A Lithium Exploration Company DJI:TSX-Venture Investor Presentation - - PowerPoint PPT Presentation

Investor Presentation

August 2017

DJI:TSX-Venture DJIFF:OTC Markets C2U1:Germany www.dajin.ca

A Lithium Exploration Company

A Lithium exploration company

Disclaimer

The information contained in this presentation is provided solely for the reader's general knowledge. The information is not intended to be a comprehensive review of all matters and developments concerning Dajin Resources Corp. All information is offered on a "best intentions" basis. No securities commission or other regulatory authority in Canada or any other country or jurisdiction has in any way reviewed this information and no representation or warranty is made by Dajin Resources Corp. to that effect. Dajin Resources Corp. is not responsible for the content of sites that can be reached through links on this site. This presentation may include "forward looking statements". All statements, other than statements of historical fact, included herein, including without limitation, statements regarding exploration results, future plans and objectives of Dajin Resources Corp. are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Dajin Resources Corp. does not make any representations, warranties or guarantees, express or implied, regarding the accuracy, completeness, timeliness, non-infringement, or merchantability or fitness for a particular purpose or use of any information contained in this presentation or of any information available on web sites that are accessible by links found on this site. Furthermore, the information in no way should be construed or interpreted as, or as a part of, an offering or solicitation of securities. Investors are advised to discuss all of their stock purchases with a registered securities broker or personal finance professional prior to investing. No obligation, responsibility or liability shall be incurred by Dajin Resources Corp. or any of its

• fficers, directors, employees or agents for any loss or damage whatsoever, whether incidental,

special, indirect, consequential, punitive, exemplary, or for lost profits in connection with, caused by or arising from any delays, inaccuracies, errors or omissions in or infringement by, or from any use of, or reliance on such information available in this presentation, the links to other sites contained in this presentation nor any information available on such sites.

2

A Lithium exploration company

Lithium Future and Dajin

3

Dajin is a Lithium brine exploration company.

• Advanced stage Lithium brine exploration projects in Nevada

and Argentina. www.dajin.ca

• Early entry in the sector with significant land position.
• Nevada water rights, the important permit for mine

development in Nevada, are granted for Teels Marsh and in process for Alkali Lake.

• Strategic partnership with LSC Lithium. www.lsclithium.com
• “State of the Art” Lithium brine extraction plant in Argentina

designed by Enirgi Group using “DXP Technology” with results expected in mid 2017. www.enirgi.com

A Lithium exploration company

Lithium Future

4

• Expanding growth in Lithium market globally.

“The new gasoline” - Goldman Sachs. “An Increasingly Precious Metal” - The Economist. Increased consumption and uses.

• Demand is currently outstripping supply in the short term.

Room for new exploration and development companies.

• North America’s Lithium Hub is centered on Nevada, a mining friendly

state.

• New industrial capacity to use Lithium globally and in Nevada.

Tesla’s (Elon Musk) battery Gigafactory near Sparks, Nevada.

• South America’s Lithium Triangle has significant growth potential,

particularly in Argentina.

• Lithium extraction from brine is lowest cost process.

Brine projects in Nevada and Argentina under development.

• New technologies have faster processing and decreased

environmental footprint.

A Lithium exploration company

Lithium Future

5

These four companies account for 86% of global lithium production:

• 31% (40%) from China’s Tianqi Group
• 22% (26%) from Chemical & Mining Co. of Chile (SQM)
• 20% (20%) from Albemarle Corporation (NYSE:ALB)
• 13% (12%) from FMC Corporation (NYSE:FMC)

Another 13% of production comes from a variety of Chinese producers. That means that there is only 1% of production coming from outside these five sources none of whom offer investors a pure play on lithium production. Tesla’s Nevada gigafactory is reliant on Panasonic to produce the battery cells. Panasonic uses non US based sources. Tesla needs US based sources in order to continue to reinforce its “green footprint”.

(Dec. 2016 https://ceo.ca/@Leni/the-lithium-supply-and-demand-story)

A Lithium exploration company

Uses of Lithium

6

Not just car batteries….

Lithium-Ion Battery for motorcycles and bikes Power walls and large scale power storage Lithium ceramics and glass products Lithium Aluminum alloy Only in 2016 did market share for batteries exceeded ceramic/glass use Grease and drilling muds

A Lithium exploration company

Lithium – Location and Chemistry

7

New technologies coming online that:

• Create high purity products in a few days,
• Eliminate the need for evaporation ponds (saves up to 2 years processing time),
• Re-inject the spent brine and are much more environmentally friendly,
• Example is Enirgi Group’s DXP Technology being commissioned in Salar del Rincon,

Argentina with initial results expected mid 2017.

Conceptual drawing of Enirgi Group’s proprietary “state of the art” Direct Extraction Process Technology ("DXP Technology")

A Lithium exploration company

Lithium – Production Cost and Price

8

• Brines - cheaper to produce from than “hard rock” Lithium sources.
• Accelerating market prices; new production has been slow to come on-line.
• As yet, Lithium recycling is not economic. Lithium-ion batteries in EV vehicles

can last anywhere from “5 to 20 years depending on many factors” (ACS 2013).

A Lithium exploration company

Lithium – Megafactories

9

• Capacity of the Lithium cell/battery plants listed above expected to triple by 2020.
• China has reported there are as many as 14 mega and gigafactories being constructed.
• A large quantity of lithium (LCE) goes into each fully electric vehicle battery (about 21.4

kilograms or 47 pounds per car).

• Accelerating market consumption, with new production slow to come on-line.

(From SRK October 2016)

• Approx. current world production of

which 60% is currently non battery use.

A Lithium exploration company

Who is Dajin?

10

A Lithium exploration company

Dajin Advantages

11

• People: Management with a strong track

record and experience in Lithium brine exploration as well as been involved in major discoveries in

• ther

commodities with experience taking exploration discoveries to production.

• Stocks and Public relations: Committed to

getting our message out to the investment community.

• Properties: High quality Lithium exploration

targets of significant size.

• Locations:

Advantageously located within Nevada’s Lithium Hub and South America’s Lithium Triangle.

• Brines: Resource is brine based; mined at

substantially lower cost than hard rock deposits.

• Water Rights: Teels Marsh

project - water rights have been granted.

• Large

footprint

• n

playa surfaces.

A Lithium exploration company

Dajin Board

12

• People: Management with a strong track record and experience in Lithium

brine exploration as well as been involved in major discoveries in other commodities with experience taking exploration discoveries to production.

Brian Findlay President & CEO

• Dr. Catherine

Hickson COO

BOARD OF DIRECTORS

• Dr. Mark

Coolbaugh Exploration Cosme Beccar Varela Dajin S.A.

TECHNICAL BOARD

• Dr. Fernando

Munoz Social Licence

• Dr. Mark

King Hydrogeologist

• Dr. Betty Coira

Tectonics

Dick Benoit Drilling & Geochemistry Roberto Page Corporate & Mining

A Lithium exploration company

• Shares issued & outstanding:

137m

• Market cap:

$13.7M

• Recent price $0.10/share
• Warrants:

13.0m

• $0.17 - expire April 2018
• $0.25 - expire Oct. 2018
• Incentive Stock Options:

6.3m

• $0.05 - $0.16/share
• Insider ownership (~10%):

12.6m

Public Relations:

Committed to getting our message

• ut to the investment community.

Stock Information

LSC Lithium Corporation Transaction

(Closed October 25, 2016)

Cash payment received: $1.0M

Property expenditure commitment: $2.0M

Equity Investment in Dajin: $0.5M

13

Dajin DJI.V

Trading Symbols: TSX-V: DJI OTC: DJIFF GERMANY: C2U1

A Lithium exploration company

Dajin Advantages

14

• Properties: High quality Lithium exploration targets of significant size.
• Locations: Advantageously located in Nevada’s Lithium Hub and

South America’s Lithium Triangle.

SA Lithium Triangle Nevada’s Lithium Hub

Alkali Lake Teels Marsh

Salinas Grandes

A Lithium exploration company

Dajin Advantages

15

• Water rights are highly regulated in

Nevada, rights are have been granted at Teels Marsh and are in process at Alkali Lake.

• Brines: Dajin will deploy “new

technology” to speed up permitting and development time.

• “Large footprint” land position is not

fragmented by multiple companies.

A Lithium exploration company

Nevada – Property Locations

16

Teels Marsh Alkali Lake

Tesla Gigafactory

Albemarle’s Silver Peak Lithium brine mine

Alkali Lake Teels Marsh

A Lithium exploration company

Nevada – Property Locations

17

Teels Marsh Alkali Lake

A Lithium exploration company

Nevada – Property Locations

18

Albemarle’s Silver Peak Lithium brine operation in Clayton Valley

• Lithium Carbonate production started in 1966.
• Initial concentrations were ~400 milligram/liter (mg/l).
• By 1998 concentrations were 100 – 300 mg/l.
• Low Phosphorus; medium high evaporation.
• 6,000 tonnes per annum Lithium Carbonate

equivalent capacity. (From SRK October 2016)

• Teels Marsh has similar geology, greater depth, an

identified near surface resource of 79 mg/l Lithium.

• Dajin has been granted water rights at Teels Marsh.
• In 2015 Albemarle bought Rockwood for $US6.2B

[Lithium Carbonate - 6,000 tonnes per annum @ $US12,000/tonne could be worth $US72 Million.]

A Lithium exploration company

Teels Marsh, Nevada

• 7,914 acres (3,202 hectares); 403 placer claims, 100% owned.
• 50 mi (80 km) NW of Albemarle’s Silver Peak Lithium mine in Clayton Valley.
• Water rights granted & permitted, good access and infrastructure.
• February 2015 Lithium potential confirmed.

Surface auger, 74 sample locations tested, ~1,000 feet (300 meter) intervals, Highest Lithium sediment assay = 460 ppm, 28 were >150 ppm, 23 > 100 ppm; Highest brine analysis of 79 mg/l at 9 feet (3 meters).

• Gravity, magnetic and seismic surveys completed: fault-bound deep basin – over 8,200 feet

(2,500 meters) deep. Large catchment basin (313 mi2 /811 km2) retaining lithium rich volcanic ash deposits. Basin structure defined, reports completed January & November 2016.

• September 2015 - GeoProbe survey.

Nine sites sampled, depth of 195 feet. (59 meters). Three 25 feet (7.5 meters) core samples which returned significant Boron and Lithium values.

• Drill ready and Bureau of Land Management (BLM) permit granted.

Well targeting completed and civil work commencing. Four wells planned; depths from 500 feet (150 m) to more than 2,000 feet (600 m).

19

A Lithium exploration company

Teels Marsh - Geology

Structural model

• Fault-bounded, northeast-trending graben 4.0

miles (6.5 km)-long and 0.6 to 1.5 miles (1 to 2.4 km)-wide.

• Estimated maximum depth (to consolidated

bedrock) of greater than 8,200 feet (2,500 m) near the center of the basin beneath the playa.

• Graben is part of a structural pull-apart block in

a subsiding extensional basin near the western end

• f

the active Excelsior Mountain sinistral/normal fault zone.

20

Seismic cross section

• Geologically young sediments that

fill the basin show up as dark and light reflectors. Faults are shown in red and the basin bottom is

• utlined in yellow.

Teels Marsh Seismic Results Cross Sections

A Lithium exploration company

Teels Marsh - Geology

21

Lithium surface concentration:

Good values in surface sediments with brines up to 79 mg/l at 9 ft./3 m.

• Dajin holds more than 95% of the playa surface as well as the hypothetical

subsurface reservoir based on the gravity and seismic surveys.

• Submission of a “Plan of Operations” is underway and all baseline surveys

completed (including spring botany and birds).

Claim boundary Claim boundary

Gravity Survey plus seismic and magnetic surveys results identify:

Deep basin, over 8,200 ft. (2,500 m)

A Lithium exploration company

Alkali Lake, Nevada

• 3,851 acres (1,558 hectares), 191 placer claims 100% owned.
• Gravity and magnetic survey completed.

Shows basin to be over 4,000 feet (1,200 meters) deep.

• 7 miles (11 km) northeast of Albemarle’s Lithium mine in Clayton Valley.

Similar geology to Clayton Valley, classic fault bound closed-basins termed “playas” (or “salars” in South America). Both Clayton Valley and Alkali Lake have active geothermal systems. Clayton Valley Lithium brines have been in production since 1967. Nearby to property held by Pure Energy and others.

• Application for water rights underway.
• Limited shallow surface sampling completed.

Yielded up to 382 ppm Lithium in sediments. No deep sampling has been carried out.

• Preliminary NI 43-101 completed.

22

A Lithium exploration company

Alkali Lake, Nevada

23

Gravity survey

• Over 4,000 feet (1,200 meters) deep with a “blind”

sub basin to the east.

• 7 miles (11 km) northeast of Albemarle’s Silver

Peak Lithium brine mine in Clayton Valley.

2 mi./ 3 km 2 mi./ 3 km

A Lithium exploration company

Argentina – Property Locations

24

Lithium Triangle

(estimated to contain 80%

• f world’s lithium reserves1)

Salinas Grandes

1 - South American Countries Mineral Industry Handbook

Salinas Grandes

A Lithium exploration company

Jujuy Province, Argentina

• Dajin holds more than 93,000 hectares (230,000 acres).

Primarily located in Salinas Grandes and Guayatayoc salars. Good access and infrastructure.

• Share Purchase agreement with LSC Lithium Corporation (LSC).

To earn 51% interest in Dajin Resourses S.A. (Argentina). $1M paid to Dajin, $2M property expenditures to be made.

• LSC Lithium co-founded by Stephen Dattels and Mike Beck.

Successful mining executives with decades of experience. Project aggregator of Argentine salars in “The Lithium Triangle”. Made Investment of $500,000 P/P in Dajin @ $0.18/unit.

• Wayne Richardson (CEO of LSC and ENIRGI Group) has stated

the following for Salinas Grandes,

“Given the size of this salar, it has the potential to be LSC’s largest source of future revenue.”

25

A Lithium exploration company

Argentina – Property Locations

26

Salinas Grandes - Guayatoyoc LSC consolidation

LSC Lithium Corporation Transaction $1M paid and $2M property expenditure commitment to earn 51%

Working on obtaining exploration permits. Stakeholder engagement and community consultation. Acquisition of majority of Salinas Grandes land position

Dajin holdings Dajin/LSC LSC

A Lithium exploration company

Argentina – Property Locations

27

Salinas Grandes

• LSC Lithium and Enirgi Group;

Consolidating land position throughout Argentina, Focused on becoming a major player in Lithium production, Working on exploration permits.

• LSC Lithium entered into a strategic

agreement with Enirgi Group and their new DXP technology.

• DXP Plant being constructed on Salar

de Rincon with commercial production in mid 2017.

• Enirgi Group has Salta based
• perations and proven track record of

project development.

Salar de Rincon

Salta

A Lithium exploration company

Why Dajin?

28

Dajin has the right projects, the right location, the right partners, at the right time.

• Partnership with LSC Lithium Corporation (LSC) provides financial and technical
• strength. LSC is being structured to be the leading Lithium producer in Argentina.
• LSC has confidence in Dajin’s Nevada assets. Invested $500,000

as a private placement and holds $700,000 warrants.

• New Lithium extraction technology is technically challenging. Enirgi Group (LSC

Lithium partner) have developed DXP technology and chemical engineering; plant

• perational in Salar de Rincon mid 2017.
• New technologies will not negate need for water rights in Nevada. Dajin has been

granted water rights for Teels Marsh and is in process at Alkali Lake.

• Land fragmentation in Nevada is a concern (cooperation between multiple

stakeholders in a basin will be necessary for development). Dajin has more than 95% control of the playa surface at Teels Marsh.

Dajin Resources Corp.

450 - 789 West Pender Street Vancouver, BC V6C 1H2 Canada Office: 604-681-6151 Website: www.dajin.ca Email: info@dajin.ca