Dis isclaimers information form of the Company. Although the - - PowerPoint PPT Presentation

www.arenaminerals.com TSX.V: AN OTC: AMRZF

OFFERING A PROPRIETARY, LOW

COST SOLUTION TO THE LITHIUM BRINE INDUSTRY

A Strategic Chemical Advantage Creating a Low Cost Producer

FEBRUARY 2019

Legal l Dis isclaimers

TSX.V: AN 2

Forward Looking Disclaimer: This document may contain forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements, projections and estimates relating to the future development of any

• f the Company’s properties, the anticipating timing with respect to the private placement

financing, the ability of the Company to complete the private placement financing, the results of exploration programs, future financial or operating performance of the Company, its subsidiaries and its projects, the development of and the anticipated timing with respect to the lithium projects or the Atacama project, and the Company’s ability to obtain financing. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". The statements made herein are based on current expectations and assumptions that are subject to risks and uncertainties. Estimates underlying the results set out in this presentation arise from work conducted by previous owners

• f the Antofalla Project and the Company. Forward-looking information is subject to known and

unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward- looking information, management discussion and analysis section of the Company’s interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance

• n forward looking information. Arena Minerals does not undertake to update any forward-

looking information, except in accordance with applicable securities laws. Currency Presentation: Unless otherwise indicated, all dollar figures are in Canadian dollars Sources of Information: Data such as commodity prices, growth, volumes and well as information related to producing assets or comparable projects were obtained from public sources such as industry publications, technical reports, articles published by experts and press releases

TSX.V: AN 2

3

What Matters

Arena Minerals is led by a team with Undeniable Experience in Lithium processing which has successfully advanced and brought to production several lithium projects, most recently with Lithium-X Energy Corp., which was acquired in 2018 for $265M. The team includes Eduardo Morales, former CEO of Rockwood Litio Ltda (based in Chile), President of Rockwood Lithium Latin America and COO of Lithium-X, a World Leader in the Field. Arena has adapted, to the lithium brines of Argentina, the “Brine Mixing Process” which was developed and implemented by Eduardo Morales and the team he was part of, and led to Chile being the world’s lowest cost producer of Lithium Carbonate over the last few decades Arena aims to achieve production based on this process, which results in products much better suited for Battery Grade Lithium Carbonate while carrying significantly lower costs of production. Arena will also seek to form Joint Ventures and secure Royalties Arena benefits from strong local relationships and is building on a strong Institutional Investor Base, which includes:

De De-Ris iskin ing Example le of f Lit Lithiu ium-X

TSX.V: AN 4

• Nov. 30th 2015: Debut

Trading on TSX.V Feb 16th 2016: Hire Will Randall as VP Project Development to help “Finding, analyzing and conducting due diligence on assets” April 21st 2016: Acquires Sal de los Angeles (“SDLA”) Brine Project in Argentina June 29th 2016: Appoints Eduardo Morales as COO March 18th 2018: Closing of Acquisition

23% Premium 420% over 2 years

“The Key to value creation in the lithium brine industry is to demonstrate the entire process, from resource extraction through to a saleable, high quality end product” - Eduardo Morales

• Feb. 21st 2017: LIX achieves 5% Li concentrate on site

demonstrating viability of process; permit for construction of Initial Ponding Facility of 2,500t/yr of LCE Dec 18th 2017: Lithium X acquisition by Chinese consortium led by NextView for $265M; $2.61/share

Key y Exp xpertis ise Reunit ited

Will Randall, President and CEO

TSX.V: AN 5

Daniel Bruno, Executive Chairman

• Co-founder of Arena Minerals with over

15 years of Capital Markets experience

• Former Partner and Director with GMP

Securities

• Born in Uruguay; fluent in Spanish

Paul Kania, Chief Financial Officer

• Financial Professional providing CFO, controller,

financial reporting and consulting services

• Significant experience in the mining sector
• Certified Public Accountant (CPA)
• HBA, Economics and Philosophy, University of Toronto

Vernon Arsenault, VP Exploration

• Geologist with over 30 years of

experience, more than 15 years in South America

• Senior Manager at Noranda in Chile,

Peru and Argentina

• Fluent in Spanish

Simon Marcotte, Director Corporate Development

• Over 20 years of Capital Market experience with CIBC World

Markets, Sprott and Cormark Securities

• Corporate experience with Belo Sun Mining, Alderon Iron Ore

and Mason Graphite with a focus on battery materials

• Holds a Business Degree from Sherbrooke University and the

CFA designation Nicolas Vázquez, Board Member

• 10 years of experience in representing mining

companies in Argentina

• Current a Partner at Vasquez & Meroni

Abogados, a law firm in Argentina

• Graduate from Universidad Católica Argentina

Additionally, the Salta Based Technical Team of Lithium-X is available to Arena and is Being Reassembled

• Founder of Arena Minerals
• Recently VP Project Development for Lithium-X Energy Corp.

advancing the Sal de los Angeles (“SDLA”) lithium brine project in Argentina.

• Lithium-X was acquired for $265M in 2018 by a consortium

led by Nextview New Energy Lion Honk Kong Limited.

• Identified, acquired and advanced the SDLA Project since

2009 before and after the acquisition by Lithium-X Energy

• Corp. in 2016.
• 20 years of experience in project development with a focus
• n Lithium in the last 10 years.
• Professional geologist and qualified person (“QP”) with 20

years of extensive exploration experience.

• Mr. Randall was raised in Argentina, educated in Canada and

is fluent in both English and Spanish.

• Mr. Morales is a chemical engineer with nearly 40 years of experience in the lithium

industry, with a focus on project engineering, construction and start-up.

• The world’s first Battery Grade Lithium Carbonate was achieved under his leadership.
• Mr. Morales formerly built and operated one of the world’s largest lithium brine
• perations. As President of Rockwood Lithium Latin America, he successfully led the

development, commissioning and operation of Rockwood’s Salar de Atacama project. His tenure with Rockwood Lithium ended with the company’s sale to Albemarle Corporation for US$6.2 billion in 2014.

• Mr. Morales was appointed Chief Operating Officer of Lithium-X Energy Corp. in 2016.

Lithium-X was acquired less than 2 years later.

• Mr. Morales previously served as General Manager overseeing construction and
• perations of both the ponding facilities at Salar de Atacama and lithium carbonate and

lithium chloride plants in Antofagasta, Chile. He holds a Chemical Engineering degree from the University of Santiago, Chile.

Eduardo Morales, Board Member and key shareholder.

World Renown Expert in Lithium Brine Processing

6

New energy sources become more and more competitive, dislodging traditional energy sources, and require energy storage

Lithium-ion batteries are reaching levels where electric vehicles and traditional vehicles will have the same price at the dealership, setting aside the gas savings Evolution of current technologies and new lithium-ion battery technologies are about to experience a tipping point and all require more lithium per battery

Please see the MACRO SECTION for more on these topics

Lit ithium Demand Accelerating

Multiplied by: Plus:

“Lithium demand from lithium-ion batteries is forecast to grow by 26% per year in the years to 2028, increasing from 136.7kt lithium carbonate equivalent (LCE) to in excess of 1.4Mt LCE”*

*https://roskill.com/market-report/lithium-ion-batteries/

The World NEEDS Argentina

7

Arena Minerals will help the lithium brine Industry in Argentina become a

Global Low Cost Leader

Lithium Triangle: Chile, Argentina and Bolivia

• Chile has been the main producer, but now

faces challenges due to stringent environmental and legal frameworks; it is now very difficult to obtain social licenses to

• perate or even expand.
• Bolivia has yet to experience any meaningful

influx of capital or international companies. Process Technology is lagging in order to address magnesium content

• Argentina has attracted the 3 major lithium

producers and new developers and experienced a dramatic increase in reserves

• ver the last decade.

Lithium Triangle

TSX.V: AN 8

• Producing facilities in Atacama, Chile have

been mixing using brine based reagents for many years and has become the world’s lowest cost producer of Battery Grade Lithium Carbonate

• The reagent is developed by concentrating

brine from specific areas in Atacama that possess a unique chemistry

• This process was developed in the 70’s by

a team Eduardo Morales was part of and, since the early 80’s, Mr. Morales was the fundamental person deploying this technology in Chile

• Mr. Morales is a key member of Arena

Minerals’ team and still works today with the same group of technical personnel

A Dif ifferent Kin ind of Company

TSX.V: AN 9

Atacama, Chile Argentina

• This brine replaces conventional lime based reagents

used in processing and is not only better suited for Battery Grade* but also reduces production costs by 40% to 70%1

• After working for more than two years in Argentina, Mr.

Morales and his team were able to adapt the process used in Chile to the brines of Argentina. The know-how related to this process is proprietary to Arena

• A unique brine chemistry is required and not

commonly found in Argentina. The Antofalla Project carries the adequate chemical composition

• *Lime based processes have been

proven to result in concentrates challenging to use as a feed for Battery Grade Lithium Carbonate production

• Arena has several Joint Venture discussions

underway and will look to acquire traditional assets to deploy the strategy independently

1: This range of Operating Expenditures (“Opex”) savings is based on the best estimates of the management and the technical teams of Arena Minerals and takes into account, over and above the respective PEA of Feasibility published Opex, the specific chemical characteristics of the brines underlying the various projects being active in Argentina and suitable for this particular processing alternative. Although these estimates have not been verified by an independent firm, the management team as well as the technical team have extensive expertise in the field, and in this process in particular, which was accumulated over several decades in the region. It is also common knowledge that such a brine-mixing process is being used in the neighbouring country of Chile and results in significantly lower Opex than the projections established here.

is a saleable product, reaching prices equivalent to , but requires a lower CAPEX and

• OPEX. The equivalent step in the liming process is not currently a saleable product.

Sim Simply ly Put: t: Lo Lower Ca Capex & Opex Resu sult ltin ing in in a Product Be Better Su Suit ited for r Ba Battery ry Grade Lit Lithiu ium Ca Carbonate

TSX.V: AN 10

Antofalla-Mixing process

Early treatment of brine with Antofalla based reagent Concentration in evaporation ponds to >5% Li Feed to carbonate plant (prior B removal) Battery grade product produced consistently OPEX

Typical Liming process

Early treatment of brine with lime Concentration in evaporation ponds to <1% Li Feed to carbonate plant (prior B removal) Production of mostly technical grade lithium carbonate Carbonate upgraded to battery grade via purification circuit OPEX ✓ Lower OPEX (40% - 70%1) ✓ Product flexibility ✓ Consistent battery grade production with fewer process steps ✓ Lower CAPEX (no purification circuit)

X

B X A

B A

1: See disclosure on previous slide

The Neig ighborhood

TSX.V: AN 11

The Argentine Puna region hosts the world’s third largest lithium reserves, after Chile and China

12

Antofalla Project Location

Salar de Antofalla

TSX.V: AN 13 Arena owns 100% of 3 claims totaling 4,000* hectares (40 km2) immediately South of Albemarle’s resource. 50% of the claim area sitting directly on the Salar

* An additional 1,800 hectares (18 km2) in the center of the Salar are currently disputed and could be secured. The matter is currently in court and expected to be resolved by mid 2019

Salar de Antofalla is located 60 km from the municipality of Antofalla, Argentina at 3,300 meters; the slightly lower elevation coupled with dry conditions lends itself to higher evaporation rates Historical work conducted by Vale (prior to the project being acquired by Albemarle) suggests a halite dominant Salar hosting a shallow lithium resource, with average lithium concentrations of 350 mg/l and effective porosity of 15%. The Antofalla salar covers approximately 706 square kilometers, making it one of the largest lithium bearing salars in the world. It is the only asset acquired by Albemarle in Argentina.

Competitive Advantage

TSX.V: AN 14

Not only is transportation cost a competitive advantage, but Arena Minerals doesn’t require an overly large resource at this stage; the value proposition is in the proprietary process

• No other producer is in a position

to deliver such an integrated

• solution. Arena benefits from a first

mover advantage, and is evaluating the availability of patent protection for its proprietary know-how.

• The brine will be concentrated at

site and transported to other brine

• perations in Argentina
• The transportation costs of this

reagent are reduced as typical reagents (lime) are sourced from San Juan province, Argentina, approximately 800km away

• A reduced quantity of Antofalla

brine is required as a reagent

• Antofalla based reagents will also

carry lithium

800 km

Busin iness Alt lternatives

Arena expects to secure Royalties by forming partnerships with other brine projects in the country, where it would help adapt the process and also provide the lithium-rich reagent Joint Venture discussions underway Arena Minerals also contemplates the acquisition of more typical brine assets and proceed with the entire strategy

• n its own

15

What’s Next?

TSX.V: AN 15

Argentina Li Lithium Projects

TSX.V: AN 16

Company Salar Location Stage Market Cap

Millennial Lithium Corp. (TSX.V: ML) Pastos Grande Salta, Argentina PEA C$158M LSC Lithium Corp.* (TSX.V: LSC) Pozuelos Salta, Argentina Resource C$105M Lithium America Corp. (TSX: LAC) Coucharí-Olaroz Jujuy, Argentina Feasibility Construction C$372M Neo Lithium Corp (TSX.V: NLC) Tres quebradas Catamarca, Argentina PEA C$89M

Advantage Lithium Corp. (TSX.V: AAL)

Caucharí Jujuy, Argentina PEA C$107M Galaxy Resources Ltd (ASX: GXY) Sal de Vida Salta, Argentina Feasibility A$815M Lithium X Energy Corp (Acquired) Sal de los Angeles Salta, Argentina Acquired at Feasibility stage (before publication) C$265M (Acquired)

Catamarca, Argentina Exploration & Resource Definition $6M

Arena Minerals’ Salar de Antofalla demonstrates a unique chemistry leading to lower production costs and major strategic advantages

*: LSC Lithium Corp. is in the process of being acquired by Pluspetrol Resources Corp B.V. in an all cash transaction announced on January 15th 2019

Antofalla

Argentina

17

• Over 10 mines put into production in recent
• years. over 500,000 workers employed by the

mining industry

• Holds some of the world’s foremost lithium

deposits in the NW Puna region, where high altitude arid climates lend themselves to conventional brine processing

• Argentine brines has been the source of ALL of

the new brine production since the 1990’s

• Influx
• f

large multinational companies, including the Big Three lithium producers, Livent (formerly FMC Lithium), SQM* and Albemarle, which are now developing projects

• r operating mines in the country
• President Macri has gone on record supporting

the mining sector with an emphasis on the lithium sector in particular

• Most members of Arena’s management team

are from Argentina and have an extensive professional experience in the country

Investments are flowing into Argentina, not only from basic lithium salts producers, but also from downstream lithium producers

*: SQM sold its participation in Lithium-America to Hong Kong based Ganfeng Lithium

TSX.V: AN 18 Typical Brine Acquisition Technical Team Re-Assembled Seed Round Financing Antofalla Acquisition 1st Round of Drilling Pump Tests Geophysics Work 1st Strategic Partnership Key Board and Management Additions Demonstration of Process with Partner

Note: please refer to the Forward Looking Statements on slide 2

Resource Estimate

Key Shareholders

• Management, Board and Insiders: 15%
• Institutional and High Net Worth

Shareholders own approximatively 35%, including:

• Fidelity Investments
• One of the world’s largest asset managers
• Hydra Capital Partners
• Seasoned investments-industry professionals offering

funding and capital market services

• Mr. Fahad Al-Tamimi*
• International businessman whose area of expertise involves

infrastructure in energy, mining and transportation

• Ross Beaty and team
• One of Canada’s most successful entrepreneurs with over

40 years of experience in minerals and renewable energy

• Several Lithium-X key shareholders,

including Mr. Paul Matysek:

• a proven company builder having founded, advanced

and sold 5 companies in the past 10 years Fidelity: https://fidelity.ca/fidca/en/products/gc#

TSX.V: AN 19

http://www.fahadaltamimi.com/

*

Additional Assets

296 hectares in Salar del Hombre Muerto adjacent to the property currently proposed to be acquired by POSCO from Galaxy for US$300M. POSCO is expected to consolidate the surrounding properties once the transaction is completed. Livent (FMC) has been producing from the Salar for 20 years

TSX.V: AN 20

2-year Option on a property at Pocitos Salar. No maintenance fee and requires only a US$30,000 payment if Arena whishes to exercise the option at maturity. Therefore it is a free option on exploration done by others at Pocitos Salar, which has been active for

• ver 2 years by:
• Projects located near Antofagasta, Chile, and world class operating mines: Lomas Bayas, Mantos Blancos, Spence, Sierra Gorda, Tesoro

and El Peñon

• Agreement earned an 80% interest in the Atacama Copper Property, consisting of 6,910 hectares in world’s foremost copper district
• Arena’s land package has been held by single owner with focus on industrial minerals for over 70 years, with claims dating back to

1876

• 2 Copper porphyry and one Au-Ag epithermal prospects discovered by Arena during early stage prospecting are currently

available for option or joint venture agreements; please see the “Atacama” Corporate Presentation for details

Capital Structure

TSX.V: AN 21

Trading Symbols

TSX.V: AN US OTC: AMRZF

Capital Structure

Shares Outstanding 142,621,090 Warrants (Strike price: $0.10; May 2021) 46,000,000 Options (Average strike price: $0.16) 8,205,000 Fully Diluted 196,826,090

Recent Financings

Non Brokered Private Placement

• Seed Round mainly undertaken by insiders and

key institutions

• September 2018; $0.05/unit

$2.3 M

22

Macro Section

23

Lithium Facts

According to Microsoft, as soon as 2023, EV will reach parity; being the same price out of the dealership

The Li-ion Battery Market Growth is Imminent and will Bring a Dramatic Shock to the Industry

The EV Revolution was not triggered by Elon Musk making cool cars. Elon Musk began making cool cars because he foresaw the cost of the Li-ion battery falling sufficiently to be competitive. 2018 was an inflection point for a steep drop in prices almost reaching parity.

24

Lithium Facts

The new technologies expected to further decrease the cost and improve performances require more and more lithium

Those new technologies are about to experience a tipping point

Li-ion Advanced Li-ion Solid Sate

An electric car requires SIGNIFICANTLY more batteries than a mobile phone or any portable electronics explaining why the growth in adoption in EV is so much more relevant to lithium demand

25

Lithium Facts

During the First Tour of the Gigafactory, Elon Musk Said: “The World Will Need 100 of those Gigafactories.” Less Than THREE Years later, 51 Megafactories Have Been Announced and the USA has Yet to Be a Relevant Player

TSX.V: AN 26

Lithium Facts

Rise of the lithium-ion battery megafactories – rapid and relentless

2015

2018

Automakers Are Also Committing Capital

27

Lithium Facts

Global Forecasts Example of Norway

28

Lithium Facts

What makes a REAL difference for lithium demand is the sales of “EVs”, i.e. cars you can plug in. Hybrid widely succeeded but now EV are taking the lead. The battery production capacity represents the ACTUAL demand and is the strongest testament of where the industry is heading

2018

29

Lithium Facts

Lithium Carbonate will remain the largest market, with 56% market share in 2028 Lithium Hydroxide can be produced from Lithium Carbonate and it is cheaper to do so than producing Lithium Hydroxide directly. Lithium Carbonate can’t be produced from Lithium Hydroxide.

56%

and 56% of materials will require lithium carbonate

30

Notes

31

Notes

32

Head Office

120 Adelaide Street West, Suite 1410 Toronto, Ontario, M5H 1T1

TSX.V: AN OTCQX: AMRZF www.arenaminerals.com

For information, contact: Simon Marcotte, CFA, Director Corporate Development +1-647-801-7273 info@arenaminerals.com