Vulcan Energy Secures Full Funding for Key Lithium Project

Vulcan Energy Resources Ltd. has successfully closed the equity financing required for the initial stage of its flagship Lionheart venture. This critical milestone effectively shifts the company's focus away from fundraising concerns and toward the execution and construction of its ambitious lithium extraction project.

The company has concluded the retail portion of its recent entitlement offer. While the initial target was to raise up to 205 million euros (A$366 million), the retail segment attracted approximately 147 million euros (A$263 million), representing about 72% of the maximum sought.

Eligible retail shareholders subscribed for roughly 7.7 million new shares. The remaining shortfall shares were taken up by HOCHTIEF Aktiengesellschaft pursuant to a sub-underwriting agreement. The new shares from this offering will be settled today and are scheduled to commence trading on the 31st of December.

Company executives have confirmed that the capital raised from retail investors, combined with the previously placed institutional component, is sufficient to meet all strategic objectives for the project's first phase.

Strategic Partner HOCHTIEF Increases Stake Substantially

A notable aspect of this capital raise is the expanded involvement of construction giant HOCHTIEF. As part of its underwriting commitment, HOCHTIEF acquired approximately 58 million unsubscribed shares, boosting its total equity holding in Vulcan Energy to 15.41%.

This deepened investment signals a long-term collaborative partnership. For Vulcan, securing a major infrastructure and construction partner with a significant shareholding provides:

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• Enhanced validation of the project's technical feasibility
• A strong, aligned partner for the upcoming complex construction phase

Phase One Funding Structure Now Complete

With the equity raising finalized, Vulcan Energy has assembled a total equity package of roughly 545 million euros (A$973 million). This capital forms the foundation for a comprehensive project financing structure worth 2.2 billion euros (A$3.9 billion) dedicated to Phase One of the Lionheart project.

Management now considers Phase One to be fully financed. The secured funds are designated to cover:

• All capital expenditures for construction and commissioning
• The production ramp-up period
• Operations through to the generation of initial project cash flows

The removal of this key financing risk allows market attention to turn squarely to project execution and construction progress at the company's site in Germany's Upper Rhine Valley.

Key Financial and Project Metrics

• Total Phase One Project Financing: 2.2 billion euros (A$3.9 billion)
• Total Equity Raised: Approximately 545 million euros (A$973 million)
• Retail Tranche Result: ~147 million euros (A$263 million) against a 205 million euro target
• HOCHTIEF Stake Post-Transaction: 15.41%, following acquisition of ~58 million shortfall shares
• New Retail Shares Commence Trading: 31 December
• Phase One Status: Fully funded through to first cash flow

Market Context and Share Performance

Vulcan Energy's shares last traded at A$4.58, marking a gain of 2.92%. The stock is benefiting from the completed financing and broader supply-side dynamics within the global lithium sector.

Current commodity market conditions are being influenced by supply tightness emanating from China. Notably, the suspension of mining activities in Yichun—a region frequently dubbed "Asia's lithium capital"—due to licensing issues has removed significant tonnage from the supply chain. This development is supportive for lithium developers in politically stable regions like Europe, as investors reassess the scarcity value of battery-focused lithium projects.

With its financing now secured, Vulcan Energy's narrative evolves from a pure development story to a fully-funded construction phase. The crucial test in the coming quarters will be the company's ability to meet its planned construction and commissioning targets under the 2.2-billion-euro Phase One structure, thereby paving the way for low-carbon lithium production to supply the European electric vehicle market.