De ve lo ping T wo Qua lity Ha rd Ro c k L ithium De po sits in - PowerPoint PPT Presentation

M A RC H 2 0 1 9 A SX : LTR De ve lo ping T wo Qua lity Ha rd Ro c k L ithium De po sits in We ste rn Austra lia L ithium a nd Ba tte ry Me ta ls Co nfe re nc e Pe rth, We ste rn Austra lia 1

I mpo rta nt I nfo rma tio n F or war d L ooking State me nts T his Pre se nta tio n ma y inc lude sta te me nts tha t c o uld b e de e me d “fo r ward-lo o king sta te me nts”. Altho ug h the Co mpa ny be lie ve s the e xpe c ta tio ns e xpre sse d in suc h fo r ward-lo o king sta te me nts a re b a se d o n re a so na ble a ssumptio ns, suc h sta te me nts a re no t g ua rante e s o f future pe rfo rmanc e and a c tual re sults o r de ve lo pme nts ma y diffe r ma te rially fro m tho se e xpe c te d in the fo rwa rd-lo o king sta te me nts o r no t ta ke pla c e a t a ll. No offe r to se ll or invitation to buy T his Pre se nta tio n is no t, a nd sho uld no t b e c o nside re d to , c o nstitute a ny o ffe r to se ll, o r so lic ita tio n o f an o ffe r to b uy, a ny se c uritie s in L io nto wn Re so urc e s L imite d, a nd no pa rt o f this Pre se nta tio n fo rms the b a sis o f a ny c o ntra c t o r c o mmitme nt wha tso e ve r with a ny pe rso n. L io nto wn Re so urc e s L imite d do e s no t a c c e pt a ny lia bility to a ny pe rso n in re la tio n to the distrib utio n o r po sse ssio n o f this Pre se nta tio n fro m o r in a ny jurisdic tio n. Disc laime r Whilst c a re ha s b e e n e xe rc ise d in pre pa ring a nd pre se nting this Pre se nta tio n, to the ma ximum e xte nt pe rmitte d b y la w, L io nto wn Re so urc e s L imite d a nd its re pre se nta tive s: • ma ke no re pre se nta tio n, wa rra nty o r unde rta king , e xpre ss o r implie d, a s to the a de q ua c y, a c c ura c y, c o mple te ne ss o r re a so na b le ne ss o f this Pre se nta tio n; • a c c e pt no re spo nsibility o r lia bility a s to the a de q ua c y, a c c ura c y, c o mple te ne ss o r re a so na b le ne ss o f this Pre se nta tio n; a nd • a c c e pt no re spo nsibility fo r a ny e rro rs o r o missio ns fro m this Pre se nta tio n. Compe te nt Pe r son State me nt T he Info rma tio n in this re po rt tha t re la te s to the Sc o ping Study fo r the K a thle e n Va lle y Pro je c t is e xtra c te d fro m the ASX a nno unc e me nt “K a thle e n Va lle y Sc o ping Study c o nfirms po te ntia l fo r ro b ust ne w WA lithium mine de ve lo pme nt” re le a se d o n the 29 th Ja nua ry 2019 whic h is a va ila ble o n www.ltre so urc e s.c o m.a u. T he Info rma tio n in this re po rt tha t re la te s to Mine ra l Re so urc e s fo r the K a thle e n Va lle y Pro je c t is e xtra c te d fro m the ASX a nno unc e me nt “Ma ide n 21 millio n to nne L ithium-T a nta lum a thle e n Va lle y” re le a se d o n the 4 th Se pte mb e r 2018 whic h is a va ila ble o n www.ltre so urc e s.c o m.a u. Mine ra l Re so urc e se ts stro ng g ro wth fo unda tio n fo r L io nto wn a t K T he Info rma tio n in this re po rt tha t re la te s to Me ta llurg y fo r the K a thle e n Va lle y Pro je c t is e xtra c te d fro m the ASX a nno unc e me nt “Hig hly e nc o ura g ing re sults fro m initia l me ta llurg ic al a nta lum Pro je c t, WA” re le a se d o n the 12 th No ve mb e r 2018 whic h is a va ila ble o n www.ltre so urc e s.c o m.a u. te st wo rk a t the K a thle e n Va lle y L ithium-T T he Info rma tio n in this re po rt tha t re la te s to E xplo ra tio n T a rg e ts is e xtra c te d fro m the ASX a nno unc e me nt “Ma jo r re so urc e e xpa nsio n drilling pro g ra m c o mme nc e s a t K a thle e n Va lle y ithium Pro je c t, WA” re le a se d o n the 29 th Ja nua ry 2019 whic h is a va ila ble o n www.ltre so urc e s.c o m.a u. L T he I nfo rma tio n in this pre se nta tio n tha t re la te s to the E xplo ra tio n Re sults fo r the Bulda nia Pro je c t is e xtra c te d fro m the ASX a nno unc e me nts e ntitle d “Mo re stro ng a ssays c o nfirm sig nific a nt lithium disc o ve ry a t Bulda nia Pro je c t in WA”, “L io nto wn c o nfirms se c o nd sig nific ant lithium disc o ve ry in WA with ne w thic k, hig h-g ra de hits a t Bulda nia ”, “ Outsta nding ne w drilling re sults c o ntinue to e xpa nd lithium mine ralisa tio n a t Buldania ”, “L io nto wn furthe r e xpa nds pro spe c tive lithium fo o tprint a t Buldania in WA’ s So uth-E a ste rn Go ldfie lds”, “L a te st a ssa ys c o nfirm lithium mine ralisa tio n o ve r >1.3km strike le ng th a t the Bulda nia L ithium Pro je c t in WA” a nd L io nto wn e xpa nds lithium fo o tprint a t Buldania in WA’ s So uth-E a ste rn Go ldfie lds” re le a se d o n the 26 th Ma rc h 2018, 19 th Se pte mb e r 2018, 1 st No ve mbe r 2018,13 th No ve mb e r 2018, 20 th No ve mb e r 2018 and 14 th Ma rc h 2019 re spe c tive ly whic h are a vaila ble o n www.ltre so urc e s.c o m.a u. T he Co mpa ny c o nfirms tha t it is no t a wa re o f a ny ne w info rma tio n o r da ta tha t ma te ria lly a ffe c ts the info rma tio n inc lude d in the o rig inal ma rke t a nno unc e me nts a nd tha t a ll ma te ria l a ssumptio ns a nd te c hnic a l pa ra me te rs unde rpinning the e stima te s in the re le va nt ma rke t a nno unc e me nts c o ntinue to a pply a nd ha ve no t ma te ria lly c ha ng e d. T he c o mpa ny c o nfirms tha t the fo rm a nd c o nte xt in whic h the Co mpe te nt Pe rso n’ s finding s a re pre se nte d ha ve no t b e e n ma te ria lly mo difie d fro m the o rig inal ma rke t a nno unc e me nts. 2

Ne xt Ge ne ra tio n L ithium Pro duc e r 1 Ka thle e n Va lle y L ithium Proje c t Pr oje c ts str ate gic ally loc ate d in the lithium- r ic h E aste r n Goldfie lds r e gion of We ste r n Austr alia Ma ide n Mine ra l Re so urc e : 21.2Mt @ 1.4% L i 2 O and 170ppm T a 2 O 5 • 75% Me asure d and Indic ate d • L oc ate d on grante d mining le ase s • Close to e stablishe d infrastruc ture 2 Bulda nia L ithium Proje c t • Sc o ping study c o nfirms L io nto wn’ s se c o nd lithium disc o ve ry: po te ntia l fo r a c o mme rc ia lly up to 58m @ 1.2% L i 2 O in drilling ro b ust mining o pe ra tio n • Re so urc e e xpa nsio n drilling in • Mine ra lisa tio n c o nfirme d o ve r a pro g re ss a ime d a t sig nific a ntly le ng th o f >1.3km a nd re ma ins e xte nding mine life o pe n • Co mpre he nsive te st wo rk • F urthe r re so urc e de finitio n drilling o ng o ing to o ptimise g ra de to c o mme nc e Q1 2019 a nd re c o ve rie s • Ma ide n re so urc e e stima te Q2/ Q3 • F e a sib ility studie s sc he dule d 2019 fo r c o mple tio n b y Q1 2020 Both proje c ts are e ithe r wholly-owne d or L iontown has 100% of the re le vant mine ral rights 3

K AT HL E E N VAL L E Y L I T HI UM PROJE CT W ESTERN A USTRA LIA 4

Sc o ping Study Suppo rts Po te ntia l T o De ve lo p A Sta nda lo ne L ithium Mining a nd Pro c e ssing Ope ra tio n Ba se Ca se 2Mtpa (L i & T a ) NPV (8%, re a l, po st ta x) A$421M (Ra ng e o f A$316 to A$526M) I RR 38% Open Pits Pa yb a c k <3 ye a rs Mine L ife 9 ye a rs Ave ra g e L OM Ope x ~A$428/ t c o nc . (ne t o f T a c re dits) Annua l Pro duc tio n ~360kt c o nc e ntra te L OM Spo dume ne A$900 (US$650/ t) F OB Pric e Ca pe x ~A$232M Sc o ping study pre pa re d b y L yc o po dium Mine ra ls Pty L td 5

F ina nc ia l Se nsitivity – Ro b ust Pro je c t Kathleen Valley Project - NPV Sensitivity Analysis (A$M) A$421M Base Case Spodumene Base Case Price (US$550-750/t) 253 588 Exchange Rate (AUDUSD$0.80-0.64) 301 571 Li Grade Flex (+/-10%) 323 518 Operating Cost Flex (+/-15%) 331 510 Li Recoveries (74-84%) 358 481 Capital Cost Flex (+/-15%) 393 449 Ta Recoveries (40-60%) 398 444 200 250 300 350 400 450 500 550 600 NPV (A$M) 6

Ca sh F lo w Pro file < 3 Ye a r Pa yba c k Pe r iod A$ Revenues and Net Cashflows (After Tax) A$M 1,000 800 600 400 200 - Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 (200) Revenue A$m (400) Net cashflow after tax A$m Cumulative net cashflow after tax A$m Sc o ping study sug g e sts L ife o f Mine fre e c a sh flo w o f ~A$762M 7

Ca sh F lo w Pe r Ye a r Sc o ping study sug g e sts a ve ra g e fre e c a sh flo w o f >A$100M pe r ye a r Net Cashflow After Tax A$M per Year A$M 200 150 100 50 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y1 -50 -100 -150 -200 -250 -300 8

Re so urc e s a nd Mining Global r e sour c e 21.2Mt @ 1.4% L i 2 O and 170ppm T a 2 O 5 75% Me asur e d and Indic ate d Sc oping study Pr oduc tion T ar ge t of 15.7Mt @ 1.26% L i 2 O and 154ppm T a 2 O 5 Ope n pits lar ge ly c onstr aine d by limit of data Conve ntional ope n pit mining and pr oc e ssing F avour able loc ation c lose to e stablishe d infr astr uc tur e Ac c e ss to wor ld- c lass e xpe r tise and wor k for c e 9

Me ta llurg y And F lo wshe e t – Pre limina ry T e st Wo rk Co nfirms a Sa le a b le L i 2 O Co nc e ntra te Ca n Be Pro duc e d K e y o utc o me s • 5.9% L i 2 O fro m DMS c o nc . • 36% ma ss re je c tio n fro m 2-sta g e DMS • 5.5% L i 2 O fro m flo ta tio n • L o w iro n (<0.5% F e 2 O 3 ) • Pre dic te d 79% L i 2 O re c o ve ry • Pre limina ry T a 2 O 5 c o nc . Pre limina ry re sults uno ptimise d a nd ve ry e nc o ura g ing Additio na l te st wo rk in pro g re ss o n a furthe r 4 to nne s o f sa mple Hig h prio rity pla c e d o n g e tting me ta llurg y rig ht 10