Mila Resources Plc announced that, together with the other owners of the Kathleen Valley licence, it has entered into an option agreement with LBM (Aust) Pty Limited, granting Liontown the option to explore for lithium on the Kathleen Valley Licence Area in Western Australia ('KV Project'). Simultaneously it has entered into a deed of amendment with Trans Pacific Energy Group Pty Ltd. ("TPE") and New Generation Minerals Limited ("NGM"), the other owners of the Licence, making certain amendments to the Earn-In Agreement between them dated 29 October 2021 ("Earn-In Agreement") as part of the re-listing of the Company on the LSE in November 2021. Overview: Liontown, the ASX lithium developer with a market capitalisation of ~AUD 6.0 billion, expects to bring its proximal Kathleen Valley Lithium Project into production in mid 2024, for which it has offtake arrangements in place with LG, Ford and Tesla.

Under the proposed transaction, Liontown will fund all lithium exploration activities, mining costs and associated Heritage Surveys. Mila, TPE and NGM will maintain ownership over the gold and other minerals on the Licence Area. Following initial exploration, Liontown will have the option to acquire the right to extract lithium from the Licence Area ("Lithium Rights").

Liontown has the option to acquire up to 80% of the Lithium Rights from Mila and TPE for a total consideration of up to AUD 2,200,000 through a phased investment programme. By agreement with TPE and NGM, Mila currently has a 50% interest, in the Lithium Rights, representing 10% of the Lithium Rights following full exercise by Liontown of its option. Transaction Rationale: Liontown has significant experience and expertise in lithium exploration and development specific to the wider Kathleen Valley area and has established itself as one of the most successful lithium explorers in Australia.

All drill and assay analyses from Liontown's work at the KV Project will be shared with Mila's exploration team, potentially enabling a further acceleration of geological assessment across the full KV Project at limited cost to Mila. Liontown will be liable for all costs associated with the Heritage Surveys over the relevant areas of the KV Licence and will apply its significant expertise in Heritage Survey management enabling Mila to leverage off the development of these studies for the purposes of its own gold exploration and development activities. Mila, TPE, TPE and NGM have also entered into a deed of amendment amending the Earn-In Agreement ("Deed of Amendment") pursuant to which they have agreed that Mila may: increase its Participating Interest in the Licence from its current 30% to 80% on the issue of the Stage Two Consideration Shares; increase its ownership of the current Lithium rights from 50% to 80% on the issues of the Stage Three Consideration Shares, representing 16% of the Lithium rights following full exercise by Liontown the option; and at any time when the Parties are not conducting a physical drilling campaign, reduce Mila's liability for expenditure to maintain the Licence to its Participating Interest (currently 30%).