Concept Study for Downstream Processing

Research evidence excerpt

Concept Study for Downstream Processing

June 15, 2026 | 09:54 ET~

PMET Resources Critical Minerals

Raj Ray, CFA Analyst

raj.ray@bmo.com 44 (0)20 7246 5430

PMET-TSX Rating Price: Jun-12 Target Total Rtn

Outperform(S) $6.16 $10.00 62% Max Yerrill, CFA* Analyst

max.yerrill@bmo.com (437) 214-3503

Frederic Bolton VP Associate

frederic.bolton@bmo.com +44 7850 655 751

Legal Entity: BMO Capital Markets LimitedConcept Study for Downstream Processing BMO Nesbitt Burns Inc.*

Bottom Line:

PMET released a concept study assessing downstream processing and selected

Primero’s ALi® atmospheric leach process as the preferred pathway for further 9.00 2YR Price Volume Chart

study. We view the potential to reduce transportation costs by shipping a more 8.00

concentrated lithia product as an attractive proposition. However, given the industry's 7.00 6.00

past challenges in operating conversion facilities outside of China, and the new 5.00 4

proposed flowsheet, we believe there is significant additional test work required before 4.00 3

3.00 2

the market provides credit for the opportunity. 2.00 1

1.00 0

Key Points LHS: Price (C$) / DecRHS: Volume (mm) Jun Dec Source: FactSetJun

Concept study assessing potential downstream processing. PMET assessed seven

potential flowsheets and selected Primero's ALi® atmospheric leach as the preferred

pathway for additional study, versus a traditional sulfuric acid roast used in China.

Bench-scale test work successfully produced a 99.8% lithium carbonate (battery grade)

product from project concentrate with a recovery of ~92.5%.

Process overview. Primero's ALi® atmospheric leach recovers lithium via an

atmospheric leach process using ion exchange before producing lithium carbonate

by precipitation.