Sigma Lithium : Q4 2023 MD&A

SIGMA LITHIUM CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE & TWELVE MONTHS ENDED DECEMBER 31, 2023

SIGMA LITHIUM CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE & TWELVE MONTHS ENDED DECEMBER 31, 2023

(Expressed in thousands of Canadian dollars, except per share amounts or unless stated otherwise)

INTRODUCTION & BACKGROUND

This management's discussion and analysis dated as of December 31, 2023 (this "MD&A") of the financial condition and results of operations of Sigma Lithium Corporation ("Sigma", "Sigma Lithium" or the "Company") constitutes management's review of the factors that affected the Company's financial and

operating performance for the three-month period ended December 31, 2023 and for the year then ended. This MD&A should be read in conjunction with the audited annual financial statements of the Company for the years ended December 31, 2023 and 2022 together with the notes thereto. Results are reported in Canadian dollars, unless otherwise noted.

The Company's financial statements and the financial information contained in this MD&A are prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

Unless inconsistent with the context, references in this MD&A to the "Company" or "Sigma" are references to the Company and its subsidiaries.

The Company's registered office is Suite 2200, 885 West Georgia Street, Vancouver, British Columbia, Canada, V6C 3E8. The Company's common shares ("Common Shares") trade under the symbol "SGML" in the United States on Nasdaq and in Canada on the TSX Venture Exchange ("TSXV"). Additionally, Brazilian Depositary Receipts ("BDRs") trade under the symbol "S2GM34" in Brazil on the B3 exchange.

Further information about the Company and its operations, including the financial statements referred to above and the Company's annual information form, is available on the Company's website at www.sigmalithium.ca, at www.sedarplus.ca(SEDAR) and at www.sec.gov(EDGAR). The information included on the website or that might be accessed through our website is not included in this annual report and is not incorporated into this annual report by reference.

The information herein should be read in conjunction with the technical report titled "Grota do Cirilo Lithium Project Araçuaí and Itinga Regions, Minas Gerais, Brazil, Amended Technical Report (the "Technical Report"), issued March 21, 2024, which was prepared for Sigma Lithium by the following qualified persons: Homero Delboni Jr., MAusIMM, Promon Engenharia; Marc-Antoine Laporte, P.Geo, SGS Canada Inc; Jarrett Quinn, P.Eng., Primero Group Americas; Porfirio Cabaleiro Rodriguez, (MEng), FAIG, GE21 Consultoria Mineral; and Noel O'Brien, B.E., MBA, F AusIMM (the "Updated Technical Report"). The Updated Technical Report is filed on SEDAR and is also available on the Company's website.

Additionally, the Company is announcing that it has filed an update to the Mineral Resource Estimate section of its technical report titled "Grota do Cirilo Lithium Project Araçuaí and Itinga Regions, Minas Gerais, Brazil, Amended and Restated Technical Report" confirming the mineral resource estimate revisions as published by the Company on January 31, 2024.

The figures in this MD&A are presented in Canadian dollars and are referred herein as "$", "C$" or "CAD".

Readers should refer to and carefully consider the sections below titled "Risk Factors", "Cautionary Note Regarding Forward-Looking Information" and "Cautionary Note Regarding Mineral Reserve and Mineral Resource Estimates".

OUR BUSINESS

Sigma is a commercial producer of high purity, environmentally conscious, lithium concentrate. The Company's existing Phase 1 operations and planned tripling of capacity through Phase 2 and 3 expansions represent one of the largest hard rock lithium mining and beneficiation complexes in the world. Our assets are located in the municipalities of Araçuaí́and Itinga in the northeastern part of the state of Minas Gerais, Brazil. The Company owns 100% of the operating assets indirectly through its wholly- owned subsidiary Sigma Mineração S.A. ("Sigma Brazil"), with the Project area comprised of 29 mineral rights (which include mining concessions, applications for mining concessions, exploration authorizations, applications for mineral exploration authorizations) spread over 185 km2, located within the broader

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SIGMA LITHIUM CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE & TWELVE MONTHS ENDED DECEMBER 31, 2023

(Expressed in thousands of Canadian dollars, except per share amounts or unless stated otherwise)

19,000-hectare land package held by Sigma Brazil (containing the Grota do Cirilo, Sao Jose, Genipapo and Santa Clara properties).

Sigma's operations are vertically integrated, with the Company's mines supplying spodumene bearing material to its lithium production and processing plant (the "Greentech Plant"). The Greentech Plant is designed and operated to produce a 5.1% to 6.0% high purity lithium concentrate ("Green Lithium"), engineered to the specifications of the Company's customers in the rapidly expanding lithium-ion battery supply chain for electric vehicles ("EVs"), in an environmentally friendly way through a fully automated and digital dense medium separation ("DMS") technology process. The Greentech Plant was built after the completion of engineering to the level of Front-End Loading Level 3 ("FEL-3") stage precision and extensive testing at the Company's on-site demonstration pilot plant, which had been in operation since late 2018 and ceased operations upon commissioning of the Company's Phase 1 Greentech Plant.

Sigma is taking a phased approach to its operations, with production at its Phase 1 Greentech Plant and associated mine which began operations in April 2023. At 270,000 tonnes per annum of 5.5% spodumene concentrate production capacity, we believe Phase 1 has positioned the Company as a globally relevant, Tier 1, concentrate producer. The Company plans to expand its production footprint through the buildout of Phase 2 and ultimately Phase 3 Greentech Plants, which is expected to nearly triple production from current levels. The existing shared infrastructure built with the Phase 1 Greentech Plant is expected to support these two additional production lines, with each of the phases designed to follow a similar workstream as demonstrated at Phase 1.

Phase 1 of Greentech Plant also produces a low-grade,high-purity,zero-chemical, hypofine by-product ("Green By-Products") at approximately 1.3% lithium oxide ("Li2O"), which can be sold to strengthen Sigma's ESG-centric approach to pioneer a "zero tailings" environmental sustainability strategy, minimizing the environmental footprint of tailings storage with a positive ecosystem impact, while also generating an additional revenue stream to the Company.

As the Company's mission statement has been guided by adhering to the highest level of environmental, social and governance ("ESG") practices since inception in 2012, the Company has developed in a sustainable way. Additionally, the Company is focused on social programs promoting sustainable development, inclusion (including on the Company's Board of Directors (the "Board")), and upskilling local people in the region where we operate. As a result, the Company has committed to the strategies outlined in Table 1 below, to advance the development of its operations in a responsible and sustainable way. The Company is proud to report that it has successfully delivered on its "net zero carbon" program through the purchase of carbon credit "in-setting", achieving "quintuple zero" production from the onset. Over the longer term, Sigma plans to build upon its ESG commitments through more innovative programs including increasing its trucking fleet's fuel consumption to a target of 50% biofuels.

Table 1: Summary of Sigma's ESG-Driven Decisions & Strategies

	Governance				Sustainable				Greentech Plant
				Development

CEO / Co- Chairpersons: 100% / 50% female (1)

Board Independence: 67% independent (2)

Board Committees Chair Independence: 88% independent (3)

Board Diversity: 33% female representatives / LGBTQ representation (4)

Phase 1 built as two pits to preserve seasonal stream

Social programs / commitment to local hiring and training

Zero net carbon, tailings dams and hazardous chemicals

Zero potable water use

100% green hydro power

(1) The Company's CEO is female (100%); and the Board of Directors has two chairpersons whose one (50%) is female.

(2) The Board of directors has six members, and four of them (67%) are independent.

(3) The Board Committees, which includes "Audit Committee", "Compensation & Governance", "ESG Committee" and "Technical Committee" has eight members, and seven of them (88%) are independent.

(4) The Board of directors has two members (33%) that represent women and LGBTQ community.

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SIGMA LITHIUM CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE & TWELVE MONTHS ENDED DECEMBER 31, 2023

(Expressed in thousands of Canadian dollars, except per share amounts or unless stated otherwise)

OPERATIONAL HIGHLIGHTS

Sigma finished construction of its Phase 1 Greentech Plant in 1Q 2023, with first commercial production in April 2023. Sigma was able to achieve initial production on schedule as a result of accelerating construction in the fourth quarter of 2022, with the construction workforce increasing to more than 1,000 workers. The plant's dry-stacking circuit is a pioneering achievement in the lithium industry but took additional time to effectively commission. Challenges here were overcome in June 2023. Monthly production increased successively through December, when the facility sustained operations at average annualized nameplate capacity levels of 270,000 tonnes. For the year ended December 31, 2023, the Company has achieved the following significant milestones:

• Produced 105.1k tonnes of Green Lithium concentrate.
• Shipped a total of 102.5k tonnes of Green Lithium.
• Sustained average production at nameplate capacity levels ("full capacity") for the entire month of December, resulting in the production of 22.5kt of Green Lithium over the 31-day period.
• Achieved record 24-hour period production of 890 tonnes of Green Lithium in October 2023, with design recovery of 65% and Greentech Plant utilization rate of 85% achieved during the 24-hour period.
• Completed a shipment of 16.5k tonnes of Green By-Products to our first customer, in July 2023.
• Completed the coarse and fines of the Dense Media Separation ("DMS") circuits commissioning and initial production on schedule in April 2023.
• Completed the electromechanical assembly of the raw water supply piping and the installation of equipment, including water tanks in February 2023 and;
• Completed crushing circuit commissioning on schedule in February 2023. Table 2: Summary of Key 2023 Operating Metrics

Key Operating Metrics

Production

Unit

2023

Green Lithium Recovery Rate	(%)	52%
Green Lithium Production	(kt)(*)	105.1
Grade of Green Lithium Produced	(%)	5.3%
Green By-Product Production	(kt)	197.4
Sales
Total Net Revenue	(C$ million)	181.2
Production
Green Lithium Recovery Rate	(%)	52%

(*) kt (thousand of tons)

Going forward, the Company intends to remain focused on completing the following key workstreams in 2024:

• Continue operating its Phase 1 Greentech plant at nameplate capacity production levels;
• Commence construction on the Phase 2 Greentech expansion following the announcement on April 1, 2024, of the conclusion of the Final Investment Decision. With earthworks commencing in April, the Company expects construction and assembly on an accelerated plan to begin in 4Q24. Sigma Lithium

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SIGMA LITHIUM CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE & TWELVE MONTHS ENDED DECEMBER 31, 2023

(Expressed in thousands of Canadian dollars, except per share amounts or unless stated otherwise)

plans to finance the capital expenditures for Phase 2 with cash on hand and expected free cash flow generation from its future shipments of lithium concentrate.

Commercial Agreements

The Company made five shipments of Green Lithium and two shipments of Green By-Product during the year ended December 31, 2023. On September 21, 2023, the Company announced its ongoing commercial arrangement with Glencore AG for sales and marketing of its Green Lithium. The agreement with Glencore aims to build a low carbon, environmentally and socially sustainable global lithium supply chain for electric vehicles. Sigma Lithium made four shipments through this arrangement during the second half of 2023, totaling 87.5k tonnes of Green Lithium and 16.0k tonnes of Green By-Product.

In total, the Company shipped in 2023 102.5k tonnes of Green Lithium and 32.5k tonnes of Green By- Product.

Health & Safety

Health and safety remain Sigma's primary focus at the operating site, and the Company is proud to report the following achievements as of the date of this MD&A:

• The alignment of the Health, Safety, and Environment (HSE) operational strategy has been championed, with the objective of translating the values of senior management to the leaders embedded in the operation. Effective communication ensures that everyone involved understands the strategy, its objectives, and their role in its implementation. This clarity helps align efforts and prioritize results.
• The Company is actively engaged in the development of a Health, Safety, and Environment Management System, with the aim of bolstering its operational resilience and efficiency. In pursuit of this goal, leaders have been appointed to oversee key aspects of health, safety, and environmental management. Concurrently, operational procedures are undergoing standardization and enhancement to ensure optimal performance.
• Weekly organizational meetings have been established to share best practices. Led by site-based directors, these meetings aim to continually enhance the work environment and the health and safety processes.
• The Company upholds employee involvement as a core principle in continuously improving the health and safety system. This commitment is reinforced through the strengthening of the Internal Accident Prevention Committee
  Over the course of 2023, the Company had 8 recorded injuries and a total recorded injury frequency of 3.71 (as per International Council on Mining and Metals ("ICMM") metric of total recorded cases per worked hours). Days without an injury totaled 197.

PHASE 1 MINING PROGRESS

As of the date of this MD&A, the Company has achieved the following significant milestones:

• Although the operation began in April 2023, the Company achieved full-scale mining in May 2023;
• Implemented dust, vibration and noise control initiatives during the first quarter of 2023 (including application of polymers on roads and slopes, an automated spray system and road sheeting with coarse reject gravel generated from Greentech Plant production);
• Completed the bridge over the Piaui "seasonal stream" that divides the Phase 1 north and south pits to improve transportation efficiency in April 2023;
• Completed the seeding of vegetation cover for the initial waste pile slopes (where non-mineralized material will be dry stacked) in February 2023;

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SIGMA LITHIUM CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE & TWELVE MONTHS ENDED DECEMBER 31, 2023

(Expressed in thousands of Canadian dollars, except per share amounts or unless stated otherwise)

• Established geotechnical parameters for piles and pits, as well as parameters for drilling and blasting using explosives;
• Phase 1 south pit pre-stripping completed in February 2023, as the Company plans to simultaneously source feedstock ore from both the north and south pits;
• Run of mine pad was finalized in the first quarter of 2023; and
• Completed the construction of mine haul roads linking the Phase 1 north pit and Phase 1 south pit to the Greentech Plant and waste pile locations.
• A technical team with experienced professionals was formed to manage the Mining Planning stages; Geology and Quality Control; Operation and Infrastructure; and Geotechnics;
  Table 3: Total Mined and Processed Material

	Units	Q1	Q2	Q3	Q4	Total
Ore mined	dmt	26,497	124,491	381,044	435,211	967,243
Waste mined	dmt	1,595,795	3,343,499	2,922,291	2,533,089	10,394,673
Total material mined	dmt	1,622,292	3,467,990	3,303,335	2,968,300	11,361,916
Ore crushed	dmt	-	107,71	343,078	396,945	847,733

Note: "dmt" (dry metric tonnes).

Going forward, the Company intends to remain focused on the following workstreams:

• Continue to transport stockpiled ore to the run of mine pad to ensure sufficient Greentech Plant ore feed on an ongoing basis; and
• Continue to implement grade control systems to optimize mine and processing recovery during production ramp-up.
  Sigma has been employing contract mining, with a third party engaged as the Company's mining contractor.
  PHASE 2 DEVELOPMENT PROGRESS
  During the calendar year-ended 2023, Sigma Lithium continued to advance development work for a potential Phase 2 or 2 & 3 production expansion, after announcing the results of the Phase 2 & 3 pre- feasibility study ("PFS") in December 2022. On April 1st, 2024, Sigma Lithium announced that its Board of Directors had made a Final Investment Decision ("FID") on its Phase 2 plans. The second Greentech line is expected to increase the Company's capacity of Green Lithium concentrate by 250,000 tons per year, at a total capital expenditure budgeted of $136 million (see Table 4 below). The full license to build and operate the new industrial plant ("Phase 2") was awarded to the Company in the first quarter of 2024.
  The Phase 2 & 3 PFS investigated the opportunity to fast-track Phase 3 production and to build a dual plant which could process both Phase 2 and Phase 3 ore feed simultaneously to deliver a greater production increase in 2025 (if warranted by feasibility study) versus the sole Phase 2 expansion originally envisioned in the Phase 2 preliminary feasibility study completed in May 2022. However, as lithium markets have evolved, the Company has shifted its plans back towards a more incremental approach to expansion. Accordingly, the Company engaged its local Phase 1 Engineering Purchase Construction Management ("EPCM") contractor to direct Engineering and Construction initiatives on a rebuild of its
  Phase 1 plant, which is expected to nearly double the Company's existing production capacity.
  The Phase 2 Project is expected to increase production capacity by 250,000 tons per annum of spodumene concentrate from Sigma's Grota do Cirilo operations. Once in production, Phase 2 Project is expected to lift Sigma's total nameplate capacity to roughly 520,000 tonnes per annum. The Company

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SIGMA LITHIUM CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE & TWELVE MONTHS ENDED DECEMBER 31, 2023

(Expressed in thousands of Canadian dollars, except per share amounts or unless stated otherwise)

plans to begin Phase 2 earthworks in April 2024 and is targeting commissioning of the crushing circuit to begin in late 2024.

Table 4: 2 Uses of Cash Analysis for Phase 2 Construction (budget)

Capex ('000 CAD)	Phase 1 (Actual)	Phase 2 (Budget)
Industrial Site Construction	22,498	22,258
Earthworks	9,758	9,758
Infrastructure	12,740	12,500
Industrial Plant	93,095	83,773
Crushing System	27,015	28,762
DMS System	42,059	41,779
Assembly Direct and Construction Management	4,120	4,612
Civil Direct and Construction Management	8,988	7,334
Substation	10,912	1,286
Environmental	16,130	14,835
Water Recycling	4,417	4,187
Tailings Dry Stack	6,330	7,671
Sewage & Water	5,383	2,976
R&D Engineering Design	12,393	6,803
Engineering	12,393	6,803
Construction Management	8,762	8,658
Construction Management	7,736	7,421
Procurement	1,026	1,237
(=) Construction Capex (*)	152,878	136,327
Construction Addition	8,380	8,844
Acceleration Plan	8,380	8,844
(=) Total Construction Capex	161,258	145,170
Others	7,568	(202)
WC (Spare Parts)	9,534	1,389
VAT Tax Benefit	(1,966)	(1,591)
(=) Total Capex	168,826	144,968
(*) Construction Capex (construction capital expenditures)

EXPLORATION PROGRESS

The 2023 exploration campaign focused on expanding resource density within the Grota do Cirilo mineral concessions, with the Company's combined Measured, Inferred and Indicated tonnages increasing to 108.9Mt grading at 1.40% Li2O, from the previous estimate of 85.6Mt at 1.43% Li2O. Of this newly enlarged resource estimate, 87% comprises the higher confidence Measured and Indicated categories.

Specifically, the Phase 3 orebody (Nezinho do Chicão) was extended eastwards approaching the Phase 4 ore bodies (Maxixe, Tamboril and Lavra do Meio), in so doing consolidating 4 pegmatites into a singular, larger open pit encompassing 40.1Mt of Measured, Indicated and Inferred resource. The remaining Phase 4 (Murial) deposit is to be developed within a separate pit some 330m north of the Phase 3 megapit. The Phase 4 (Murial) deposit has grown in scale to 16.1Mt of combined Measured, Indicated and Inferred resource, notably up from the prior 5.6Mt resource. This new Phase 3 and 4 resource strike extends 3.2km, from the southern end of Nezinho do Chicão to the north end of Murial. Drilling confirms that the deposits remain open to the west and east.

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SIGMA LITHIUM CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE & TWELVE MONTHS ENDED DECEMBER 31, 2023

(Expressed in thousands of Canadian dollars, except per share amounts or unless stated otherwise)

Table 5: Sigma Lithium Consolidated Resource Estimate

CUT-OFF	CATEGORY	TONNES (MT)	(%Li20)
GRADE (%Li20)

0.3%

0.3%

0.3%

Measured

Indicated

M & I

45.2

49.1

94.3

1.41

1.39

1.40

0.3%

0.3%

Inferred

M, I & I

14.6

108.9

1.37

1.40

The exploration program led to the discovery of two additional spodumene-bearing deposits, known as Barreiro Extension and Phase 5 (Elvira). Barreiro Extension is located 550m northwest of the Phase 2 (Barreiro) deposit; the Company is exploring the potential connectivity of these resources. Phase 5 (Elvira) is a cluster of large pegmatites located 4km south of Nezinho do Chicão. The 2023 drill campaign resulted in a maiden resource estimate for Elvira of 2.1Mt of Inferred lithium at an average grade of 1.16% Li2O. However, the Company believes, given drill intercepts to date, that the resource could grow to 20Mt over time.

The Company currently plans to drill approximately 10,000 meters in 2024, with the goal of further increasing the Company's estimated mineral resources. The Company expects any additional mineral resource growth achieved will be utilized as feedstock material to extend its operating life, if warranted after completing and analyzing a preliminary economic assessment, pre-feasibility study and feasibility study.

CORPORATE HIGHLIGHTS

• In July 2023, Sigma began trading its BDRs on B3 (the Brazilian Stock Exchange). The unsponsored BDR was created by CVM and B3 to provide the market with an instrument that enables Brazilians to invest in foreign-listed companies within the local market by allowing third-party institutions to establish a BDR program without the mandatory direct involvement of the issuer.
• In September 2023, Sigma announced a sales and marketing relationship with Glencore for the delivery of Green Lithium. The goal of the relationship is to build a low carbon, environmentally and socially sustainable global lithium supply chain for EVs.
• In October 2023, Ana Cabral-Gardner was honored to be named the "Mining Person of the Year" award for 2022 by the Northern Miner.
  ESG & SUSTAINABILITY
  Sigma's mission statement and key focus has been guided by making business decisions in a manner consistent with furthering the UN SDGs and adhering to the highest level of ESG practices.
  Specifically, Sigma is focused on the following three pillars: (i) sustainable development; (ii) minimizing the environmental impact of our operations; and (iii) improving the lives of those in and around the region where we operate. Further, the Company remains focused on global leadership to increase awareness of our "green battery metals" approach.
  Sigma is proud to report the progress made during the year ended 2023 to advance its social and environmental programs, which have been developed to ensure the sustainable operation of the Company and development of the Jequitinhonha Valley region, including social advancement of its population, where we operate.

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SIGMA LITHIUM CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE & TWELVE MONTHS ENDED DECEMBER 31, 2023

(Expressed in thousands of Canadian dollars, except per share amounts or unless stated otherwise)

Social Programs Updates

Sigma's activities during 2022 and 2023 related to its social programs are summarized below:

• Microcredit For Female Entrepreneurs Program: In 2022, Sigma established the largest microcredit program in Brazil, which has been targeted for female entrepreneurs in the Jequitinhonha Valley region. Through this program, the Company encourages sustainable development by providing microcredit loans of $548 per person and providing mentorship programs. The Company is proud to report that as of the date of this MD&A, 2,258 female entrepreneurs have enrolled in the program, 1,892 videoconferences have been held, 4,388 interactions via mobile messaging or video conferences with their business advisors and 1,394 participants have already received the program`s incentive. This program is developed as donations to qualified recipients. This program advances the goals of UN SDGs #5 (Gender Equality), #8 (Decent Work and Economic Growth) and #10 (Reduced Inequalities).
• Zero Drought for Small Holder Farmers Program: In 2023, the Company announced the "Zero Drought for Small Holder Farmers" program consisting of the construction of 1,000 small rainwater capture structures in the municipality of Itinga and another 1,000 in the municipality of Araçuaí, totalizing 2,000 structures in the mid Jequitinhonha Valley region. For the year ended December 31, 2023, 700 rainwater capture basins have been built in the municipality of Itinga and 700 in the municipality of Araçuaí for a total of $767,200. These water capture basins are dug into the ground and located at strategic points to prevent soil erosion during the heavy rainfall season, store water for irrigation of small crops during the dry periods and contribute to increasing the volume of water that will feed the region's aquifers. Total investment by the Company is expected to be up to $1,095 ($548 per structure) to be spent throughout 2024.
• Water For All Program: To further combat the impacts of water scarcity in the Jequitinhonha Valley region, the Company built 147 water tanks (at a cost of $255 per unit) for residents located in the surrounding areas of the Greentech Plant. The drinking water tanks are refilled monthly with the support of tanker trucks and staff provided by Sigma. In March, we completed 7 months of water supply in the neighboring communities. This program advances the goals of UN SDG #6 (Clean Water and Sanitation).
• Combating Violence Against Women Program: The Company introduced a program, in partnership with the Justice Court of the state of Minas Gerais, targeting domestic abuse against women in the Jequitinhonha Valley region. In March 2024, Sigma participated alongside members of the Microcredit Program, in an event promoted by the Justice Court in Belo Horizonte to increase awareness of violence against women. This program advances the goals of United Nations Sustainable Development Goals ("UN SDGs") #5 (Gender Equality) and #11 (Sustainable Cities and Communities).
• Homecoming Employment Program: Sigma remains committed to prioritizing employing persons local to the Jequitinhonha Valley region. The Company is proud to report that it continued to make progress on this initiative, having 98% of the employees living in the region and 71% natives of the region as of March 2024. This program advances the goals of UN SDGs #8 (Decent Work and Economic Growth) and #10 (Reduced Inequalities).
• Education Program for Mining Technicians Program: In order to support the Homecoming Employment Program, Sigma established a partnership between the Federal University of Vales do Jequitinhonha e Mucuri (Campus Janaúba) and the Federal Institute of Education of Araçuaí in January 2022, establishing the first program to train mining technicians in the region. The educational program will be taught by ten teachers over a three-yearperiod with a workload of approximately 1,200 hours. Sigma is proud to announce that as of the date of this MD&A, 40 persons local to the Jequitinhonha Valley region have enrolled in the program and are expected to graduate in 2024, after which the Company hopes they will join our operational team. Select courses covered in the program include: loader operation (theory and practice); operation of tractors (theory and practice); basic instrumentation and programmable logic controller operation; processing plant operation; industrial mechanical maintenance; industrial electrician; qualification in welding process; safety, health and environment; personal protection equipment; occupational risk management; safety at work (machines and equipment); control measures and preventative safety systems; silviculture (native seedling nursery); railings (barbed and smooth wire); operations and maintenance of chainsaws and log splitting; operations and maintenance of brush cutters;

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SIGMA LITHIUM CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE & TWELVE MONTHS ENDED DECEMBER 31, 2023

(Expressed in thousands of Canadian dollars, except per share amounts or unless stated otherwise)

forestry (recovery of degraded and altered areas). This program advances the goals of UN SDGs #4 (Quality Education) and # 17 (Partnership for the Goals).

• Zero Hunger Action Program: The Company remained dedicated to humanitarian relief action, continuing to deliver the previously pledged 7,200 food baskets per year, being 600 per month, commitment done during 2021 at the height of the Covid-19 pandemic for the vulnerable families in the Vale do Jequitinhonha region. For 2023 and 2024, the Company continues delivering 600 food baskets per month. During 2022, the Company delivered such 7,200 food baskets. This program advances the goals of UN SDGs #1 (No Poverty), #2 (Zero Hunger) and # 17 (Partnership for the Goals).
• Being a Child Program: During the second quarter of 2023, the Company committed to a series of initiatives to help promote sustainable development in the communities of Poço Dantas, Ponte do Piauí and Taquaral Seco, located relatively close to the Company. In March 2024, Sigma financed the renovation and expansion of a school in the community, which benefits approximately 30 local children. In December 2023, - Sigma refurbished an outdoor sports court, which will help promote sports and community building in the area. Sigma will help finance the construction of a bridge, linking the community of Poço Dantas to Araçuaí and Itinga, which will provide better access to education and health facilities. Finally, Sigma is also implementing after-school programs in these facilities.
• Sigma Visit Program "Open Doors": With the aim of strengthening relationships with its stakeholders and sharing the good practices it has developed, in November 2023 Sigma began its visit program by welcoming the technical courses of the Taquaral School, in the Taquaral de Minas district of Itinga. In partnership with operations, geology and the environment, the social area conducts a structured program of visits to the company's operations. The program prioritizes neighboring communities and schools with technical training. There are two visits a month with groups of up to 30 people. This program advances the goals of UN SDGs #4 (Quality Education), #12 (Responsible Production and Consumption) and #13 (Climate Change).
  Environmental Program Updates
  Sigma's activities in 2023 pertaining to its environmental programs are summarized below.
• Marketed Tailings Sales: In 2023 the Company delivered 16,500 tonnes of its lithium Green By-Products to its first customer and 16,000 tonnes to its current customer, totalling 32,500 tonnes of this product, and continued to donate coarse gravel tailings generated from Green Lithium production to help surface local dirt roads in the Jequitinhonha Valley region. Additional shipments of Green By-Products will be market price dependent.
• Net Zero Carbon Program: The Company is also proud to report that it delivered on its net zero carbon program for all of its 2023 shipments of Green Lithium and Green By-Products by offsetting the remaining
  "hard to abate" carbon emitted during the production process both at its Phase 1 mine and Greentech
  Plant, achieving "quintuple zero production" (zero carbon, zero tailings dams, zero potable water use, zero hazardous chemicals, and zero carbon intensive electricity). The Company effectively lowered its carbon footprint with a series of pioneering initiatives, paving the way forward for the metals and mining sector, including: (i) dry stacking or selling By-product tailings; (ii) using zero hazardous chemicals in the DMS process at the Greentech Plant; (iii) water efficiency with 100% non-potable water used, which is then recirculated; (iv) 100% renewable energy usage at the Greentech Plant; (v) biodiesel used for its trucking fleet with plans to increase to 50% of fuel consumption by 2024; and (vi) decreased explosives load with computerized load simulation strategies. Due to the low carbon content of Sigma's production, the Company was able to achieve net zero carbon for 2023 by purchasing only 59,000 tonnes of carbon credits (which are verified through Verra Verified Carbon Standard), from Carbonext.
• Environmental Education Program: Over 750 people from five different communities participated in environmental education programs held by Sigma throughout 2023, resulting in increased awareness of local sustainability practices. Topics covered included water education, where participants were educated about conservation, purification and proper use. The Company promotes a strong dialogue with the communities through this program with the following objectives: (i) raising awareness of the Company's

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