Completion Of Construction Of Plant Foundation Earthworks

VANCOUVER - Sigma Lithium Corporation reported that during this transformative year, the Company significant strides in advancing its Grota do Cirilo Project, including commencing fully equity funded construction of the Phase 1 Plant and Xuxa deposit (Phase 1 Mine), releasing a positive PEA for Phase 2, and securing a take or pay offtake with LG Energy Solution. Sigma Lithium has advanced to become a strategically relevant leader in the lithium industry.

All these advancements were completed while consistently focusing on the core purpose to deliver on our ESG-centric agenda of social and environmental sustainability: maintaining a profound commitment to the sustainable development of the Vale do Jequitinhonha region where it operates. Completed transformational social programs such as "Homecoming skilled workers", "Zero Hunger", "Omicron Covid prevention", "Childcare for all". Advanced on pioneering environmental sustainability strategy: donated 150 hectares of forestry for environmental compensation and will treat sewage water of the Jequitinhonha River to utilize in the Phase 1 Plant (while preserving other water sources). As a result, Sigma Lithium has played a leadership role in the global sustainability dialogue for the battery materials industry and was highlighted at COP-26 in Glasgow for the second time as an ESG case study in sustainable development of natural resources (promoting the circular economy as a driver of social sustainability).

The Company had significant advancement on construction of the Phase 1 Plant, establishing operational readiness, and supporting ongoing operations. Phase 1 Plant is contemplated to have capacity of over 230,000 tpa of high-purity 6% battery grade environmentally sustainable lithium concentrate (Battery-Grade Sustainable Lithium). The Company completed 100% of earthworks necessary for construction of the foundations for the Phase 1 Plant on schedule and on budget. The Company plans to commence Phase 1 Plant commissioning at the end of 2022. Initiation of civil works is commencing in April 2022. Licensed mobile cement plant for the site.

The construction team is currently focused on the construction of the Phase 1 Mine's protective drainage (channels and pipes) and construction of the bypass of the municipal road around the Grota do Cirilo Project. These two workstreams are expected to be concluded as planned during the month of April 2022.

The ROM pad construction is expected to commence in April, and it will be followed by the construction of the haul road linking the Phase 1 Mine to the Phase 1 Plant and widening of the municipal access road. There are currently over 300 personnel and 73 heavy construction units on site, including: mobile concrete mixer trucks, hydraulic excavators, backhoe loaders, track, tire, and crawler tractors, road rollers, dump trucks, water trucks, pickup trucks and utility and ambulance vehicles.

Detailed engineering work regarding the engineering, procurement and construction management for the Phase 1 Plant (including civil works) has been led by Primero Group Ltd and has been progressing as indicated in the tables below. The Company prioritized the engineering completion of the following aspects of the Phase 1 Plant: process design, mechanical, structural/foundations and concrete. This sequencing had two main objectives: further refining the flowsheet of the dense media separation ("DMS") circuit; and conducting trade-off analysis for critical equipment, such as the DMS ultrafine circuits, the environmental dry-stacking, and water recirculation circuit.