TSX-V: SRA Corporate Presentation 2014-Q2 A N EW S OURCE , A N EW P ROCESS FOR G REEN T ECHNOLOGY L ITHIUM
Disclaimer This presentation contains "forward-looking information" within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such 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". 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: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi) the risks associated with entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the resulting issuer; (xii) the risks associated with the various environmental regulations the resulting issuer is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of interest; (xv) the reliance on key personnel; (xvi) liquidity risks; (xvii) the risk of potential dilution through the issue of common shares; (xviii) the Company does not anticipate declaring dividends in the near term; (xix) the risk of litigation; and (xx) risk management. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws. Corporate presentation 2
Overview The Facts • Facts 1. Lithium • Applications • Lithium is the green mineral of the future • Demand 2. Market • Lithium batteries comprise 30% of the market • Supply • But hold the largest growth potential • Prices • No substitute for lithium in portable devices • Production • Historically controlled prices • Stria owns a Proprietary Process to produce • Strategic Alliances 3. Stria High Purity Li-Metal from Spodumene • Exploration properties • Proprietary Process • Strategically positioned and aligned with • Team technology partners Corporate Presentation 3
Industrial Applications 1. Chemical Application • Energy storage (rechargeable, grid storage) • Lubricant grease • Aluminium smelting, polymers Discovered in 1817 by Swiss chemist, • Air treatment Johan August Arfvedson • Medical applications 2. Technical Application (low impurities) Batteries Lubricating greases • Glass products (containers, bottles, fiberglass) (9%) (33%) Aluminum • Ceramics (glazes, porcelain enamels) (2%) Air treatment • Specialty Applications (5%) Polymers (5%) Pharmaceuticals (2%) Other (11%) Ceramics (16%) Glass (17%) Source: Web compilation - 2013 Corporate Presentation 4
Demand Demand by end user • Li = Industrial mineral GDP • Li consumption: Lithium 5.6% (f rom 2000 to 2012) consumption 6.0% ( only 2013) • China (30%) is the largest consumer of Li, followed by EU, Japan • Li batteries are the fastest growing use: 65% GLC 1 by 2025 • Grid Storage is taking a growing place • New entrant is changing the actual demand picture of GLC 1 CAGR 2 2011-25 Battery Uses Li contents Pure Electric Vehicles (EV) 8-40 kg Plug-in Electric Vehicles (PHEV) 1-10 kg 27.3% Hybrid Electric Vehicles (HEV) 0.8-2 kg Grid Storage kilos 21.3% Power tools Batteries 40-60 g 4.7% Laptop Batteries 30-40 g Tablet Batteries 20-30 g 9.7% 1 GLC: Global Lithium Consumption Mobile Phones 8-25 g 2 CAGR: Compound Annual Growth Rate Source: modified from Fox-Davies, 2013 Corporate Presentation 5
Demand By Compound Li demand - Forecast Li-Chloride LCE (Kt) 600 Butil-Li Other 5% 5% 3% 500 Li Metal Li Batteries 5% 400 Li Carbonate 300 Li Concentrate 48% • Store 3x more energy 14% 200 • Environmentally friendly 100 Li • Consumption of LCE 2 in 2013: 55,000t Hydroxide 0 Li demand - Actual 20% 2011 2015 2020 2025 • By 2021: 240,000t Source: MAXWELL, 2013 – Rechargeables accounted for 27% GLC 1 in 2012 – Estimated 65% by 2025 Battery performance Smaller – Batteries in mobile phones alone hold 8-25 g Li-P, Li-ion 800 New systems – 1.75-1.93B mobile devices were sold in 2012 Li-Air New systems Watt-hour/L 700 • By 2025, 50% of the Li requirements for hybrid electric cars will be in the form of lithium 600 Li-ion Li-polymer hydroxide 500 400 Ni-MH Li-metal 300 200 Ni-Cd 100 Lead-Acid 1 GLC: Global Lithium Consumption 0 Lighter 2 LCE: Lithium Carbonate Equivalent 0 100 200 300 400 500 Watt-hour/kg Corporate Presentation 6
Supply • Global Li resources: 30 Mt (not all viable) • Global Li reserves : ~13 Mt Source: Web & Euro Pacific Canada Corporate Presentation 7
Supply 2005 2015 (forecast) 4 Major Companies Source: Euro Pacific Canada 80% world’s production New producers entering >$1G/year Other Tianqi/Talison 20% Global Li Supply Forecast 32% FMC 9% SQM Rockwood 24% 20% Source: Maxwell 2013 Corporate Presentation 8
Supply Lithium Battery Grade and Price Future EV Plus Battery Technical Industrial EV Grade Grade Grade Grade Grade demand Purity of Li 2 CO 3 <99.0% 99.0% 99.5% 99.9% 99.99% 99.9999% Price (US$/t) 6,500 8,500 15,500 Battery Market % 75% 15% 10% Stria’s High Purity Source: modify from Seymor Pierce research and Fox-Davies New Process Time Corporate Presentation 9
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