21 July 2022

Alkemy Capital Investments Plc

Leading global metals trader Traxys to source lithium feedstock for Tees Valley Lithium

Alkemy Capital Investments plc ("Alkemy") (LSE: ALK) and its wholly-owned subsidiary Tees Valley Lithium Ltd ("TVL") are pleased to announce that TVL has entered into a Memorandum of Understanding with leading global physical trader and merchant in metals and natural resources, Traxys North America LLC, a member of the Traxys Group of companies ("Traxys").

HIGHLIGHTS

·    Traxys has agreed to source and supply lithium feedstock for TVL's planned processing facility in Teesside, UK

·    Traxys is a leading global metals trader with expertise in the lithium and battery metals sectors, with annual turnover in excess of USD 8 billion

·    Lithium feedstock to initially supply Train 1 of TVL's facility, producing 24,000tpa of battery-grade lithium hydroxide, with production due to commence in 2024

·    Traxys and TVL will also work together to gain efficient raw material validation and approval for the automotive supply chain

Traxys' Managing Director for Lithium Supply, Kevin Smith, commented:

"Traxys is pleased to enter into this MOU with Tees Valley Lithium as we share their vision of establishing a strong and robust lithium supply chain in the UK that facilitates the adoption of EV's and advancement of the energy transition.  We believe Tees Valley Lithium has positioned themselves to be a tier one supplier of lithium hydroxide and are excited to be part of their sourcing strategy, leveraging Traxys' supply chain finance and management expertise to best serve battery and OEM customers."

Alkemy and TVL Director, Sam Quinn, commented:

"We are delighted to be partnering with leading global metals trader Traxys who will supply TVL with the lithium feedstock required for TVL to become Europe's largest and lowest-carbon lithium hydroxide producer, located at the Wilton International Chemicals Park in Teesside, UK.

Utilising a state-of-the-art electrochemical process route and powered by low-cost green energy, TVL will be supplying the UK and Europe with 96,000tpa of low carbon, battery-grade lithium hydroxide - the equivalent to 15% of European demand.

Recently, TVL has also announced the release of its Class 4 Feasibility Study along with outstanding metallurgical testwork results for its high-purity battery-grade lithium hydroxide, validated by Cathode Active Material manufacturers.

Preparations are now well advanced for activities on the ground to commence later in the year."

Under the terms of the MOU, Traxys has agreed to cooperate and collaborate with TVL to source and supply lithium feedstock for train 1 of TVL's processing facility located at the Wilton International Chemicals Park in Teesside, UK.

Construction of train 1, the first of 4 trains, is due to commence at the end of this year, with initial production of 24,000tpa planned for 2024. Once completed, all 4 trains will produce a total of 96,000tpa of battery-grade lithium hydroxide, representing around 15% of Europe's projected demand.

More than 700GW of gigafactories are planned for construction across Europe which will require over 325,000 tonnes of lithium hydroxide per annum: currently there is zero lithium hydroxide capacity in Europe.

By sourcing low carbon feedstock and powering an electrochemical process with offshore wind, TVL is aiming to supply its customers with the world's lowest-carbon lithium hydroxide.

About Traxys

Traxys (www.traxys.com) is a leading physical commodity trader and merchant in the metals and natural resources sectors. Its logistics, marketing, distribution, supply chain management, and trading activities are conducted by over 450 employees in over 20 offices worldwide, with annual turnover in excess of USD 8 billion.

Headquartered in Luxembourg, Traxys is engaged in sourcing, trading, marketing, and distributing non-ferrous metals, ferro-alloys, minerals, industrial raw materials, and energy. The Group serves a broad base of industrial customers and offers a full range of commercial and financial services.

Traxys, a privately held company, is owned by Traxys' management team, The Carlyle Group (NASDAQ: CG), and affiliates of Louis M. Bacon, the founder of Moore Capital Management, LP, and Moore Strategic Ventures, LLC, Mr. Bacon's privately held investment company.

Traxys have specific Lithium sourcing and trading experience, having entered into agreements with mining companies across Canada and Europe including Nemaska, Lepidico, and European Lithium.

Traxys is also an active member of the International Lithium Association ("ILiA"). Founded in 2021, the ILiA brings together entities that operate across the lithium value chain to support the industry's efforts to supply high-quality lithium sustainably and responsibly. Overall, they aspire to proactively engage the lithium community to pursue better ESG practices.

Further information

For further information, please visit the Company's website: www.alkemycapital.co.uk or www.teesvalleylithium.co.uk

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NOTES TO EDITORS

Alkemy is seeking to develop, construct and operate the world's leading independent and sustainable lithium hydroxide production facility.

Alkemy, through its wholly-owned subsidiary Tees Valley Lithium, has secured a 9.6ha brownfields site at the Wilton International Chemicals Park located in Teesside, a major UK Freeport.

Alkemy has completed a Class 4 Feasibility Study for its proposed lithium hydroxide facility which will process feedstock imported from various sources to produce 96,000 tonnes of premium, low-carbon lithium hydroxide annually, representing around 15% of Europe's projected demand.

Forward Looking Statements

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Alkemy provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Alkemy believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Mining exploration and development is an inherently risky business. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include any factors which affect decisions to pursue mineral exploration on the relevant property and the ultimate exercise of option rights, which may include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Alkemy will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and other factors should be considered carefully and readers should not place undue reliance on forward-looking information.