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Presentation: Critical Elements (May 2011)


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Presentation: Critical Elements (May 2011)

  1. 1. V:CRE WWW.CECORP.CA May 2011
  2. 2. DISCLAIMERSForward Looking Statements Except for historical information contained herein, this presentation may contain forward looking statements including but not limited to comments regarding predictions and projections. Forward looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Although Critical Elements Corporation believes that such expectations are reasonable, there can be no assurance that such expectations will prove to be correct, and therefore actual results may differ materially from those currently anticipated in such statements. You are cautioned not to place undue reliance on any such forward looking statements, whether made in this presentation or in any question and answer period related to this presentation.
  3. 3. CORPORATE AND INVESTOR INFORMATIONBoard and Management Jean-Sébastien Lavallée, P.Geo, President & CEO Michel Robert, M.A.Sc. Eng, Director Jean Rainville, Eng., Director Jenna Hardy, M.B.A., P.Geo, Director Nathalie Laurin, CFO & SecretaryMarket InformationTrading Symbol: TSX-V:CRE Frankfurt F12 OTCQX CRECFShare Structure: 110 M ($0.22)Market Cap: $26 MCash: $3M hard dollars including credits $2M from Flow-Through funds for exploration
  4. 4. BOARD OF DIRECTORSJean-Sébastien Lavallée, President & CEO Mr. Lavallée has been active in mining exploration since 1994. He is the vice president of Consul-Teck Exploration Inc., a consulting firm of Val-d`Or founded in 2003 that specializes in mining exploration in northern areas. Most of the firm’s mandates involve the generation and execution of projects in remote areas. Mr. Lavallée has acted as a geologist for many companies, including Eloro Resources Ltd., Uracan Resources Ltd., Agnico-Eagle Mines Ltd., Noranda Minerals Inc., Champion Minerals Inc., Matamec Explorations Inc. and Argex Mining Inc. Having been responsible for the planning and execution of many exploration programs in recent years, Mr. Lavallée has acquired a solid experience in exploration project development.Michel Robert, Director M.A.Sc.Eng., has over 40 years of mining industry experience in engineering, operations management. He has been responsible for operations of mining companies in both North and South America, including Niobec, Highmont, Tintaya, La Coipa, Quiruvilca, Huaron, and has completed numerous due diligence for financing and takeover mandates on existing projects in the Americas and Asia. He has been a director or senior executive of private and public companies such as SNC, Golden Star, Pan American Silver, H.A.Simons Int’l, Aley Corporation, as well as acting as a technical advisor for companies involved in gold, copper, silver, tantalum, niobium and iron.
  5. 5. BOARD OF DIRECTORS (CONTINUED)Jean Rainville, Director Chief Executive Officer of BlackRock Metals Inc., has 30 years of experience in the mining industry and financial markets. He started his career as a mining analyst, and has acted as a corporate director for many companies. He has recognized Canadian and international mine finance expertise. He was the director and branch manager for a Canadian investment broker from November 2000 to July 2008. He has been the Chief Financial Officer of NQ Exploration Inc., a company listed on the TSX Venture Exchange, since April 2008, and was a director of Birim Goldfields, a company listed on the TSX Venture Exchange, from September 1994 to March 2008. He has also been a director of Gee-Ten Ventures Inc., a company listed on the TSX Venture Exchange. Mr. Rainville has a bachelor’s degree in mining and metallurgy and a bachelor `s degree in administration from McGill University.Jenna Hardy, Director Ms. Jenna Hardy, M.Sc, MBA, P.Geo. has over 25 years of exploration and mining industry experience in Canada, US, Mexico and South America, and was involved in re-opening, greening and expansion of large-scale historic operations at Quiruvilca and Huaron Mines in Peru and at the Cozamin and La Colorada Mines in Mexico. Since 2006, she has been involved with Commerce Resources (TSX.V: CCE; FSE: D7H; OTCQX: CMRZF) where she currently acts as Manager Environmental Regulatory and Technical Services for the Blue River Ta-Nb project which is moving from exploration towards development, with a PEA expected in early 2011. From 1996 to 2004, she served as the Manager of Health Safety Environment with Pan American Silver Corp. (NASDAQ: PAAS, TSX: PAA) where she was responsible for corporate oversight of health, safety and environmental issues at operating subsidiaries in Peru, Mexico and Bolivia, as well as development projects in Argentina, Canada and the USA. In 2004, Ms. Hardy reactivated a consulting company that she founded in 1986 and currently provides environmental, corporate development and corporate governance services to junior natural resource companies working in Mexico and Canada.
  6. 6. OVERVIEWCreating value for its shareholders by acquiring promising projects that can bebrought into production in the short term.Our focus is on properties with: • EASILY DEMONSTRABLE ECONOMIC RESOURCES, and for commodities with • ATTRACTIVE PROJECT FINANCING CONDITIONS due to potential for vertical integration with partnersCritical Elements is thus active in rare metals, particularly tantalum,and rare earths.
  7. 7. ROSE LITHIUM-TANTALUM PROJECT The 100% owned Rose project Highlights− Deposit outcrops to surface− Open-pittable system− High Grade Deposit− Indicated Resources 11.4 MT @ 165 ppm Ta2O5, 1.34% Li2O.− New Resource Estimate by InnovExplo underway.− Metallurgical Testing by Acme Metallurgical Ltd underway.− Pre-feasibility Study by Genivar underway.− Discussions with Off-take Partners underway
  8. 8. ROSE LITHIUM-TANTALUM PROJECT PROJECT INFRASTRUCTURE− Project location: Quebec, 75Km due south of Goldcorp’s Eleonore Gold Deposit− Road access− Power line directly on the project− Quebec Government announced on May 9th 2011 the Plan Nord with a $80B investment for project development & infrastructures over 25 years
  9. 9. ROSE TANTALUM-LITHIUM project 2010 2011 2012 2013 2014 Budget Main Activities $ Months since start up (Spent) 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 601st Phase Exploration 2,000,0001st Resources Definition 75,0002nd Phase Exploration 1,000,0002nd Resources Definition 30,000Metallurgical Testing 250,000Pre-Feasibility Study 600,000Discussions with 150,000potential partnersFeasibility Study 2,800,000Project Financing 600,000 Production Decision 7,505,000Construction Current date Mine Construction Production Start-upCost of discovery = $0.28 per indicated tones of material(from rock showings to 1st resource estimate)
  10. 10. ROSE - MINERAL RESOURCE INDICATED Tonnes Li2O Li2CO3 Ta2O5 BeO Rb Ga Cs (X 1,000) (%) (%) ppm ppm ppm ppm ppm (equivalent) (g/t) (g/t) (g/t) g/t) (g/t)Indicated 11,436 1.34 3.31 165 377 2,668 71 106ResourcesPounds (lbs) 337,133,280 832,769,520 4,156,255 9,496,414Inferred 2,170 1.27 3.14 138 311 1,529 70 100ResourcesPounds (lbs) 60,629,000 149,903,600 659,604 1,486,498Indicated +Inferred 13,606 1.33 3.28 161 366 2,486 71 105ResourcesTotal pounds 397,763,080 982,673,120 4,815,859 10,982,912• The Resources were compiled using a cut-off grade of 0.75% Li2O based on the current estimation of the resource and market conditions. (November 2010)• $2.70 / lbs of Li2CO3 (Source: Canada Lithium Corp. Website)• $145 / lbs of Ta2O5 (Source: Commerce Resources Corp. Website)
  12. 12. NEW RESOURCE ESTIMATE underway
  15. 15. LITHIUM USE BY INDUSTRY AND INCREASING DEMAND 2010 - 25,300 Metric Tonnes 15% ceramics and glass 31%6%6% batteries 9% 23% lubricating greases 2% pharmaceuticals and polymers 2004 - 15,500 Metric Tonnes air treatment aluminum production other uses
  16. 16. LITHIUM PRICE & DEMANDLithium use in batteries expandedsignificantly in recent years, 3.00 2.50rechargeable lithium batteries are 2.00being used increasingly in portable 1.50electronic devices and electrical 1.00tools. 0.50 0.00 2004 2005 2006 2007 2008 2009 2010According to the vice-president of the Lithium Price ($/lb)largest Lithium carbonate producer,Chemical & Mining Co. of Chile,there has been compounded annual 600growth of 5-7% over the past five 500 400years and the upper predictions offer 300an annual demand in 2020 of 55K- 200 10065K tonnes, and 135,000-145,000 0 tonnes in 2030 . 2000 2004 2008 2012 2014 2016 2018 2020 Lithium (Tonnes x 1,000) Potential Electric vehicule Demand Source: Western Lithium website
  17. 17. TANTALUM USE BY INDUSTRY AND UPWARD PRICE PRESSURE metal powder superalloys sputtering targetsTantalum Import Restrictions tantalum carbideUS Wall Street Reform and Consumer Protection Act(Jul 2010) requires all US-listed companies to file annual wire for electronicsreports with the SEC stating that they do not sourcetantalum from conflict areas, where either human welfareor wildlife are threatened. mill productsSimilar positions have been taken by the UN and the tantalum compoundsEuropean Community.Result: Withdrawal of large portion of supply from alreadytight market. Upward Price Pressure Continues Long term: Market requires additional production from new ethical projects
  18. 18. TANTALUM PRICETantalum is an element used in manyapplications in our everyday lives, toimprove technology and material 140 120performance. These include uses in 100 80electronics, medicine, engineering and 60energy generation. 40 20 0Tantalum ores are found primarily in March Jun Sep Dec FebAustralia, Canada, Brazil, and central Tantalum Price ($/lb)Africa. The average yearly growth in Source: www.metal-pages.comdemand as been about 8% to 12% peryear since about 1995. Metals traderspredict high tantalum prices for the 7next 5 years. 6 5 4 3 2 1 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 Mlbs Ta2O5 Source:
  19. 19. TANTALUM GROWING DEMANDAbout half of the tantalum consumed each year is used in theelectronics industry:• Laptops, PDA’S, iPods, MP3, etc.• Electrical appliances•Ticket Machines, ATM’s• Antenna for Radar• In car electronics such as anti-lock braking systems (ABS), navigation systems, wheel traction control, airbag inflation, engine management and fuel economy.Tantalum is also used in medical devices:• Heart pacemakers, implanted auto-defibrillators and hearing aids.
  20. 20. ROSE LITHIUM-TANTALUM PROJECT Aggressively advancing project towards production− Deposit outcrop surface− Open-pitable system− High Grade Deposit− Indicated Resources 11.4 MT @ 165 ppm Ta2O5, 1.34% Li2O.− New Resource Estimate by InnovExplo underway.− Metallurgical Testing by Acme Metallurgical Ltd underway.− Pre-feasibility Study by Genivar underway.− Discussions for Off-take Partners underway
  21. 21. OUR PROJECTS PROJECTS PORTFOLIO8 PROPERTIES IN QUEBEC, 7 PROPERTIES IN BRITISH COLUMBIA Tantalum, lithium, rare earths and gold.Development Project• ROSE Tantalum-Lithium Quebec | 100% Ownership 11,436,000 tonnes grading 1.34% Li2O, 165 ppm Ta2O5 and 377 ppm BeO of indicated resource 2,170 tonnes grading 1.27% Li2O, 138 ppm Ta2O5 and 311 ppm BeO of inferred resourceExploration Projects• CROINOR and MATCHI-MANITOU Quebec | 50% Ownership/JV Estimated Resource of 814,228 tonnes at 9.11 g/t gold for a total of 238,414 ounces and an estimated reserve up to 689,829 tonnes at 8.35 g/t gold for a total of 185,260 ounces• ROCKY MOUNTAIN Rare Earth British Columbia | 100% Ownership of 7 early stage Properties• QUEBEC Rare Earth Quebec | 100% Ownership Up to 4.06% TREE, 2,100 ppm Ta2O5 and 2.63% Nb2O5