction, commissioning and ramp up of P680 and P1000 which may delay or impact production and have a flow on effect on sales. Actual results may therefore vary significantly depending on these risks and the timing required to address them.
All information is provided as an indicative guide to assist sophisticated investors with modelling of the Company. It should not be relied upon as a predictor of future performance.Information in this announcement regarding production targets and expansions in nameplate capacity of the Pilgan Plant in respect of the P680 and P1000 projects are underpinned by the Company’s existing Ore Reserves that have been prepared by a Competent Person in accordance with the JORC Code (2012 Edition) and were released by the Company to ASX on 24 August 2023. The relevant proportions of proven Ore Reserves and probable Ore Reserves are 9% proved Ore Reserves and 91% probable Ore Reserves. The Company confirms it is not aware of any new information or data that materially affects the information included in that release or report and that all material assumptions and technical parameters underpinning the Ore Reserves estimates continue to apply and have not materially changed.