MiningNewsBreaks – Standard Lithium Ltd. (TSX.V: SLL) (FRA: S5L) (OTCQX: STLHF) Obtains C$5 Million Convertible Loan Financing

Lithium-focused exploration company Standard Lithium (TSX.V: SLL) (FRA: S5L) (OTCQX: STLHF) this morning announced the company’s entrance into a C$5,000,000 loan and guarantee agreement with LANXESS Corporation (the “lender”). The loan has been fully advanced to the company as US$3,750,000, based on an agreed exchange rate, and will be utilized in the ongoing development of a demonstration plant in southern Arkansas. The plant is intended to demonstrate Standard Lithium’s proprietary process for the extraction of lithium from brine solutions. The principal amount of the loan will be convertible at a rate of one common share and one-half of a warrant to purchase an additional common share for each C$0.80 of principal converted. The warrants are exercisable at a price of C$1.20 per common share for a term of three years. Full conversion of the loan principal would result in the lender receiving 6,251,250 common shares and 3,125,625 warrants. All securities issued upon conversion of the loan are subject to a statutory hold period of four months and one day from the date the loan was advanced. The outstanding principal amount of the loan will bear interest at an annual rate of 3%, subject to adjustments. In the event that Standard Lithium has a positive consolidated operating cash flow, as shown on its financial statements, the company will pay a fee to the lender of 4.5% per annum on the average daily outstanding principal amount of the loan from the issuance date to the date that the consolidated operating cash flow is positive. Following the date on which the consolidated operating cash flow of Standard Lithium is positive, the annual interest rate will increase to 7.5%. Pre-payments are allowed with prior written approval of the lender and are subject to a prepayment fee of 3% on the portion of the loan being prepaid. The loan is due in full on the fifth anniversary, subject to the provision that at any time after second anniversary the lender may elect an earlier maturity date on 60 days’ notice. The loan is secured by a charge on the shares of Standard Lithium’s direct and indirect subsidiaries, Arkansas Lithium Corp., Vernal Minerals Corp., and 2661881 Ontario Limited, as well as by a security interest in the tangible and intangible property of Standard Lithium and the subsidiaries.

To view the full press release, visit http://nnw.fm/7zS7b

About Standard Lithium Ltd.

Standard Lithium is a specialty chemical company focused on unlocking the value of existing large-scale U.S.-based lithium-brine resources. The company believes new lithium production can be brought on stream rapidly by minimizing project risks at selection stage (resource, political, geographic, regulatory and permitting), and by leveraging advances in lithium extraction technologies and processes. The company’s flagship project is located in southern Arkansas, where it is engaged in the testing and proving of the commercial viability of lithium extraction from over 150,000 acres of permitted brine operations. The company is currently installing a first-of-its-kind Demonstration Plant that will use the company’s proprietary technology to selectively extract lithium from LANXESS’ tailbrine. This Demonstration Plant will be used to prove commercial feasibility. The environmentally friendly process eliminates the use of evaporation ponds, reduces processing time from months to hours and greatly increases the effective recovery of lithium. The company is also pursuing the resource development of over 30,000 acres of separate brine leases located in southwestern Arkansas and approximately 45,000 acres of mineral leases located in the Mojave Desert in San Bernardino County, California. For more information, visit the company’s website at www.StandardLithium.com.

NOTE TO INVESTORS: The latest news and updates relating to STLHF are available in the company’s newsroom at http://nnw.fm/STLHF

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