An email sent by a group of shareholders; This email expresses...

An email sent by a group of shareholders;

This email expresses the concerns regarding recent developments, particularly the "CEO Remuneration Update" and the lack of transparency surrounding the company's future and its impact on shareholders.

CEO Remuneration:

• Incentive Award: The proposed A$1.15 million CEO incentive award appears poorly timed and excessive. Shareholders perceive it as insensitive, considering it's tied solely to past accomplishments and has no connection to the critical tranche 2 payment. This is especially concerning given the significant loss in shareholder wealth and the Group's A$1.7 million operating loss in FY2023 compared to the A$66.28 million profit in 2022. Furthermore, with the company's suspension since September 2023, shareholders have been denied access to their capital and lack clarity about the future. While we recognize there may be performance metrics not publicly available, we request greater transparency to justify the award.
• Fixed Remuneration Increase: The 15.44% increase in fixed remuneration seems unreasonable, given the current economic climate, with the Australian Wage Price Index (WPI) rising 4.2% and the Consumer Price Index (CPI) increasing 3.6% over the past year.

Shareholder Communication

• Capital Distribution Strategy: The lack of clear communication regarding the capital distribution plan, specifically the expected amount per share and the distribution date, is deeply concerning. Shareholders deserve transparency regarding all tranches of capital distribution, including the gross royalty revenue stream.
• Future Strategy: We are concerned about the company exploring potential future M&A strategies using shareholder capital. Given the current situation, full transparency and shareholder involvement in such decisions are crucial. Many shareholders invested in Leo Lithium primarily due to the Goulamina project. With that project no longer the focus and considering the lack of trust shareholders have in management, a clear path for returning capital should be established.

Impact on Voting

The lack of transparent communication and the company's current approach is causing retail shareholders to consider voting against the sale on principle. We strongly believe this sentiment is shared by many, including those the company may have spoken with recently.

Key Questions for Clarification

• CEO Remuneration
  • If you depart (as some shareholders anticipate based on recent announcements), are there any additional payments due beyond the incentive award?
  • Did the Remuneration and Nomination Committee (RNC) utilize The Rewards Practice ($21,500) and the BDO Rewards benchmarking report ($2,300) for the CEO incentive award? Could the RNC provide a copy of the CEO incentive award framework and any recommendations from these services?
  • Did the withdrawn (unachievable) short-term and long-term incentive components of the Managing Director's contract factor into the CEO Incentive Award?
• Binding Sale and Purchase Agreement
  • What Conditions Precedent, if any, remain to finalize the agreement?
  • Does the agreement include a Ganfeng no-liability clause for Tranche 2 payments if the Mali government hinders, rescinds, or reneges on the agreement?
  • What options does the Company have if Ganfeng reneges on paying the Tranche 2 payment?
  • If Firefinch does not sign the Tripartite Deed / does not transfer its interest in Morila SA and (all mining titles its subsidiaries hold in Mali for nominal consideration) what financial and legal impact will that have on Leo Lithium?
• Capital Distribution
  • The Company has stated a net-of-tax USD $161 million distribution to shareholders. Does "net of tax" refer to capital gains tax for the entire sale or only the Tranche 1 payment?
• Future Strategy
  • While feedback from major shareholders may be positive regarding future projects, will retail shareholders be consulted about this? Many retail shareholders have significant personal capital at risk (millions personally invested).

Conclusion

While we acknowledge your achievements in securing the settlement and transition agreement, the current remuneration structure, combined with poor communication and the deteriorating value of the company, raises significant concerns. We propose a review of the CEO incentive award amount considering the company's circumstances.

We strongly encourage open communication with shareholders regarding the company's future and a detailed capital distribution plan. Addressing these concerns is crucial in regaining trust and ensuring a positive outcome for all stakeholders.

Thank you for your time and consideration. We look forward to your response.

Sincerely,
The Shareholders included on this email