Vulcan to double size of technical team with acquisition of world-leading German geothermal engineering business

• Binding agreement signed to acquire 100% of geothermal surface consultancy company Global Engineering and Consulting Gmbh (“gec-co”), subject to shareholder approval
• gec-co has a world-leading engineering team with significant experience in surface development of geothermal projects in Germany and world-wide, with offices in Augsburg, Bremen and Karlsruhe
• This follows from Vulcan’s recent agreement to acquire sub-surface development company GeoT GeoThermal Engineering GmbH
• Combined, the Vulcan group will have an unparalleled surface and sub-surface geothermal development team to execute on its Zero Carbon Lithium™ strategy.

Managing Director of Vulcan Energy Resources, Perth, Australia, Dr. Francis Wedin, commented: “By acquiring to grow our team, we are accelerating the development of our globally unique project. Our geothermal development team is well complemented with the acquisition of surface engineering consultancy gec-co, following the recent acquisition of sub-surface development consultancy GeoT. The gec-co team is immensely experienced, with a successful track record in geothermal project and plant development both in Germany and internationally, and also brings in public relations, administrative and logistical support to the rapidly growing Zero Carbon Lithium™ project. With our expert in-house lithium chemistry and chemical engineering team, as well as our quality international partners, the Vulcan group is now very well positioned to execute on our strategy: to decarbonise heat and power in Europe with geothermal development in the Upper Rhine Valley, and in doing so to co-produce a world-first lithium hydroxide with net zero carbon footprint for the European electric vehicle market.”

About gec-co

gec-co is a world-leading engineering company for deep geothermal projects, based in Germany. It focuses on projects at surface: power plant, heat stations, drill pads, and permitting. The company has more than 20 years’ experience in geothermal and its 25 employees have more than 300 years combined engineering knowledge. gec-co is involved in geothermal projects in high and low enthalpy brines worldwide.

Recent activities by the Company
• Appointment of German chemicals industry executive Dr Heid Grön as a Director, Former Tesla Head of Battery Supply Chain, Annie Liu as a Director, former EY Global Renewables Partner, Josephine Bush as a Director, and EU CO2 policy expert, Julia Poliscanova as a Board Advisor
• Vulcan DLE pilot plant operational. World-first lithium CO2 traceability agreement
• Acquisition of world-class geothermal sub-surface development team
• $120 million placement endorses Vulcan Zero Carbon Lithium™. Positive Pre-Feasibility Study.

About Vulcan

Vulcan is aiming to become the world’s first lithium producer with a carbon neutral footprint, by using its ZERO CARBON LITHIUM™ process to produce a battery-quality lithium hydroxide chemical product from its combined geothermal energy and lithium resource, which is Europe’s largest lithium resource, in Germany. Vulcan will use its unique, ZERO CARBON LITHIUM™ process to produce both renewable geothermal energy, and lithium hydroxide, from the same deep brine source. In doing so, Vulcan will address lithium’s EU market requirements by reducing the high carbon and water footprint of production, and total reliance on imports. Vulcan aims to supply the lithium-ion battery and electric vehicle market in Europe, which is the fastest growing in the world. The Vulcan Zero Carbon Lithium™ project has a resource which can satisfy Europe’s needs for the electric vehicle transition, from a zero-carbon source, for many years to come.

Material Terms of Agreement

Vulcan’s 100%-owned subsidiary, Vulcan Energie Ressourcen GmbH (VER), will acquire 100% of the shares in gec-co from Mr. Thorsten Weimann (“Acquisition”). Mr. Weimann was recently appointed as Vulcan’s Chief Operating Officer in February 2021.

Vulcan has agreed to pay the following consideration for the Acquisition:
• 325,000 fully paid ordinary shares in Vulcan to be issued on completion of the Acquisition, 216,667 (2/3) of which will be subject to 12 months’ voluntary escrow from the date of issue; and
• an earnout up to €1,190,000 linked to project development milestones for the Vulcan Zero Carbon Lithium Project, linked to permitting of the Project following completion of the Acquisition.

Should the milestones not be met within three years from completion of the Acquisition, VER may elect to extend the milestone dates or grant Mr. Weimann a right to buy back 100% of the shares in gec-co.

Completion of the Acquisition is conditional on:
• shareholder approval under Listing Rule 7.1 for the issue of the upfront consideration shares; and
• due diligence completed to Vulcan’s satisfaction.

ASX has confirmed that shareholder approval for the Acquisition is not required under Listing Rules 10.1, 10.11 or 11.1.

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