Ann: Lithium Industry Support Program, page-55

Don't quite agree with parts of your post;
re: "It demonstrates the governments commitment to the sector, and our company in particular and its critical role in the sector."

If the governments, specifically the Western Australian government were really committed to the sector,

• they would be providing support to ALL lithium miners and producers
• 2023/4 even after the decline in prices, Spodumene was still an $8.4 billion industry in Western Australia, $150 million is a drop in the ocean really
• A similar 50% Royalty Rebate scheme as the previous one would be more beneficial to the whole industry but would not have the same optical effect as adding $15 million to the cash balance sheet (as in LTR's case)
• The waiver of port charges and rebates for mining tenement fees that support ramp up operations, given these waivers are applicable from 1 January 2025 for 2 years is on the surface a win as it will improve profit margins, but that will be offset against more royalty payments? As my understanding of royalty fees being based on product sales less costs?
• as for including "our company in particular ......" -- the scheme is available to ALL Lithium miners/producers that meet the criteria and wasn't designed solely for Liontown.

As for the Western Australian commitment, again, $150 million is a pittance when you take into consideration the full impact and significance of what the Lithium industry's economic contribution is to Western Australian;

• $23 billion annually
• approximately 15,000 direct employment jobs
• estimated 45,000 indirect employment jobs
• 12 major communities dependent

Port Charges Waiver Benefits

• Eliminates handling and wharfage fees
• reduces logistics cost by approximately 8-10% per shipment

Mining Tenement Fee Rebates

• returns 75% annual tenement maintenance fees
• applies to mining leases currently in production
• excludes exploration tenements
• approximately $1.2 million in annual savings

The combined measures will create an estimated $3.5 million annual benefit to Liontown for the two year period, as per industry analysts.

The optics, I agree look great but given the criteria to apply, how many companies will be eligible for the up to $15 million loan and additional relief?
There were 8 Lithium mines (corrections appreciated) operating in Western Australia producing at a commercial scale but those excluded during the application period (applications are now closed) would be;

• Bald Hill - excluded - mothballed
• Mt Caitlin - excluded - although at time of application period is still operational, but will be excluded as part of the criteria is ongoing viability as it is scheduled to be placed in C & M mid year
• PLS Ngungaju mine - excluded - mothballed

re: "The fact that the facility is unsecured is a further endorsement of our company and its operations."

This isn't specific to Liontown, the loans offered under the support program are "unsecured" with the lenders recourse through the borrowers general assets and liabilities in the event of a default.

• Not all organisations are equal, in the case of the $25 million held by Export Finance Australia ("EFA") as security in relation to a guarantee under the power purchase agreement with Zenith Energy. The Company is working with Ford, Zenith and EFA to release these funds through the provision of alternative security.
• If you take a closer look at the current loan securities, there isn't much Liontown can offer to another 3rd party as security for loans.
• Furthermore, the unsecured status of the loan has no impact on Liontown's existing debt facilities with commercial lenders, but I would opine, that if security over the government loan was required they may have struggled, as per having to involve Ford in the discussions to release the $25 million cash security held by EFA.

What I totally agree with is,
re: "It also demonstrates managements proactive approach to minimising costs and maximising value on behalf of shareholders."

• It would have be remiss of Ottaviano and the management team not to apply for the support scheme, as a point Ottaviano made no apologies and was on the front foot with his hand out when the Western Australian government announced the scheme.

~ I will add from memory that initially I was negative to Ottaviano putting his hand out and may have commented as such

• the company was also quick to react to the Lithium price falling with a dynamic approach re: 2H FY25 guidance and cost saving activities.