Smackover Lithium’s South West Arkansas Project Receives Royalty Rate Approval From the Arkansas Oil and Gas Commission

Rhea-AI Summary

The Arkansas Oil and Gas Commission (AOGC) has unanimously approved a 2.5% royalty rate for the Reynolds Unit in Phase I of Smackover Lithium's South West Arkansas (SWA) Project. This marks the first-ever lithium brine extraction royalty rate approval in Arkansas, setting a precedent for the industry. The total compensation package includes an additional brine fee of $65.05 per acre annually, bringing the total royalty to approximately 3% at current lithium prices.

Smackover Lithium, a joint venture between Standard Lithium (NYSE:A:SLI) and Equinor, plans to achieve a production capacity of 22,500 tonnes per year of battery-quality lithium carbonate at the Reynolds unit, with full commercial production expected by 2028.

Positive

• First-ever lithium brine extraction royalty rate approval in Arkansas, establishing important industry precedent
• Significant production capacity of 22,500 tonnes per year of battery-quality lithium carbonate
• Reasonable royalty rate of 2.5% plus brine fee demonstrates state support for lithium development
• Project moving forward towards final investment decision

Negative

• Commercial production not expected until 2028
• Additional royalty payments will impact operational costs

LEWISVILLE, Ark., May 29, 2025 (GLOBE NEWSWIRE) -- Smackover Lithium, a Joint Venture (“JV”) between Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV:SLI) (NYSE:A:SLI) and Equinor, is pleased to announce that the Arkansas Oil and Gas Commission (“AOGC”) has unanimously approved the establishment of a 2.5% royalty rate for the Reynolds Unit for Phase I of its South West Arkansas (“SWA”) Project in Lafayette and Columbia Counties. This is the first royalty rate for lithium from brine extraction that has been approved by the AOGC, establishing an important precedent for lithium development companies operating in Arkansas.

SWA Lithium LLC applied for a quarterly gross royalty of 2.5% earlier this month. The lithium royalty will be paid to brine owners in addition to the brine fee, also referred to as the “in lieu bromine royalty,” of $65.05 per acre per year, making the total proposed royalty compensation approximately 3% based on current lithium prices. The AOGC granted approval during a special hearing yesterday in Magnolia, AR.

“We thank the AOGC for granting royalty rate approval for Phase 1 of our SWA Project,” said Standard Lithium’s CEO, David Park, “Establishing a fair and equitable royalty will allow brine owners to be compensated while encouraging economic development of the state’s significant lithium resource.”

“The AOGC’s decision to grant a reasonable royalty for Phase 1 of our SWA Project demonstrates the state’s commitment to landowners and lithium development,” said Allison Kennedy Thurmond, VP for US Lithium at Equinor. “The royalty rate is only the beginning of capital investment and moves us one step closer to our final investment decision.”

The Reynolds unit has planned production capacity of 22,500 tonnes per year of battery-quality lithium carbonate once in full commercial production, expected in 2028. For more information about the SWA Project and Smackover Lithium, please visit www.smackoverlithium.com

About Standard Lithium Ltd.

Standard Lithium is a leading near-commercial lithium development company focused on the sustainable development of a portfolio of large, high-grade lithium-brine properties in the United States. The Company prioritizes projects characterized by high-grade resources, robust infrastructure, skilled labor, and streamlined permitting. Standard Lithium aims to achieve sustainable, commercial-scale lithium production via the application of a scalable and fully integrated Direct Lithium Extraction (“DLE”) and purification process. The Company’s flagship projects are located in the Smackover Formation, a world-class lithium brine asset, focused in Arkansas and Texas. In partnership with global energy leader Equinor, Standard Lithium is advancing the South West Arkansas project, a greenfield project located in southern Arkansas, and actively exploring promising lithium brine prospects in East Texas. Standard Lithium also holds an interest in certain mineral leases in the Mojave Desert in San Bernardino County, California.

Standard Lithium trades on both the TSX Venture Exchange and the NYSE American under the symbol “SLI”. Please visit the Company’s website at www.standardlithium.com.

About Equinor

Equinor is an international energy company committed to long-term value creation in a low-carbon future. Equinor’s portfolio of projects encompasses oil and gas, renewables and low-carbon solutions, with an ambition of becoming a net-zero energy company by 2050. Headquartered in Norway, Equinor is the leading operator on the Norwegian continental shelf and is present in around 30 countries worldwide. Equinor’s partnership with Standard Lithium to mature DLE projects builds on its broad US energy portfolio of oil and gas, offshore wind, low carbon solutions and battery storage projects.

For more information on Equinor in the US, please visit: Equinor in the US - Equinor

Investor and Media Inquiries

Chris Lang
Standard Lithium Ltd.
+1 604 409 8154
investors@standardlithium.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to intended development timelines, future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for lithium and its derivatives, changes in exploration costs and government regulation in Canada and the United States, and other factors or information. Such forward-looking statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.

FAQ

What royalty rate did Smackover Lithium (SLI) receive for its South West Arkansas Project?

Smackover Lithium received approval for a 2.5% quarterly gross royalty rate, plus a brine fee of $65.05 per acre per year, totaling approximately 3% based on current lithium prices.

What is the expected production capacity of SLI's Reynolds Unit?

The Reynolds Unit is planned to produce 22,500 tonnes per year of battery-quality lithium carbonate once in full commercial production.

When will Smackover Lithium's SWA Project begin commercial production?

Full commercial production at the South West Arkansas Project is expected to begin in 2028.

Who are the partners in the Smackover Lithium joint venture?

Smackover Lithium is a joint venture between Standard Lithium Ltd. (NYSE:A:SLI) and Equinor.

Why is this royalty rate approval significant for SLI?

This is the first-ever royalty rate approved for lithium from brine extraction in Arkansas, setting an important precedent for lithium development companies in the state.