Sigma Lithium Filing Legal Appeal Against Unwarranted Decision by a Local Judge; “Fake News” Campaign Coincides with Record Earnings

Sigma Lithium Corporation, the largest lithium oxide concentrate producer in the Americas, announced it is filing a legal appeal against a decision issued by a local judge in Aracuai, Vale do Jequitinhonha, Brazil. The ruling includes a potential legal collateral of US$10 million, though the company emphasizes this amount would only be due if charges result in a final negative ruling after the complete legal process, which typically takes multiple years in Brazil.

The company maintains the decision is unwarranted and violates Brazil's rule of law, noting that due process was not followed despite significant legal evidence filed with the court. Prior to the ruling, legal authorities visited Sigma Lithium's operations and verified compliance with all Brazilian environmental regulations, including absence of tailing dams, 100% water reuse, bio-regeneration of rock piles, and low noise and dust levels.

The legal decision coincided with what the company describes as another 'fake news' campaign launched on Sunday, prior to the official ruling and immediately following Sigma Lithium's record Q1 2026 earnings announcement on Friday. The campaign included false information and misattributed photos and videos from other companies' operations. This negative media campaign contributed to a 15% stock price decline and follows a pattern the company first reported in January 2026.

Sigma Lithium operates the Grota do Cirilo operation in Brazil, currently producing 270,000 tonnes of lithium oxide concentrate annually with plans to expand to 520,000 tonnes through a Phase 2 expansion. The company has garnered strong community support, with over 2,000 people attending a previous public hearing where 91% of depositions favored the company's operations, and the current operations generate approximately 19,000 jobs in the region. The company remains in contact with appropriate authorities, including FINRA and the U.S. Securities and Exchange Commission, regarding the suspicious timing of negative media campaigns.