Chairman’s Letter

Dear Shareholders, It was a landmark year in 2021–22 for Lithium Power International (“LPI” or the “Company”) in many important ways thanks to advances made towards development of our world class Maricunga Lithium Brine Project in Chile and to rationalise the assets of LPI. Principally, we completed a significant expansion of the geological resources of the Maricunga project and delivered a revised and very attractive DFS, and also started important processes to: a consolidate the ownership of the Maricunga project under one owner, and to a separately list our Western Australian projects on the ASX. LPI remains as a pure-play lithium development company, and we will soon be able to focus our full attention on developing the Maricunga project. Moves are well advanced to consolidate ownership of this substantial resource solely within LPI, with the completion of a three-party, scrip merger with our joint venture partners – Minera Salar Blanco SpA and Bearing Lithium Corp – to form a single management entity to more effectively manage the Maricunga project. That will better allow directors and management to focus on Maricunga and, in the longer term will provide a more attractive structure for investors as we source development capital and commit the project to development. Under the consolidation process the proportionate interest to be owned by current or pre-consolidation LPI shareholders will rise from 51.55% to 57.9% when new shares are issued to buy out our other joint venture partners. Based on an updated Definitive Feasibility Study released early in 2022, the Maricunga project is expected to provide shareholders with impressive returns in future years. Stage One of the project development should yield a $US1.4B net present value and an internal rate of return of almost 40%. Pay back should take just two-years from first production, with estimated operating cash costs of US$3,718 per tonne for each tonne of lithium carbonate equivalent produced. This would place the Maricunga project in the lowest quartile of global lithium producers. Average annual earnings before interest and tax are expected to be US$324 million. Your company also substantially increased Measured and Indicated Resource by 90 per cent after completion of a new drilling program on the salar to depths of 400m. An exploration target has also been set for possible lithium mineralisation extending to depths up to 550m, indicating the opportunity for us to pursue possible project expansions either in production rate or mine life.

Important advances have also been made with our lithium exploration assets in Western Australia, particularly in the south-west Greenbushes region where exploration activity boosted the potential of our tenements near the world-class Talison Greenbushes lithium mine, which is owned by a partnership of Albemarle Corp, Tianqi Lithium and IGL Limited. New tenements were recently acquired making LPI the largest single lease holder in this world-renowned Greenbushes region. Two additional prospective tenements were also acquired in the Eastern Goldfields. Other tenements continue to be held in the Pilbara region, near large nearby lithium mines that have been developed in recent years. A decision has been taken to divest all of the Western Australian assets into a new, listed company called Western Lithium. Preparations are well advanced, including the identification of a new board, with the entity having been approved by ASIC and the allocation of a future trading code made by the Australian Stock Exchange, as WLI. This spin-out will better allow the WA assets to have a more focussed exploration process, and in particular will allow your Directors prioritise the development of huge Maricunga project. I owe thanks to everyone who has contributed to these significant achievements – fellow Board members, our management team, advisors, contractors, suppliers and to our loyal shareholders. Exciting times lie ahead, in moving the Maricunga project to development in 2023 supported by our great team both in Santiago and Sydney. The goal that we have all strived for in recent years, is to bring into production one of the world’s best lithium deposits in the world, exemplified by our high standards of technical and environmental achievements together with our focus on community engagement. We are truly excited by the challenge and opportunity that lies in front of us which we soon expect to realise.

David R Hannon

Chairman 14 September 2022 Sydney