Ann: AVZ Signs Second Lithium Offtake Agreement, page-4

Chengxin is set to become one of the largest lithium hydroxide producers in China, with initial production capacity of up to 25,000t lithium carbonate and 15,000t lithium hydroxide and with future staged expansions expected to increase production to approximately 70,000t per annum. Chengxin will require approximately 560,000t per annum of SC6 to satisfy its internal demand after commissioning its planned expansions. Key terms of the Chengxin Offtake Agreement: • Term: initial 3-year term, with extension options by mutual agreement • Annual Supply of up to 180,000 tonnes of spodumene concentrate per annum • Pricing USD/CIF, China determined by a formula which references various published market prices of lithium carbonate and lithium hydroxide products and underpinned by an agreed floor price • Shipment payments via documentary letter of credit • Termination rights included for breach of the material terms of the Offtake Agreement including non-payment or failure to supply or take annual quantity commitments This release was authorised by Nigel Ferguson, Managing Director of AVZ Minerals Limited. For further information, visit www.avzminerals.com.au or contact: