German State grants royalty exemption for lithium production

EQS-News: Vulcan Energy Resources Limited / Key word(s): Legal Matter
German State grants royalty exemption for lithium production

13.04.2026 / 10:12 CET/CEST
The issuer is solely responsible for the content of this announcement.

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German State grants royalty exemption for lithium production

Key highlights

  * Germany's State of Rhineland-Palatinate (Rhineland Palatinate or the
    State) has granted a royalty exemption for lithium production (the
    Exemption) , to secure the supply of lithium until sufficient domestic
    capacities have been built up

  * The Exemption will apply for an initial five years until 31 December
    2030 with review one year prior

  * Lionheart Project's (Lionheart) upstream lithium production facilities
    are currently under construction in Rhineland-Palatinate and is set to
    benefit from this Exemption

  * Decision follows a similar State royalty exemption for geothermal
    production granted in 2009

  * The Exemption highlights German Government support of domestic lithium
    production, European critical material supply chains and the strategic
    tailwinds behind Lionheart.

Vulcan Energy (ASX: VUL, FSE: VUL), (Vulcan or the Company) is pleased to
announce that Rhineland-Palatinate has granted an Exemption under section
32.2 of the Federal Mining Act for lithium production in the State for an
initial five years until 31 December 2030, with a review mechanism one year
prior.

Vulcan is constructing its Lionheart upstream lithium and geothermal energy
production facilities in the State and is set to benefit from the Exemption.
Geothermal energy is also subject to a similar State exemption which was
established in 2009 and continues unchanged to the present day.

Lionheart involves the construction of an integrated lithium and renewable
energy project targeting production capacity of 24,000 tonnes of lithium
hydroxide monohydrate (LHM), enough for ca. 500,000 electric vehicle
batteries per annum, with a co-product of 275 GWh of renewable power and 560
GWh of heat per annum for local consumers, over an estimated 30-year project
life (1).

The Exemption, established through an amendment to the State Ordinance on
Field and Extraction Royalties regulation, has been introduced to encourage
domestic production of critical raw materials for German and European
industrial supply chains.

Vulcan's Managing Director and CEO, Cris Moreno, commented: "We welcome this
lithium royalty Exemption by the State of Rhineland-Palatinate, which
follows the precedent set for geothermal energy royalties.

"The actions of the State of Rhineland-Palatinate clearly align with those
of industry, ensuring a path to deliver the resilience and competitiveness
goals of Germany, along with those of the European Union's Critical Raw
Materials Act, through which Lionheart has been awarded Strategic Project
status."

For and on behalf of the Board

Daniel Tydde | Company Secretary

Further information

Jeremy McManus | Head of Investor Relations | jmcmanus@v-er.eu | +61 422 000
675

Judith Buchan | Head of Corporate Communications | jbuchan@v-er.eu | +61 411
597 326

Please contact Vulcan's Legal Counsel Germany, Dr Meinhard Grodde, for
matters relating to the Frankfurt Stock Exchange listing on mgrodde@v-er.eu


About Vulcan Energy

Vulcan Energy (ASX: VUL, FSE: VUL) is building the world's first integrated
carbon neutral lithium and renewable energy business to decarbonise battery
production. Located in the Upper Rhine Valley Brine Field between Germany
and France, Vulcan's Lionheart Project (Lionheart) is a lighthouse project
for Europe's energy and critical raw material resilience.

Lithium is to be extracted from low impurity geothermal sub-surface brines
using Vulcan's industry-leading VULSORB® technology. Naturally heated, the
brine powers production and conversion of lithium to battery-quality
material by creating a renewable energy co-product for use in operations,
with surplus sold into the local energy market. This integration, technology
and favourable brine chemistry collectively enables one of the lowest cost
lithium operations globally.

Extraction is only the starting point for Vulcan. The Company has reimagined
mining using innovation to integrate and capture more of the value chain.
The Company has made its positive Final Investment Decision on Lionheart,
construction is underway, offtake contracted and further phases of
production are in planning.

For more information, please go to 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
forward-looking 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 forward-looking 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.

(1) Based on the Phase One Lionheart production target capacity of 24kt p.a.
from Bridging Engineering Study ASX announcement 16th November 2023 and
Vulcan internal estimated average EV battery size and chemistry in Europe;
refer to the Competent Person Statement within this announcement. Refer to
the Key Risks in Appendix 3 of the Investor Presentation dated 3 December
2025 regarding the risks associated with resource exploration and
development projects


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   Language:       English
   Company:        Vulcan Energy Resources Limited
                   Unit 1, Level 11, 1 Spring Street
                   WA 6000 Perth
                   Australia
   E-mail:         dtydde@v-er.eu
   Internet:       www.v-er.eu
   ISIN:           AU0000066086
   WKN:            A2PV3A
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Dusseldorf, Hamburg,
                   Munich, Stuttgart, Tradegate BSX
   EQS News ID:    2307046

End of News EQS News Service
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2307046 13.04.2026 CET/CEST