For personal use only 7 July 2016 T he Ma na g e r ASX Ma rke t - - PDF document

Argosy Minerals Limited ACN 073 391 189 London House, Level 3, 216 St Georges Terrace, Perth, WA 6000 PO Box 7775, Cloisters Square, Perth, WA 6850 Ph: (08) 9226 4500 Fx: (08) 9226 4300

7 July 2016 T he Ma na g e r ASX Ma rke t Anno unc e me nts Austra lia n Se c uritie s E xc ha ng e L imite d De a r Sir/ Ma da m

Inve stor Pr e se ntation

Ple a se find a tta c he d a c o py o f the Co mpa ny’ s Inve sto r Pre se nta tio n do c ume nt fo rming pa rt o f a n inve sto r ro a dsho w b e ing c o nduc te d to da y in Sydne y. Yo urs fa ithfully Andre a Be tti No n-E xe c utive Dire c to r Co mpa ny Se c re ta ry

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ASX Code: AGY

On the fast track to low-cost lithium production in Argentina

• Rapidly growing portfolio of brine projects
• Focused on Argentina’s “Lithium Triangle”
• Advanced, near-production opportunities

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Disclaimer

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This presentation has been prepared by Argosy Minerals Limited (“Argosy or AGY”). The information contained in this presentation is a professional opinion

• nly and is given in good faith.

The information contained herein is confidential and proprietary to the Company and is provided to recipients on the terms and conditions set out in this

• disclaimer. The document, in whole or in part, is not to be distributed, copied or reproduced, in any form, without the prior written consent of the Directors of

the Company. Certain information in this presentation has been derived from third parties and though AGY has no reason to believe that it is not accurate, reliable or complete, it has not been independently audited or verified by AGY. Any forward looking statements included in this presentation involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, AGY. In particular they speak only to the date of this presentation, they assume the success of AGY’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which these assumptions are based. Recipients of this presentation are cautioned not to place undue reliance on such forward looking statements. AGY makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any errors or omissions which may become apparent after this presentation is released. To the extent permitted by law, AGY and its officers, employees, related bodies corporate and agents disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of AGY and/or any of its agents) for any loss or damage suffered by a recipient or

• ther persons arising out of, or in connection with, any use or reliance on this presentation or information.

All amounts in A$ unless stated otherwise.

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Company Overview

On the fast track to low-cost lithium production in Argentina

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• Emerging ASX-listed international lithium developer (ASX: AGY)
• Portfolio of advanced and strategic lithium brine projects secured in world-renowned

“Lithium Triangle” in Argentina:

– Mina Teresa – located adjacent to Orocobre (ASX: ORE) concessions in Salinas Grandes Salar – Pocitos – previously explored with historical values of lithium and boron, located in Salar de Pocitos – Rincon – project generated by lithium expert Pablo Alurralde with well-defined pathway to production, located in Salar del Rincon

• Funded to preliminary works stage - trenching, sampling & drilling to delineate JORC resource.
• Support to consider additional lithium opportunities and build a substantial project portfolio
• High-quality regional and site infrastructure (electrical power, natural gas, rail & port facilities)

facilitating project development

• Extensive technical expertise in-house and Argentinian lithium consultants:

– Access to quality laboratory and pilot plant equipment

• Strong upcoming news-flow with exploration programs due to begin shortly targeting the

establishment of JORC resources, followed by pilot plant test work

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Corporate Overview

Strong capital structure, experienced board, substantial upside

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Directors

Ranko Matic – Non-Executive Chairman (B. Bus, CA) Jerko Zuvela – Director (B.Sc (Applied Geology), CP (Geology)) Andrea Betti – Non-Executive Director, Company Secretary (BCom, MBA, Grad Dip in Finance/Investment; Grad Dip in Corporate Governance) Corporate Structure ASX Code: AGY Shares on Issue 514.5M Options on Issue 12.5M exercisable at $0.09, expiring 13/6/2017 Share Price 3.1c (as at 5 July 2016) Market Capitalisation $15.95M (at 3.1 cents) Convertible Notes 15 Convertible Notes with a combined face value of $205,000 plus interest, convertible into fully paid AGY shares at a conversion price of $0.002, maturity prior to 13/8/2016

12-month share price

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One of the World’s Lithium “Hot Spots”

Exploring in the heart of Argentina’s lithium triangle

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• Projects located within Argentina’s world-renowned “Lithium Triangle”:

– Home to some of the world’s largest lithium resources – Salar’s of Hombre Muerto, Salinas Grandes, Rincon, Pocitos, Pozeulos, Cauchari, Olaroz, Diablillos, Arizaro, Centenario

• Salta and Jujuy Provinces are well-known, favourable mining jurisdictions
• Rapid development and production strategy, with expedited technical works,

testing and studies aimed at fast-tracking to feasibility stage: – Highly skilled consultants and contractors experienced in lithium brine geology, geochemistry, plant design, extraction methodologies and product marketing – Access to state-of-the-art laboratory and pilot plant in Salta

• Project areas serviced by high quality infrastructure including access via all-

seasons roads, electrical power, a natural gas pipeline, and road and railway to Antofagasta port facilities in Chile

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Fast-track to lithium production in Argentina

Building a high-quality portfolio of near-term development assets

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• Binding Option Agreement to purchase

100% of the Mina Teresa and Pocitos Lithium Projects in Argentina:

– 12-month exclusive option period – US$100,000 option fee payment completed,

final purchase price of US$4.5M if exercised

• Binding HOA to form JV for Salar del Rincon

Project, with well-defined pathway to near- term lithium carbonate production:

– Argosy to earn up to a 90% interest in the Project – World renowned lithium expert – Pablo Alurralde to manage the Project

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Mina Teresa & Pocitos: Initial steps

Targeting delineation of JORC Resources

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• Mina Teresa: promising historical sample values, further

test-work required to determine potential production strategies

• Pocitos: targeting near-term trenching/pitting/sampling

program to prioritise drill-hole selection plan, assisted by acquisition of geophysical data

• Initial exploration program comprises:

– Stage 1 Exploration Works: Trenching/sampling program to be completed within the next 3-4 months, targeting delineation of a maiden JORC Inferred Resource (fully funded to complete this work) – Stage 2 Exploration Works: Geophysical surveying and drilling targeting an updated JORC Resource – Development Works: Pending success of exploration program, Argosy will conduct pilot plant scale testwork to produce lithium carbonate

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• Company established by Argentinian lithium expert Pablo Alurralde:

– 15 years’ experience producing lithium carbonate and 30 years’ experience designing chemical processes – Experience in the optimisation of industrial plants, international commerce and logistics – In-depth knowledge of lithium international market

• Clear conceptual pathway to lithium production including:

– Proven production process developed by Pablo Alurralde – Preferred design and location for chemical plant to produce high-quality lithium carbonate – Concession area for extraction of brines (the raw material required for lithium carbonate production)

• Next Steps:

– Conduct relevant works to produce laboratory scale LCE – Conduct development works to produce pilot plant scale LCE – Consider best development pathway to ultimately target commercial production

Rincon

A significant opportunity to achieve near-term lithium production

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Argentina: Re-connecting with the Global Economy

Positive macro-economic developments underpin strong growth outlook

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• New President (Maurico Macri) and new Government

elected in December 2015

• Most export duties and trade controls abolished:

– Removal of 5% duty on high grade lithium and refined boron products – Removal of 10% duty on boron mineral concentrates

• Exchange rate and capital controls eliminated
• Recently settled outstanding claims from 2003 default

and returned to global capital markets

• American Chamber of Commerce in Argentina said US

firms would invest US$2.3 billion in Argentina over the next 18 months

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Other Projects

A strong lithium and copper-gold project pipeline in Australia

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Lithium – Australia

• Mt Paris: Extensive greisen field, targeting Cinovec-style

lithium deposit

• Exclusive two-year option period to acquire 100% interest

Copper-Gold (& Cobalt) – Australia

• Wee MacGregor: JORC 2012 compliant Mineral

Resource estimate completed

• Right to earn up to an 80% interest in the Project

pursuant to the terms of farm-in and joint venture agreement

Mt Paris Mine cross section (after Winnall 1981)

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The Keys to Lithium Growth

• Lower lithium-ion battery costs (now down to around US$200-

kWhr) set to make electric vehicles (EVs) more affordable

• Several experts such as Tony Seba (in his video on "clean

energy disruption“) expect EVs to be cheaper than Internal Combustion Energy (ICE) cars by 2020

• Adoption of EV technology set to increase for cars, buses and

bikes – aided by falling unit costs, improving technologies, longer range and more charging networks

• Energy storage using lithium batteries becoming more popular

Lithium – The Perfect Storm of Demand and Supply

“Lithium is the new gasoline”

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Lithium Carbonate Price in China

Goldman Sachs December 2015 report: “…lithium is the new gasoline"

• Total lithium demand today is 160,000mT of lithium carbonate equivalent (LCE) per year
• For every 1% increase in battery electric vehicle (BEV) penetration, there is an increase in lithium demand by

around 70,000mT of LCE/year

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Lithium Demand Forecasts to 2025

• Goldman Sachs – "Growth in EV applications alone could triple the size of the entire lithium market

from 160,000 mt today to 470,000 mt by 2025. That is based on 22% EV penetration (BEV, PHEV and HEV combined) in 2025 from under 3% today."

• Deutsche Bank in its "Lithium-ion age" stated, "Global battery consumption is set to increase 5x over

the next 10 years, placing pressure on the battery supply chain and lithium market. We expect global lithium demand will increase from 181kt Lithium Carbonate Equivalent (LCE) in 2015 to 535kt LCE by 2025."

• Summary of expected lithium carbonate demand to 2025:

2015 LCE demand (tonnes) 2025 LCE demand (tonnes) LCE increase (tonnes) % increase Goldman Sachs 160,000 470,000 310,000 194% Deutsche Bank 181,000 535,000 354,000 195%

Lithium – The Perfect Storm of Demand and Supply

“Lithium is the new gasoline”

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Lithium…Why?

Ask the Experts

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Tesla Shakes Up Market for Lithium

• ‘In order to produce half a million cars a year…we would basically need to absorb the entire world’s lithium-ion

production,’ Elon Musk said in March. Lithium-Ion Will Be Tough To Beat, Says Argonne Battery Whiz

• Put four years into a five-year effort to develop a better battery at Argonne National Laboratory, one Argonne

engineer concedes Li-ion will be tough to beat in the marketplace. “It’s just going to be incredibly difficult for

• ther battery technologies to catch up with it,” said Kevin Gallagher, an electrochemical engineer, in an

appearance at the University of Chicago in May 2016. “I think that’s the lesson that a lot of new battery technologies are learning—definitely.” Rio Tinto sees a battery-powered future

• Rio Tinto believes Powerwall batteries also loom as another shape-shifter for new energy materials markets,

according to the Australian Financial Review. “India Wants To Become First Country With 100 Percent Electric Vehicles by 2030”

• Tech Times, 28/3/2016

Battery-hungry World Turns to South America's 'Lithium Triangle'

• In addition to Tesla, traditional car companies including Nissan and BMW operate in the burgeoning electric

vehicle industry. Germany's Daimler recently announced it would build a new lithium-ion battery factory, while technology firms like Samsung and Foxconn are also key users. As prices rise, they are keen to lock in deals.

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Argosy Focusing on Lithium Production from Brines

A well-established, low cost source of lithium supply

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• Historically lithium production predominantly delivered from brines
• Significantly lower extraction cost than hard rock lithium deposits

Argosy is focusing on brine start-up projects in Argentina with the potential to have very low capital and operating costs.

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Investment Summary

Strategically positioned for strong, long-term growth in lithium

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• Emerging pipeline of lithium development projects in Argentina
• Strategic focus on the world-class “Lithium Triangle” – one of

the world’s dominant sources of low-cost lithium production

• Extensive technical expertise from established and experienced

Argentinian lithium brine consultants

• Lithium brine projects are at the low end of the cost curve

compared with hard rock deposits

• Strong leverage to rising prices, falling productions costs and

expanding capacity

• Growth-focused, with additional lithium opportunities in Australia

to complement the project portfolio

• Strong and experienced board and management with significant

vested interest and “skin in the game”

On the fast track to lithium production in Argentina

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ASX Code: AGY

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