Good morning ladies and gentlemen. Welcome to Sigma Lithium 2026 second quarter earnings conference call. I would like to inform you that this event is being recorded and all participants will be in listen-only mode during the company's presentation. A recording of this webcast will be available on the company's website. After the prepared remarks, there will be a question and answer session for participants. At this time, further instructions will be provided. I would now like to turn the conference over to Ana Hartley, Vice President of Investor Relations. Please, go ahead.

I'd like to welcome you to our second quarter 2026 earnings conference call. Joining me on the call today is Ana Cabral, co-chair and CEO of Sigma Lithium, and Felipe Peres, CFO of Sigma Lithium. I'd like to remind you that some of the statements made during this call, including any production guidance, expected company performance, Update on mining operations, the timing of our projects and market conditions may be considered forward-looking statements. Please note the cautionary language about forward-looking statements in our presentation and press release, which are available on the Sigma Lithium website. I will now be turning the call to Ana Cabral.

Thank you, Ana. I'm now going to introduce you to Sigma Lithium's second quarter of 2026, Earnings Presentation. Without further ado, I'll go into the next slide. During this quarter, we continue to deliver on execution excellence, cost control, and operational resilience, driving value creation for our shareholders. Sigma is a large scale, low cost, and traceable producer of lithium materials. We do not have tailings dams. We do not use drinking water. We do not use hazardous chemicals. We do not use dirty energy. 100% of our energy is renewable. And we have not had an accident in over 1,100 days. At the bottom, there are three pictures that illustrate that. Pictures are more than 1,000 words. We uphold at Sigma the highest global mining standards. When you look at the left, you see our mining waste rock piles. We actively regenerate them, planting grass, so they are integrated into the environment. That's the highest G7 standards. When you look at other G7 countries to high standards, you can see the same waste rock pile up next to the environment and again this is a high standard waste rock pile. We go above and beyond what others do. Some other countries have tailing dams and again very high standard but we don't have any of them. That's why we believe that we can generate significant efficiency operational because we can deliver our material and maintain traceability and sustainability. For example, we have managed to upgrade our mining operations in record time. Moreover, we have managed to achieve record recoveries in our cleantech industrial processing plant. On this slide, you can see the images of our waste rock piles. fully rehabilitated and regenerated with vegetation, grass. Once these piles come to their final shape of usage, that's the work we do. We do artificial germination and they become beautiful, integrated to the landscape. One can only see their waste piles because of the terracing. In front of them, there's our beautiful new fleet. Again, a picture is a thousand words. Now, without further ado, I'm going into the financial highlights of the second quarter of 2026. We've had an incredible quarter. The reliable and disciplined execution enabled us to surpass all of our targets. We delivered a very large cash flow generating $27 million in cash from operations during the first half of the year. We also were able to generate high margins as a result of disciplined cost control. We maintained our high gross margin at 60% and we delivered a record 47% EBITDA margin, the highest in our history. That's a result of disciplined cost control, lower costs, and increased production volumes. We delivered 35,400 of lithium oxide concentrate this quarter, an increase of 52% over the first quarter. As a result, we also had another record, the highest net revenues in our history, at $55 million this quarter. Again, discipline. We remain our low-cost leader, decreasing costs even further. $401 per ton plant gate, $452 per ton CIF, $668 per ton all-in cash costs. That gives us tremendous resilience, an entrenched competitive advantage, and an ability to be a cash machine. At current price levels, we're well into excess return territory. Due to our commercial flexibility, we were able to realize pretty good net lithium prices for SC5, which demonstrates how our clients are supportive and are fans of our high purity product. $2,089. This page illustrates further what our low cost stewardship does for us. Delivers strong cash flow and high profitability. It is all about the costs. We increase production by 52%, Then, as a result of the low costs, we were able to deliver the margins we referred to before. More importantly, the revenues of $97 million for the first half of the year. All of it enabled us to continue to repay debt in a very disciplined approach to our balance sheet. We managed to repay 25% of our debt over the last year, total debt. Over the last two years, we delivered the balance sheet in half. We repaid 43% of our total debt. We're now at probably the lowest levels of debt ever in our history. This enables us to continue to execute on our significant near-term growth strategy. By the year end 2027, without building a second plant, we will be able to increase production capacity by almost two times. Once we build two plants, we will be able to increase production capacity by two and a half times from 2027 to 830,000 tons. That capacity will be installed by the end of 2028. That's the result of two additional plants. We decided to embark on this growth strategy to take full advantage of our efficiency and the very favorable lithium markets. This slide illustrates further our cost leadership. This is the result of the financial discipline and precision in growth strategy and CAPEX. Again, a page with numbers, there are a thousand words. We delivered a decrease of double digits across the board. Plantgate and CIF costs decreased over 30%. Now, all in sustaining costs are back to normal, which were third quarter of 2025. which means that we still can decrease them a bit further than as we increase volumes and normalize production. Our only sustaining cost was $668 per ton in the second quarter. Again, that puts us well into excess return territory at current lithium prices. Here is an additional illustration of that. If we compare net We are delivering, against CIF Asia, approximately $1,400 per ton of cash profit. Now, when you compare that with our competitors, you can see that we're almost neutral to lithium prices, almost as if we are the floor. That cost discipline which enabled us to execute on our strategy so successfully has been now reflected into our cost guidance. We're now adjusting our updated guidance and lowering it to reflect the executed, delivered, all-in sustaining cash costs in the second quarter. So that comes down to $668 a ton for the year of 2026. Therefore, we are on track to deliver on the year of 2027 guidance of $620 all-in cash cost, total cash cost per ton, as we continue to increase production volumes. This page illustrates how we have been able to deliver on some of the lowest costs in our industry while at the same time maintaining one of the world's best safety records for employees. Over 101,000 days have gone by and our employees go back home to their families safely. This is a result of our own employee engagement and our strict safety processes. Everyone feels that they are responsible for their safety and their colleagues' safety. Our TRIFR is zero. That's another zero. Again, demonstrating our execution excellence. This next page illustrates how we've been able to achieve operational efficiency and maintain our high margins across the board. Gross margins stayed at 60%, EBITDA margins were all-time record of 47%, operating margins remained at 32%, and we maintained profitability with a positive net margin. Therefore, here it is an illustration of our debt reduction enabled by financial discipline. We repaid 25% of total debt in the last year, 43% of our total debt that significantly leveraged over the last two years. When it all comes together, one can see how our strong performance translates into cash and fully converts, making our operation self-sustaining and resilient. We sell everything, not only the high grade, but also our tailings, which are dry stacked. That adds quite a lot to our cash generation. As you can see on this page, we actually had in June So, in addition to it, we're also being able to sell current inventory of lithium materials of varying grades, mostly high grade. In other words, We are going to be 100% circular very soon and just sell everything that our plant generates. From high grade to low grade, we have a very wide spectrum of high purity products that just increase our resilience and help us be fully sustainable. Without further ado, I'm going to start with our operational highlights and our production and capacity outlook, especially in light of the recent events. We have surpassed our high-grade lithium oxide production and we're demonstrating significant operational efficiency. Our mining ramp-up surpassed guidance and we delivered 35,000 tons in the second quarter of 26. That was an increase of 6% over guidance. We are on track to deliver on our previous guidance. We just pushed it forward by three months. We are in a very good position to negotiate an agreement with the state of Minas Gerais and we have cleared most of our main points. As a result, we're going to execute as planned our additional fleet upgrade and deploy 75 ton trucks and 98 ton excavators to our site in order to increase haulage capacity. That's how confident we are that we're going to be able to successfully advance into Primarizing our mining operation and continuing to ramp up our production. So when you look at it as a whole, a year later, the conclusion is that the increase in safety, the increase in operational efficiency, fully validated the decision to primarize our mine. We have all of our operations under full control. and we are deploying knowledge and ability to basculate through the excavators that significantly increased our productivity and our capabilities to increase geometry of the mine as we will discuss further into this section. Here is a detailed discussion of our continued execution of the fleet upgrade that is going to take place in the third quarter of 26. We delivered on our first half targets, increasing the scale, the haulage capacity by 40%. So we're continuing on the upgrade by now bringing the excavators of 98 tons, replacing some of the 75 ton excavators and bringing in the 75 ton trucks to add to the fleet of 60 ton trucks. Now that geometry is wider, we actually have more flexibility at the waste removal areas. So this is the second stage of deployment of large equipment. Larger machinery means more productivity, so it enables us to maintain our low cash cost operating position. Therefore, it increases our resilience as a company that help us navigate throughout the cycles. This slide illustrates visually how the work we've been conducting for the last couple of months of reassessing the geometry has paid off. We designed a new pit shell, a new mining pit shell that enabled the company to access a large amount of high-grade spodumene ore. We constructed ramps, brought in larger trucks, so we are able to unlock this larger block of material that will feed our industrial plant. The results are on the page, quantified. The size of the block is 83% larger than the block we were able to access with the old design. At 1.1 million tons of fresh ore, we can produce 200,000 tons of lithium oxide concentrate. So all in, an 83% increase in raw material delivers almost 100% increase in oxide concentrate production. Lastly, this ore is of very high grade, 1.4% of fresh rock. This is how we are able to operate throughout the remaining months in full capacity, meaning using the main circuit and the reprocessing circuit because of the amount of high-grade fresh ore being delivered to the plot. This slide is basically to outline how our production expansion plans remain on track. Our forecasts were pushed forward by just three months. So the production forecast with only plant one for the 12 months forward remains at 240,000 tons of high-grade lithium concentrate per year. By the end of 2027, including all circuits that the first plant has and that includes the recirculation circuit, our production forecast is at 330,000 tons per year. That's a result of the plant recovery of 70% and in the main circuit and a fully working reprocessing circuit for the other material. As it comes to construction, we plan to have an installed capacity at the end of 2027 once we complete the construction of the second plant of 580,000 tons of high-grade lithium concentrate per year. That incorporates the first plant and its reprocessing circuit capacity. Therefore, we plan to just green light Plant 2 at the beginning of January. We have flexibility on how to execute our construction plants. There is a scenario where we could green light both plants, Plant 2 and Plant 3 at the same time at the beginning of 27 in January. but if we don't we would build them sequentially so by the end of 2028 we expect to have 830,000 tons of installed capacity for production. With that kind of capacity and with our current plant the cash flow forecasts and again we're just estimating plant one which is already built They vary just according to current price ranges estimated by Wall Street research analysts. So at the low end of the range, at $1,500 per ton, we could be generating cash flows that would go from $166 million, if you take into account 12 months forward, or $360 million once we contemplate production during 2027. If the prices go to $2,500 per ton, we would be looking at cash flows that would be $235 million if we just stay on the production for 12 months forward But once we deliver the 2027 production, which again can be done with just one plot, we reach half a billion dollars in cash flow. This is a direct result of our low cost position, high margins and efficiency. In other words, we do not need a lot of volume to generate quite a substantial amount of cash. We're now going to make our final remarks and the conclusion of our second quarter 2026 earnings presentation. Sigma Lithium plans to deliver substantial returns to shareholders this year, in 2026, thus because of our significant growth profile of production within the next 12 months. We plan also to significantly increase incremental industrial capacity. We're going to resume construction of Plant 2 and potentially build Plant 3 at the same time, given that we are in a very robust lithium market environment, as we're going to discuss later. This is the time to build and to build in scale. More importantly, we have proven execution capabilities in a very experienced team. We have built our first plant in record time and commissioned it even faster. Just recently, we primarized and automated our entire mining operations, upgrading the fleet once and now we're upgrading it again to increase haulage capacity. all of that done while maintaining the world record in employee safety with over a thousand and one hundred days without accidents. Our operational resilience is based on these two pillars this financial discipline regarding when to deploy CAPEX for growth and timing is now but more importantly on relying and monetizing our structural low-cost advantages to convert that into cash flow, which basically sustains the company throughout all lithium markets. Our sector is going through a unique moment in growth. We are enabled by AI instead of disrupted by AI. The demand growth from battery storage is in fact driving lithium global growth demand. AI data centers and energy security require battery storage. Battery storage requires lithium and therefore lithium demand is set for a decades-long growth period. The bar charts below demonstrate that If you compare 2025 year-end demand with 2026 expected lithium demand, in lithium carbonate equivalent, we have a growth of 900,000 tons of LCE If that is translated into our product, lithium oxide, you multiply by eight. So that is approximately seven million tons of lithium oxide concentrate to supply this year's demand projections. If we forward that almost another decade to 2035, Global demand is expected to be 5 million tons of LCE. If one were to translate that into our lithium oxide concentrate product, there will be approximately 40 million tons of production. In other words, that's multiple sides of sigma. At that level, in other words, at 800,000 tons per year expected in 2028, which is going to be our expected production with three plants, we will be supplying a fraction of global expected demand, approximately 2% only. That is the scale of the growth of the sector. and that is a demonstration of how companies need to be well positioned to deliver growth with low capex fast which is precisely what we plan to do by 2028. Our share price if you look at the left has behaving very much in line with the sector and that is actually a very piece of good news. Again, the demand growth and the fundamentals are far too strong and erase all the short-term volatility and noise. Our company has very strong operational and financial performance fundamentals and that is the foundation of our value. Here, our low costs and our strong cash generation are those foundations. Therefore, we're clearly positioned for a re-rating because at an expected 75,000 tons of LCE equivalent of production capacity constructed by the end of next year, we're very much in line with some of our peers, which have market caps which are double our market cap. So that is what we expect to happen over the course of the year, a significant re-rating. And now we move on to the Q&A. Thank you very much for joining us today.

Thank you very much for the presentation. We will now begin the questions and answers section. To ask a question, please submit your question using the Q&A button on your screen. Please provide your name and the name of your company for your question to be taken. Our first three questions comes from Joel Jackson from BMO Capital Markets. First, What was your exact production in Q2 of normal lithium concentrate and exact production in Q2 of the lower grade concentrate slash fines slash tailings? 2. You generated 30 million of cash flow in Q2. If the mine does not restart for the rest of Q3, what is your expected cash flow or burn? 3. What are the best and worst case scenarios for mine restart? And when it restarts, how many months will it take Sigma to ramp it to full grade lithium concentrate production?

Hi, Joe. It's great to hear from you. Let me just do the following. Let me put the page of the presentation on the screen so that I can actually better answer your question. Can you see my screen? Yeah. The entire production for the quarter was high-grade material. And we've done that so that we would highlight that the plant and the mine have gone back to fully ramped position of production of oil. So that's the first part of the question. The lower grade that we produced during the second quarter wasn't sold and it's going to be sold now. When you look at the cash flow projections, this number here, the 32 million, do include the low grade material that was produced during the second quarter. And we deliberately did not sell in order to have a clean quarter of production and sales. So that I would say answers the first part of your question. Then the second part of your question regarding the fact that we generated 13 million of cash flow in Q2. Well, it was more if you look at the The accounting, but then you have the net inflows given that 27 million was sold but did not convert into cash, right? How much do we expect to generate into Q3? Well, that's the exact 27 million that didn't convert into cash that was sold is going to be added to the material that was produced that was not high-grade And that will be sold. So for the third quarter, just to begin with, as of today, we have approximately $60 million to receive in cash flow. That's the value in blue, 32, and the value in green. Best and worst case for mine restarts. Well, best case would be to restart next week. Worst case restarts, I think it would take about two weeks. The dialogue is going quite well. Conversations have been very constructive. But given the nature of the notifications we received and given the fact that These are mostly false accusations executed by local inspectors. We are being quite strict when it comes to the terms of the agreement because we want to be cleared of any wrongdoing. It won't be just a settlement. We would like to be fully cleared given that the accusations are false. And as we have a significant amount of cash flow to come in into Q3, we are obviously negotiating that from a position of strictness. After all, it's our reputation on the line and we tread on reputation.

Our next three questions comes from Aulin Shen from Hot Wind. First one, regarding the two offtake prepayments, the 96 million associated with the 70 Could you clarify how much cash Sigma has actually received from each agreement to date? And specifically, has the 50 million been used to repay debt as previously indicated? Regarding the temporary suspension related to the TAC negotiations, could you please clarify exactly which operations have been suspended? Is the suspension limited to mining activities or have both mining and processing operations been suspended? Given that a production suspension is clearly a material operational event for the company, why wasn't the market and shareholders informed immediately when the suspension occurred? Could you explain the company's reasoning behind the timing of the disclosure? During the current production suspension, are you still able to process and ship lithium midlings? How much lithium midlings did the company ship in the last quarter? And how much are you planning to ship this quarter? Also, have you signed any additional sales or off-take agreements for lithium midlings?

That's a lot to unpack, so let me take your question in pieces, right? First, regarding the off-take agreement for 96 million, we have received 60 million dollars to date. Then in the third quarter, there are additional amounts of that payment to be received. So out of the 96 million, we received 60 million. So that's the first part of your question. That's out of the 70,500 tonne offtake agreement. Then regarding the second offtake, regarding... 40,000 tons of material to be shipped over three years. Given our exceptional ramp up, we are increasing the amount of debt offtake and we're currently negotiating debt increase. And indeed, when that agreement gets closed, meaning financially closed post-increase, it will be 100% used to repay debt as we announced earlier. In fact, we're going to repay the debt no matter what Most likely by the end of the third quarter. There are few liquidity alternatives available to us in order to repay that debt that will either way repay it or refinance it with other creditors. The reason is our substantial cash generation position made it clear that we are in a very good position to move forward. The Second part of your question, which is related to the tax, we did disclose that immediately. In fact, I was on vacation when that happened. And we put together a press release immediately thereafter, as soon as we could make sense of the notifications we received. So that ties back to the rest of your question, meaning, is it limited to mining activities or have both mining and processing operations been suspended? Well, if you read the notifications, it's pretty difficult to say exactly what is supposed to be suspended. So we undertook the initial approach of stopping both operations, mining and industrial. Later, as negotiations progressed, we learned that it was a temporary suspension. But as we sat on the table from a position of strength, we did not reinitiate industrial operations. They're vertically integrated anyway. So the only thing that we would gain by resuming industrial operations would be to restart the reprocessing circuit. So now we're probably in a position to restart industrial operations, and we will. But we hope to have an overall final conclusion of this by next week. So I think that answers the second part of your question. But I think I'd like to reiterate, in the middle of my vacation, in July, we did put out a pretty clear announcement about the Taki and the suspension. Unfortunately, because I was on vacation. So, during the current production suspension, are we still able to process and ship lithium middlings? Absolutely, and that's what we've been doing. That, in fact, is the source of our resilience. When you look at the third quarter financials, The 32 million and the 27 million reflect just that, in addition to high-grade material that had not been sold for the cut-off of June 30th, that we hadn't shipped to the board in time to make it to the sales cut-off. So when you look at the volume sold of 24,000 versus the volume produced of 35,000, there's still a bit of high-grade material there that was sent to be shipped. The remaining of these amounts here shown are midlands, we don't call it midlands, we call it low-grade, Low-grade high purity because midlings are materials produced by flotation plants where a particle or spodumene is broken. That's why our material carries significant value. In a DMS plant, The particle of spodumene isn't broken, the crystal is intact, so it can be easily reprocessed with a 60% recovery into sometimes 4.7% material by our clients. Lastly, you asked whether we had signed any additional sales or offtake agreements for these materials. Well, we don't sell them on offtake basis. We sell them on a spot basis, and we're going through a very healthy bidding process for these materials. Just to illustrate, we have 300,000 tons of materials left, and we have a bid for $65 per ton. And again, as we decided not to sell any fines in the second quarter to have a clean quarter, that will probably be in addition to these two amounts on the screen. The 32 plus 27, we got 300,000 tons of fines, high-grade lithium fines, at currently $65 per ton in a bid. So very healthy market, very robust demand. I guess I answered all of your questions.

Our next question comes from David Tingshuai Feng from CICC. Hi, Ana. Thanks for the call. May we know if the new timeline for plant construction of phase two or phase three is more relevant to mining plan adjustment, funding consideration, or any other factors? Thanks.

Not really. Let me go back to the forecast here. Good things happen out of, let's say, difficult situations. So last year, when we changed mine contractor, we started with basically relied on our reprocessing circuit at the current lithium oxide plant. So that circuit was perfected, adjusted, tested with varying amounts and types of feed. So the result was that we learned that plant capacity, current plant capacity is actually 330,000 tons per year once it's fully fed with fresh ore. Why is that? Because both circuits are working at the same time. The high-grade circuit and then the low-grade circuit, which then gets reprocessed and turned into high-grade, 5.1, 5.2% of concentrate. So with full feed of fresh ore, meaning 160,000 tons of fresh ore, that plant can actually deliver 330,000 tons of material. We've known that since In 2024, December, when we upgraded the plant, if you look at the amount produced in the fourth quarter of 24, when we solely fed the plant fresh ore, that was the annualized throughput. as we vastly disclosed here and discussed we have not been able to deliver fresh ore at a cadence to the plant ever since because the troubles with the old mining contractor began right after that during the first quarter and then in the second quarter and by the third quarter we ended up changing contractors and dismissing that contractor all along and primarizing the mine So essentially what we will do is to go back to full capacity of the plant by having both main circuit and reprocessing circuit at full tilt once this mine delivers fresh ore material in full capacity, which is 160,000 tons of ore per month. What we've done this quarter is a demonstration of it. We produced 35,000 tons of concentrate because we've been feeding fresh ore to the plant.

This concludes our questions and answers section. Now I am returning to our CEO, Ana Cabral, for her final remarks.

Well, I want to thank you all for bearing with us during this presentation. And again, we're very confident in what we're doing. We have a significant growth profile. We've proven that we can execute under fire, and we have the experience to deal with pretty much most issues. More importantly, we can prove, and we have been proving, that we're doing what one of our shareholders said is validation of ESG under stress. In other words, our governance and compliance are being tested out there in Europe. Our social and environmental credentials and track record Thank you very much. The second quarter of

For further information, please visit the company's website at www.sigmalithiumresources.com. You may disconnect now and have a nice day.