Shareholder Vote Secures Vulcan Energy’s Major Funding Initiative

Vulcan Energy Resources Ltd. has received strong shareholder endorsement for a recent equity placement, a crucial step in advancing its flagship European lithium project. During an extraordinary general meeting held on Monday, investors overwhelmingly approved the capital raise that forms part of a larger multi-billion euro financing package.

The meeting featured a single resolution for shareholder approval, following the withdrawal of a second agenda item. Shareholders voted to ratify the issuance of new shares, which raised approximately 545 million euros. The vote passed with decisive support.

The detailed voting results were as follows:

• Votes in Favor: 207,466,172 (83.43%)
• Votes Against: 41,199,420 (16.57%)
• Abstentions: 6,269,148

The withdrawn resolution would have authorized the potential issuance of additional conditional placement shares. The company did not provide specific reasons for its removal, stating only that the original placement would continue under its existing structure.

Breakdown of the 2.19 Billion Euro Funding Framework

This shareholder confirmation follows the December 2025 announcement of a comprehensive 2.19 billion euro financing arrangement for the first phase of Vulcan's Lionheart project.

The funding structure comprises several key components:

• 1.19 billion euros in senior debt from a banking consortium led by the European Investment Bank (EIB).
• A 250 million euro cornerstone loan facility from the EIB.
• The 545 million euro equity raise now ratified by shareholders.
• 204 million euros in combined grants from German federal and state governments.
• Additional capital commitments from consortium partners, including the KfW Commodity Fund.

Strategic partners have also reinforced their involvement. Construction partner HOCHTIEF has renewed its commitment, earmarking a total of 169 million euros. This includes a 39 million euro direct project investment and up to 130 million euros for the acquisition of Vulcan shares. Furthermore, Sedgman and HOCHTIEF Infrastructure have been appointed as EPCM (Engineering, Procurement, Construction Management) partners for the Lithium Extraction Plant (397 million euros) and the Central Lithium Plant (337 million euros), respectively.

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Project Status and Market Context

The Lionheart project, located in Germany's Upper Rhine Valley, is classified as an EU Strategic Project under the Critical Raw Materials Act. It targets an annual production output of 24,000 tonnes of battery-grade lithium hydroxide monohydrate (LHM).

Vulcan's integrated geothermal-lithium model aims to extract lithium from deep geothermal brines while simultaneously generating renewable heat and power, targeting a carbon-neutral production process. The company has already secured offtake agreements with customers across the European battery supply chain.

Trading Activity and Price Performance

Vulcan's shares have recently traded within a range of 4.40 to 4.98 Australian dollars. In the latest session, the stock closed at 4.67 AUD, giving the company a market capitalization of roughly 2.03 billion AUD. This represents a gain of approximately 6% since the start of the year.

Trading volumes have remained notably elevated since the financing details were unveiled in December. An average of about 2.97 million shares are currently changing hands each day.

Path Forward and Analyst Perspective

With the shareholder approval secured, Vulcan can proceed with a strengthened balance sheet, solidifying the financial foundation for Phase One of Lionheart. The company's upcoming milestones include the quarterly report due in late January and the annual report scheduled for the end of March.

The consensus view among covering analysts currently rates Vulcan Energy as a "Buy." The average price target stands at 8.08 AUD, with individual estimates ranging from 6.25 to 10.50 AUD. This spread reflects varying assessments of both project execution risks and the broader outlook for the lithium market.