Impact Benefit Agreement signed for the James Bay Lithium Project

Article content

BRISBANE, Australia, Dec. 14, 2023 (GLOBE NEWSWIRE) — Allkem Limited (ASX|TSX: AKE, “Allkem” or the “Company”) is pleased to announce that it has signed the Kapisikama Agreement, an Impact and Benefit Agreement (“IBA”) with the Grand Council of the Crees (Eeyou Istchee), the Cree Nation Government and the Cree Nation of Eastmain regarding the development and operation of the James Bay Lithium Project (“James
Bay
Lithium Project” or “the Project”).

The James Bay Lithium Project is located in northern Quebec, approximately 130km east of James Bay and the Cree community of Eastmain. The Kapisikama Agreement will govern the relationship between Allkem and the Cree Nation through a sustainable development approach based on mutual trust and respect during all phases of the Project. Comex approval (Quebec government and CREE Nation) of the ESIA also remains in progress.

Article content

Article content

With a view to respecting Cree traditional activities and ensuring the promotion of Cree economic and social development, the Kapisikama Agreement provides for training, employment and business opportunities for the Crees and particularly the Crees of Eastmain at the James Bay Lithium Project, as well as for the cooperation and involvement of the Cree parties with Allkem in the environmental monitoring during all phases of the Project.

The Kapisikama Agreement also ensures financial benefits for the Cree parties on a long-term basis, consistent with the Cree Nation Mining Policy and with Allkem’s approach to develop the Project while ensuring the promotion of Cree economic and social development in a mutually beneficial manner.

Managing Director and CEO, Martin Perez de Solay said: “The Kapisikama Agreement with the Cree Nation concerning our James Bay lithium project is a significant milestone and represents a partnership between us that has been forged over years of extensive discussions. We have already developed a relationship of mutual trust and respect with Cree Nation’s representatives, and we look forward to building and strengthening this relationship in the years ahead.”

Article content

Chief of the Cree Nation of Eastmain, Raymond Shanoush said: “I am proud to witness the signing of this Kapisikama Agreement, which marks a significant milestone in securing the rights and prosperity of the Cree Nation of Eastmain and of our community members. The Kapisikama Agreement reflects our determination to protect our lands, culture, and future generations while building meaningful and sustainable partnerships respectful of heritage and values.”

Grand Chief of the Grand Council of the Crees (Eeyou Istchee), Mandy Gull-Masty said: “The Kapisikama Agreement illustrates the partnership that the Crees and Allkem have forged over the years of extensive discussions. The Kapisikama Agreement will allow for the socio-economic development of the Cree Nation. The signing of the Kapisikama Agreement shows once again the commitment of the Cree Nation to be a key partner in natural resources developments in Eeyou Istchee while protecting our traditional way of life and the environment.”

Head of Canadian Operation, Denis Couture said: “I would like to thank the community of Eastmain for the support of the agreement, Brandon Moses and the Wabannutao Eeyou Development Corporation (WEDC) team, Grand Chief Mandy Gull-Masty and Richard Shecapio of the Cree Nation Government, Chief Raymond Shanoush and the council of the Cree Nation of Eastmain, with special thanks to Brian Weapenicappo and his family for the support during the process.”

Article content

Article content

About the Grand Council of the Crees (Eeyou Istchee)

The Grand Council of the Crees (Eeyou Istchee) is the political body that represents the approximately 18,000 Crees or “Eeyouch” (or “Eenouch”). The Board of Directors of the Grand Council of the Crees (Eeyou Istchee) is constituted of twenty (20) members including: the Grand Chief and Deputy Grand Chief elected at large by the Eeyouch, the Chiefs elected by each of the nine (9) recognized Cree communities, and one (1) other representative elected by each community. The head office of the Grand Council of the Crees (Eeyou Istchee) is in the Cree community of Nemaska. The Grand Council of the Crees (Eeyou Istchee) also has offices in Montreal, Quebec City and Ottawa.

About the Cree Nation Government

The Cree Nation Government (formerly the Cree Regional Authority (“CRA”) established pursuant to the James Bay and Northern Québec Agreement) exercises certain municipal powers on Category II lands and is responsible for land use and development planning, environmental protection, the hunting, fishing and trapping regime, economic and community development, Cree governance and other matters as decided by the Board of Directors. The Council of the Cree Nation Government is composed of the same representatives as the Board of Directors of the Grand Council of the Crees (Eeyou Istchee). These two bodies often act jointly and are commonly referred to as the “Council/Board”.

Article content

About the Cree Nation of Eastmain

Eastmain, ᐙᐸᓅᑖᐤ/Wâpanûtâw, meaning “Lands east of James Bay”, is located on the east coast of James Bay, on the south shore of the Eastmain River. With a population nearing 1000, the main economic activities of the community are its services sectors. Eastmain is also the headquarters for the Cree Regional Trappers Association, whose role is to support all local Cree Trappers by maintaining the practices of their traditional activities.

This release was authorised by Mr Martin Perez de Solay, CEO and Managing Director of Allkem Limited.

IMPORTANT NOTICES

This investor ASX/TSX release (Release) has been prepared by Allkem Limited (ACN 112 589 910) (the Company or Allkem). It contains general information about the Company as at the date of this Release. The information in this Release should not be considered to be comprehensive or to comprise all of the material which a shareholder or potential investor in the Company may require in order to determine whether to deal in Shares of Allkem. The information in this Release is of a general nature only and does not purport to be complete. It should be read in conjunction with the Company’s periodic and continuous disclosure announcements which are available at allkem.co and with the Australian Securities Exchange (ASX) announcements, which are available at www.asx.com.au.

Article content

This Release does not take into account the financial situation, investment objectives, tax situation or particular needs of any person and nothing contained in this Release constitutes investment, legal, tax, accounting or other advice, nor does it contain all the information which would be required in a disclosure document or prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act). Readers or recipients of this Release should, before making any decisions in relation to their investment or potential investment in the Company, consider the appropriateness of the information having regard to their own individual investment objectives and financial situation and seek their own professional investment, legal, taxation and accounting advice appropriate to their particular circumstances.

This Release does not constitute or form part of any offer, invitation, solicitation or recommendation to acquire, purchase, subscribe for, sell or otherwise dispose of, or issue, any Shares or any other financial product. Further, this Release does not constitute financial product, investment advice (nor tax, accounting or legal advice) or recommendation, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

Article content

The distribution of this Release in other jurisdictions outside Australia may also be restricted by law and any restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

Past performance information given in this Release is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Forward Looking Statements
Forward-looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performances or achievements expressed or implied by such forward-looking statements, including but not limited to, the risk of further changes in government regulations, policies or legislation; the risks associated with the continued implementation of the merger between the Company and Galaxy Resources Ltd, risks that further funding may be required, but unavailable, for the ongoing development of the Company’s projects; fluctuations or decreases in commodity prices; uncertainty in the estimation, economic viability, recoverability and processing of mineral resources; risks associated with development of the Company Projects; unexpected capital or operating cost increases; uncertainty of meeting anticipated program milestones at the Company’s Projects; risks associated with investment in publicly listed companies, such as the Company; and risks associated with general economic conditions.

Article content

Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this Release to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based. Nothing in this Release shall under any circumstances (including by reason of this Release remaining available and not being superseded or replaced by any other Release or publication with respect to the subject matter of this Release), create an implication that there has been no change in the affairs of the Company since the date of this Release.

Not
for
release
or
distribution in the
United States
This announcement has been prepared for publication in Australia and may not be released to U.S. wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction, and neither this announcement or anything attached to this announcement shall form the basis of any contract or commitment. Any securities described in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except in transactions registered under the U.S. Securities Act of 1933 or exempt from, or not subject to, the registration of the U.S. Securities Act of 1933 and applicable U.S. state securities laws.

Article content