• The Company's subsidiary VSUN Energy continues to progress Project Lumina, a scalable, turnkey, utility-scale battery energy storage system using vanadium flow battery technology
• Work supports an improved levelised cost of storage of A$214/MWh (± 30%) for an 8-hour duration Project Lumina VFB BESS, competitive with lithium-ion BESS products
• VSUN Energy continues to develop opportunities for the deployment of utility scale VFB BESS solutions across five states

Australian Vanadium Limited (ASX: AVL) is pleased to announce significant progress with Project Lumina, the development of a scalable, turnkey, utility-scale battery energy storage system (BESS) using vanadium flow battery (VFB) technology, for use in Australian energy markets. Early contractor involvement activities conducted with GenusPlus Group, Sedgman, and Austrian VFB manufacturer CellCube have advanced the design and costing for Project Lumina's VFB BESS product. Continued work on Project Lumina confirms an LCOS of A$214/MWh (± 30%) for an 8-hour duration VFB BESS, which is a significant improvement from an initial estimate of an LCOS of A$251/MWh (± 30%). Such an LCOS would be competitive with the LCOS of similar capacity lithium-ion BESS products currently in the market. VSUN Energy, AVL's wholly owned subsidiary, is actively pursuing utility-scale projects across five states, aligning with government policies supporting long duration energy storage, VFB adoption, vanadium mining and domestic downstream processing of critical minerals. Project Lumina remains on track for detailed design by Q3 CY2025, aligning with the accelerating demand for long-duration energy storage. The advanced design status and competitiveness of the Project Lumina VFB BESS architecture positions the company well to pursue a growing pipeline of long duration opportunities.

The work completed to date continues to give the Company confidence to proceed with remaining Project Lumina activities including: development of a construction-ready, detailed design and delivery strategy for commercial, turnkey, utility-scale VFB BESS; advancement of conversations with potential energy offtake partners; progression of discussions on land access; continued development of a funding strategy; and determination of the merits of deploying a VSUN Energy Build-Own-Operate business model as well as delivering on an engineering and project delivery basis.