AN EMERGING LITHIUM PRODUCER
FOCUSED ON NEAR-TERM PRODUCTION
DEVELOPING LITHIUM PROJECTS IN ARGENTINA APRIL 2018 TSX-V: LSC
AN EMERGING LITHIUM PRODUCER FOCUSED ON NEAR-TERM PRODUCTION - - PowerPoint PPT Presentation
AN EMERGING LITHIUM PRODUCER FOCUSED ON NEAR-TERM PRODUCTION DEVELOPING LITHIUM PROJECTS IN ARGENTINA APRIL 2018 TSX-V: LSC CAUTIONARY NOTE ON FORWARD LOOKING STATEMENTS Certain statements contained in this presentation (Presentation)
DEVELOPING LITHIUM PROJECTS IN ARGENTINA APRIL 2018 TSX-V: LSC
1 L S C L I THIUM C ORPORATION 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 and timing 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, ability and timing of testing the Company’s brine at the facility at the Salar del Rincón, future business acquisitions, results with respect to brine chemistries, grade and impurities, 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 Xtraction Process Technology, the ability and timing of achieving production at any of the Company’s mineral exploration properties, ability and timing of publishing NI 43- 101 resources for any of the Company’s mineral exploration properties, uncertainties relating to receiving mining, exploration, environmental and other permits, approvals or community approvals in Argentina, availability of additional financing, 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; 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 dated January 27, 2017, as updated in other disclosure documents filed from time to time by the Company with Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Undue importance should not be placed on forward-looking information nor should reliance be placed upon this information as of any other date. The information and opinions contained in this Presentation are provided as at the date of this Presentation and are subject to change without notice. No representation or warranty, express or implied, is given by or on behalf of LSC, its shareholders, directors, officers or employees nor any other person as to the accuracy or completeness of the information or opinions contained in this Presentation. At this time, there is no forecast for when LCE production could commence from LSC 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. The information is not designed to provide financial, tax planning, accounting, investment, business or legal advice in any way whatsoever. The reader should consult with a lawyer, accountant and other professionals in respect of the contents hereof. Furthermore, this Presentation is not, and under no circumstances is to be construed as, a prospectus, an advertisement or a public offering of securities, in the United States, Canada, or any other jurisdiction. No securities commission or similar authority of the United States, Canada, or any other jurisdiction has reviewed or in any way passed upon this document, and any representation to the contrary is an offence.
2 L S C L I THIUM C ORPORATION Certain information contained in this Presentation concerning the lithium industry and industry comparables is based on data from publicly available industry sources, public filings
However, there has been no independent verification of such data, which may prove to be imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While management is not aware of any misstatements regarding any industry data or industry comparables presented herein, industry data is subject to change based on various factors. Qua uali lifi fied ed Pers rson
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”). Tech echnic nical Re Report port Readers are referred to the 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. Readers are also referred to the technical report prepared under NI 43-101 for the Company with an effective date of December 31, 2016 entitled “Technical Report on the Salar de Pozuelos Project, Salta Province, Argentina” available on SEDAR at www.sedar.com for more information on the Pozuelos property.
3 L S C L I THIUM C ORPORATION
INCREASING RESOURCE BASE TO BUILD A LARGE LCE INVENTORY IN ARGENTINA
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Maiden Mineral Resource for Pozuelos of 1.3 Mt lithium carbonate equivalent (LCE) at 387 mg/l Li Measured & Indicated and 497 kt LCE at 340 mg/l Li Inferred.
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Maiden Inferred Mineral Resource for Rio Grande of 2.2 Mt LCE at 374 mg/l Li in top 100m.
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Mineral Resources to be delivered at Salinas Grandes and Pastos Grandes in Q3 2018; Pozuelos (upgrade) in Q4 2018; and Jama in Q2 2019. LARGE, HIGH QUALITY LAND PACKAGE IN “LITHIUM TRIANGLE” TO EXPLORE
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Land package covering more than 300,000 ha in the heart of the “Lithium Triangle”.
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Multi-project portfolio with assets across multiple, non-contiguous salars with LSC having majority control in some salars.
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Major development projects: Pozuelos/Pastos Grandes, Rio Grande, Salinas Grandes and Jama.
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Good relationship with local communities and coordinating with local governments. NUMEROUS NEAR-TERM MILESTONES
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Accelerated exploration program underway with NI 43-101 resource estimates expected to be delivered at four projects in 2018 (two have already been announced).
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Advanced exploration and preliminary engineering work underway on Pozuelos/Pastos Grandes Project with target production in 2021.1
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Targeting LCE production from each salar starting from 2021 through 2024.1
Fast Tracking Development to Commence Production in 20211
4 L S C L I THIUM C ORPORATION
EV ADOPTION AND INCREMENTAL DEMAND FOR LITHIUM
Lithium Demand to Increase Due to Robust Growth in Electric Vehicles
Sources: 1 J.P. Morgan, February 2018; 2 UBS, December 2017 (PV = Passenger Vehicles); Roskill, May 2017; BMO Capital Markets, October 2017.
EV SALES PROJECTED TO REACH ABOUT 16% BY 20252 LCE DEMAND FORECAST TO INCREASE 5X FROM 2016 TO 20252 EV BATTERY CELL COST TREND1
▪ Lithium-ion batteries have become the de facto choice of rechargeable
batteries due to their high energy density and light weight.
▪ As battery costs move towards US$100/kWh, electric vehicles (EV) are
estimated to reach cost parity with internal combustion engines (ICE).
▪ Government regulations to reduce air emissions, particularly in Europe
and China, are seen as another key driver of EV growth.
▪ EVs forecast to be about 16% of total passenger vehicle sales in 2025. ▪ Lithium demand projected to increase five-fold from 2016 to 2025. ▪ An estimated US$10-12 billion needs to be invested in upstream and
downstream projects to meet LCE demand forecasts.
287 231 186 157 132 113 96
50 100 150 200 250 300 350 2016 2017 2018 2019 2020 2021 2022
US$/kWh
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2 4 6 8 10 12 14 16 18 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
mm units % of global PV sales
100 200 300 400 500 600 700 800 900 1,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
kt LCE
20% CAGR
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Extensive Land Package over 300,000 ha with Major Development Projects in Five Salars
POZUELOS
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21,425 ha (100% interest)
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covers 99% of salar
1 2 PASTOS GRANDES
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2,683 ha (100% interest)
3 RIO GRANDE
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26,865 ha (100% interest)
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covers 90% of salar surface
4 SALINAS GRANDES
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88,472 ha (85% interest)
Salta Province
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~45,000 ha
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covers 95% of salar surface
Jujuy Province
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~35,000 ha
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covers 44% of salar surface
5 JAMA
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7,634 ha (68% interest)
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covers 95% of salar
Total Portfolio1 is 306,347 ha (234,519 ha attributable to LSC)
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Other properties: Guayatayoc, Western Claim Block, Arizaro, Laguna Palar, Pocitos and others
JAMA
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Combined brine resources at Pozuelos and Pastos Grandes to provide significant scale for target production.1
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Simple connection between the two salars: 17km apart with Pozuelos 20m below Pastos Grandes.
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Complementary brine chemistry between Pozuelos and Pastos Grandes provides process optimization opportunities.
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Right conditions exist at Pozuelos for installing a production system.
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Local infrastructure is good and close.
salar.
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Building a 40-person camp at Pozuelos that is scheduled to be completed by June 2018.
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Own a 7 ha easement in Salar de Pocitos with access to gas, electricity and railway.
Salta, Argentina
OVERVIEW
Gas pipeline Roads Railroad Powerline
Source: LSC Lithium
Key
PEA in 2018 → DFS in 2020 → Production in 2021.2
7 L S C L I THIUM C ORPORATION
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100% interest in 21,425 ha; Control 99% of the salar.
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NI 43-101 Resource1: Upgrade expected in Q4 2018.
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Highly fractured halite to 35m, deep lying sands and gravels.
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Grades consistently 500 to 600 mg/l Li in salar nucleus.
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Favourable brine chemistry with low Mg:Li ratio (typically <6:1 Mg:Li) and low sulphates.
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Project to be jointly developed with Pastos Grandes.
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Advanced exploration and pre-engineering work underway.
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Selection of PEA engineering company in near-term.
Salta, Argentina
OVERVIEW
8 L S C L I THIUM C ORPORATION
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Recent work included diamond drilling, brine sampling, porosity testing, seismic work, pumping well tests and hydrogeological studies.
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Mineral resource estimate based on 13 resource delineation drill holes amounting to 1,789m and two pump test wells.
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Drilling confirmed extensive lithium mineralization across the salar peaking at between 430 to 508 mg/l Li.
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Excellent Relative Brine Release Capacity (RBRC) values peaking at 33% in top 15m of the deposit.
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Six pump test-well development program commenced in April 2018.
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Drilling of three additional resource delineation holes to start in May 2018.
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Additional 30km seismic survey planned.
Salta, Argentina
EXPLORATION PROGRAM
9 L S C L I THIUM C ORPORATION
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100% interest in 2,683 ha; 75% of LSC tenements are on the salar surface.
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NI 43-101 Resource: Expected in Q3 2018.
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The portion of Salar de Pastos Grandes not controlled by LSC with an approximately equivalent surface area has reported a Measured & Indicated Mineral Resource1 of over 2 Mt LCE and an average grade of 445 mg/l Li.
Salta, Argentina
OVERVIEW EXPLORATION PROGRAM
▪
Five drill hole program to be completed in Q4 2018.
512m; average Li grades returned a peak of 511 mg/l Li.
and remains open at depth.
value intersected of 637 mg/l Li and open at depth.
▪
Seismic survey and three hole pump test work program to be completed in 2018.
may not be representative of the potential mineralization on the LSC tenements.
10 10 L S C L I THIUM C ORPORATION
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100% interest in 26,865 ha; Covers 90% of salar surface and nucleus.
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NI 43-101 Resource1: Resource in top 100m.
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The top 50m amounting to 1.4 Mt LCE at 338 mg/l Li and the lower 50-100m amounting to 815 kt LCE at 410 mg/l Li.1
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Lithium in brine bearing formations indicated to 500m+ depth.
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Historic and current Phase 1 drilling is only to 100m.
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Drilling to test deeper zones expected to start shortly.
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Lithium grades tend to improve between 50-100m below surface, which indicates potentially improved grades at depth.
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Two deep seated depositional centers identified.
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Three former production wells (150m3/hour – currently closed, under rehabilitation) and an established camp on site.
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Potential for sodium sulphate and gypsum by-product credits. Past sodium sulphate producer.
Salta, Argentina
OVERVIEW
11 11 L S C L I THIUM C ORPORATION
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CS-AMT geophysical exploration, twin drilling and pumping tests completed last year.
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Phase 1 eight hole drill program confirmed wide spread lithium mineralisation:
657 mg/l Li over 90m.
535 mg/l Li over 89m.
411 mg/l Li over 86m.
385 mg/l Li over 92m.
433 mg/l Li over 74m.
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Phase 2 exploration program will test deeper levels of the salar and porosity levels.
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Upgraded and expanded Mineral Resource in 2018.
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PEA for Rio Grande planned for Q1 2019.
Salta, Argentina
EXPLORATION PROGRAM
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85% interest in 88,472 ha; LSC is the operator.
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NI 43-101 Resource: Expected in Q3 2018.
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Control 95% of the salar surface on the Salta side and 44% of the salar surface on the Jujuy side and the alluvial fans.
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Positioned to be the sole operator in the salar.
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Recent surface sampling results support the potential for a large scale, high-grade lithium operation.
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Excellent access and local infrastructure - main highway crosses the salar and main gas pipeline runs north of the salar.
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Brine chemistry with low Mg:Li ratios and good K:Li ratios.1
▪
Separate exploration and development programs for Salta and Jujuy since each have their own regulatory framework.
Salta and Jujuy, Argentina
OVERVIEW
ranged from a low of 265 mg/l Li (19 samples) to a high of 1595 mg/l Li (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.
13 13 L S C L I THIUM C ORPORATION
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Prior work included surface sampling, 47 auger holes (depths between 4 and 20m), 12 diamond drill holes (average depth
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Shallow inferred resource estimate of 239,200 tonnes LCE and 1.03 million tonnes of potash (KCl) over 11,620 hectares.
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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
Salta and Jujuy, Argentina
PRIOR EXPLORATION WORK BY OROCOBRE1
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 is undertaking an exploration program involving sampling, drilling and pumping tests to develop a current resource estimate in conformance with NI 43-101.
▪
LSC has completed its verification program of Orocobre surface pit sampling assay results and auger hole assay results.
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LSC plans to rehabilitate drill and trench sites remaining from work undertaken by Orocobre in 2011 and 2012. It is anticipated the work can be completed by the end of Q2 2018. LSC CONFIRMATION OF HISTORIC WORK BY OROCOBRE
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Average lithium grade was 795 mg/l.
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Average potassium grade was 9,547 mg/l.
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Li and K concentrations are elevated in the upper 10-15m.
14 14 L S C L I THIUM C ORPORATION
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~45,000 ha in the centre of and in the alluvial fans of the salar in Salta.
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Control 95% of the Salta side of the salar surface.
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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.1
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Brine chemistry shows low Mg:Li ratio and favourable K:Li ratio.2
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There are four trenches on the Salta side which can be rehabilitated.
Salta, Argentina
OVERVIEW EXPLORATION PROGRAM
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LSC’s work with local communities in coordination with the State allowed exploration activities to commence in 2017.
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Of the 53 shallow pit samples taken, 80% returned grades in excess of 500 mg/l Li, 44% in excess of 1,000 mg/l Li and 13% over 1,500 mg/l Li.
and it is uncertain if further exploration will result in a mineral resource being delineated.
15 15 L S C L I THIUM C ORPORATION
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~35,000 ha in the centre of and in the alluvial fans of the salar in Jujuy.
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Control 44% of the Jujuy side of the salar surface.
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Large portion of the salar is controlled by local cooperatives.
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Comparable geology & brine chemistry to Salta side of salar.
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Drill holes can be used to test the potential of the alluvial fan.
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Government in Jujuy promoting concept of one operator on the salar. LSC is the dominant tenure holder on the salar.
Jujuy, Argentina
OVERVIEW EXPLORATION PROGRAM
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In 2017, LSC received approval to commence geophysical exploration work and surface sampling on the San Jose and Navidad concessions.
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Of the 25 shallow pit samples taken, 60% returned grades in excess of 500 mg/l Li and 8% in excess of 1,000 mg/l Li. Peak grade returned of 1,353 mg/l Li; average grade 591 mg/l Li.
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2018 work program includes gravity, VES and CS-ATM/TEM work to define basin dimensions and structure and aquifer
16 16 L S C L I THIUM C ORPORATION
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68% interest in 7,634 ha; Control 95% of the salar.
▪
NI 43-101 Resource: Expected in Q2 2019.
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Excellent infrastructure and on the national grid.
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Shallow surface sampling was undertaken on the northern part of the salar in 2015.
ratios (typically ~3:1) with good porosity.1
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Seismic data indicates that the salar is developed up to 300m below surface.
Jujuy, Argentina
OVERVIEW EXPLORATION PROGRAM
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80 km seismic survey recently completed.
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Salar surface area extended under adjacent alluvial fan from 2,900ha to 5,400ha.
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Drilling of exploration holes planned in 2018.
17 17 L S C L I THIUM C ORPORATION
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Po Pozuelos-Pastos Gr Gran andes
training and hiring local workers.
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Rio io Grand nde
enhance tourism in the area.
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Jam ama
station in addition to other community programs.
▪
Sali alinas Grandes
communities in Jujuy province.
engagement, with a CSR office in San Antonio de los Cobres.
de los Cobres, including work on pre-employment health analysis.
LSC is focused on transparency and ensuring local communities receive fair share of benefits. LSC is Active in Local Communities and Has Earned Strong Support for Its Operations
COMMUNITY OUTREACH PROGRAMS
18 18 L S C L I THIUM C ORPORATION
CAPITALIZATION ITEMS Symbol TSX.V: LSC Share Price (Apr 19, 2018) C$0.79 Market Capitalization C$112 million Shares Outstanding 142.4 million Options / Warrants 18.7 million Fully-diluted Shares Outstanding 161.1 million FINANCIAL INFORMATION* Cash & Marketable Securities US$16.5 million Book Value of Exploration and Evaluation Assets US$97.0 million
* As at November 30, 2017.
NEAR-TERM CATALYSTS Salinas Grandes NI 43-101 Resource Q3 2018 Pastos Grandes NI 43-101 Resource Q3 2018 Pozuelos Upgraded NI 43-101 Resource Q4 2018 PEA on Pozuelos-Pastos Grandes Project Q4 2018 PEA on Rio Grande Q1 2019 Jama NI 43-101 Resource Q2 2019
19 19 L S C L I THIUM C ORPORATION
MANAGEMENT TEAM
Ian Stalker Chief Executive Officer
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A senior international mining executive with over 45 years of experience in resource development, mine construction and operations. Lincoln Greenidge Chief Financial Officer
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A senior finance executive with over 30 years of experience in corporate finance, audit, manufacturing and mining.
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Former VP, Finance & Controller of Enirgi Group and LeadFX Inc. and Controller of HudBay Minerals and IAMGOLD. Carlos Galli Chief Operating Officer
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Experience in the construction and management of a safe and sustainable lithium carbonate plant operation in the Puna plateau of Argentina, which delivered product to five countries. Rodrigo Castañeda EVP Administration
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Over 10 years of experience as a legal advisor in South America’s public and private mining sector.
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Has published several papers on Argentina’s mining industry. John Sanders VP Exploration
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A mineral exploration and mining executive with 33 years of experience.
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Former Managing Director and CEO of Elemental Minerals.
BOARD OF DIRECTORS
Stephen Dattels Co-Founder and Chairman
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A seasoned senior mining executive and resource financier.
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Founded and/or financed numerous mining ventures in several continents.
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Senior executive and director of Barrick during its formative years. Robert Metcalfe Non-executive Director
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Lawyer/former senior partner with Lang Michener LLP and President/CEO of Armadale Properties Limited.
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Board director of numerous public natural resource companies – engaged in many corporate reorganizations and financings across all sectors.
Non-executive Director
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Served as a Member of the Senate of Canada from 1990 until his retirement in 2009.
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Former CEO and Chairman of Brascan Limited (now known as Brookfield Asset Management). Bryan Smith Non-executive Director
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Over 30 years of experience in the Canadian securities industry.
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Co-founded Burgundy Asset Management in 1990. Cheoll Ho Ghim Non-executive Director
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Seasoned senior mining executive with an equity capital markets background in Asia.
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Worked as an investment banker for Deutsche Bank, BNP Paribas and STIC Investment Inc. in Asia. John Hick Non-executive Director
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Senior management and/or board director of numerous publicly listed mining companies since 1981.
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Consults with companies on corporate restructurings, acquisitions, financings and executive management.
Financial & Technical Experience to Lead LSC to Become a Producer of High Quality Lithium
20 20 L S C L I THIUM C ORPORATION
Rapidly Advancing High-Quality Lithium Brine Projects to Production
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Major development projects in the heart of the “Lithium Triangle” in Argentina, with an industry-leading land package in excess of 300,000 ha.
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Focused on becoming a near-term producer, with initial production at each salar anticipated between 2021 and 2024.1
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Extensive exploration program underway, with numerous near-term development milestones.
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Strong management and Board of Directors with a track record of value creation in the mining industry.
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Robust lithium market outlook with demand growth expected to increase five-fold from 2016 to 2025, driven by electric vehicle adoption.
21 21 L S C L I THIUM C ORPORATION
40 University Avenue, Suite 605 Toronto, ON Canada M5J 1T1 +1 416 304 9384 info@lsclithium.com LSCLITHIUM.COM
Corporate Communications and Investor Relations
22 22 L S C L I THIUM C ORPORATION
ADDITIONAL INFORMATION
23 23 L S C L I THIUM C ORPORATION
RI RIO O GRA RANDE MIN MINERAL RES RESOU OURCE ES ESTIMATE5 AS AS AT AT FEBR BRUARY Y 15, 2018 Classification and nd Zon
As Assay Va Value Tota
rine Vol Volume (B m3) RB RBRC2 (%) %) Av Available Brin rine Vol Volume (MM m3) Li K ton
(as met metal) LCE CE3 (k ton
Inf nferred Li Li (mg/ g/l) Ca Ca (mg/ g/l) K (mg/ g/l) Mg Mg (mg/ g/l) SO SO4 (mg/ g/l) Top 50m, 5km radius of pump well 338 3,570 6,170 1,320 29,100 4.170 13.5 563.049 190.3 1,013.0 Remaining area, top 50m 338 3,570 6,170 1,320 29,100 2.898 6.95 201.432 68.1 362.4 Subtotal 338 3,570 6,170 1,320 29,100 7.069 10.81 764.482 258.4 1,375.4 Lower 50m – 100m 410 710 7,520 4,920 34,130 7.069 5.28 373.245 153.0 814.6 Tota
nferred 374 374 2,149 6,845 3,129 31,615 14.138 8.05 1,137.727 411.4 2,190.04
wellfield at a commercially viable rate, while the geochemical characteristics of the brine suggest that conventional processing techniques may be employed to produce saleable lithium products in an economically profitable manner. These processing techniques are employed in lithium brine operations in Chile, the USA and China. * Pozuelos Mineral Resource estimate was contained in LSC news release on March 5, 2018 and the Rio Grande Mineral Resource estimate was contained in LSC news release on February 15, 2018. Mineral resources which are not Mineral Reserves do not have demonstrated economic value. There is no assurance that additional exploration will result in the conversion of Mineral Resources to Mineral Reserves. Inferred Mineral Resources are considered as too speculative to have economic criteria applied to them. There is no assurance that additional exploration will result in the conversion of Inferred Mineral Resources to Indicated or Measured Mineral Resources. Figures may not add due to rounding.
PO POZUELOS OS MIN MINERAL RES RESOU OURCE ES ESTIMATE1 AS AS AT AT FEBR BRUARY Y 28, 2018 As Assay Va Value Tota
rine Vol Volume (MM m3) RB RBRC2 (%) %) Av Available Brin rine Vol Volume (MM m3) Li Ton
(as met metal) LCE CE3 (tonnes) Classification Li Li (mg/ g/l) Ca Ca (mg/ g/l) K (mg/ g/l) Mg Mg (mg/ g/l) SO SO4 (mg/ g/l) Measured 371 1,666 3,164 2,053 5,125 4,412.28 12.34 544.48 202,326 1,076,979 Indicated 486 1,373 4,318 2,621 8,671 1,324.47 6.40 84.77 41,211 219,365 Me Measured & Ind ndica cate ted 387 387 1,627 3,319 2,129 5,602 5,736.75 10.97 629.24 243,536 1,296,0004 Inf nferred 340 340 757 757 1,894 1,373 3,824 7,663.14 3.58 274.34 93,361 497,0004