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FAST TRACKING LITHIUM PROJECTS TO PRODUCTION IN ARGENTINA
Certain statements contained in this presentation (“Presentation”)
constitute forward-looking information within the meaning of securities
laws. All statements included in this Presentation (other than statements of
historical facts) which address activities, events or developments that
management anticipates will or may occur in the future are forward-looking
statements, including statements as to the following: future sales, future
targets and estimates for production and sales, statements relating to the
business and future activities of, and developments related to, LSC Lithium
Corporation (“LSC” or the “Company”) and its subsidiaries, ability to
execute LSC’s growth strategy, the execution of exploration work programs,
the strategic relationship with Enirgi Group Corporation (“Enirgi Group”),
the construction of Enirgi Group’s regional processing facility at the Salar
del Rincón, future business acquisitions, future lithium carbonate
production, the continued growth of the lithium industry, demand, supply
and uses of lithium in the global markets, future performance and
implementation of Enirgi Group’s direct extraction technology, the ability
and timing of achieving production at any of the Company’s mineral
exploration properties, the exercise of options to acquire interests in
mineral projects, the number of major players in the lithium market,
uncertainties relating to receiving mining, exploration, environmental and
other permits or approvals in Argentina, availability of additional financing
and the Company’s ability to obtain additional financing on satisfactory
terms, the circumstances or timing and costs surrounding proposed
exploration activities, anticipated results of exploration activities, the costs
and timing for completion of capital projects necessary for any future
operations capital expenditures, operating costs, cash costs, recovery rates,
grades and prices, business strategies and measures to implement such
strategies, competitive strengths, estimated goals and plans for the
Company’s future business operations and commodity prices outlook.
Forward-looking statements are often, but not always, identified by the use
of words such as ‘‘seek’’, ‘‘anticipate’’, ‘‘contemplate’’, ‘‘target’’, ‘‘believe’’,
‘‘plan’’, ‘‘estimate’’, ‘‘expect’’, and ‘‘intend’’ and statements that an event
or result ‘‘may’’, ‘‘will’’, ‘‘can’’, ‘‘should’’, ‘‘could’’ or ‘‘might’’ occur or be
achieved and other similar expressions. These statements are based upon
certain reasonable factors, assumptions and analyses made by
management in light of its experience and perception of historical trends,
current conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances.
However, whether actual results and developments will conform with
management’s expectations is subject to a number of risks and
uncertainties, including factors underlying management’s assumptions,
such as, risks relating to proposed acquisitions; volatility in lithium prices
and the market for lithium; exchange rate fluctuations; the requirement for
significant additional funds for development that may not be available;
changes in national and local government legislation, including permitting
and licensing regimes and taxation policies and the enforcement thereof;
regulatory, political or economic developments in Argentina or elsewhere;
litigation; title, permit or license disputes related to interests on any of the
properties in which the Company holds an interest; excessive cost
escalation as well as application, development, permitting, infrastructure,
operating or technical difficulties on any of the Company’s properties; risks
and hazards associated with the business of development and mining on
any of the Company’s properties; terrorism, civil unrest or an outbreak of
contagious disease; mining industry operational hazards and environment
concerns; uncertainty of estimates of mineral resources and mineral
reserves; and an impairment or write-down of the Company’s mineral
properties or assets forcing the Company to discontinue exploration and
lose its interest in, or be forced to sell some of its properties; and risks
associated with Enirgi Group’s Direct Xtraction Process Technology.
Additional factors and considerations are discussed in LSC’s Filing
Statement, as updated in other disclosure documents filed from time to
time by the Company with Canadian securities regulatory authorities. While
the Company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect. These
factors may cause the actual results of the Company to differ materially
from those discussed in the forward-looking statements, and there can be
no assurance that the actual results or developments anticipated by
management will be realized or, even if substantially realized, that they will
have the expected results on the Company. Undue importance should not
be placed on forward-looking information nor should reliance be placed
upon this information as of any other date. Except as required by law, while
it may elect to, the Company is under no obligation and does not undertake
to update this information at any particular time.
Qualified Person
The material scientific and technical information relating to the Company’s
properties contained in this Presentation has been reviewed and approved
by Don Hains, P.Geo, a qualified person pursuant to National Instrument 43-
101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
Technical Report
Readers are referred to the technical report (“Technical Report”) prepared
under NI 43-101 for the Company with an effective date of December 31,
2016 entitled “Review of Four Lithium Exploration Properties in Argentina”
available on SEDAR at www.sedar.com for more information on the Rio
Grande, Salinas Grandes, Pastos Grandes and Jama properties.
CAUTIONARY NOTE ON FUTURE PRODUCTION BY LSC
CAUTIONARY NOTE ON FUTURE PRODUCTION BY LSC
In this Presentation, the Company has forecasted timing for future
commercial production from its principal properties, including as
outlined under the slide entitled “Project Development Plans”. Such
commercial production forecasts anticipate the supplying of brine
to Enirgi Group Corporation’s planned future regional processing
facility at the Salar del Rincón project. Any such commercial
production would be subject to several assumptions, including
completion of a NI 43-101 Technical Report on the economic
feasibility of such production. Further, the timing of the
construction of a regional processing facility by Enirgi Group is
outside of the control of LSC and the construction of a facility at
Salar del Rincón is currently at the engineering design optimization
stage. The commencement of construction of such a facility remains
subject to, among other things, receipt of necessary funding and
final permitting. There can be no assurance that such a facility will
be constructed in the time anticipated or at all.
At this time, there is no forecast for when such LCE production
could commence from its properties. Further, production of LCE
directly on LSC’s salars may not occur if LSC consummates its plans
to supply brine to a planned regional processing facility at Enirgi
Group’s Salar del Rincón project.
See caveats in slides entitled “Project Development Plans” and
“Forward-Looking Statements”.
COMPANY OVERVIEW
FAST TRACKING LITHIUM PROJECTS TO PRODUCTION IN ARGENTINA
• Established to acquire, explore, and develop lithium brine projects.
• Has amassed a large portfolio of prospective lithium rich salars in Northern
Argentina.
• Six major development properties: Pozuelos, Pastos Grandes, Salinas
Grandes (Salta), Salinas Grandes (Jujuy), Rio Grande and Jama.
• Properties are located in the “Lithium Triangle,” an area covering Argentina,
Bolivia and Chile where the world’s most abundant lithium brine deposits are
found.
• Majority of land holdings are on high-quality salars in the provinces of Salta
and Jujuy.
• Exclusive access in Argentina to game changing, low cost processing
technology.
FAST FACTS
LSC LITHIUM CORPORATION (LSC):
LSC is focused on utilizing its extensive holdings in Argentina to become a significant
supplier of high quality lithium product to global markets.
COMPANY HIGHLIGHTS
FAST TRACKING EXTENSIVE SALAR HOLDINGS TO PRODUCTION
One of the largest holdings of lithium prospective salars in the world
• LSC’s tenements provide a significant footprint in Argentina covering approximately 300,000 hectares.
• Six major development projects: Pozuelos, Pastos Grandes, Salinas Grandes (Salta), Salinas Grandes (Jujuy), Rio Grande and Jama.
• Argentine salars generally have the chemistry necessary to produce good quality lithium products.
• Other brines located in the “Lithium Triangle” are constrained by lack of fresh water (Chile) or very high in magnesium (Bolivia).
Fast tracking lithium projects to production with lower expected capex requirements
• Exclusive access in Argentina to Enirgi Group’s low-cost DXP Technology, which could reduce time to production by two years.
• Lower development capital required due to benefits of Enirgi Group’s existing infrastructure in the area and DXP Technology.
• Ability to test lithium brines at Enirgi Group’s new demonstration plant at Rincón in H2’2017, following commissioning, to guide development plan.
Led by a management team known for creating shareholder value
• Management has a history of growing companies to become leaders in their industries and create shareholder value.
• Supported by a team of 200+ geologists, engineers and other technical, financial and support staff.
LITHIUM – A CRITICAL COMMODITY
LITHIUM DEMAND GROWTH TO COME FROM ELECTRIC VEHICLES AND ENERGY STORAGE
1 UBS Global Research, May 2017; 2 Eight Capital, Sept 2017; 3 Orocobre Limited, May 2017; 4 Roskill, May 2017; 5 Morgan Stanley; 6 Benchmark Minerals Intelligence.
STRONG LITHIUM DEMAND FORECAST
EV ADOPTION DRIVER OF LITHIUM DEMAND
LITHIUM SUPPLY/DEMAND LIKELY TO TIGHTEN
17%
Lithium demand projected to increase 17%
per year from approximately 200 kt LCE in
2016 to 1 Mt LCE in 2026.4
70k
1% increase in electric vehicle penetration
estimated to increase lithium demand by
approximately 70 kt LCE per year.5
1.4x
LCE projected to average US$13,000 a ton
over the 2017-2020 period from around
US$9,000 a ton in 2015-2016.6
POTENTIAL EV PENETRATION
AUTOMAKERS ARE FOCUS ON EVS
ESS GROWTH TO BENEFIT LITHIUM DEMAND
14%
Electric vehicles are forecast to become
approximately 14% of global passenger
vehicle sales in 2025 up from 1% in 2016.1
80%
Almost 80% of global auto market is
pushing toward phase-out of ICEs and
adopting electric vehicles.2
25%
Energy storage system (ESS) growth rates
are approximately 25% and accelerating.3
Formation
LSC established to acquire,
explore and develop lithium
projects in Northern
Argentina
Exploration &
Development
Exploration programs
underway to develop a
Preliminary Economic
Assessment (PEA) and define
mineral resource estimates for
our four flagship properties
RTO
LSC completes RTO and $40M
brokered private placement
offering; commences trading on
the TSX-V under the symbol
“LSC”
Production*
LSC intends to commence
production from its flagship
properties
2020*
2017 -
2019
2017
2016
STRATEGY
SNAPSHOT
*Assumes completion of exploration and development work and shipment of brine to Enirgi Group’s planned regional processing facility. See “Cautionary Note on Future Production by LSC” in
this presentation.
STRATEGIC RELATIONSHIP WITH ENIRGI GROUP
EXPERIENCED PLAYERS IN THE LITHIUM SPACE WITH GAME-CHANGING TECHNOLOGY
STRATEGIC RELATIONSHIP WITH ENIRGI GROUP
About Enirgi Group:
• A multinational conglomerate that is 100%
owned by The Sentient Group, a private equity
firm which manages over US$2.7 billion in
resource investments.
• Developed its proprietary Direct Xtraction
Process Technology (“DXP Technology”) in
cooperation with the Australian Nuclear
Science and Technology Organisation
(“ANSTO”).
• Built a demonstration plant at the ANSTO
facility in Australia and validated its game-
changing DXP Technology; plant operated for
13 consecutive days and produced 1 tonne of
lithium compounds per day.
• New demonstration DXP plant (“DXP Plant”)
recently commissioned at Enirgi Group’s
wholly-owned Salar del Rincón.
EXCLUSIVE ACCESS TO ENIRGI GROUP’S PROCESSING TECHNOLOGY IN ARGENTINA
*Subject to receipt of necessary funding and final permitting.
• Enirgi Group plans to construct a lithium processing facility at Salar del Rincón (“LCE Rincon plant”) to
produce battery grade lithium carbonate initially at the rate of 50,000 tpa (targeted for 2019).*
• LSC expects to deploy a bespoke solution to its salars to extract and deliver an unprocessed brine or
intermediated purified brine for further processing at the future LCE Rincón plant.
• Enirgi Group and LSC each to receive 50% of the net sales price of lithium product (net of all selling,
transport and processing costs of each company) supplied by LSC to the LCE Rincón plant.
• Potential for LSC to get into production faster than its peers and with lower upfront capital (no need
for evaporation pond or separate LCE plant).
• In May 2017, Enirgi Group commissioned its DXP Plant at Rincón, which is now producing lithium
carbonate on a daily basis.
• LSC plans to deliver “test brines” to the DXP Plant in Q4 2017.
ENIRGI GROUP’S DXP PLANT
On May 29, 2017, Enirgi Group announced the initial
commissioning of its DXP Plant at the Salar del Rincón. The
Plant in now producing lithium carbonate on a daily basis.
Lithium carbonate being produced at Enirgi Group’s DXP Plant.
DXP Technology Highlights:
• Produces lithium carbonate directly from unconcentrated raw brine.
• Significantly reduces processing time; from brine to bag in <24
hours.
• No need for capital intensive solar evaporation pond reduces initial
capital costs and time to production.
• Low-impact extraction process reduces environmental footprint.
• Reduces dependency on external reagents brought to site.
• Process is amenable to production of lithium hydroxide.
• Option to apply technology to other lithium-bearing brine resources.
Key Metrics Enirgi Group Technology Conventional Pond
Production Cycle Time < 24 Hours 18-24 Months
Li Recoveries 75 – 85%* < 50%
Salar Brine Chemistries
Can accommodate a wide range
of brine chemistries.
Limited to low Mg brines and
low Sulphate:Ca ratios.
Environmental Impact
Low; No solar concentration
ponds required. Water usage is
minimized.
High: Need massive solar
concentration ponds and
significant fresh water. Salt by-
product waste disposal.
Opex US$2,070 / tonne LCE* US$3,200 – 4,200 / tonne LCE**
Capex
Lower than conventional:
No need to construct solar
concentration ponds.
Higher;
Need to construct very large
solar concentration ponds.
Product Quality Highest predictable/stable quality
Medium to high quality and
variability
DXP TECHNOLOGY VS CONVENTIONAL PROCESS
Evaporation ponds used for lithium production at
other lithium production facilities are raising
environmental concerns.
An existing Enirgi Group operation wellfield pumping
a brine solution directly from a non-lithium mineral
deposit.
*Based on Definitive Feasibility Study for Rincón project contained in the 2016 NI 43-101 Technical Report prepared for Enirgi Group fates June 3, 2016. **Based on publicly available information
3
Provides exclusive access to exclusive DXP Technology
LSC will have exclusive access to Enirgi Group’s validated DXP Technology in Argentina, minimizing Capex and Opex requirements as a
large network of high cost solar evaporation ponds are not required on our properties.
2
Ability to utilize Enirgi Group’s production plant
LSC expects to be able to test brines at the DXP Plant starting in H2 2017. Memorandum of understanding in place for LSC to ship brine to
a future Enirgi Group regional processing facility for final production, eliminating the need to build separate LCE plants.
Knowledgeable team enables LSC to hit the ground running
Enirgi Group’s team has a successful global track record of developing projects on time and on budget and provides LSC with access to
200+ seasoned engineers, geologists, technologists and tradespersons, enabling the Company to fast track to early production.
4
PARTNERSHIP HIGHLIGHTS
1
5
Acquisition of previously unavailable, high quality lithium brine properties
Enirgi Group sold its non-Rincón tenements to LSC.
Supportive leading shareholder
Enirgi Group has taken a meaningful stake in LSC and has pledged management and Board support to oversee LSC’s development.
PROPERTIES
PORTFOLIO OF SALARS IN ARGENTINA
The Properties in LSC’s portfolio are:
• Located in relatively close proximity to each other, as well as to Salar del Rincón .
• Have comparable means of access from major urban centres, such as Salta.
• Similar geologic origin and style of mineralization.
• At a uniform stage of exploration and have a similar potential mode of development.
LSC PROPERTIES
SUMMARY
LSC has a large portfolio of strategically selected high quality salars in Northern Argentina.
LSC’s six major development projects are all located in the prolific “Lithium Triangle.”
*Some properties are subject to pending applications for approval and there is no assurance that these applications will be approved and, if approved, the entire area applied for will be granted
PROPERTY SUMMARY
*Some properties are subject to pending applications for approval and there is no assurance that these applications will be approved and, if approved, the entire area applied for will be granted.
#LSC exercised its option to acquire the 1,471 ha Stella Marys Project on September 22, 2017.
Salar
Area*
(hectares)
Attributable
to LSC
%
Attributable
to LSC
Pozuelos 21,425 21,425 100%
Pastos Grandes 2,683 2,683 100%
Rio Grande 26,865 26,865 100%
Salinas Grandes# 84,894 71,407 84%
Jama 7,634 5,184 68%
Guayatayoc 66,692 34,013 51%
Western Claim Block 27,378 13,963 51%
Arizaro & Vega de
Arizaro
26,476 26,476 100%
Laguna Palar 19,993 10,196 51%
Pocitos 12,968 12,968 100%
Other 5,761 5,761 100%
Total 302,769 230,941 76%
Development
Projects
Ownership
• 21, 425 hectares – 100% interest
POZUELOS
SALTA, ARGENTINA
*Based on exploration work undertaken by LSC in 2017 (see LSC press release dated April 10, 2017 and LSC NI 43-101 report on salar de Pozuelos available under LSC’s profile on SEDAR).
Overview
• Tenement package represents approximately 99% of the total Salar.
• Recent LSC exploration work included diamond drilling, brine sampling,
porosity testing, seismic work and pumping tests. 15 hole diamond
drilling program expected to be completed mid-October.
• Highly fractured halite to 35 m, deep lying sands and gravels.
• Grades found to be consistently 500 to 600 mg/L Li down to 180m.*
• Brine chemistry shows low Mg:Li ratio (typically <6:1 Mg:Li).*
• Approximately 80km from Salar del Rincón.
• Local infrastructure is good and close; gas pipeline located ~15km west
of the Salar and railway ~55km north-west of the Salar.
• Additional pumping wells and hydrogeological studies to assess salar
boundary conditions are planned in Q4 2017.
• To be developed jointly with Pastos Grandes Salar.
POZUELOS
SALTA, ARGENTINA
Exploration Target*
Lithium Carbonate
Equivalent1 (kt) at
Zone
Thickness
(m)
Area
(ha)
Average
Porosity
(%)
Average Lithium Grade
(mg/L)
500
mg/L
600
mg/L
Upper Halite 35 8,000 3.1 500 600 231 277
Middle Halite 55 8,000 1.7 500 600 199 239
Lower Clastic 30 8,000 6.8 500 600 434 521
TOTAL 8601 1,0301
• LSC has developed an exploration target for the Pozuelos property based on the results of the current exploration work and work
previously completed by LitheA.
• The exploration target is based on a Salar surface of 8,000 ha, a depth of 35m for the upper halite zone, 55m for the middle halite zone,
and a depth of 30m for the lower clastic zone, an average lithium brine grade ranging from 500 mg/L to 600 mg/L and average porosities
of 3.1% for the initial 35m, 1.7% for the interval between 35m and 90m and 6.8% for the lower clastic zone.
* This exploration target is conceptual in nature as further drilling and pumping tests will be required to validate the geological assumptions used, and further drilling
may challenge these assumptions. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target
being delineated as a mineral resource.
1 Numbers are rounded and total has been rounded down. Li to Li2CO3 conversion factor 5.323. See LSC press release dated April 10, 2017.
POZUELOS
SALTA, ARGENTINA
Exploration Update*
• Long-term pumping tests completed on W1-35 and W2-
90.
• Results support the consistent favourable chemistry of the
lithium brine at Salar de Pozuelos and the productive
capability of both the upper highly fractured halite zone
and the lower, more compact halite zone.
• A 30-day test was run on W1-35.
• Pumping well W1-35 was drilled to a depth of 45 m and
completed with a screen interval from 0 m to 35 m.
• The results of the sample assays showed very consistent
lithium, potassium and magnesium values, with lithium
averaging 591 mg/L and a constant Mg:Li ratio of 4:1.*
*Based on exploration work undertaken by LSC in 2017 (see LSC press releases dated September 6, 2017 and April 10, 2017 and LSC NI 43-101 report on salar de Pozuelos available under LSC’s profile on SEDAR).
560
570
580
590
600
610
620
SP-063
SP-068
SP-071
SP-074
SP-077
SP-082
SP-085
SP-088
SP-091
SP-096
SP-100
SP-103
SP-106
SP-111
SP-114
SP-117
SP-120
SP-125
SP-128
SP-132
SP-135
SP-140
SP-143
LiAssay(mg/L)
Sample Number
Li Assay Value
30 Day Constant Rate Pumping Test - Well W1-35
Li Assay Value
Average - 591 mg/L
Mg:Li = 4:1
POZUELOS
SALTA, ARGENTINA
Exploration Update – W2-90
• A 15-day test was run on W2-90.
• W2-90 was drilled to a depth of 95 m with a screen interval
from 35 m to 80 m.
• Sample assays showed consistent lithium, potassium and
magnesium values, with an average Li assay of 548 mg/L
lithium and a Mg:Li ratio of 5:1.
• Drawdown was higher and recovery slower for W2-90
compared to W1-35 due to the relatively low porosity and
transmissivity of the deeper lying compact halite.
Nevertheless, reasonable pumping rates were achieved.
*Based on exploration work undertaken by LSC in 2017 (see LSC press releases dated September 6, 2017 and April 10, 2017 and LSC NI 43-101 report on salar de Pozuelos available under LSC’s profile on SEDAR).
500
510
520
530
540
550
560
570
580
SP-159
SP-163
SP-165
SP-167
SP-169
SP-171
SP-173
SP-176
SP-178
SP-180
SP-182
SP-184
SP-186
SP-190
SP-193
SP-195
SP-197
SP-199
SP-201
SP-203
SP-207
SP-209
SP-211
SP-213
SP-215
SP-218
Liassayvalue(mg/L)
Sample Number
Li Assay Value
15 Day Constant Rate Pumping Test - Well W2-90
Li Assay Value
Average - 548 mg/L
Mg:Li = 5:1
PASTOS GRANDES
SALTA, ARGENTINA
*These values are based on unverified third party historic disclosure and no suggestion is made that similar results will be obtained on the tenements held by LSC. + See LSC news release dated September 6, 2017.
Exploration Update+
• 7-hole drill program commenced in mid-August (all drill holes have
target depths of 400 m), planned completion date mid-December.
• Packer samples and porosity samples (RBRC samples) collected.
• Program includes planned drilling of 4 pumping wells for long-term
(30 day) pumping tests, scheduled for Q1 2018.
Ownership ➢ 2,683 hectares – 100% interest
Overview
• Considered as one major development project with Pozuelos.
• Simple connection of 17 km with +/- 10 m elevation difference exists
between the two salars.
• Historical third party data on adjacent tenements shows high lithium
values, typically >400 mg/L.*
• LSC tenements are located in center of Salar where LSC surface
sampling found grades to be the highest.
• Brine chemistry shows low Mg:Li ratio and favourable K:Li ratio.
• Clastic lithology shows potential for high porosity.
• LSC anticipates being able to complete an initial 43-101 resource
report by the end of Q2 2018.+
SALINAS GRANDES
SALTA AND JUJUY, ARGENTINA
*Sampling in 2010 by Enirgi Group on the Enirgi Group tenements on the salar generated 237 samples with a maximum value of 3851 mg/L lithium and a minimum value of 8 mg/L lithium. Average values for the various Enirgi Group tenements on the salar
ranged from a low of 265 mg/L lithium (19 samples) to a high of 1595 mg/L lithium (76 samples). Other results showed average values of 594 mg/L (41 samples), 1026 mg/L (28 samples), 928 mg/L (25 samples), 915 mg/L (27 samples), and 440 mg/L (22
samples). There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in a mineral resource being delineated.
Ownership
➢ 71,407 hectares - 84% interest (LSC is the operator)
Overview
• Large land package of ~85,000 ha located in both Salta and Jujuy
provinces.
• Positioned to be the sole operator in the Salar.
• Excellent access – main highway crosses the Salar.
• Brine chemistry shows low Mg:Li ratio and favourable K:Li ratio.*
• Very high grade lithium values of 1,000 mg/L and above in top 15m.*
• Scattered ownership on Salar and community opposition in Jujuy has
prevented development.
• 51% interest in ~94,000 ha in nearby Guayatayoc and Western Claim
Block.
• Two separate exploration and development programs since Salta and
Jujuy each have their own regulatory framework.
SALINAS GRANDES
SALTA AND JUJUY, ARGENTINA
Prior Exploration Work by Orocobre*
• Prior work included surface sampling, 47 auger holes (depths
between 4 and 20m), 12 diamond drill holes (average depth of
71.4m) and pumping tests.
• Shallow inferred resource estimate of 239,200 tonnes LCE and
1.03 million tonnes of potash (KCl) over 11,620 hectares.
• Resource estimate based on a boundary cut-off grade of 1,000
mg/L and an average specific yield of 4.1% to a depth of 13.3m.
*Orocobre Limited completed a NI 43-101 technical report with an inferred mineral resource estimate on its Salinas Grandes tenements in 2013 (see Technical Report on the Salinas Grandes Lithium Project – April 16, 2012, amended
August 12, 2013, filed under Orocobre Limited’s profile on SEDAR). LSC considers the Orocobre resource estimate to be illustrative of the prospectivity of the Salinas Grandes salar. However, LSC is not considering the historical
Orocobre resource estimate as a current resource estimate and is not relying on the historical resource estimate as a current resource estimate until such time as a Qualified Person has reviewed and confirmed the data. LSC intends
to undertake an exploration program involving sampling, drilling and pumping tests to develop a current resource estimate in conformance with NI 43-101. +See LSC news releases dated March 29, 2017, June 5, 2017, Sept 6, 2017.
• Average lithium grade was 795 mg/L; average potassium grade
was 9,547 mg/L.
• Li and K concentrations are elevated in the upper 10-15m.
• Based on Enirgi Group’s 2016 definitive feasibility study, the ability
of the DXP Technology to process lower grade lithium values may
allow for a lower boundary cut-off grade so that a significant
portion of alluvial fans could potentially be suitable for extraction.
Source: Report titled “Technical Report on the Salinas Grandes Lithium Project” prepared for Orocobre Limited by Hyfrominex Geoscience
Consulting, August 12, 2013
Exploration Update+
• LSC is proposing to rehabilitate drill and trench sites remaining from
work undertaken by Orocobre Ltd. in 2011 and 2012 on tenements
now owned by LSC.
SALINAS GRANDES - SALTA
SALTA, ARGENTINA
Overview
• ~49,500 hectares in the centre of and in the alluvial fans of the
Salar in Salta.
• Control of 87% of the Salta side of the Salar surface.
• Orocobre NI 43-101 report indicates potential for productive
sand layers in the northern and western part of the Salar on the
Salta side extending into the alluvial fan.*
• Exploration works included geophysics, sampling, drilling and
pumping tests from trenches to evaluate the higher 15m of the
Salar surface.
• There are four trenches on the Salta side which can be
rehabilitated.
• Development will be highly dependent on securing community
support.
*Orocobre Limited completed a NI 43-101 technical report on its Salinas Grandes tenements in 2013 (see Technical Report on the Salinas Grandes Lithium Project – April 16, 2012, amended August 12, 2013, filed under
Orocobre Limited’s profile on SEDAR). +See LSC news release dated September 6, 2017.
Exploration Update+
• LSC has made substantial progress on securing community approvals
to commence initial exploration work. LSC is proposing to rehabilitate
drill and trench sites remaining from work undertaken by Orocobre
Ltd. in 2011 and 2012 on tenements now owned by LSC.
• It is anticipated the work can be completed by the end of 2017.
SALINAS GRANDES - JUJUY
JUJUY, ARGENTINA
Overview
• ~35,000 hectares in the centre of and in the alluvial fans of the
Salar in Jujuy.
• Control of 45% of the Jujuy side of the Salar surface.
• A large portion of the Salar is controlled by local cooperatives.
• Comparable geology and brine chemistry to Salta side of salar.
• Drill holes can be used to test the potential of the alluvial fan.
• Development will be highly dependent on securing community
support.
• Government in Jujuy promoting concept of one operator on the
salar. LSC is the dominant tenure holder on the salar.
Exploration Update+
• LSC has received approval from local communities to commence
geophysical exploration work and is currently working with the state
authorities to formalize these approvals.
• Work program includes gravity, VES and CS-ATM/TEM work to define
basin dimensions and structure and aquifer zones.
+See LSC news release dated September 6, 2017.
RIO GRANDE
SALTA, ARGENTINA
*Average Li Grades to 50m based on historical sampling data provided by Enirgi Group. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in a mineral resource
being delineated. + See LSC news release dated September 6, 2017.
3.5 km N
Ownership ➢ 26,865 hectares - 100% interest
Exploration Update+
• LSC plans to commence a program 3D seismic and CS-AMT geophysical
exploration and twin drilling and pumping tests by mid-September.
• Program expected to better define the basin structure and aquifer
system and to confirm historic drilling, assay and pumping data.
• LSC anticipates releasing an initial NI 43-101 lithium resource report by
the end of 2017.
Overview
• Tenements cover approximately 90% of Salar nucleus.
• 5 hour trucking distance to Salar del Rincón on good roads.
• 3 production wells on site (150m3/hour – currently closed, under
rehabilitation).
• Established camp.
• Past sodium sulphate producer.
• Brine tested to 50m depth of the total >200m Salar depth.*
• Good consistent lithium values (>300mg/L) based on Enirgi
Group’s historical work.*
• High porosity (13.5%).*
• 68 km to railway station close to Chilean border on paved road;
train from the Puna to Chilean ports is currently in operation.
• Technical solutions available to handle high sodium sulphate levels
to make brine amenable to DXP Technology.
• Potential for gypsum and sodium sulphate by-product credits.
JAMA
JUJUY, ARGENTINA
Overview
• Land Package of ~7,600 hectares.
• LSC will operate the entire Salar.
• Excellent infrastructure and on the national grid.
• Approximately 1.5 hours trucking distance from Salar del Rincón.
• Shallow surface sampling was undertaken on the northern part of
the Salar in 2015.
• Results indicate good lithium values and favorable Mg:Li ratios
(typically ~3:1).*
• Clastic salar, apparent good porosity based on surface sampling.
• LSC anticipates being able to complete an initial NI 43-101 resource
report on Salar de Jama by the end of Q2 2018+.
*These values are based on historic sampling data from JV partner, Cuper S.A. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in a mineral resource.
+ See LSC news release dated September 6, 2017
N
3 km
Ownership ➢ 5,184 hectares – 68% interest (LSC is the operator)
Exploration Update+
• Results of a VES geophysical exploration program show a deep
conductive basin extending over a much greater area and to greater
depths than originally expected.
• Currently developing a program of additional geophysical work (3D
seismic and CS-AMT) and diamond drilling to better establish salar
potential.
ADDITIONAL INFORMATION
APPENDIX
3
Numerous near-term milestones
Accelerated exploration program underway with NI 43-101 resources expected to be delivered at Pozuelos, Rio Grande
and Salinas Grande by the end of the year.
LSC INVESTMENT HIGHLIGHTS
Extensive land package in the “Lithium Triangle”
Large portfolio of prospective lithium salars with ~300,000 hectares in Argentina. Diverse portfolio with assets across
multiple, non-contiguous salars.
1
Strong demand forecast for lithium
Lithium demand projected to increase 17% per year from approximately 200 kt LCE in 2016 to 1 Mt LCE in 2026, led by
growth in electric vehicle and energy storage markets.1
4
1 Roskill, May 2017
Excellent brine chemistry
Argentine salars generally have the chemistry necessary to produce good quality lithium products. Preliminary exploration
results on some of its salars show good Li grades and low impurities.
2
MANAGEMENT BOARD
Bryan Smith
J. Trevor Eyton
Peter Robson
Wayne Richardson (Chairman)
Stephen Dattels
Robert Metcalfe
Chief Executive Officer
Ian Stalker
Chief Financial Officer
Lincoln Greenidge
VP, Investor Relations
Jessica Helm
Chief Operating Officer
Carlos Galli
FINANCIAL UPDATE
Capitalization Items Share Capital
Market Capitalization(A)(B) $118.3 million Shares Outstanding(E) 131.1 million
Debt(C) $18.2 million Options / Warrants 29.3 million
Book Value of Exploration
and Evaluation Assets(D)
$107.5 million Fully Diluted Shares Outstanding 160.4 million
(United States Dollars)
Key Financial Highlights:
• $107.5M – Book Value of Exploration and Evaluation Assets
(LitheA, Orocobre, Advantage, Pozuelos, Pastos Grandes, Jama, Salina Grandes)
NOTE: Above amounts are updated as at the latest private placement (Sep 29, 2017)
(A) Includes Private Placement of 14.4M shares
(B) 131.1M shares at C$1.12/share, converted at CAD/USD 0.81
(C) The Company’s subsidiary, LitheA, has $16.3M of unsecured, subordinated debt outstanding. The debt does not bear interest, and is repayable by LitheA in semi
annual installments calculated on the following basis: 20% of its net income, plus 20% of depreciation and amortization, less 20% of its capital expenditures, less 20% of net
changes in its working capital (excluding cash and debt), less certain other specified amounts. Debt of $1.9M relates to consideration for the acquisition of Salinas Grandes tenements from
Orocobre.
(D) Book Value of Exploration and Evaluation Assets is comprised of: 31-May-17 balance ($33.6M) + Acquisitions (LitheA: $65.8M & Orocobre/Advantage: $7.1M + Other: $1M)
(E) Shares include: 31-May-17 balance (84.7M shares) + Acquisitions (LitheA: 31.7M shares & Advantage: 0.3M shares) + Private Placement (14.4M shares)
LITHIUM MARKET
LITHIUM PRODUCTION BY COUNTRY AND CONSUMPTION BY END USE
Chile
36%
China
7%
Lithium - Production by Country
Australia
41%
Argentina
12%
ROW 4%
Ideal investment
environment
Limitations to
new entry
Hard rock
Lithium - Consumption By End Use
Batteries
30%
Ceramics &
Glass
31%
Greases
8%
Other
31%
Source: Morningstar, November 2016.
LITHIUM MARKET
USES OF LITHIUM
• Battery demand now represents 30% of the
Lithium market, up from 5% in 2000 and is
expected to rise to 80% by 2025.
• The fast growing market for hybrids and EVs is
being driven by regulations/targets on CO2
emissions, falling battery costs, improved driving
range and expanding charging infrastructure.
• One Tesla Model S battery contains more Lithium
than 10,000 smartphones due to its much larger
battery.
LCE content
/ unit
2014 total Li
Content
(MT)
Projected
CAGR
(14-24)
Smartphone 5-7g 8,400 8-10%
Tablet 20-30g 7,800 8-10%
Notebook 35-45g 7,650 8-10%
Powertools 60g 3,900 >15%
HEV 5 kg 9,000 20-30%
PHEV/BEV 40-80 kg 18,000 20-30%
Stationary 1.5 Mt 1,000 >30%
Source: Morningstar, November 2016; Dundee Capital Markets, April 2016.
AUTOMAKERS AND GOVERNMENTS HAVE EV STRATEGIES
Source: UBS Global Research report dated May 18, 2017; Bloomberg New Energy Finance.
Automaker Targeted EV Volume
Volkswagen 20 – 30% of sales by 2025
BMW 15 – 25% of sales by 2025
Mercedes 15 – 25% of sales by 2025
Ford up to 25% of sales by 2020
Honda 67% of sales by 2030
GM ~30k Bolts in 2017
Tesla 0.5m by 2018; 1m by 2020
Nissan 20% of European sales by 2020/21
Audi 25 – 30% of sales by 2025
Volvo
All new models will be electric or
hybrid starting 2019
Jaguar
Land Rover
All new models will be electric or
hybrid starting 2020
Governments Policy / Proposal
China 5m EV unit sales by 2020
7m EV unit sales by 2025
Considering ban on petrol and diesel cars
and vans
UK Ban on all new petrol and diesel vehicles
from 2040
France Ban on all new petrol and diesel vehicles
by 2040
Norway Phase out sales of new petrol and diesel
cars by 2025 using a ‘polluter pays’ tax
system
Netherlands Ban sales of new petrol and diesel cars
starting in 2025 (passed by Parliament’s
lower house, needs upper house
approval)
India Aiming to end the sale of petrol and
diesel cars by 2030
EV ADOPTION WILL FUEL LITHIUM DEMAND
• Global lithium demand increased 15% year-on-year to 212,000
tonnes LCE in 2016.1
• UBS estimates that Lithium demand could potentially increase by
a factor of 25x assuming 100% of all vehicles sold globally would
be Chevrolet Bolts (a battery electric vehicle), instead of today’s
vehicle sales mix.
Model Type
Battery
Size
LCE
Required Range
2016 Ford Fusion Hybrid HEV 1.4 kWh 1.3 kg -
2016 Chevy Volt PHEV 18.4 kWh 16.6 kg 53 mi
2016 Nissan Leaf S BEV 24.0 kWh 21.6 kg 84 mi
2016 Tesla Model S BEV 70.0 kWh 63.0 kg 240 mi
2017 Chevy Bolt BEV 60.0 kWh 46.2 kg3 238 mi
POTENTIAL LITHIUM DEMAND BASED ON % OF EV SALES2
(thousand tonnes LCE)
0
1,000
2,000
3,000
4,000
5,000
6,000
1% 15% 25% 100%
Source: UBS Global Research report dated May 18, 2017.
Notes:
1. Per research report by Deutsche Bank dated March 6, 2017.
2. Lithium demand estimated internally based upon incremental Lithium demand projected for 100% EV penetration. Assumes only BEVs are sold.
3. LCE required for Chevy Bolt estimated based upon Lithium comprising 2% of total battery pack weight of 436 kg. Converted to LCE by multiplying by 5.3.
25.1x current
Li demand
6.1x current
Li demand3.6x current
Li demand
current Li
demand level
EV sales level today
LITHIUM-ION BATTERY MEGAFACTORIES ARE COMING
Sources: Bloomberg New Energy Finance; Benchmark Mineral Intelligence.
GLOBAL BATTERY MANUFACTURING CAPACITY
(gigawatt-hours)
0
20
40
60
80
100
120
140
160
180
200
220
240
260
280
2016 2017E 2018E 2019E 2020E 2021E
Global battery capacity is projected to more than double by 2021
Company Capacity Cost Location
Start /
Target Date
Tesla /Panasonic 35 GWh US$5bn USA 2016
LG Chem 7 GWh
1.6 GWh
US$500m
US$300m
China
USA
2016
Expansion
Foxconn 15 GWh US$810m China 2016
BYD 20 GWh various China 2020
Boston Power 10 GWh various China 2020
Samsung SDI 1.5 GWh
(combined)
n/a South Korea
& China
Expansion
Daimler AG n/a US$543m Germany 2018
LITHIUM BRINE VS HARD ROCK
Hard Rock
50% of world production
Australia, USA, China
Conventional mining of mainly spodumene
Producers are Albemarle, Sichuan Tianqi
Higher cost
Limited hard rock resources, remote
More complex recovery process
Brines
50% of world production
Argentina, Chile, Bolivia
Pump Li brine from salt lakes
Producers are SQM, Albemarle, FMC
Lower opex cost +/- potash by product
More brine resources in the world
Recovery process simpler
CONTACT INFORMATION
1 Adelaide Street East, Suite 3001
Toronto, ON Canada M5C 2V9
+1 416 304 9384
info@lsclithium.com
LSCLITHIUM.COM
CORPORATE COMMUNICATIONS AND INVESTOR RELATIONS

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Lsc corporate presentation october 2017

  • 1. FAST TRACKING LITHIUM PROJECTS TO PRODUCTION IN ARGENTINA
  • 2. Certain statements contained in this presentation (“Presentation”) constitute forward-looking information within the meaning of securities laws. All statements included in this Presentation (other than statements of historical facts) which address activities, events or developments that management anticipates will or may occur in the future are forward-looking statements, including statements as to the following: future sales, future targets and estimates for production and sales, statements relating to the business and future activities of, and developments related to, LSC Lithium Corporation (“LSC” or the “Company”) and its subsidiaries, ability to execute LSC’s growth strategy, the execution of exploration work programs, the strategic relationship with Enirgi Group Corporation (“Enirgi Group”), the construction of Enirgi Group’s regional processing facility at the Salar del Rincón, future business acquisitions, future lithium carbonate production, the continued growth of the lithium industry, demand, supply and uses of lithium in the global markets, future performance and implementation of Enirgi Group’s direct extraction technology, the ability and timing of achieving production at any of the Company’s mineral exploration properties, the exercise of options to acquire interests in mineral projects, the number of major players in the lithium market, uncertainties relating to receiving mining, exploration, environmental and other permits or approvals in Argentina, availability of additional financing and the Company’s ability to obtain additional financing on satisfactory terms, the circumstances or timing and costs surrounding proposed exploration activities, anticipated results of exploration activities, the costs and timing for completion of capital projects necessary for any future operations capital expenditures, operating costs, cash costs, recovery rates, grades and prices, business strategies and measures to implement such strategies, competitive strengths, estimated goals and plans for the Company’s future business operations and commodity prices outlook. Forward-looking statements are often, but not always, identified by the use of words such as ‘‘seek’’, ‘‘anticipate’’, ‘‘contemplate’’, ‘‘target’’, ‘‘believe’’, ‘‘plan’’, ‘‘estimate’’, ‘‘expect’’, and ‘‘intend’’ and statements that an event or result ‘‘may’’, ‘‘will’’, ‘‘can’’, ‘‘should’’, ‘‘could’’ or ‘‘might’’ occur or be achieved and other similar expressions. These statements are based upon certain reasonable factors, assumptions and analyses made by management in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. However, whether actual results and developments will conform with management’s expectations is subject to a number of risks and uncertainties, including factors underlying management’s assumptions, such as, risks relating to proposed acquisitions; volatility in lithium prices and the market for lithium; exchange rate fluctuations; the requirement for significant additional funds for development that may not be available; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory, political or economic developments in Argentina or elsewhere; litigation; title, permit or license disputes related to interests on any of the properties in which the Company holds an interest; excessive cost escalation as well as application, development, permitting, infrastructure, operating or technical difficulties on any of the Company’s properties; risks and hazards associated with the business of development and mining on any of the Company’s properties; terrorism, civil unrest or an outbreak of contagious disease; mining industry operational hazards and environment concerns; uncertainty of estimates of mineral resources and mineral reserves; and an impairment or write-down of the Company’s mineral properties or assets forcing the Company to discontinue exploration and lose its interest in, or be forced to sell some of its properties; and risks associated with Enirgi Group’s Direct Xtraction Process Technology. Additional factors and considerations are discussed in LSC’s Filing Statement, as updated in other disclosure documents filed from time to time by the Company with Canadian securities regulatory authorities. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. These factors may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and there can be no assurance that the actual results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected results on the Company. Undue importance should not be placed on forward-looking information nor should reliance be placed upon this information as of any other date. Except as required by law, while it may elect to, the Company is under no obligation and does not undertake to update this information at any particular time. Qualified Person The material scientific and technical information relating to the Company’s properties contained in this Presentation has been reviewed and approved by Don Hains, P.Geo, a qualified person pursuant to National Instrument 43- 101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Technical Report Readers are referred to the technical report (“Technical Report”) prepared under NI 43-101 for the Company with an effective date of December 31, 2016 entitled “Review of Four Lithium Exploration Properties in Argentina” available on SEDAR at www.sedar.com for more information on the Rio Grande, Salinas Grandes, Pastos Grandes and Jama properties. CAUTIONARY NOTE ON FUTURE PRODUCTION BY LSC
  • 3. CAUTIONARY NOTE ON FUTURE PRODUCTION BY LSC In this Presentation, the Company has forecasted timing for future commercial production from its principal properties, including as outlined under the slide entitled “Project Development Plans”. Such commercial production forecasts anticipate the supplying of brine to Enirgi Group Corporation’s planned future regional processing facility at the Salar del Rincón project. Any such commercial production would be subject to several assumptions, including completion of a NI 43-101 Technical Report on the economic feasibility of such production. Further, the timing of the construction of a regional processing facility by Enirgi Group is outside of the control of LSC and the construction of a facility at Salar del Rincón is currently at the engineering design optimization stage. The commencement of construction of such a facility remains subject to, among other things, receipt of necessary funding and final permitting. There can be no assurance that such a facility will be constructed in the time anticipated or at all. At this time, there is no forecast for when such LCE production could commence from its properties. Further, production of LCE directly on LSC’s salars may not occur if LSC consummates its plans to supply brine to a planned regional processing facility at Enirgi Group’s Salar del Rincón project. See caveats in slides entitled “Project Development Plans” and “Forward-Looking Statements”.
  • 4. COMPANY OVERVIEW FAST TRACKING LITHIUM PROJECTS TO PRODUCTION IN ARGENTINA
  • 5. • Established to acquire, explore, and develop lithium brine projects. • Has amassed a large portfolio of prospective lithium rich salars in Northern Argentina. • Six major development properties: Pozuelos, Pastos Grandes, Salinas Grandes (Salta), Salinas Grandes (Jujuy), Rio Grande and Jama. • Properties are located in the “Lithium Triangle,” an area covering Argentina, Bolivia and Chile where the world’s most abundant lithium brine deposits are found. • Majority of land holdings are on high-quality salars in the provinces of Salta and Jujuy. • Exclusive access in Argentina to game changing, low cost processing technology. FAST FACTS LSC LITHIUM CORPORATION (LSC): LSC is focused on utilizing its extensive holdings in Argentina to become a significant supplier of high quality lithium product to global markets.
  • 6. COMPANY HIGHLIGHTS FAST TRACKING EXTENSIVE SALAR HOLDINGS TO PRODUCTION One of the largest holdings of lithium prospective salars in the world • LSC’s tenements provide a significant footprint in Argentina covering approximately 300,000 hectares. • Six major development projects: Pozuelos, Pastos Grandes, Salinas Grandes (Salta), Salinas Grandes (Jujuy), Rio Grande and Jama. • Argentine salars generally have the chemistry necessary to produce good quality lithium products. • Other brines located in the “Lithium Triangle” are constrained by lack of fresh water (Chile) or very high in magnesium (Bolivia). Fast tracking lithium projects to production with lower expected capex requirements • Exclusive access in Argentina to Enirgi Group’s low-cost DXP Technology, which could reduce time to production by two years. • Lower development capital required due to benefits of Enirgi Group’s existing infrastructure in the area and DXP Technology. • Ability to test lithium brines at Enirgi Group’s new demonstration plant at Rincón in H2’2017, following commissioning, to guide development plan. Led by a management team known for creating shareholder value • Management has a history of growing companies to become leaders in their industries and create shareholder value. • Supported by a team of 200+ geologists, engineers and other technical, financial and support staff.
  • 7. LITHIUM – A CRITICAL COMMODITY LITHIUM DEMAND GROWTH TO COME FROM ELECTRIC VEHICLES AND ENERGY STORAGE 1 UBS Global Research, May 2017; 2 Eight Capital, Sept 2017; 3 Orocobre Limited, May 2017; 4 Roskill, May 2017; 5 Morgan Stanley; 6 Benchmark Minerals Intelligence. STRONG LITHIUM DEMAND FORECAST EV ADOPTION DRIVER OF LITHIUM DEMAND LITHIUM SUPPLY/DEMAND LIKELY TO TIGHTEN 17% Lithium demand projected to increase 17% per year from approximately 200 kt LCE in 2016 to 1 Mt LCE in 2026.4 70k 1% increase in electric vehicle penetration estimated to increase lithium demand by approximately 70 kt LCE per year.5 1.4x LCE projected to average US$13,000 a ton over the 2017-2020 period from around US$9,000 a ton in 2015-2016.6 POTENTIAL EV PENETRATION AUTOMAKERS ARE FOCUS ON EVS ESS GROWTH TO BENEFIT LITHIUM DEMAND 14% Electric vehicles are forecast to become approximately 14% of global passenger vehicle sales in 2025 up from 1% in 2016.1 80% Almost 80% of global auto market is pushing toward phase-out of ICEs and adopting electric vehicles.2 25% Energy storage system (ESS) growth rates are approximately 25% and accelerating.3
  • 8. Formation LSC established to acquire, explore and develop lithium projects in Northern Argentina Exploration & Development Exploration programs underway to develop a Preliminary Economic Assessment (PEA) and define mineral resource estimates for our four flagship properties RTO LSC completes RTO and $40M brokered private placement offering; commences trading on the TSX-V under the symbol “LSC” Production* LSC intends to commence production from its flagship properties 2020* 2017 - 2019 2017 2016 STRATEGY SNAPSHOT *Assumes completion of exploration and development work and shipment of brine to Enirgi Group’s planned regional processing facility. See “Cautionary Note on Future Production by LSC” in this presentation.
  • 9. STRATEGIC RELATIONSHIP WITH ENIRGI GROUP EXPERIENCED PLAYERS IN THE LITHIUM SPACE WITH GAME-CHANGING TECHNOLOGY
  • 10. STRATEGIC RELATIONSHIP WITH ENIRGI GROUP About Enirgi Group: • A multinational conglomerate that is 100% owned by The Sentient Group, a private equity firm which manages over US$2.7 billion in resource investments. • Developed its proprietary Direct Xtraction Process Technology (“DXP Technology”) in cooperation with the Australian Nuclear Science and Technology Organisation (“ANSTO”). • Built a demonstration plant at the ANSTO facility in Australia and validated its game- changing DXP Technology; plant operated for 13 consecutive days and produced 1 tonne of lithium compounds per day. • New demonstration DXP plant (“DXP Plant”) recently commissioned at Enirgi Group’s wholly-owned Salar del Rincón. EXCLUSIVE ACCESS TO ENIRGI GROUP’S PROCESSING TECHNOLOGY IN ARGENTINA *Subject to receipt of necessary funding and final permitting. • Enirgi Group plans to construct a lithium processing facility at Salar del Rincón (“LCE Rincon plant”) to produce battery grade lithium carbonate initially at the rate of 50,000 tpa (targeted for 2019).* • LSC expects to deploy a bespoke solution to its salars to extract and deliver an unprocessed brine or intermediated purified brine for further processing at the future LCE Rincón plant. • Enirgi Group and LSC each to receive 50% of the net sales price of lithium product (net of all selling, transport and processing costs of each company) supplied by LSC to the LCE Rincón plant. • Potential for LSC to get into production faster than its peers and with lower upfront capital (no need for evaporation pond or separate LCE plant). • In May 2017, Enirgi Group commissioned its DXP Plant at Rincón, which is now producing lithium carbonate on a daily basis. • LSC plans to deliver “test brines” to the DXP Plant in Q4 2017.
  • 11. ENIRGI GROUP’S DXP PLANT On May 29, 2017, Enirgi Group announced the initial commissioning of its DXP Plant at the Salar del Rincón. The Plant in now producing lithium carbonate on a daily basis. Lithium carbonate being produced at Enirgi Group’s DXP Plant. DXP Technology Highlights: • Produces lithium carbonate directly from unconcentrated raw brine. • Significantly reduces processing time; from brine to bag in <24 hours. • No need for capital intensive solar evaporation pond reduces initial capital costs and time to production. • Low-impact extraction process reduces environmental footprint. • Reduces dependency on external reagents brought to site. • Process is amenable to production of lithium hydroxide. • Option to apply technology to other lithium-bearing brine resources.
  • 12. Key Metrics Enirgi Group Technology Conventional Pond Production Cycle Time < 24 Hours 18-24 Months Li Recoveries 75 – 85%* < 50% Salar Brine Chemistries Can accommodate a wide range of brine chemistries. Limited to low Mg brines and low Sulphate:Ca ratios. Environmental Impact Low; No solar concentration ponds required. Water usage is minimized. High: Need massive solar concentration ponds and significant fresh water. Salt by- product waste disposal. Opex US$2,070 / tonne LCE* US$3,200 – 4,200 / tonne LCE** Capex Lower than conventional: No need to construct solar concentration ponds. Higher; Need to construct very large solar concentration ponds. Product Quality Highest predictable/stable quality Medium to high quality and variability DXP TECHNOLOGY VS CONVENTIONAL PROCESS Evaporation ponds used for lithium production at other lithium production facilities are raising environmental concerns. An existing Enirgi Group operation wellfield pumping a brine solution directly from a non-lithium mineral deposit. *Based on Definitive Feasibility Study for Rincón project contained in the 2016 NI 43-101 Technical Report prepared for Enirgi Group fates June 3, 2016. **Based on publicly available information
  • 13. 3 Provides exclusive access to exclusive DXP Technology LSC will have exclusive access to Enirgi Group’s validated DXP Technology in Argentina, minimizing Capex and Opex requirements as a large network of high cost solar evaporation ponds are not required on our properties. 2 Ability to utilize Enirgi Group’s production plant LSC expects to be able to test brines at the DXP Plant starting in H2 2017. Memorandum of understanding in place for LSC to ship brine to a future Enirgi Group regional processing facility for final production, eliminating the need to build separate LCE plants. Knowledgeable team enables LSC to hit the ground running Enirgi Group’s team has a successful global track record of developing projects on time and on budget and provides LSC with access to 200+ seasoned engineers, geologists, technologists and tradespersons, enabling the Company to fast track to early production. 4 PARTNERSHIP HIGHLIGHTS 1 5 Acquisition of previously unavailable, high quality lithium brine properties Enirgi Group sold its non-Rincón tenements to LSC. Supportive leading shareholder Enirgi Group has taken a meaningful stake in LSC and has pledged management and Board support to oversee LSC’s development.
  • 15. The Properties in LSC’s portfolio are: • Located in relatively close proximity to each other, as well as to Salar del Rincón . • Have comparable means of access from major urban centres, such as Salta. • Similar geologic origin and style of mineralization. • At a uniform stage of exploration and have a similar potential mode of development. LSC PROPERTIES SUMMARY LSC has a large portfolio of strategically selected high quality salars in Northern Argentina. LSC’s six major development projects are all located in the prolific “Lithium Triangle.” *Some properties are subject to pending applications for approval and there is no assurance that these applications will be approved and, if approved, the entire area applied for will be granted
  • 16. PROPERTY SUMMARY *Some properties are subject to pending applications for approval and there is no assurance that these applications will be approved and, if approved, the entire area applied for will be granted. #LSC exercised its option to acquire the 1,471 ha Stella Marys Project on September 22, 2017. Salar Area* (hectares) Attributable to LSC % Attributable to LSC Pozuelos 21,425 21,425 100% Pastos Grandes 2,683 2,683 100% Rio Grande 26,865 26,865 100% Salinas Grandes# 84,894 71,407 84% Jama 7,634 5,184 68% Guayatayoc 66,692 34,013 51% Western Claim Block 27,378 13,963 51% Arizaro & Vega de Arizaro 26,476 26,476 100% Laguna Palar 19,993 10,196 51% Pocitos 12,968 12,968 100% Other 5,761 5,761 100% Total 302,769 230,941 76% Development Projects
  • 17. Ownership • 21, 425 hectares – 100% interest POZUELOS SALTA, ARGENTINA *Based on exploration work undertaken by LSC in 2017 (see LSC press release dated April 10, 2017 and LSC NI 43-101 report on salar de Pozuelos available under LSC’s profile on SEDAR). Overview • Tenement package represents approximately 99% of the total Salar. • Recent LSC exploration work included diamond drilling, brine sampling, porosity testing, seismic work and pumping tests. 15 hole diamond drilling program expected to be completed mid-October. • Highly fractured halite to 35 m, deep lying sands and gravels. • Grades found to be consistently 500 to 600 mg/L Li down to 180m.* • Brine chemistry shows low Mg:Li ratio (typically <6:1 Mg:Li).* • Approximately 80km from Salar del Rincón. • Local infrastructure is good and close; gas pipeline located ~15km west of the Salar and railway ~55km north-west of the Salar. • Additional pumping wells and hydrogeological studies to assess salar boundary conditions are planned in Q4 2017. • To be developed jointly with Pastos Grandes Salar.
  • 18. POZUELOS SALTA, ARGENTINA Exploration Target* Lithium Carbonate Equivalent1 (kt) at Zone Thickness (m) Area (ha) Average Porosity (%) Average Lithium Grade (mg/L) 500 mg/L 600 mg/L Upper Halite 35 8,000 3.1 500 600 231 277 Middle Halite 55 8,000 1.7 500 600 199 239 Lower Clastic 30 8,000 6.8 500 600 434 521 TOTAL 8601 1,0301 • LSC has developed an exploration target for the Pozuelos property based on the results of the current exploration work and work previously completed by LitheA. • The exploration target is based on a Salar surface of 8,000 ha, a depth of 35m for the upper halite zone, 55m for the middle halite zone, and a depth of 30m for the lower clastic zone, an average lithium brine grade ranging from 500 mg/L to 600 mg/L and average porosities of 3.1% for the initial 35m, 1.7% for the interval between 35m and 90m and 6.8% for the lower clastic zone. * This exploration target is conceptual in nature as further drilling and pumping tests will be required to validate the geological assumptions used, and further drilling may challenge these assumptions. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. 1 Numbers are rounded and total has been rounded down. Li to Li2CO3 conversion factor 5.323. See LSC press release dated April 10, 2017.
  • 19. POZUELOS SALTA, ARGENTINA Exploration Update* • Long-term pumping tests completed on W1-35 and W2- 90. • Results support the consistent favourable chemistry of the lithium brine at Salar de Pozuelos and the productive capability of both the upper highly fractured halite zone and the lower, more compact halite zone. • A 30-day test was run on W1-35. • Pumping well W1-35 was drilled to a depth of 45 m and completed with a screen interval from 0 m to 35 m. • The results of the sample assays showed very consistent lithium, potassium and magnesium values, with lithium averaging 591 mg/L and a constant Mg:Li ratio of 4:1.* *Based on exploration work undertaken by LSC in 2017 (see LSC press releases dated September 6, 2017 and April 10, 2017 and LSC NI 43-101 report on salar de Pozuelos available under LSC’s profile on SEDAR). 560 570 580 590 600 610 620 SP-063 SP-068 SP-071 SP-074 SP-077 SP-082 SP-085 SP-088 SP-091 SP-096 SP-100 SP-103 SP-106 SP-111 SP-114 SP-117 SP-120 SP-125 SP-128 SP-132 SP-135 SP-140 SP-143 LiAssay(mg/L) Sample Number Li Assay Value 30 Day Constant Rate Pumping Test - Well W1-35 Li Assay Value Average - 591 mg/L Mg:Li = 4:1
  • 20. POZUELOS SALTA, ARGENTINA Exploration Update – W2-90 • A 15-day test was run on W2-90. • W2-90 was drilled to a depth of 95 m with a screen interval from 35 m to 80 m. • Sample assays showed consistent lithium, potassium and magnesium values, with an average Li assay of 548 mg/L lithium and a Mg:Li ratio of 5:1. • Drawdown was higher and recovery slower for W2-90 compared to W1-35 due to the relatively low porosity and transmissivity of the deeper lying compact halite. Nevertheless, reasonable pumping rates were achieved. *Based on exploration work undertaken by LSC in 2017 (see LSC press releases dated September 6, 2017 and April 10, 2017 and LSC NI 43-101 report on salar de Pozuelos available under LSC’s profile on SEDAR). 500 510 520 530 540 550 560 570 580 SP-159 SP-163 SP-165 SP-167 SP-169 SP-171 SP-173 SP-176 SP-178 SP-180 SP-182 SP-184 SP-186 SP-190 SP-193 SP-195 SP-197 SP-199 SP-201 SP-203 SP-207 SP-209 SP-211 SP-213 SP-215 SP-218 Liassayvalue(mg/L) Sample Number Li Assay Value 15 Day Constant Rate Pumping Test - Well W2-90 Li Assay Value Average - 548 mg/L Mg:Li = 5:1
  • 21. PASTOS GRANDES SALTA, ARGENTINA *These values are based on unverified third party historic disclosure and no suggestion is made that similar results will be obtained on the tenements held by LSC. + See LSC news release dated September 6, 2017. Exploration Update+ • 7-hole drill program commenced in mid-August (all drill holes have target depths of 400 m), planned completion date mid-December. • Packer samples and porosity samples (RBRC samples) collected. • Program includes planned drilling of 4 pumping wells for long-term (30 day) pumping tests, scheduled for Q1 2018. Ownership ➢ 2,683 hectares – 100% interest Overview • Considered as one major development project with Pozuelos. • Simple connection of 17 km with +/- 10 m elevation difference exists between the two salars. • Historical third party data on adjacent tenements shows high lithium values, typically >400 mg/L.* • LSC tenements are located in center of Salar where LSC surface sampling found grades to be the highest. • Brine chemistry shows low Mg:Li ratio and favourable K:Li ratio. • Clastic lithology shows potential for high porosity. • LSC anticipates being able to complete an initial 43-101 resource report by the end of Q2 2018.+
  • 22. SALINAS GRANDES SALTA AND JUJUY, ARGENTINA *Sampling in 2010 by Enirgi Group on the Enirgi Group tenements on the salar generated 237 samples with a maximum value of 3851 mg/L lithium and a minimum value of 8 mg/L lithium. Average values for the various Enirgi Group tenements on the salar ranged from a low of 265 mg/L lithium (19 samples) to a high of 1595 mg/L lithium (76 samples). Other results showed average values of 594 mg/L (41 samples), 1026 mg/L (28 samples), 928 mg/L (25 samples), 915 mg/L (27 samples), and 440 mg/L (22 samples). There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in a mineral resource being delineated. Ownership ➢ 71,407 hectares - 84% interest (LSC is the operator) Overview • Large land package of ~85,000 ha located in both Salta and Jujuy provinces. • Positioned to be the sole operator in the Salar. • Excellent access – main highway crosses the Salar. • Brine chemistry shows low Mg:Li ratio and favourable K:Li ratio.* • Very high grade lithium values of 1,000 mg/L and above in top 15m.* • Scattered ownership on Salar and community opposition in Jujuy has prevented development. • 51% interest in ~94,000 ha in nearby Guayatayoc and Western Claim Block. • Two separate exploration and development programs since Salta and Jujuy each have their own regulatory framework.
  • 23. SALINAS GRANDES SALTA AND JUJUY, ARGENTINA Prior Exploration Work by Orocobre* • Prior work included surface sampling, 47 auger holes (depths between 4 and 20m), 12 diamond drill holes (average depth of 71.4m) and pumping tests. • Shallow inferred resource estimate of 239,200 tonnes LCE and 1.03 million tonnes of potash (KCl) over 11,620 hectares. • Resource estimate based on a boundary cut-off grade of 1,000 mg/L and an average specific yield of 4.1% to a depth of 13.3m. *Orocobre Limited completed a NI 43-101 technical report with an inferred mineral resource estimate on its Salinas Grandes tenements in 2013 (see Technical Report on the Salinas Grandes Lithium Project – April 16, 2012, amended August 12, 2013, filed under Orocobre Limited’s profile on SEDAR). LSC considers the Orocobre resource estimate to be illustrative of the prospectivity of the Salinas Grandes salar. However, LSC is not considering the historical Orocobre resource estimate as a current resource estimate and is not relying on the historical resource estimate as a current resource estimate until such time as a Qualified Person has reviewed and confirmed the data. LSC intends to undertake an exploration program involving sampling, drilling and pumping tests to develop a current resource estimate in conformance with NI 43-101. +See LSC news releases dated March 29, 2017, June 5, 2017, Sept 6, 2017. • Average lithium grade was 795 mg/L; average potassium grade was 9,547 mg/L. • Li and K concentrations are elevated in the upper 10-15m. • Based on Enirgi Group’s 2016 definitive feasibility study, the ability of the DXP Technology to process lower grade lithium values may allow for a lower boundary cut-off grade so that a significant portion of alluvial fans could potentially be suitable for extraction. Source: Report titled “Technical Report on the Salinas Grandes Lithium Project” prepared for Orocobre Limited by Hyfrominex Geoscience Consulting, August 12, 2013 Exploration Update+ • LSC is proposing to rehabilitate drill and trench sites remaining from work undertaken by Orocobre Ltd. in 2011 and 2012 on tenements now owned by LSC.
  • 24. SALINAS GRANDES - SALTA SALTA, ARGENTINA Overview • ~49,500 hectares in the centre of and in the alluvial fans of the Salar in Salta. • Control of 87% of the Salta side of the Salar surface. • Orocobre NI 43-101 report indicates potential for productive sand layers in the northern and western part of the Salar on the Salta side extending into the alluvial fan.* • Exploration works included geophysics, sampling, drilling and pumping tests from trenches to evaluate the higher 15m of the Salar surface. • There are four trenches on the Salta side which can be rehabilitated. • Development will be highly dependent on securing community support. *Orocobre Limited completed a NI 43-101 technical report on its Salinas Grandes tenements in 2013 (see Technical Report on the Salinas Grandes Lithium Project – April 16, 2012, amended August 12, 2013, filed under Orocobre Limited’s profile on SEDAR). +See LSC news release dated September 6, 2017. Exploration Update+ • LSC has made substantial progress on securing community approvals to commence initial exploration work. LSC is proposing to rehabilitate drill and trench sites remaining from work undertaken by Orocobre Ltd. in 2011 and 2012 on tenements now owned by LSC. • It is anticipated the work can be completed by the end of 2017.
  • 25. SALINAS GRANDES - JUJUY JUJUY, ARGENTINA Overview • ~35,000 hectares in the centre of and in the alluvial fans of the Salar in Jujuy. • Control of 45% of the Jujuy side of the Salar surface. • A large portion of the Salar is controlled by local cooperatives. • Comparable geology and brine chemistry to Salta side of salar. • Drill holes can be used to test the potential of the alluvial fan. • Development will be highly dependent on securing community support. • Government in Jujuy promoting concept of one operator on the salar. LSC is the dominant tenure holder on the salar. Exploration Update+ • LSC has received approval from local communities to commence geophysical exploration work and is currently working with the state authorities to formalize these approvals. • Work program includes gravity, VES and CS-ATM/TEM work to define basin dimensions and structure and aquifer zones. +See LSC news release dated September 6, 2017.
  • 26. RIO GRANDE SALTA, ARGENTINA *Average Li Grades to 50m based on historical sampling data provided by Enirgi Group. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in a mineral resource being delineated. + See LSC news release dated September 6, 2017. 3.5 km N Ownership ➢ 26,865 hectares - 100% interest Exploration Update+ • LSC plans to commence a program 3D seismic and CS-AMT geophysical exploration and twin drilling and pumping tests by mid-September. • Program expected to better define the basin structure and aquifer system and to confirm historic drilling, assay and pumping data. • LSC anticipates releasing an initial NI 43-101 lithium resource report by the end of 2017. Overview • Tenements cover approximately 90% of Salar nucleus. • 5 hour trucking distance to Salar del Rincón on good roads. • 3 production wells on site (150m3/hour – currently closed, under rehabilitation). • Established camp. • Past sodium sulphate producer. • Brine tested to 50m depth of the total >200m Salar depth.* • Good consistent lithium values (>300mg/L) based on Enirgi Group’s historical work.* • High porosity (13.5%).* • 68 km to railway station close to Chilean border on paved road; train from the Puna to Chilean ports is currently in operation. • Technical solutions available to handle high sodium sulphate levels to make brine amenable to DXP Technology. • Potential for gypsum and sodium sulphate by-product credits.
  • 27. JAMA JUJUY, ARGENTINA Overview • Land Package of ~7,600 hectares. • LSC will operate the entire Salar. • Excellent infrastructure and on the national grid. • Approximately 1.5 hours trucking distance from Salar del Rincón. • Shallow surface sampling was undertaken on the northern part of the Salar in 2015. • Results indicate good lithium values and favorable Mg:Li ratios (typically ~3:1).* • Clastic salar, apparent good porosity based on surface sampling. • LSC anticipates being able to complete an initial NI 43-101 resource report on Salar de Jama by the end of Q2 2018+. *These values are based on historic sampling data from JV partner, Cuper S.A. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in a mineral resource. + See LSC news release dated September 6, 2017 N 3 km Ownership ➢ 5,184 hectares – 68% interest (LSC is the operator) Exploration Update+ • Results of a VES geophysical exploration program show a deep conductive basin extending over a much greater area and to greater depths than originally expected. • Currently developing a program of additional geophysical work (3D seismic and CS-AMT) and diamond drilling to better establish salar potential.
  • 29. 3 Numerous near-term milestones Accelerated exploration program underway with NI 43-101 resources expected to be delivered at Pozuelos, Rio Grande and Salinas Grande by the end of the year. LSC INVESTMENT HIGHLIGHTS Extensive land package in the “Lithium Triangle” Large portfolio of prospective lithium salars with ~300,000 hectares in Argentina. Diverse portfolio with assets across multiple, non-contiguous salars. 1 Strong demand forecast for lithium Lithium demand projected to increase 17% per year from approximately 200 kt LCE in 2016 to 1 Mt LCE in 2026, led by growth in electric vehicle and energy storage markets.1 4 1 Roskill, May 2017 Excellent brine chemistry Argentine salars generally have the chemistry necessary to produce good quality lithium products. Preliminary exploration results on some of its salars show good Li grades and low impurities. 2
  • 30. MANAGEMENT BOARD Bryan Smith J. Trevor Eyton Peter Robson Wayne Richardson (Chairman) Stephen Dattels Robert Metcalfe Chief Executive Officer Ian Stalker Chief Financial Officer Lincoln Greenidge VP, Investor Relations Jessica Helm Chief Operating Officer Carlos Galli
  • 31. FINANCIAL UPDATE Capitalization Items Share Capital Market Capitalization(A)(B) $118.3 million Shares Outstanding(E) 131.1 million Debt(C) $18.2 million Options / Warrants 29.3 million Book Value of Exploration and Evaluation Assets(D) $107.5 million Fully Diluted Shares Outstanding 160.4 million (United States Dollars) Key Financial Highlights: • $107.5M – Book Value of Exploration and Evaluation Assets (LitheA, Orocobre, Advantage, Pozuelos, Pastos Grandes, Jama, Salina Grandes) NOTE: Above amounts are updated as at the latest private placement (Sep 29, 2017) (A) Includes Private Placement of 14.4M shares (B) 131.1M shares at C$1.12/share, converted at CAD/USD 0.81 (C) The Company’s subsidiary, LitheA, has $16.3M of unsecured, subordinated debt outstanding. The debt does not bear interest, and is repayable by LitheA in semi annual installments calculated on the following basis: 20% of its net income, plus 20% of depreciation and amortization, less 20% of its capital expenditures, less 20% of net changes in its working capital (excluding cash and debt), less certain other specified amounts. Debt of $1.9M relates to consideration for the acquisition of Salinas Grandes tenements from Orocobre. (D) Book Value of Exploration and Evaluation Assets is comprised of: 31-May-17 balance ($33.6M) + Acquisitions (LitheA: $65.8M & Orocobre/Advantage: $7.1M + Other: $1M) (E) Shares include: 31-May-17 balance (84.7M shares) + Acquisitions (LitheA: 31.7M shares & Advantage: 0.3M shares) + Private Placement (14.4M shares)
  • 32. LITHIUM MARKET LITHIUM PRODUCTION BY COUNTRY AND CONSUMPTION BY END USE Chile 36% China 7% Lithium - Production by Country Australia 41% Argentina 12% ROW 4% Ideal investment environment Limitations to new entry Hard rock Lithium - Consumption By End Use Batteries 30% Ceramics & Glass 31% Greases 8% Other 31% Source: Morningstar, November 2016.
  • 33. LITHIUM MARKET USES OF LITHIUM • Battery demand now represents 30% of the Lithium market, up from 5% in 2000 and is expected to rise to 80% by 2025. • The fast growing market for hybrids and EVs is being driven by regulations/targets on CO2 emissions, falling battery costs, improved driving range and expanding charging infrastructure. • One Tesla Model S battery contains more Lithium than 10,000 smartphones due to its much larger battery. LCE content / unit 2014 total Li Content (MT) Projected CAGR (14-24) Smartphone 5-7g 8,400 8-10% Tablet 20-30g 7,800 8-10% Notebook 35-45g 7,650 8-10% Powertools 60g 3,900 >15% HEV 5 kg 9,000 20-30% PHEV/BEV 40-80 kg 18,000 20-30% Stationary 1.5 Mt 1,000 >30% Source: Morningstar, November 2016; Dundee Capital Markets, April 2016.
  • 34. AUTOMAKERS AND GOVERNMENTS HAVE EV STRATEGIES Source: UBS Global Research report dated May 18, 2017; Bloomberg New Energy Finance. Automaker Targeted EV Volume Volkswagen 20 – 30% of sales by 2025 BMW 15 – 25% of sales by 2025 Mercedes 15 – 25% of sales by 2025 Ford up to 25% of sales by 2020 Honda 67% of sales by 2030 GM ~30k Bolts in 2017 Tesla 0.5m by 2018; 1m by 2020 Nissan 20% of European sales by 2020/21 Audi 25 – 30% of sales by 2025 Volvo All new models will be electric or hybrid starting 2019 Jaguar Land Rover All new models will be electric or hybrid starting 2020 Governments Policy / Proposal China 5m EV unit sales by 2020 7m EV unit sales by 2025 Considering ban on petrol and diesel cars and vans UK Ban on all new petrol and diesel vehicles from 2040 France Ban on all new petrol and diesel vehicles by 2040 Norway Phase out sales of new petrol and diesel cars by 2025 using a ‘polluter pays’ tax system Netherlands Ban sales of new petrol and diesel cars starting in 2025 (passed by Parliament’s lower house, needs upper house approval) India Aiming to end the sale of petrol and diesel cars by 2030
  • 35. EV ADOPTION WILL FUEL LITHIUM DEMAND • Global lithium demand increased 15% year-on-year to 212,000 tonnes LCE in 2016.1 • UBS estimates that Lithium demand could potentially increase by a factor of 25x assuming 100% of all vehicles sold globally would be Chevrolet Bolts (a battery electric vehicle), instead of today’s vehicle sales mix. Model Type Battery Size LCE Required Range 2016 Ford Fusion Hybrid HEV 1.4 kWh 1.3 kg - 2016 Chevy Volt PHEV 18.4 kWh 16.6 kg 53 mi 2016 Nissan Leaf S BEV 24.0 kWh 21.6 kg 84 mi 2016 Tesla Model S BEV 70.0 kWh 63.0 kg 240 mi 2017 Chevy Bolt BEV 60.0 kWh 46.2 kg3 238 mi POTENTIAL LITHIUM DEMAND BASED ON % OF EV SALES2 (thousand tonnes LCE) 0 1,000 2,000 3,000 4,000 5,000 6,000 1% 15% 25% 100% Source: UBS Global Research report dated May 18, 2017. Notes: 1. Per research report by Deutsche Bank dated March 6, 2017. 2. Lithium demand estimated internally based upon incremental Lithium demand projected for 100% EV penetration. Assumes only BEVs are sold. 3. LCE required for Chevy Bolt estimated based upon Lithium comprising 2% of total battery pack weight of 436 kg. Converted to LCE by multiplying by 5.3. 25.1x current Li demand 6.1x current Li demand3.6x current Li demand current Li demand level EV sales level today
  • 36. LITHIUM-ION BATTERY MEGAFACTORIES ARE COMING Sources: Bloomberg New Energy Finance; Benchmark Mineral Intelligence. GLOBAL BATTERY MANUFACTURING CAPACITY (gigawatt-hours) 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 2016 2017E 2018E 2019E 2020E 2021E Global battery capacity is projected to more than double by 2021 Company Capacity Cost Location Start / Target Date Tesla /Panasonic 35 GWh US$5bn USA 2016 LG Chem 7 GWh 1.6 GWh US$500m US$300m China USA 2016 Expansion Foxconn 15 GWh US$810m China 2016 BYD 20 GWh various China 2020 Boston Power 10 GWh various China 2020 Samsung SDI 1.5 GWh (combined) n/a South Korea & China Expansion Daimler AG n/a US$543m Germany 2018
  • 37. LITHIUM BRINE VS HARD ROCK Hard Rock 50% of world production Australia, USA, China Conventional mining of mainly spodumene Producers are Albemarle, Sichuan Tianqi Higher cost Limited hard rock resources, remote More complex recovery process Brines 50% of world production Argentina, Chile, Bolivia Pump Li brine from salt lakes Producers are SQM, Albemarle, FMC Lower opex cost +/- potash by product More brine resources in the world Recovery process simpler
  • 38. CONTACT INFORMATION 1 Adelaide Street East, Suite 3001 Toronto, ON Canada M5C 2V9 +1 416 304 9384 info@lsclithium.com LSCLITHIUM.COM CORPORATE COMMUNICATIONS AND INVESTOR RELATIONS