Terms of the Non-Binding Memorandum of Understanding (MOU)Under...

Terms of the Non-Binding Memorandum of Understanding (MOU)Under the MOU, the parties have agreed to enter into a Strategic Partnership Agreement forthe development and acquisition of lithium projects and for the supply of spodumeneconcentrates.The Strategic Partnership Agreement is to be entered into within 6 months of signing theMOU (the “Completion Period”).The following terms are to be negotiated for inclusion in Strategic Partnership Agreement:• Yahua to be offered an equity position of up to 80m Shares in Jadar (approximately10%) at $0.045 per share. Should this eventuate, Jadar is to ensure that investmentfunds are only used for exploration and development of its lithium projects;• Establishment of a joint venture for the acquisition and development of lithiumprojects;• Jadar to sell 100% of the lithium concentrate produced by the Company to Yahua;• Jadar to ensure all governmental and local mining approvals and licenses necessaryfor operation are acquired;• Obtaining any required approvals to enter into the Strategic Partnership Agreement.The MOU shall terminate on signing of the Strategic Partnership Agreement. If the parties areunable to finalise the Strategic Partnership Agreement before the expiry of the CompletionPeriod, then:• Either party shall have the option to extend negotiations for an additional 1 month,provided that such intention to extend the negotiations is conveyed to the other partyin writing at least seven working days prior to expiry of the Completion Period; or• Either party may terminate the MOU upon seven days written notice; or• Termination on conclusion of the Completion Period.About Yahua International Investment and Development Co. Ltd (“Yahua”),Yahua is a wholly owned subsidiary of Sichuan Yahua Industrial Group Co., Ltd which is a listedcompany on the Shenzhen-stock exchange in China, principally engaged in the manufactureand sales of civil explosive materials and of lithium salt products (“Yahua Group”). YahuaGroup is one of China’s major lithium hydroxide and lithium carbonate producers, withexisting operations of a 43,000tpa refinery for lithium carbonate, lithium hydroxide and otherlithium products, and is in expansion for a further 50,000tpa of lithium hydroxide and1,000tpa of lithium metal by 2025.