Power Minerals Ltd (ASX:PNN) Power Enters Into Term Sheet with Summit  to Develop World’s First Multi-Salar lithium Project in Salta

23 March 2026

Price Sensitive Announcement $

Highlights:

• Power Minerals has executed a non-binding Term Sheet with Summit Explore Corporation, (“Explore”) a wholly owned subsidiary of world-leading sustainable Direct Lithium Extraction (DLE) provider Summit Nanotech (“Summit”) for strategic investment and development of Power’s five lithium brine salars at its Salta Lithium Project in Argentina’s lithium triangle; Incahausi, Rincon, Pocitos, Pular and Arizaro (“the Projects”) defined geographically by the Area of Influence (“AoI”).

• The Term Sheet establishes a detailed framework of development work and the proposed grant of options under which the parties will use commercially reasonable efforts to negotiate and execute a binding Definitive Agreement for the Projects development

• Explore will secure under the Definitive Agreement a joint venture option as follows:

  – Acquire a 59% joint venture interest over the Projects once it elects to fund and build a 5,000t commercial DLE plant. Explore plans to initially fund up to US$6m on the AoI to complete required exploration including drilling water and pumping wells; and

  – As part of Explore’s earn-in obligations and in support of the PFS, Explore shall arrange and fund the analysis of brine compatibility and an extraction efficiency study incorporating all brine from the AoI. Summit’s Alpaca DLE demonstration facility in Santiago, Chile will provide detailed engineering designs and estimates for commercial scale production.

• Explore may elect to proceed to formation of the Joint Venture by giving formal notice to proceed to commercial scale, or may elect to pay US$1m standby payments for each of two extensions of 12 months

• Explore will also secure under the Definitive Agreement an option to acquire the Salta Project for US$50 million, which may be exercised at any time during the PFS Period

• The Term Sheet is a pivotal agreement for Power and Explore/Summit to deliver commercial-scale production of high-quality lithium from its Argentinian assets through a joint venture or a high-value divestment to monetise the Project

• Summit’s world-leading patented denaLi™ DLE technology is able to produce lithium from brines with over 95% lithium recovery and over 98% impurity reduction
• Summit Explore is currently in the process of acquiring additional lithium brine projects within the region to add to the AoI;Power would hold 41% of all additional projects once the JV is formed

Overview:

Power Minerals Limited (ASX: PNN) is pleased to announce that it has executed a Non-binding Term Sheet with Summit Explore Corporation (Explore), a wholly-owned subsidiary of world-leading Canadian direct lithium extraction (DLE) technology provider Summit Nanotech Corporation (BN 753314913) (Summit), for the development of its Salta Lithium Project, within the lithium triangle in Salta Province, Argentina.

This is a pivotal milestone in the proposed development of the Salta Project into a significant DLE lithium producing operation. The lithium assets of the Salta Project included in the Term Sheet are the Incahausi, Arizaro, Rincon, Positos and Pular lithium brine salars (See Figure 1).

The parties will now work collaboratively to execute a binding Definitive Agreement for the development of the Salta Project in a proposed joint venture between Power and Explore, utilising the terms of the Term Sheet as a framework for the Definitive Agreement.

The parties have agreed to a period of 90 days from the execution of the Term Sheet to conclude the Definitive Agreement.

Under the Term Sheet and upon the execution of a Definitive Agreement, it is proposed that at NTP, Power and Explore will enter a Joint Venture under which Explore would acquire a 59% interest in the Joint Venture including all five lithium brine assets of Power’s Salta Project, with Power holding the remaining 41% interest in the Joint Venture.

Explore is currently acquiring additional lithium brine projects in the region, all of which have existing JORC 2012 Mineral Resource Estimates (MREs). The acquisition of these additional projects will be solely funded by Explore, and these projects will be added to the Joint Venture with the aim of expanding the Joint Venture’s Mineral Resource base, and the size and scale of the proposed lithium producing operation.

All additional Projects acquired by Explore will be rolled into the Joint Venture at no cost to Power and will have no impact on Power’s 41% interest in the Joint Venture.

Under the Term Sheet, Explore also has the option to acquire Power’s Salta Project outright for an all-cash amount of US$50 million at any time after the execution of the Term Sheet.

The Term Sheet also contemplates that Explore will provide strategic investment funding of up to US$6 million for water drilling, Minerals Resource drilling and other development work, to deliver a Preliminary Feasibility Study for the proposed Area of Influence (AoI), in accordance with Canadian NI 43-101 standards (or equivalent applicable standard) (PFS). The AoI comprises Power’s five salars and all projects acquired by Explore that will be included in the Joint Venture.

Explore’s 59% interest in the Joint Venture will vest only on the delivery of a Notice to Proceed (NTP) after Explore has delivered the PFS to Summit and Power.

If Explore elects not to proceed with the formation of the Joint Venture after successfully delivering the PFS, it will be required to pay US$1m in standby payments to maintain the agreement in good standing for each of two 12-month extensions.

Also, in support of the PFS, Explore shall arrange and fund the testing of brine compatibility and extraction efficiency from the Project’s brine samples at Summit’s Alpaca DLE demonstration facility in Santiago, Chile.

During the PFS period, it is proposed that the parties will establish a Technical Committee to review and make recommendations in respect of the progress and completion of the PFS. The Technical Committee will govern the functional and relational activities of the parties and ensure that appropriate oversight is in place until the Joint Venture is formed. Explore will chair the Technical Committee.

The matters contemplated under the Term Sheet will be subject to both parties securing any requisite board and regulatory approvals.

Next Steps

The Term Sheet between Power and Explore has been successfully executed. The two parties now have 90 days from the execution of the Term Sheet to conclude a Definitive Agreement and Joint Venture for the development of the five Salta lithium brine assets. This period may be varied by mutual agreement between Power and Explore.

Following execution of the Definitive Agreement and Joint Venture, Explore will fund up to US$6m for development work towards the successful delivery of the PFS. After delivery of the PFS it is anticipated that the parties will enter a formal Joint Venture agreement for the development of the Projects. Once the Definitive Agreement is executed, Summit will be responsible for sourcing and securing equipment finance to complete the plant construction while the JV secures Project finance to deliver infrastructure on site.

The ultimate focus of Summit is to develop the lithium brine assets of the Joint Venture into a significant, commercial-scale, high-quality lithium-producing operation utilising Summit’s patented denaLi™ DLE technology fed with brine from multiple salars.

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