Jiangsu Lopal Tech. Group Co., Ltd. Signs Major Lithium Supply and Investment Agreement with Global Lithium Resources

Key Highlights

• Legally Binding Term Sheet Signed: Jiangsu Lopal Tech. Group Co., Ltd. (“Lopal Tech” or “the Company”) has entered into a legally binding Subscription, Offtake, and Prepayment Term Sheet with Global Lithium Resources Limited (“GL1”) and its wholly-owned subsidiary GLR Australia Pty Ltd (“GLR”).
• Strategic Upstream Investment: The deal secures Lopal Tech a significant long-term supply of spodumene concentrate to support its lithium raw material requirements, while also granting equity in GL1, a major lithium resource company in Australia.
• Major Prepayment Commitment: Lopal Tech will provide up to USD 75 million in prepayments to GLR, with an initial USD 7.5 million due within 30 days (subject to conditions) and the balance in four equal installments based on construction progress.
• 10-Year Offtake Agreement: Lopal Tech will receive 40% of the actual annual production from the Manna Lithium Project for at least 10 years, with a best-efforts minimum supply of 70,000 tonnes per annum.
• Significant Capital Investment: Lopal Tech will subscribe for 13,840,111 newly issued shares of GL1, representing 5% of GL1’s total issued share capital upon completion, at AUD 0.52875 per share (totaling AUD 7,317,958.69).
• Project Milestones: GLR expects to make a final investment decision (FID) for the Manna Lithium Project by end-2026, with shipments anticipated to commence in June 2028.
• Risks Disclosed: The Company has highlighted substantial risks, including cross-border transaction risks, regulatory approvals, project construction delays, supply shortfalls, lithium carbonate price volatility, and exchange rate fluctuations.

Detailed Transaction Overview

Subscription, Offtake, and Prepayment Structure

Under the Term Sheet signed on April 20, 2026, Lopal Tech will:

• Subscribe for 13,840,111 fully paid ordinary shares in GL1, constituting a 5% equity stake post-issuance. The purchase price is set at AUD 0.52875 per share, totaling AUD 7,317,958.69.
• Secure offtake rights to 40% of the actual annual spodumene concentrate production from the Manna Lithium Project for 10 years, with the possibility to extend by 4 years if conditions are met. GLR will use best efforts to guarantee a minimum supply of 70,000 tonnes per annum.
• The spodumene concentrate must have a lithium oxide content of at least 5% (with rejection rights below 4.5%).
• Product pricing is based on the average of prominent industry indices (SMM, Fastmarkets, Benchmark Minerals Intelligence, Asian Metal, S&P Global Platts), with a price discount applied.
• Prepayment to GLR will total up to USD 75 million, strictly for the Manna Project’s development and post-construction operations. Prepayments will be offset against purchase prices upon product acceptance. GLR will pay Lopal Tech a 5% annual compound interest fee for fund occupation.
• Initial prepayment of USD 7.5 million is due within 30 days after satisfaction of prepayment conditions (including completion of share issuance and FID on the Manna Project). The remaining USD 67.5 million will be paid in four equal installments, each due within 30 days of written payment demands based on construction milestones.
• In the event of supply shortfalls, GLR must make up the quantity within three months after the relevant contract year, or compensate Lopal Tech for the price difference within 30 days after the rectification period.

About Global Lithium Resources (GL1) and the Manna Lithium Project

• GL1 is an ASX-listed company focused on hard-rock lithium resource exploration and development. Its principal asset is the Manna Lithium Project, 100 km east of Kalgoorlie, Western Australia — the third largest lithium resource in the Eastern Goldfields region.
• The Manna Project boasts a mineral resource of 51.6 million tonnes at an average grade of 1.0% lithium oxide. GL1 holds the mining lease and has completed a feasibility study.
• GL1’s principal shareholders (as of April 2026) include MINERAL RESOURCES LIMITED (9.85%), Canmax Technologies (9.45%), Sincerity Development Pty Ltd (7.49%), Yongfang Guo (6.23%), and Dianmin Chen (5.32%).
• GLR Australia Pty Ltd, GL1’s wholly-owned subsidiary, holds the mining tenements for the Manna Project.

Financial Impact on Lopal Tech

• The transaction will result in a significant net cash outflow due to the prepayment and capital investment, which may exert short-term pressure on Lopal Tech’s cash flow. However, the Company states this will not materially affect its operating results for the current year nor impact its business or operational independence.
• The source of funds will be internal resources only; no proceeds from past H-share or A-share offerings or placements will be used.
• The investment does not constitute a related party or material asset reorganization transaction and does not require shareholder or board approval under the Company’s articles. All counterparties are independent third parties.

Risks and Shareholder Considerations

• Cross-Border and Regulatory Risks: The deal involves cross-border investment subject to PRC and Australian laws and regulatory approvals. Delays, policy changes, or failure to obtain these could jeopardize the transaction.
• Project Construction Risks: The Manna Project has a long construction timeline, with final investment decision due by end-2026 and production start expected in June 2028. Delays or cost overruns from infrastructure, labor, weather, or force majeure could materially impact project economics.
• Supply and Production Risks: If actual project output falls short, or production capacity ramps up more slowly than expected, Lopal Tech could face insufficient lithium supply to meet its own needs.
• Commodity Price Volatility: The price of lithium carbonate — the end product processed from the spodumene concentrate — is highly volatile, influenced by global supply-demand dynamics and macroeconomic or geopolitical factors. This volatility could impact Lopal Tech’s margins and financial results.
• Exchange Rate Fluctuations: With USD as the settlement currency, significant swings in the RMB/USD exchange rate could affect procurement costs and financial performance.
• Uncertainty of Definitive Agreements: The Term Sheet is a binding framework, but all final details are subject to further definitive agreements, which may not be concluded or could be delayed.
• Potential Impact on Share Price: The long-term supply security and strategic upstream investment in one of Australia’s largest lithium projects could enhance Lopal Tech’s competitiveness and margins in the fast-growing lithium battery market. However, execution, regulatory, and market risks could introduce volatility in the Company’s valuation.

Conclusion

This announcement marks a material strategic move by Jiangsu Lopal Tech. Group Co., Ltd. to secure upstream lithium resources, a critical input for the fast-growing battery and new energy sectors. If successfully executed, the deal will provide the Company with a stable supply of lithium raw materials for the next decade and strengthen its industrial chain position. Investors should pay close attention to the progression of regulatory approvals, project milestones, and fluctuations in lithium market prices, as these will be key drivers of the Company’s financial performance and share price in the years ahead.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should be aware of the risks outlined above and refer to official company announcements and filings for the most up-to-date information before making any investment decisions.

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