Grota Do Cirilo Lithium Project

NI 43-101 TECHNICAL REPORT GROTA DO CIRILO LITHIUM PROJECT GROTA DO CIRILO LITHIUM PROJECT ARAÇUAÍ AND ITINGA REGIONS, MINAS GERAIS, BRAZIL PHASE 2 (BARREIRO) UPDATE OF THE NI 43-101 TECHNICAL REPORT ON FEASIBILITY STUDY Prepared for: Sigma Lithium Corporation Prepared by: Guilherme Gomides Ferreira (MEng) MAIG, GE21 Consultoria Mineral Marc-Antoine Laporte, P.Geo, SGS Canada Inc Jacques Parent, P.Eng., Primero Group Americas Jarrett Quinn, P.Eng., Primero Group Americas Inc. Porfirio Cabaleiro Rodriguez, (MEng), FAIG, GE21 Consultoria Mineral Pedro P. Veliz, P. Eng., Promon Engenharia Jacqueline Wang, P.Eng., Primero Group Americas Effective Date: 2nd June 2021 Issue Date: 15th July 2021 21501-REP-PM-001 Page | 1 NI 43-101 TECHNICAL REPORT GROTA DO CIRILO LITHIUM PROJECT IMPORTANT NOTICE This report was prepared as National Instrument 43-101 Technical Report for Sigma Lithium Corporation (Sigma) by Primero Group Americas Inc. (a subsidiary of Primero Group Ltd), SGS Geological Services, GE21 Consultoria Mineral and Promon Engenharia Ltda. (collectively the Report Authors). The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in the Report Authors' services, based on i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by Sigma subject to terms and conditions of its individual contracts with the Report Authors. Except for the purposed legislated under Canadian provincial and territorial securities law, any other uses of this report by any third party is at that party’s sole risk. 21501-REP-PM-001 Page | 2 NI 43-101 TECHNICAL REPORT GROTA DO CIRILO LITHIUM PROJECT TABLE OF CONTENTS 1 SUMMARY 23 1.1 INTRODUCTION 23 1.2 PROPERTY DESCRIPTION AND LOCATION 23 1.3 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY 24 1.4 HISTORY 24 1.5 GEOLOGICAL SETTING AND MINERALIZATION 24 1.6 EXPLORATION 25 1.7 DRILLING 26 1.8 SAMPLE PREPARATION, ANALYSES AND SECURITY 26 1.9 DATA VERIFICATION 28 1.10 MINERAL PROCESSING AND METALLURGICAL TESTING 28 1.11 MINERAL RESOURCE ESTIMATES 29 1.12 MINERAL RESERVE ESTIMATES 33 1.13 MINING METHODS 34 1.14 RECOVERY METHODS 35 1.15 PROJECT INFRASTRUCTURE 36 1.16 MARKET STUDIES AND CONTRACTS 37 1.17 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT 38 1.18 CAPITAL AND OPERATING COSTS 41 1.19 ECONOMIC ANALYSIS 43 1.20 INTERPRETATION AND CONCLUSIONS 48 1.21 RECOMMENDATIONS 49 2 INTRODUCTION 51 2.1 TERMS OF REFERENCE 51 2.2 EFFECTIVE DATES 52 2.3 QUALIFIED PERSONS 52 2.4 SITE VISITS 52 2.5 UNITS AND CURRENCY 53 2.6 INFORMATION SOURCE 53 3 RELIANCE ON OTHER EXPERTS 54 3.1 MARKETING 54 3.2 ENVIRONMENTAL, PERMITTING AND SOCIAL LICENCE 54 3.3 TAXATION 55 3.4 MINERAL TENURE 55 4 PROPERTY DESCRIPTION AND LOCATION 56 4.1 PROPERTY DESCRIPTION AND LOCATION 56 4.2 MINERAL TENURE 57 4.3 SURFACE RIGHTS 60 4.4 AGREEMENTS 61 4.5 ROYALTIES AND ENCUMBRANCES 61 4.6 QP COMMENT 61 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY 62 5.1 ACCESSIBILITY 62 5.2 CLIMATE 62 5.3 LOCAL RESOURCES AND INFRASTRUCTURE 62 5.4 PHYSIOGRAPHY 65 6 HISTORY 66 21501-REP-PM-001 Page | 3 NI 43-101 TECHNICAL REPORT GROTA DO CIRILO LITHIUM PROJECT 6.1 PROJECT HISTORY 66 6.2 PRODUCTION 66 7 GEOLOGICAL SETTING AND MINERALIZATION 67 7.1 REGIONAL GEOLOGY 67 7.2 LOCAL GEOLOGY 67 7.3 PROPERTY GEOLOGY 70 8 DEPOSIT TYPES 80 9 EXPLORATION 82 9.1 INTRODUCTION 82 9.2 GRIDS AND SURVEYS 82 9.3 GEOLOGICAL MAPPING 82 9.4 CHANNEL MAPPING 82 9.5 TRENCH SAMPLING 84 9.6 EXPLORATION POTENTIAL 85 10 DRILLING 89 10.1 INTRODUCTION 89 10.2 DRILL TYPE 89 10.3 SIGMA DRILLING CAMPAIGNS 89 10.4 DRILL HOLE LOGGING 99 10.5 RECOVERY 99 10.6 DRILL SURVEYS 99 10.7 QP COMMENT 99 11 SAMPLE PREPARATION, ANALYSES AND SECURITY 100 11.1 INTRODUCTION 100 11.2 SAMPLING 100 11.3 DENSITY DETERMINATIONS 101 11.4 ANALYTICAL AND TEST LABORATORIES 102 11.5 SAMPLE PREPARATION AND ANALYSIS 102 11.6 QUALITY ASSURANCE AND QUALITY CONTROL 103 11.7 SAMPLE SECURITY 110 11.8 SAMPLE STORAGE 110 11.9 QP COMMENTS 110 12 DATA VERIFICATION 111 12.1 DRILLING DATABASE 111 12.2 WITNESS SAMPLING 111 12.3 CHECK ASSAYS 115 12.4 QP COMMENTS 117 13 MINERAL PROCESSING AND METALLURGICAL TESTING 118 13.1 XUXA METALLURGICAL TEST WORK (2018-19) 118 13.2 BARREIRO METALLURGICAL TEST WORK (2020-21) 129 14 MINERAL RESOURCE ESTIMATES 139 14.1 XUXA DEPOSIT 139 14.2 BARREIRO DEPOSIT 150 14.3 MURIAL DEPOSIT 160 14.4 LAVRA DO MEIO DEPOSIT 169 15 MINERAL RESERVE ESTIMATES 180 15.1 INTRODUCTION 180 15.2 MINERAL RESERVE STATEMENT 181 21501-REP-PM-001 Page | 4 NI 43-101 TECHNICAL REPORT GROTA DO CIRILO LITHIUM PROJECT 15.3 MINERAL RESERVE ESTIMATION 182 15.4 FACTORS THAT MAY AFFECT THE MINERAL RESERVE ESTIMATES 186 15.5 PHASE 2 BARREIRO PROJECT MINERAL RESERVES ESTIMATES 187 16 MINING METHODS 188 16.1 OPEN PIT MINING XUXA 188 16.2 MINE OPERATION AND LAYOUT XUXA 188 16.3 GEOTECHNICAL ASSUMPTIONS XUXA 188 16.4 ENGINEERED PIT DESIGNS XUXA 199 16.5 MINE SCHEDULING XUXA 201 16.6 MINING FLEET XUXA 202 16.7 PIT DEWATERING XUXA 204 16.8 PERSONNEL MINE 204 16.9 PHASE 2 BARREIRO PROJECT MINING METHODS 206 16.10 PIT OPTIMIZATION BARREIRO 206 16.11 PIT DESIGN BARREIRO 212 16.12 MINE SCHEDULE BARREIRO 213 16.13 WASTE DISPOSAL BARREIRO 224 16.14 PHASE 2 MINE FLEET SELECTING AND SIZING BARREIRO 226 17 RECOVERY METHODS 239 17.1 PROCESSING PLANT DESCRIPTION 239 17.2 XUXA PROCESS PLANT 239 18 PROJECT INFRASTRUCTURE 249 18.1 XUXA GENERAL SITE PLAN 249 18.2 ROADS 252 18.3 EARTHWORKS AND BURIED SERVICES 253 18.4 WATER BALANCE (STORM WATER, WATER TREATMENT) XUXA 253 18.5 SEWAGE 256 18.6 BUILT INFRASTRUCTURE 257 18.7 STOCKPILES 259 18.8 WASTE ROCK AND DRY TAILINGS CO-DISPOSAL 260 18.9 FUEL 262 18.10 POWER SUPPLY 262 18.11 WATER SUPPLY 263 18.12 COMPRESSED AIR 263 18.13 CONTROL SYSTEMS 263 18.14 COMMUNICATION SYSTEMS 264 18.15 CAMPS AND ACCOMMODATION 264 18.16 PORT FACILITIES 264 19 MARKET STUDIES AND CONTRACTS 265 19.1 LITHIUM DEMAND AND CONSUMPTION 265 19.2 LITHIUM PRODUCTION 268 19.3 LITHIUM PRICES 273 19.4 CONTRACTS AND OFF-TAKE AGREEMENTS 277 20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT 279 20.1 ENVIRONMENTAL CONSIDERATIONS 279 20.2 PERMITTING CONSIDERATIONS 283 20.3 SOCIAL CONSIDERATIONS 285 20.4 EVALUATION OF ENVIRONMENTAL IMPACTS AND MITIGATION ACTIONS 285 20.5 WASTE AND WATER MANAGEMENT 288 21501-REP-PM-001 Page | 5 NI 43-101 TECHNICAL REPORT GROTA DO CIRILO LITHIUM PROJECT 20.6 RELATIONS WITH STAKEHOLDERS 288 20.7 REHABILITATION AND CLOSURE PLANNING 289 20.8 PHASE 2 BARREIRO PEGMATITE ENVIRONMENTAL WORK 291 21 CAPITAL AND OPERATING COSTS 302 21.1 BASIS OF ESTIMATE FOR XUXA PHASE 1 302 21.2 WORK BREAKDOWN STRUCTURE 302 21.3 ESTIMATE PLAN 302 21.4 XUXA CAPITAL COSTS ERRO! INDICADOR NÃO DEFINIDO. 21.5 XUXA OPERATING COSTS 313 21.6 BARREIRO PROJECT CAPITAL AND OPERATING COSTS PHASE 2 322 21.7 BARREIRO MINING CAPEX AND OPEX 323 22 ECONOMIC ANALYSIS 329 22.1 CAUTIONARY STATEMENT 329 22.2 METHODOLOGY USED FOR XUXA PHASE 1 329 22.3 ASSUMPTIONS/BASIS XUXA 330 22.4 FINANCIAL MODEL XUXA 331 22.5 SENSITIVITY ANALYSIS XUXA 334 22.6 METHODOLOGY USED FOR BARREIRO PHASE 2 338 22.7 ASSUMPTIONS/BASIS BARREIRO 339 22.8 FINANCIAL MODEL BARREIRO 340 22.9 SENSITIVITY ANALYSIS BARREIRO 341 23 ADJACENT PROPERTIES 342 24 OTHER RELEVANT DATA AND INFORMATION 343 24.1 SCHEDULE 343 24.2 PROJECT EXECUTION PLAN 344 25 INTERPRETATION AND CONCLUSIONS 347 25.1 CONCLUSIONS 347 25.2 RISK EVALUATION 352 25.3 OPPORTUNITIES 353 26 RECOMMENDATIONS 354 26.1 GEOLOGY AND RESOURCES 354 26.2 XUXA 354 26.3 BARREIRO PROJECT RECOMMENDATIONS 356 27 REFERENCES 357 21501-REP-PM-001 Page | 6 NI 43-101 TECHNICAL REPORT GROTA DO CIRILO LITHIUM PROJECT LIST OF TABLES TABLE 1-1 – XUXA DEPOSIT MINERAL RESOURCE ESTIMATE 31 TABLE 1-2 – BARREIRO DEPOSIT MINERAL RESOURCE ESTIMATE 32 TABLE 1-3 – MURIAL DEPOSIT MINERAL RESOURCE ESTIMATE 32 TABLE 1-4 – LAVRA DO MEIO DEPOSIT MINERAL RESOURCE ESTIMATE 33 TABLE 1-5 – PARAMETERS USED IN PIT OPTIMIZATION 33 TABLE 1-6 – MINERAL RESERVES 34 TABLE 1-7 – WASTE PILE STORAGE 37 TABLE 1-8 – CAPITAL COST ESTIMATE SUMMARY XUXA 41 TABLE 1-9 – OPERATING COST ESTIMATE SUMMARY 42 TABLE 1-10 – CAPEX SUMMARY BARREIRO 42 TABLE 1-11: OPEX SUMMARY BARREIRO 43 TABLE 1-12 – BASE CASE ECONOMIC ANALYSIS RESULTS XUXA 43 TABLE 1-13 – MAIN MACROECONOMIC ASSUMPTIONS XUXA 44 TABLE 1-14 – TECHNICAL ASSUMPTIONS (BASE CASE) XUXA 44 TABLE 1-15 – BASE CASE ECONOMIC ANALYSIS RESULTS BARREIRO 47 TABLE 1-16 – MAIN MACROECONOMIC ASSUMPTIONS BARREIRO 47 TABLE 1-17 – TECHNICAL ASSUMPTIONS (BASE CASE) BARREIRO 47 TABLE 1-18: SENSITIVITY ANALYSIS ON NPV WITH DIFFERENT RECOVERY AND PRICING BARREIRO 48 TABLE 4-1 – MINERAL RIGHTS DESCRIPTION 57 TABLE 4-2 – PROPERTY TENURE SUMMARY 60 TABLE 6-1 – PROJECT HISTORY 66 TABLE 9-1 – CHANNEL SAMPLING SUMMARY 83 TABLE 9-2 – GROTA DO CIRILO TRENCH SAMPLING SUMMARY 85 TABLE 9-3 – GROTA DO CIRILO PROPERTY PROSPECTS 85 TABLE 9-4 – GENIPAPO PROPERTY PROSPECTS 87 TABLE 9-5 – SANTA CLARA PROPERTY PROSPECTS 88 TABLE 10-1 – TOTAL SIGMA DRILL HOLES 89 TABLE 10-2 – TOTAL XUXA DRILLING 89 TABLE 10-3 – XUXA EXAMPLE DRILL INTERCEPT TABLE 90 TABLE 10-4 – TOTAL BARREIRO DRILLING 91 TABLE 10-5 – BARREIRO EXAMPLE DRILL INTERCEPT TABLE 92 TABLE 10-6 – TOTAL LAVRA DO MEIO DRILLING 93 TABLE 10-7 – LAVRA DO MEIO EXAMPLE DRILL INTERCEPT TABLE 94 TABLE 10-8 – TOTAL MURIAL DRILLING 95 TABLE 10-9 – MURIAL EXAMPLE DRILL INTERCEPT TABLE 95 TABLE 10-10 – TOTAL NEZINHO DO CHICAO DRILLING 97 TABLE

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