Vulcan Energy Resources Limited: Vulcan and Stellantis sign agreement to support decarbonisation of Rüsselsheim auto manufacturing facility with geothermal energy

Highlights

• Vulcan and Stellantis have entered into a phased project agreement (Project), aimed at developing, building, and operating geothermal renewable energy assets to help decarbonise the Company's energy supply in Rüsselsheim, by providing renewable heat.
• Stellantis aims to be the auto industry champion in climate change mitigation, becoming carbon net zero by 2038, with a 50% reduction by 2030. This requires Stellantis, as a leading mobility tech company to decarbonise and localise its energy supply across its manufacturing facilities.
• In the northern area of the Upper Rhine Valley in Rüsselsheim am Main, Stellantis maintains a large manufacturing facility in which the DS 4 and Opel Astra models are produced, including the electrified variants. This facility in the German state of Hesse is also the traditional home of the Opel brand and the German headquarters of Stellantis.
• The planned Project will be at the northernmost extent of Vulcan's focus area in the Upper Rhine Valley.
• The first phase of the Project will include a Pre-Feasibility Study for the construction of geothermal assets for Stellantis' Rüsselsheim facility, carried out by Vulcan and based on existing data. The following phase, if the first phase is successful, will focus on drilling and more advanced studies and development.
• Stellantis will aim to source funding for 50% of the project development after the first phase.

"This partnership with Vulcan reinforces our commitment to promoting greater clean energy solutions across our enterprise," said Stellantis CEO Carlos Tavares. "It is one of many actions we've taken to drive results, impact, and sustainability in alignment to our Dare Forward 2030 strategic plan."

"I am happy about the partnership of Stellantis, and Vulcan Energy announced today," said Boris Rhein, Minister President of Hesse. "This is positive news for Hesse because it shows that in our state, climate protection and state-of-the-art industrial production through innovative ideas are perfectly compatible."

Vulcan's Managing Director and CEO, Dr. Francis Wedin, said, "Vulcan's core mission is decarbonisation, through carbon neutral, zero fossil fuels lithium and renewable energy supply. Vulcan is here to support Stellantis, our largest lithium Customer and one of our major shareholders, to decarbonise Stellantis' automotive production in Europe. This further increases our decarbonising impact on the European electric vehicle industry, complementing the carbon avoidance from our Zero Carbon Lithium™ Project, whilst creating shareholder value. We remain focused on our core geothermal-lithium developments in the centre of the Upper Rhine Valley Brine Field, to service our customers, including Stellantis. Our joint Project is a complementary opportunity to expand our development pipeline to some of the outer lying areas in the Upper Rhine Valley, where we can also test for extensions to our lithium development, supported by industrial partners like Stellantis."

Material Terms of the Agreement

• VUL will carry out a Pre-Feasibility Study for the development of geothermal renewable energy projects in Rüsselsheim as the first phase of the multiphase Project (Phase A).
• The parties will seek public funding opportunities together to advance the Project.
• VUL will still own 100% of its Ried license at the end of Phase A, and the parties will each own 100% of their data and studies following Phase A.
• VUL will also perform a lithium mineral resource assessment according to the JORC Code (Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves).
• Stellantis is to pay back 50% of VUL's contributions in the case the Project does not go to the next phase after Phase A.
• Stellantis will aim to source and provide funding for 50% of the next phase of the Project. The business model and project structure for the Project's development in Phase B onwards will be negotiated based on the results of Phase A.
• The Agreement will continue until validly terminated in the ordinary course, or the event of a "Nogo" decision at the end of one of the phases and Vulcan will continue to keep the market updated on developments in relation to the BTS and Project.

About Stellantis

Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) is one of the world's leading automakers and a mobility provider. Its storied and iconic brands embody the passion of their visionary founders and today's customers in their innovative products and services, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Powered by our diversity, we lead the way the world moves - aspiring to become the greatest sustainable mobility tech company, not the biggest, while creating added value for all stakeholders as well as the communities in which it operates. For more information, visit www.stellantis.com

About Vulcan

Founded in 2018, Vulcan's unique Zero Carbon Lithium™ Project aims to decarbonise lithium production, through developing the world's first carbon neutral, zero fossil fuels business, with the co-production of renewable geothermal energy on a mass scale. By adapting existing technologies to efficiently extract lithium from geothermal brine, Vulcan aims to deliver a local source of sustainable lithium for Europe, built around a net zero carbon strategy with strict exclusion of fossil fuels. Already an operational renewable energy producer, Vulcan will also provide renewable electricity and heat to local communities.

Vulcan's combined geothermal energy and lithium resource is the largest in Europe, with license areas in the Upper Rhine Valley, Germany, and Italy. Strategically placed in the heart of the European electric vehicle market to decarbonise the supply chain, Vulcan is rapidly advancing the Zero Carbon Lithium™ Project to ensure timely market entry, with the ability to expand to meet the unprecedented demand that is building in the European markets.

Guided by our Values of Integrity, Leadership, Future-focused and Sustainability, and united by a passion for environmentalism and leveraging scientific solutions, Vulcan has a unique, world-leading scientific and commercial team in the fields of lithium chemicals and geothermal renewable energy. Vulcan is committed to partnering with organisations that share its decarbonisation ambitions and has binding lithium offtake agreements with some of the largest cathode, battery, and automakers in the world. As a motivated disruptor, Vulcan will leverage its multidisciplinary expert team, leading geothermal technology and position in the European EV supply chain to be a global leader in producing zero fossil fuel, carbon neutral lithium while being nature positive. Vulcan aims to be the largest, most preferred, strategic supplier of lithium chemicals and renewable power and heating from Europe, for Europe; to empower a net zero carbon future. For more information, visit www.v-er.eu

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward-looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Vulcan operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forwardlooking statement. No forward-looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Vulcan's control.

Vulcan does not undertake any obligation to update publicly or release any revisions to these forwardlooking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Vulcan, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by Vulcan. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.