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Prairie Lithium (ASX:PL9) commences final testing of North America's largest DLE unit ahead of Saskatchewan deployment

Jane Morgan Management

Key Facts:

• Factory Acceptance Testing begins on North America's largest Direct Lithium Extraction unit, featuring four commercial-scale columns
• Commissioning targeted for Q4 2026 at Prairie Lithium Project in Saskatchewan, with production secured under binding offtake agreement with South Korea's Hydro Lithium
• Agreement covers 100% of Phase 1 production (150 tonnes p.a. of lithium carbonate equivalent), with Hydro Lithium providing A$10 million in refining equipment
• Unit deployment marks significant milestone in validating scalable development model before potential expansion
• Post-testing plans include facility construction completion, equipment integration, and ongoing optimisation of DLE unit performance

Prairie Lithium Limited (ASX: PL9, OTC: PLIXF) has commenced Factory Acceptance Testing of its commercial-scale Direct Lithium Extraction unit, marking a key milestone ahead of installation, commissioning and first production at its Prairie Lithium Project in Saskatchewan, Canada.

The unit is the largest DLE unit built in North America and comprises four commercial-scale columns. Following successful completion of testing, it will be transported to Saskatchewan for installation at the Company’s Phase 1 production facility.

Commissioning remains targeted for Q4 2026, with first production expected to support initial revenue generation under Prairie Lithium’s binding offtake agreement with Hydro Lithium of South Korea.

The agreement secures 100% of Phase 1 production, equivalent to 150 tonnes per annum of lithium carbonate equivalent. Hydro Lithium will also provide and operate approximately A$10 million of proprietary refining equipment at the Saskatchewan site, reducing upfront capital requirements and supporting Prairie’s lower capital development model.

Prairie Lithium considers the testing and deployment of the four-column DLE unit a major milestone in validating its scalable development model. Phase 1 is designed to establish commercial-scale proof of concept before potential expansion through the Company’s repeatable pad-by-pad development strategy.

Prairie Lithium Managing Director, Paul Lloyd, commented:

“Commencing Factory Acceptance Testing of our commercial-scale DLE unit is a critical milestone for Prairie Lithium as we move closer to installation, commissioning and first production in Saskatchewan. The unit itself represents the largest DLE unit ever built in North America and we look forward to getting it installed in Saskatchewan in the very near future. Standard Lithium has demonstrated tremendous success with its single DLE column in Arkansas, and we are very excited to build on that success at four times the scale. Deploying one of the largest DLE units globally not only allows us to de-risk and rapidly scale our project, it also positions Prairie Lithium to generate revenue as we produce and sell lithium into our recently announced binding offtake with Hydro Lithium in South Korea.”

Following completion of Factory Acceptance Testing, Prairie Lithium will continue progressing remaining facility construction and integration of commercial-scale processing equipment ahead of commissioning. After commissioning, the Company intends to continue optimisation and operational performance testing of the DLE unit, including lithium recovery and contaminant rejection performance, while also evaluating future expansion opportunities.

About us:

About the Prairie Lithium Project

PL9’s Prairie Lithium Project in Saskatchewan, Canada, is in one of the world’s top mining friendly jurisdictions. The project has easy access to key infrastructure including electricity, natural gas, fresh water, paved highways and railroads. The project also aims to have strong environmental credentials, with Prairie Lithium targeting to use less freshwater, land and waste, aligning with the Company’s sustainable approach to lithium development.

Contact details:

Jane Morgan
Jane Morgan Management
Investor & Media Relations
[email protected]