• Successful transition to fully underground operations, delivering lower unit costs and cashflow-neutral operating activities
• Underground ore production increased 37% quarter-on-quarter
• Inaugural spodumene auction closed at US$1,254/dmt SC6, validating price discovery mechanism

Liontown Limited (ASX: LTR) (Liontown or the Company) delivered a major operational and financial transition during the December Quarter, completing mining at the Kathleen's Corner open pit and positioning the Kathleen Valley Lithium Operation (Kathleen Valley) as a fully underground mining operation. The quarter marked an inflection point for the business, with unit operating costs and AISC reducing quarter-on-quarter and operating cashflow broadly breakeven during the transition, while remaining on track to meet FY26 guidance. Underground mining continued to ramp up in line with plan, with strong development and production performance, and good reconciliation to both the resource and grade models. The annualised underground run-rate of 1 Mtpa was achieved on schedule, with the operation now targeting 1.5 Mtpa by the end of Q3 FY26 and 2.8 Mtpa by the end of FY27, which represents currently planned steady state production. Processing performance remained consistent with expectations during this transition phase, as the plant batch processed open pit, ore-sorting-potential (OSP) and an increasing volume of underground ore. Lithia recoveries improved during the quarter and are expected to continue to increase as higher-grade underground ore becomes the dominant feed source. Liontown also successfully completed its inaugural spot market auction and executed a new offtake agreement with Canmax Technologies Co., Ltd., further strengthening sales flexibility and customer diversification. The Company closed the quarter with a strong liquidity position, with A$390 million of cash and 13,800 dmt of saleable concentrate on hand, supporting the continued execution of its underground ramp-up strategy.

Liontown is targeting 1.5 Mtpa by the end of Q3 FY26 and 2.8 Mtpa by the end of FY27, which represents currently planned steady state production.