Ladies and gentlemen, thank you for standing by. Welcome to Standard Lithium's second quarter 2026 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a brief question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. It is now my pleasure to turn today's call over to Daniel Rosen, VP of IR and Strategy for Standard Lithium. Please go ahead.

Thank you and welcome everyone. I'm joined today by David Park, our CEO and Director, Andy Robinson, President, COO and Director, Salah Gamoudi, Chief Financial Officer, and Mike Barman, Chief Development Officer. Before we begin, I would like to start with a reminder that some of the statements made during our call today, including any related to company performance, expectations, and timing of projects, may constitute forward-looking statements. Please note the cautionary language about forward-looking statements contained in our press release, which also applies to this call. I will now turn the call over to David.

Thanks, Dan. I appreciate everyone joining us today. We had a very productive second quarter and year-to-date as we continue to advance the important milestones and deliverables required in order for us to move our Southwest Arkansas project to a final investment decision later this year. To begin the year, we laid out the four primary deliverables required to be completed before taking FID. Executing our key construction contracts, completing a federal environmental review under the National Environmental Policy Act, or NEPA, finalizing our customer offtake agreements, and securing project financing. During the second quarter, we fully completed the first two of these objectives while continuing to advance the remaining two. We signed our two primary construction vendor agreements, separately covering the upstream wellfield and the downstream Central Processing Facility. And the U.S. Department of Energy concluded its NEPA review process with a finding of no significant impact and no additional mitigation measures or conditions put in place for us to proceed. These are very important milestones that were many months in the making. Together, they provide greater execution confidence, schedule visibility, and regulatory clarity as we prepare to move rapidly from development into construction. They also reflect the depth and quality of the work completed by our team alongside our partner, Equinor, while strengthening our first mover advantage in the smack over. Our focus is now on finalizing the two key remaining work streams, customer offtake and project financing. The partnership remains in advanced discussions with several prospective customers and aims to conclude all remaining offtake agreements in the third quarter, which will help to finalize the size and structure of the Southwest Arkansas Project Debt. Both processes are steadily progressing in parallel. Our expectations for this year remain unchanged. to approve FID and begin construction at the SWA project, resulting in first commercial production of battery quality lithium carbonate in 2029. We're also continuing to advance our broader set of opportunities in East Texas. We plan to release a preliminary economic assessment for the Franklin project in the third quarter, while continuing to improve our resource definition and expand our leasehold position across the region. With that, I'll pass it over to Andy to discuss our progress in more detail.

Thanks, David. In May, the Department of Energy issued its finding of no significant impact, or FONSI, based on the comprehensive environmental assessment prepared for the SWA project. This marked a successful conclusion of the federal government's NEPA review, which was required in connection with the $225 million DOE grant that was awarded in January 2025 to support the development of our first 22,500 ton LCE phase of the project. The FONSI was a culmination of over a year of stakeholder engagement, field work, and baseline environmental studies, and reflects the detailed design of the project, which is intended to minimize surface disturbance while enabling responsible lithium production. The process also benefited from our designation as a Priority Critical Minerals project under the Government's FAST-41 Transparency Programme. This means that we're now effectively completing our permitting to enable taking FID and beginning construction. We also executed our two primary construction contracts for the SWA project during the second quarter. For the upstream wellfield, SmackOver Lithium signed an Engineering, Procurement and Construction Management or EPCM agreement with Wood Group. Wood brings substantial experience managing complex, multidisciplinary projects globally across energy, lithium and broader minerals. Wood will provide EPCM services for the wellfield surface facilities, pipelines and third-party interfaces, as well as support for the subsurface drilling and well work that will be led by our project team. leveraging the benefit of Equinor's deep internal capabilities and know-how. For the downstream central processing facility portion of the project, we entered into an Engineering, Procurement, Construction and Commissioning or EPCC agreement with S&B engineers and constructors. S&B has proven large construction expertise with 55 plus years of operation and over 90 percent of their EPC projects delivered on time and under budget. We have a strong regional presence and will be supported by Hatch, who brings important experience designing and commissioning DLE lithium projects. SMB's scope covers the full processing chain at the central processing facility, including everything related to the receipt of the brine from the wellfield, direct lithium extraction, and ultimate conversion to battery-quality lithium carbonate. Both construction agreements include a limited notice to proceed that we have already been taking advantage of. It allows us to continue to progress key work in the lead up to FID, including detailed engineering, procurement planning, and vendor engagement. We'll continue to de-risk execution and optimize the construction schedule so we can transition to full notices to proceed and begin construction promptly following a positive FID. We were able to put these contracts in place as a result of the extensive project definition that had already been completed by the team through approximately 18 months of detailed front-end engineering design work that culminated in our definitive feasibility study. We believe our construction partnerships give us a highly experienced and capable execution team with the safety culture, regional footprint, and technical depth required for a project of this scale. Turning to customer off-take and project financing, these are the two key remaining deliverables before we take FID. As previously discussed, the SWA project is designed for 22,500 tons per year of battery quality lithium carbonate and we're targeting approximately 80 percent of that production to be under long-term offtake agreements our existing 10-year agreement with traffic euro covers 8 000 tons annually and represents over 40 percent of our target contracted volumes the partnership remains in very advanced discussions with several prospective customers and aims to finalize all remaining offtake agreements in the third quarter We're focused on reaching agreements on the best possible terms to support our project financing efforts and are highly confident in our ability to reach positive outcome in these important negotiations. Conclusion of these offtake efforts will help to finalize the size and structure of the SWA project debt where due diligence and other customary underwriting processes are well underway and this work stream continues to progress in parallel with the offtake process. Before I hand over to Salah, I just want to touch on East Texas. We plan to release a preliminary economic assessment for the Franklin project in the third quarter of this year. This will build on the sizeable maiden inferred resource released almost a year ago that highlighted the highest reported lithium and brine grades in North America. This PEA will provide a first look at what we believe to be a globally significant project, extremely attractive project economics, and a clearer a framework for the next stage of development. We believe this is the next important step in gaining recognition and more appropriate valuation for East Texas as a core part of our asset portfolio. We will continue to work on Maiden Infernal Resource Reports for our other potential projects in the area, all while continuing to expand our leasehold footprint in East Texas. We are quite pleased with all the progress made during the second quarter. Two of the four principal pre-FID deliverables are complete and the remaining two are advancing well. The project remains positioned for FID and the start of construction later this year. Now, I'll turn it over to Salah to discuss our financial results and project financing.

Thank you, Andy. For the second quarter ended June 30th, 2026, we reported a net loss of 3.1 million as compared to a net loss of 5 million for the quarter ended June 30th, 2025. When comparing the quarter ended June 30th, 2026 to the quarter ended June 30th, 2025, G&A increased by $0.7 million, while demonstration plant costs increased by $0.3 million. The higher G&A is primarily driven by growth in employee headcount and activity to support the advancement of our portfolio of projects, including preparation of a final investment decision at SWA, partially offset by cost savings and certain audit, legal, and consulting expenses. The demo plant increase was driven by higher personnel and supply costs associated with ongoing R&D activities to help support training of future operators at SWA, potential future improvements to our process flow sheet, along with other maintenance and site improvement work. What we do at the demo plant has been a real differentiator for us through all phases of our project development. Additionally, we incurred a non-cash foreign exchange gain of $2.7 million during the quarter. This FX gain was due to having significantly higher average U.S. dollar cash balances as a result of our 130 million dollar follow-on offering in October of last year as well as fluctuations in exchange rates between U.S. and Canadian dollars and the resultant non-cash accounting impact on those cash balances held by one of our Canadian dollar functional currency entities. Below operating expenses we recorded a slightly higher investment loss from joint ventures of 1.5 million for the quarter versus 1.3 million in the prior period. This This increase reflects expanded operational activity at the SMAC over lithium partnership level in connection with commercial and financing initiatives, as well as increased corporate and administrative support as project development activities progress towards FID at SWA, and we continue expansion of our leasehold footprint, resource, and economic definition activities in East Texas. We also recognized approximately $800,000 in additional interest income period over period, driven primarily by higher average cash balances. Moving on to the balance sheet, we ended the quarter with strong cash and working capital positions of $137.3 million and $137.1 million, respectively. We remained focused on maintaining a strong liquidity position in addition to disciplined capital allocation and cost management. Standard Lithium made JV capital contributions of $9.4 million during the second quarter, of which $5.5 million and $3.9 million went towards SWA and East Texas, respectively. This brings total year-to-date JV capital contributions to $27.2 million. For Southwest Arkansas, the contributions allow us to continue to advance key project milestones and technical and engineering work streams ahead of FID. For East Texas, the contribution is primarily to continue advancing resource and economic definition, expanding our leasehold footprint, and preparing a preliminary economic assessment for the Franklin project with further reports across our portfolio to follow. Securing an attractive and comprehensive project finance package is critical for a final investment decision at SWA. The approximate $1.5 billion of base project CAPEX per our DFS, in addition to potential cost overrun facilities, reserve accounts, or other incremental capital requirements are expected to be financed by a combination of senior secured project debt, our $225 million grant from the DOE, potential further alternative non-dilutive funding sources, as well as respective funding contributions from Standard Lithium and Equinor. The joint venture is targeting approximately $1.1 billion total in senior secured limited recourse project debt supported by three leading major export credit agencies the export import bank of the united states export development canada and export finance norway along with a strong syndicate of commercial banks the equity contribution required by standard lithium will be supported by the proceeds from our equity raise last year any cost overrun facilities contingencies minimum working capital balances or reserve accounts over and above base project capex requirements remain subject to negotiation with the lenders with quantums to be determined while we await the conclusion of our remaining commercial off-take agreements which will play a significant role in determining the ultimate size and structure of the swa project debt we continue to progress important project financing work in the interim around due diligence structuring and documentation, credit, and other approvals such that we are in a position to reach financial close and draw down shortly thereafter. In other words, the offtake process has not and will not hold up advancement of the project financing work stream. We are in the advanced stages of diligence on this effort, and we remain on our targeted timelines. With that, I will now turn back over to David for closing remarks.

Thanks Salah. We saw real tangible results in the second quarter as we converted multiple years of technical, environmental, and engineering work into the completion of pre-construction milestones. We concluded the Federal Environmental Review under NEPA with a FONSI and a clear green light to proceed. We selected and contracted with key construction partners who will lead us confidently through project execution. And we continue to steadily advance the commercial and financing processes as the two final primary deliverables required before taking FID. Our team together with Equinor and our advisors remains focused on completing the remaining work with discipline and on terms that support the long-term value of the project. Our expectation remains to approve FID and begin construction at Southwest Arkansas later this year, with first commercial production targeted for 2029. You should expect to hear frequently from us in the coming months as we conclude all remaining work and progress against our timelines. Standard lithium continues to be extremely well positioned, poised for growth with a portfolio of high quality and scalable assets, including in East Texas, to be a leading domestic critical minerals producer in the United States. Thank you again for joining us today. Operator, I'll turn it back to you.

We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again we ask that you pick up your handset when asking a question to allow for optimum sound quality if you are muted locally please remember to unmute your device please stand by while we compile the q a roster your first question comes from the line of max yarrow with bmo capital markets your line is now open please go ahead hey guys thanks for taking my question on the debt financing piece is there any color you can share on which parts of the due diligence the lenders are working through and maybe which parts have been completed and

how this is tracking maybe relative to your expectations thanks thanks max um first i'll say there are a number of work streams that the export credit agencies are pursuing in parallel So technical diligence, including site visits, environmental due diligence, financial due diligence, insurance related due diligence, the multiple work streams that have been pursued in parallel. I think there continues to be Q&A along all of them. However, no material red flags have been raised. No material concerns have been raised. So diligence continues to proceed. We should be coming near the end of that diligence period. But that diligence then supports commercial negotiations around specific terms and conditions. And some of those negotiations are happening in parallel as well.

Thanks, David. That's helpful, Collar. I'll turn it back.

Your next question comes from the line of Theo Genzebu with Raymond James. Your line is now open. Please go ahead.

Yeah, great. Thanks for taking my call today, guys. Just on the offtake, you reiterated the expectation to finalize them by 3Q, and you've indicated that you have a pretty good sense of the counterparties and volumes, durations, and pricing mechanisms. But can you just help us understand what the remaining gating items are today? And are they like primarily commercial terms, final credit approvals, or documentation or something else?

Sure. Great question. And I'll first restate that we have the utmost confidence that we'll be able to bring offtake agreements to the table and announce prior to the end of the quarter. They may take the form of one additional offtake agreement or potentially two. The the I would say the the agreements are there have been heavily negotiated in in parallel. So there are multiple parties we are talking to at this point in time. But that gives us a lot of confidence that at by the end of the quarter, we will have offtake announcements that we can tell you are FID-able.

And, yeah, I think that's probably the best I can do in answering your questions without getting into too much confidential detail on the nature of those discussions. okay yeah no that's great great color on that so appreciate that um okay and then just looking at that both construction contracts are in place with the limited notices to proceed q give us a sense of what work is like actively advancing pre-fid and like how much schedule benefit that could provide that those could provide um once you issue the full notices to proceed Andy, can you take that one?

Yeah, sure. Hey, Theo. Yeah, I mean, the work that's happening right now from the two contractors, whether it's S&B and Hatch on the CPF contract, which is an EPCC contract, a wood on the EPCM for the well field, the work that's going on right now is like full confirmation of the feed design the design assumptions um integrating that into a full holistic schedule uh with key deliverables key milestones um set up internally so that we have a fully integrated schedule between the two main contractor groups and obviously us as the owners so that's one of the first items second is detailed design on key components of of the work um third which is really important is kind of vendor outreach so fact checking some of the key vendor packages which might which might sit on the critical path for the project talking to some of the key vendors getting kind of ground truthing some of the design assumptions etc and really just getting a feel for who the actual vendor packages are going to go out to once we take full uh full fn tp for the contractors theo so we're doing all this work basically um to ensure that the schedule which has been agreed in the two in the two sets of contracts in the epcc and the cm makes sense they can adhere to and that the vendors who are going to form a key part of the delivery are fully up to speed of kind of expected expected vendor package delivery dates etc so it really is kind of a holistic exercise right now theo to make sure that we're on top of cost on top of schedule and that the full kind of project execution team is getting familiar the working groups are getting set up all the kickoff meetings are being helped and uh yeah the the full integrated delivery team is getting fully up to speed so once we take fid it really is a

seamless transition straight into construction hope that's helpful no that's no that's great and uh yeah definitely look forward to uh seeing that roll out so i appreciate your time today and i'll hand it back just a reminder that if you'd like to ask a question please press star one if you'd like to withdraw your question again press star one your next question comes from the line of Joseph Rigor with Roth Capital Partners. Your line is now open. Please go ahead. Thanks for taking the questions.

I guess first, just kind of following on all this conversation about, you know, financing and offtakes, if you guys think back six, 12 months ago, where you were hoping to be by, you know, now, you feel like everything's still on the same schedule? Has there been any, you know, slowdowns or anything that's actually sped up, you know, since we can't really see everything that's going on behind the scenes?

Thanks, Joe. I think the most candid way of answering that is, you know, earlier in the year, we were hopeful that we would be in a spot to FID by the end of the second quarter. We're clearly not there. For at least a quarter now, we have been signaling end of year FID, and we think we're very much on track for that. So with that, you know, revised schedule in mind, we think we are tracking well with respect to offtake and project finance to be able to hit that date.

Okay. That's helpful. And then, as you guys look forward to the PEA for East Texas, what do you – I mean, we're assuming it looks good. How fast do you think you can advance that project from, say, PEA? would you guys go through like the full process PFF feasibility study or would you jump over straight to feasibility study and then like you know what's a reasonable number of years between PEA and you know potential financing and building? Andy why don't you take that one?

Yeah sure now thanks thanks for the question Joe I mean obviously one of the great advantages is we're we're not seeking I think as we you know we've publicly disclosed before there's a there's high degree of homogeneity in the brine resources in general from from where we are in southwest arkansas and east texas and you'll see more of that obviously in the pea once that's out but what that means is that we don't need to fully reinvent the wheel every time we move to to a new project joe so there's a certain efficiency that we will gain as we move from project to project again hoping to continue to use the same execution teams the same basic flow sheet etc etc so I guess without giving you a specific number I think you know we expect to see some efficiencies in our project definition process going from this PEA to moving towards an FID for these Texas projects in sequence. And it's going to be, I suspect, shorter than what we've seen through the multiple definition steps for SWA. So it's going to be a more efficient process. That said, they're pretty large projects. So there's certainly some additional scale. I think as we've talked about before our general footprint in east texas is large um the franklin project and the the maiden inferred resource that came out last year you sort of saw a sense of the scale of that first of the texas projects and so as we think about execution uh there's both scale to consider as well as kind of a simplified flow sheet so you we expect to see a general efficiency a general shortening We may skip one step in that definition, but it will follow, I think, as efficient a timeline as we can hope to achieve in the normal context of, you know, getting the necessary capital, moving the project to FID, et cetera.

That's helpful, too. One last thing, if I could, as you've gone through the financing due diligence process, has there been any specific pushback around either brine quality or the pretreatment side of the business? I know that there's been some commentary out there from some of your competitors about, you know, cleanliness of the brine day one, number of impurities, that kind of stuff. Has there been any pushback from your finance people on that? Andy, I'll let you take that one as well.

Yeah, sure. In simple terms, no, Joe. But the reason for that is because of demonstration plant. The fact that we can take people around. Obviously, we've taken the ECAs, the lenders, all of their advisors around the demonstration plant. they've seen us processing you know kind of 60 to 90 gallons a minute on a continuous basis from from raw brine right the way through to battery quality carbonate at the demo plant full flow sheet i think they've got very comfortable with uh with with how well proven how well the risk that is so i think again as as we've been fairly candid in the past joe um it took us some years to figure out some of the pre-treatment aspects of the smack over brines but because we operated that demo plant now we've been running it for six years 24 7 365 days a year using real brine uh yeah we've been able to iron out uh our kinks for our brine assets uh to a very high level of confidence uh and that's you know that's why we're ready to take this project commercial and you know, why the lenders are certainly currently very comfortable with where we are in the de-risking stage.

Okay. I just had to ask. Appreciate the color on everything, and I'll turn it over.

Your next question comes from the line of Noel Parks with Tuhi Brothers Investment Research. Your line is now open. Please go ahead. Hi, good afternoon.

Apologize if you touched on this already. I got on a little bit late. But I wonder, could you talk a little bit about the status of your most recent technical work in East Texas? Progress on the requirements or for delineation, et cetera, whether there have been any surprises or either positive or negative or any new thinking you have as you continue with your analysis.

Andy, I'll turn this one to you as well. Okay, thanks, Noel. Yeah, the work that we've been doing over sort of the last period since we've put out the made and inferred resource for the Franklin project has really been re-entry back into the three wells that we drilled a couple of years ago. So we went back into those, resampling the brines in a more detailed way. We have done a whole suite of reservoir testing in the smack over across that project footprint. um and uh yeah that that really forms the basis of what's going to be going into the peas so really getting an understanding of the reservoir productivity in the project area at the same time we've obviously been doing a lot of additional test work to to ensure that the flow sheet works with the concentration the higher concentration of the east texas primes uh that's been going on in the background as well. So yeah, we're looking forward to getting that PEA out there. I think it's going to be a chance for you guys to get a feel for what we're really talking about within that jurisdiction. We think it's going to be pretty important for us. And yeah, there's going to be obviously continued test work. But as I sort of mentioned to Joe on the previous question, you know we're very fortunate that we don't have to start from scratch in any of this like it's always just for the subsurface team it's it's another level of understanding from what we already know in southwest arkansas so it's adding adding to the team's knowledge similarly on the process flow sheet it really is sort of incremental improvements based on you know what we've been doing for the last several years anyway so it is optimization uh making trying to make things you In very simple terms, cheaper and easier to build and operate is always the goal. And so that's very much the spirit as we kind of continue all of that technical definition work on the Franklin project. And then obviously we've got other projects within East Texas as well that we continue to advance all of the leasing and kind of technical definition work on as well. So there's a lot of work happening in the background now.

Great. Thanks. And I had a question sort of more broadly, I guess, about lithium macro. And clearly, you had discussions in progress with potential counterparties, off-takers for some time. And so I guess a couple of things. Are there very similar outlooks among the different parties, similar to yours at Standard? around sort of, you know, longer-term pricing dynamics. And for lithium, I guess I'm thinking about, you know, compared to a few years ago, say five years ago, the market globally is less opaque than it was. But I'm just sort of wondering, I don't know, just your thoughts on sort of visibility into the market, you know, especially for the longer term.

Sure, I'll try and address that one. First, I'll say there's been a lot of dialogue with offtakers and potential offtakers with respect to market conditions. It's clear that there's very strong demand for a battery-grade lithium carbonate in the 2029 and beyond market window. I think based off where we are in discussions with different counterparties, there is a general belief in a band in which lithium is likely to trade. So, you know, I think there's enough of a meeting of minds on how prices are set and where prices are likely to be that we're able to get to offtake agreements in the timeframe that we're talking to you about. So it is, you know, there are indices out there that we have agreement on how we'll use. And, you know, there's there's, you know, a fair amount of discussion about the range and where pricing may be go forward. And it's supportive of the work you would have seen from our feasibility studies we put out as well.

Great.

Thanks a lot.

There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.