The document summarizes an investment conference presentation on future lithium supplies. The presenter, Gerry Clarke from the International Lithium Alliance, discusses that future lithium demand is expected to double over the next 6 years driven by growth in electric vehicles. However, current global lithium reserves of 7.2 million tonnes may only suffice for a few hundred million electric vehicles. The presenter outlines major current lithium suppliers and reviews prospective new lithium sources and projects under development across North and South America, Africa, Australia, Asia, and Europe to help meet rising demand. Critical factors like resource diversity and geopolitics will also impact long-term lithium supply security.

1. Investment Conferences
RARE EARTHS, SPECIALITY
& MINOR METALS
INVESTMENT SUMMIT
1.40 – 2.05
Where will future lithium supplies come from?
Gerry Clarke – Chairman, International Lithium Alliance
THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 18 MARCH 2010
www.ObjectiveCapitalConferences.com

2. Where will future lithium
supplies come from?
Gerry Clarke
International Lithium Alliance

3. Lithium Resources Basics
The lightest, smallest, highly reactive metallic element
150 mineral species & 4 brine types
Hard Rock Minerals: Spodumene 8.0% Li2O
Petalite 4.9% Li2O
Soft Rock Minerals: Hectorite 1.2% Li2O
Jadarite 7.3% Li2O
Brines: Continental 200-1600 ppm Li
Geothermal up to 400 ppm Li
Oilfield up to 700 ppm Li
Seawater 0.1-0.2 ppm Li

4. Major Lithium Suppliers Today
Australia Talison Minerals Rock
Argentina FMC Corp Brine
Chile SQM, Chemetall Foote Brine
China Numerous growing Brine/Rock
USA Chemetall Foote Brine
Zimbabwe Bikita Minerals Rock
15 companies produce Li mineral concentrates in
7 countries (+Brazil, Canada, Portugal, Spain)
7 companies harvest Li chemicals from brines in
4 countries
FMC, SQM, Chemetall account for 7.8m tonnes Li Reserves

10. Global Lithium Demand Outlook
Prospective high demand growth
Steady industrial use & mobility technology shift
Internal combustion to electric propulsion
Lightweight strategic alloys
FEVER
FMC estimates double demand over next 6 years
Li2CO3 low 65k in 2009 to 135k in 2016
Met by incremental global capacity increases
And after that…………

11. What’s in the lithium pipeline?
7.2m tonnes Li reserves
Sentient: Salar de Rincon, Argentina
Sales de Jujuy (Orocobre) Salar de Olaroz, Argentina
Canada Lithium: Quebec, Canada
Nordic Mining: Finland
Galaxy Resources: Australia/China
Western Lithium: Nevada
Rio Tinto: Serbia
Simbol Mining: California

12. Lithium prospect A
North America
USA: Clayton Valley, Nevada: 9 Brines Projects
Elsewhere: 5 Brines/Pegmatite Projects
Canada: Alberta: 9 Brines Projects
Elsewhere: 29 Pegmatite Projects
Mexico: 2 Brines Projects

13. Lithium prospect B?
South America
Argentina: 5 Brines Projects
Bolivia: Salar de Uyuni
Salar de Pastos Grandes
Other salars
Chile: 4 Brines Projects

14. Lithium prospect C
Africa, Australia, Europe
Namibia: 2 Projects (HR)
Mozambique: 1 Project (HR)
Mali: 1 Project
Australia: 5 Projects (WA/Queensland) (B&HR)
Ireland: 1 Project (HR)

15. Lithium prospect D
Asia
China
16 Projects (B&HR)

16. Critical Factors for Lithium
Low lithium content in Li-ion battery:
“1m tonnes Li will suffice for 395m Chevrolet Volts”
“1m tonnes Li will suffice for 250m Nissan Leafs”
Other essential Li-ion battery content: RE, C, Co
Supply security – national & corporate
Corporate activity – oligopoly/alliances/structural change
Geopolitical matters: e.g. Europe
China remoteness
Bolivian culture (Eramet)
Resource diversity including Recycling
Niche or mass vehicle market attainment………demand!

17. RECENT STUFF – THE FEVER CONTINUES
POSCO, S Korea
• Invested $4.8m in Pan American Lithium, January
2010
• PAL has a property, Region 111, Chile and a
geothermal property in Mexico with a plan to
produce 10,000 tpa Li2CO3 from each.
• POSCO also spending $12.9m in a j.v. to extract
lithium from seawater! Panic?

18. RECENT STUFF – THE FEVER CONTINUES
ERAMET, France
• Signed exploration contract with Bollore with
a call option on a property in Argentina
owned by Minera Santa Rita.
• Both appear to have lost patience with Bolivia
which is viewed officially as long term.

19. RECENT STUFF – THE FEVER CONTINUES
AMERILITHIUM CORP, USA
• 9 March 2010: Changed name from Kodiak
International Inc.
• 15 March 2010: Announced acquisition of Paymaster
Project, Paymaster Canyon, Esmerelda Co, Nevada.
About 80 claims worth with Li brine content in 100-300
ppm range with 1,000 ppm recorded in the vicinity.
• 17 March 2010: Announced acquisition of 650 acre
Americana Property lithium asset in Alberta.

20. RECENT STUFF – THE FEVER CONTINUES
TOYOTA, Japan
• Investing $5m. in Sales de Jujuy (Orocobre)
taking 25% when feasibility complete.

21. GRAPHITE ALERT
Projections for lithium indicate double present world production of
natural flake graphite will be required and most of world’s production
today is from, guess where, China!
Graphite is second largest material used in Li-ion batteries, e.g. each car
battery will need 3-7 kg graphite.
Likely gap bridged by synthetic graphite from petroleum coke by
companies such as ConocoPhillips or Hitachi Chemical.
There are trade-offs between synthetic and natural graphite in terms of
quality and cost. Synthetic is undesirably porous and preferred natural
spherical graphite refined from flake graphite is expensive and wasteful
of up to 70% of the starting material – costs around $3,000-4,000 per
tonne ($1.4-1.8/lb) compared with $4,850 per tonne Li2CO3 ($2.2/lb).

22. The Future Will be Different
Thank You