Ann: Lycopodium completes engineered design for Phase 1 Plant, page-2

Engineering for Phase 1 Plant Feasibility Study Highlights Potential for Higher Throughput Rates • Lycopodium completes engineered design for Phase 1 L-Max® Plant • Capacity-cost trade-off evaluations to determine optimal configuration have commenced • Installed capacity of between 5,000t and 6,000t pa of LCE for major equipment is being evaluated • Feasibility Study remains on schedule and budget for completion during the September 2018 quarter Lepidico Ltd (ASX:LPD) (“Lepidico” or “Company”) is pleased to announce that Lycopodium Minerals Pty Ltd a subsidiary of Lycopodium Limited (ASX:LYL) (“Lycopodium”) has completed an engineered design for the Company’s Phase 1 L-Max® Plant Feasibility Study, for a plant located in Sudbury, Canada (Figure 1). A design review has identified areas where trade-off evaluations are warranted between reduced cost and higher installed plant capacity to provide an optimal plant design. The Feasibility Study remains on track and budget for completion during the September 2018 quarter, with the permitting and approvals processes forming the critical path. Nominal throughput for the Phase 1 Plant design is 3.6 tonnes per hour of lithium mica concentrate feed, to provide output of between 2,500 tonnes and 3,000 tonnes per year of lithium carbonate equivalent (LCE). During the engineering design phase vendor specifications were received for all major capital equipment within the plant. In some instances, it is evident that unit capacity may significantly exceed the nominal design to allow either procurement of an “off the shelf” item and/or accommodate flexibility to treat a range of feed grades for key revenue elements. To precisely determine the capacity of major equipment within the plant a vendor testwork program has commenced, the cost of which is accommodated under the Phase 1 Plant Feasibility Study budget. This work, which is not on the Study critical path is scheduled to be completed during the June 2018 quarter and allow trade-offs between capacity and cost to be understood. The vendor testwork program will provide greater confidence on the actual capacity of each piece of equipment for its stated application and identify the incremental cost or cost saving of increasing or decreasing respectively its capacity.