• Further milestone payment of $4.9 million received from Australian Government grant
• Grant provides up to $49 million in support of the Australian Vanadium Project
• Funds eligible activities to construct and commission a vanadium processing facility

Australian Vanadium Limited (ASX: AVL) is pleased to announce the receipt of a third milestone payment of $4.9 million from the Federal Government under a Commonwealth Grant Agreement under the Modern Manufacturing Initiative - Manufacturing Collaboration Stream (Grant). AVL has now received a total of $29.4 million in milestone payments related to the Grant. The milestone payment follows the recent signing of a variation to align the Grant with AVL's ongoing work to create an integrated project following the successful merger with its neighbouring project. The Grant funds eligible activities to construct and commission a crushing, milling and beneficiation plant and a high-purity vanadium processing facility for the Australian Vanadium Project. This critical mineral extraction process is a key precursor in the production of vanadium electrolyte at AVL's vanadium electrolyte manufacturing facility in Perth, a key enabler for the Company's vanadium flow battery deployment strategy. Progress payments of the remaining $19.6 million of the Grant are expected over FY27 and FY28, subject to the achievement of agreed project milestones and compliance with the requirements of the Grant.

The Grant provides up to $49 million in support of the Australian Vanadium Project over the FY27 and FY28 financial years.