Arizona Lithium's $21 million investment incentive for Prairie Project

Arizona Lithium Limited (ASX: $AZL) has received conditional approval for an investment incentive of up to $21.6 million under the Saskatchewan Government's Oil & Gas Processing Investment Incentive Program (OGPII) for Pad #1 at the Prairie Lithium Project. The incentive highlights the Province of Saskatchewan's commitment to bringing new lithium resources into production and will be a crucial component of Arizona Lithium's future funding and development.

Executive Commentary on Investment Incentive

Arizona Lithium Managing Director Paul Lloyd expressed his satisfaction with the conditional approval, stating, 'This conditional approval under the OGPII Program is a testament to how the province works with industry to find solutions to economic growth, and we are grateful to work with the governing bodies and operate our project there. This is one of the many development funding tools we have access too, which is a non-dilutive benefit to shareholders.' Saskatchewan Minister of Energy and Resources Jim Reiter also congratulated Arizona Lithium for their role in developing Saskatchewan's lithium sector and contributing to the growth of critical minerals in the province.

Summary of Arizona Lithium's Investment Incentive

Arizona Lithium has secured conditional approval for an investment incentive of up to $21.6 million under Saskatchewan's OGPII Program for Pad #1 at the Prairie Lithium Project. The incentive allows for the claiming of credits against government royalties at a rate of 20% in the first calendar year of operations, 30% in the second calendar year, and 50% in the third calendar year, effectively reducing the Company's liability for crown royalties. The credits are transferable, providing an opportunity for early cashflow generation by selling them to other companies paying royalties in Saskatchewan. Managing Director Paul Lloyd emphasized the non-dilutive benefit to shareholders and the company's access to various development funding tools. The project's location in a mining-friendly jurisdiction with access to key infrastructure and strong environmental credentials positions Arizona Lithium for sustainable lithium development.