Worlds Next Major Lithium Project Corporate Presentation JUNE 2018 - - PowerPoint PPT Presentation

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Worlds Next Major Lithium Project Corporate Presentation JUNE 2018 - - PowerPoint PPT Presentation

Developing the Worlds Next Major Lithium Project Corporate Presentation JUNE 2018 DISCLAIMER The information contained in these slides, the presentation made to you verbally (including in any question or answer session) and any or


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SLIDE 1

Developing the World’s Next Major Lithium Project

Corporate Presentation JUNE 2018

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DISCLAIMER

The information contained in these slides, the presentation made to you verbally (including in any question or answer session) and any ancillary documentation relating thereto (together the "Presentation Materials") have been prepared by Bacanora Lithium Plc (the "Company") solely for your information in connection with the proposed placing (the "Placing") of shares in the capital of the Company (the "Shares") and the proposed application for admission of the Shares to trading on AIM ("Admission"), a market operated by London Stock Exchange plc ("LSE"). Canaccord Genuity Limited ("Canaccord") (as bookrunner to the Placing) which is regulated by the Financial Conduct Authority in the United Kingdom, is advising the Company and no one else (whether or not a recipient of these Presentation Materials) in connection with the Placing and will not be responsible to anyone, other than the Company, for providing the protections afforded to clients of Canaccord, nor for providing advice in relation to the Placing and will not regard any other person as their client in relation to the Placing. The information in these Presentation Materials is subject to updating, completion, revision, further verification and amendment without notice, and such information may change materially and no reliance may be placed for any purpose whatsoever on the information contained in the Presentation Materials or the completeness or accuracy of such information. These Presentation Materials do not purport to be all inclusive or to contain all the information that may be required to evaluate the Company. Neither the Company, Canaccord nor any of their respective directors, officers, partners, employees, agents, advisers or affiliates (collectively, "Representatives") is under any obligation to update or keep current the information contained in these Presentation Materials. The information contained in these Presentation Materials is confidential and may constitute inside information for the purposes of the Criminal Justice Act 1993 ("CJA") and the EU Market Abuse Regulations (2014/596/EU) ("MAR"). You should not use this information as a basis for your behaviour in relation to any financial instruments (as defined in MAR) as to do so could amount to a criminal offence of insider dealing under CJA or a civil offence of insider dealing for the purposes of MAR or other applicable laws and/or regulations in other jurisdictions. These Presentation Materials have not been approved by the United Kingdom Listing Authority as a prospectus under the Prospectus Rules (made under Part VI of the Financial Services and Markets Act 2000 ("FSMA")) or by LSE, nor is it intended that any documents in connection with the Placing or Admission will be so approved in relation to the Company or any subsidiary of the Company. These Presentation Materials do not constitute or form part of any prospectus, admission document, invitation or offer for sale or solicitation

  • r any offer to buy or subscribe for any securities nor will they or any part of them form the basis of, or be relied on in connection with,
  • r act as any inducement to enter into, any contract or commitment. No reliance may be placed for any purpose on the information or
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Materials who are considering acquiring Shares are reminded that any such purchase or subscription must be made only on the terms and conditions of the Placing, which will be contained in an announcement to be released by the Company in due course. Whilst all reasonable care has been taken to ensure that the facts stated in these Presentation Materials are accurate and that the forecasts, opinions and expectations contained in these Presentation Materials are honestly held and based on reasonable grounds, no undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company or Canaccord or any Representatives, or any other person, as to the accuracy, completeness or fairness of the information or opinions contained in these Presentation Materials. In addition, in issuing these Presentation Materials, neither the Company< Canaccord nor any Representative undertake any obligation to update or to correct any inaccuracies which may become apparent in these Presentation

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the use of such information or opinions or for any errors, omissions, misstatements, negligence or otherwise for any other communication, written or otherwise, except that nothing in this paragraph will exclude liability of the Company for any undertaking, representation, warranty or other assurance made fraudulently, or as to the suitability of any particular investment for any particular investors or for any loss howsoever arising, directly from any use of such information or opinions or otherwise arising in connection

  • therewith. In addition, no duty of care or otherwise is owed by the Company, Canaccord nor any Representatives for any loss, cost or

damage suffered or incurred as a result of the reliance on such information or opinions or otherwise arising in connection with these Presentation Materials. To the fullest extent permissible by law, each of the Company, Canaccord and the Representatives disclaim any and all liability, whether arising in tort, contract or otherwise, which they might otherwise have in respect of these Presentation Materials. The information contained in these Presentation Materials is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose and by receiving these Presentation Materials you agree to keep confidential any written or oral information contained in them made available in connection with the Company. By attending the presentation of the Presentation Materials and/or accepting receipt of this document and/or otherwise accessing these Presentations Materials, you agree to be bound by the limitations and restrictions set

  • ut above and, in particular, will be taken to have represented, warranted and undertaken that: (i) you will permanently keep confidential

the information contained in these Presentation Materials or made available in connection with further enquiries to the extent such information is not made publicly available (otherwise than through a breach by you of this provision); (ii) you have read and agree to comply with the contents of this notice; (iii) you will observe the foregoing provisions, limitations and conditions; (iv) you will not forward the Presentation Materials (including any information given in the verbal presentation of the Presentation Materials) to any other person,

  • r reproduce or publish this document, in whole or in part, for any purpose; and (v) you will not at any time have any discussion,

correspondence or contact concerning the information in the Presentation Materials and or Admission with any of the directors or employees of the Company, or its respective subsidiaries nor with any of their suppliers, customers, sub-contractors or any governmental

  • r regulatory body without the prior written consent of the Company (vi) you are able to receive these Presentation Materials without

contravention of any applicable legal or regulatory restrictions; (vii) if you are in the European Economic Area, you are a Qualified Investor; (viii) if you are in the United Kingdom, you are a Relevant Person; and (ix) you will not deal in (or encourage any other person to deal in) the shares or financial instruments of the Company or base any behaviour on any inside information you receive as part of the Presentation Materials until you have ceased to have such information for the purposes of MAR. These Presentation Materials contain certain forward looking statements that involve risks and uncertainties. All statements other than statements of historical facts contained in this document, including statements regarding the Company’s future financial position, business strategy and plans, business model and approach and objectives of management for future operations, are forward-looking statements. Without limitation, the forward-looking statements in this document use words like “anticipate”, “believe”, “could”, “estimate”, “expect”, “future”, “intend”, “may”, “opportunity”, “plan”, “potential”, “project”, “seek”, “will” and similar terms. The Company’s actual results could differ materially from those anticipated in the forward looking statements as a result of many factors. The forward looking statements in these Presentation Materials are based on the beliefs and assumptions of the Company’s directors and information only as of the date of this document and are not guarantees of future performance, and the forward looking events discussed in this document might not occur. Therefore, investors should not place any reliance on any forward looking statements. The Directors undertake no obligation to publicly update any forward looking statements, whether as a result of new information, future earnings, or

  • therwise and no representation or warranty is made as to the achievement or reasonableness of and no reliance should be placed on

such forward‐looking statements. The past performance of the Company is not a reliable indication of the future performance of the

  • Company. No statement in these Presentation Materials is intended to be nor may it be construed as a profit forecast. Results can be

positively or negatively affected by market conditions beyond the control of the Company or any other person. Canaccord has not authorised the contents of these Presentation Materials or any of them individually. These Presentation Materials are for distribution in or from limited jurisdictions. Notice to EEA investors These Presentation Materials are directed only at persons in member states of the European Economic Area (the "EEA") who are qualified investors within the meaning of article 2(1)(e) of Directive 2003/71/EC, as amended from time to time, including by Directive 2010/73/EU to the extent implemented in the relevant member state and includes any relevant implementing directive measure in any member state (the "Prospectus Directive") ("Qualified Investors"). Notice to United Kingdom recipients In the United Kingdom the Presentation Materials are for distribution only to persons authorised or exempted within the meaning of those expressions under FSMA or any order made under it or to those persons to whom these slides may be lawfully distributed pursuant to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Financial Promotion Order") as amended, including (i) persons whose ordinary activities involve them in acquiring, holding, managing and disposing of investments (as principal or agent) for the purposes of their business and who have professional experience in matters relating to investments or otherwise are investment professionals as defined in article 19(5) of the Financial Promotion Order, and (iii) high net worth entities as defined in article 49(2) of the Financial Promotion Order ("Relevant Persons"). Persons who are not Relevant Persons, including those that do not have professional experience in matters relating to investment, should not rely on these Presentation Materials nor take any action upon them, but should return them immediately to the Company or to Canaccord. The investment, investment activity, controlled investment or controlled activity to which these slides may ultimately relate are only available to, and will be engaged only with, such Relevant Persons in the UK. The Presentation Materials are being distributed to and are only directed at Relevant Persons within the UK. Any person who is not a Relevant Person within the UK should not act or rely on the Presentation Materials and should immediately return any materials relating to the meeting at which the Presentation Materials were distributed to them that are currently in their possession. Notice to United States recipients The Shares have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act") or under any securities laws of any state or other jurisdiction of the United States and may not be offered, sold, resold, transferred or delivered, directly or indirectly, in or into the United States except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and in compliance with the securities laws of any state or other jurisdiction of the United States. The Shares are being offered and sold only (i) outside of the United States in accordance with Regulation S under the US Securities Act and otherwise in accordance with applicable laws and; (ii) in the United States to a limited number of "qualified institutional buyers" as defined in Rule 144A under the US Securities Act pursuant to an exemption from the registration requirements of the US Securities Act. Any offer or sale of Shares in the United States will be made only by broker-dealers who are registered as such under the U.S. Exchange Act of 1934, as amended. There will be no public offer of the securities mentioned herein in the United States.

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DISCLAIMER CONT.

Notice to Australian recipients These Presentation Materials are not a prospectus (or any other form of disclosure document) which is required to be lodged with the Australian Securities and Investments Commission under section 718 of the Corporations Act 2001 (Cth) ("Corporations Act") and does not contain all the information contained in a disclosure document (for example a prospectus), including any and all information that potential investors and their professional advisors would reasonably require to make an informed assessment of the Company’s assets and liabilities, financial position and performance, profits, losses and prospects. It is intended to provide potential investors with information only. These Presentation Materials have not and will not be lodged with the Australian Securities and Investments

  • Commission. The Company will not make any offer of Ordinary Shares pursuant to a prospectus, offer information statement or other

disclosure document in accordance with Part 6D.2 of the Corporations Act. In Australia, these Presentation Materials may not be circulated or distributed to persons other than those who are exempt investors pursuant to the exceptions contained in section 708 of the Corporations Act. Notice to Canadian recipients Securities legislation in certain of the provinces and territories of Canada provides purchasers with rights of rescission or damages, or both, where an offering memorandum, such as these Presentation Materials, or any amendment thereto contains a misrepresentation. A “misrepresentation” is an untrue statement of a material fact or an omission to state a material fact that is required to be stated or that is necessary to make any statement not misleading or false in the light of the circumstances in which it was made. These remedies must be commenced by the purchaser within the time limits prescribed and are subject to the defences contained in the applicable securities legislation. Each purchaser should refer to the provisions of the applicable securities laws for the particulars of these rights or consult with a legal advisor. In Canada, these Presentation Materials are for distribution only to persons that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103Registration Requirements, Exemptions and Ongoing Registrant Obligations. The following rights are in addition to and without derogation from any other right or remedy which purchasers may have at law and are intended to correspond to the provisions of the relevant Canadian securities laws and are subject to the defences contained therein. The following summaries are subject to the express provisions of the applicable securities statutes and instruments in the below-referenced provinces and the regulations, rules and policy statements thereunder and reference is made thereto for the complete text of such provisions. Ontario Investors Under Ontario securities legislation, certain purchasers who purchase securities offered by an offering memorandum during the period of distribution will have a statutory right of action for damages, or while still the owner of the securities, for rescission against the issuer or any selling security holder if the offering memorandum contains a misrepresentation without regard to whether the purchasers relied on the misrepresentation. The right of action for damages is exercisable not later than the earlier of 180 days from the date the purchaser first had knowledge of the facts giving rise to the cause of action and three years from the date on which payment is made for the

  • securities. The right of action for rescission is exercisable not later than 180 days from the date on which payment is made for the
  • securities. If a purchaser elects to exercise the right of action for rescission, the purchaser will have no right of action for damages

against the issuer or any selling security holder. In no case will the amount recoverable in any action exceed the price at which the securities were offered to the purchaser and if the purchaser is shown to have purchased the securities with knowledge of the misrepresentation, the issuer and any selling security holder will have no liability. In the case of an action for damages, the issuer and any selling security holder will not be liable for all or any portion of the damages that are proven to not represent the depreciation in value of the securities as a result of the misrepresentation relied upon. These rights are not available for a purchaser that is (a) a Canadian financial institution or a Schedule III Bank (each as defined in National Instrument 45-106 – Prospectus Exemptions), (b) the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada), or (c) a subsidiary of any person referred to in paragraphs (a) and (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary. These rights are in addition to, and without derogation from, any other rights or remedies available at law to an Ontario purchaser. The foregoing is a summary of the rights available to an Ontario purchaser. Not all defences upon which an issuer, selling security holder or

  • thers may rely are described herein. Ontario purchasers should refer to the complete text of the relevant statutory provisions.

Notice to German recipients In Germany, these Presentation Materials are for distribution exclusively to qualified investors. Qualified investors are clients and enterprises which, unless they are categorized as a retail client, are professional clients or eligible counterparties within the meaning of section 67 subsection (2) or (4) of the German Securities Trading Act (Wertpapierhandelsgesetz), or which are categorized as such upon request pursuant to section 67 subsection (6) of the German Securities Trading Act, or which continue to be treated as professional clients pursuant to section 67 subsection (5) sentence 5 of the German Securities Trading Act, or which comply with any other definition

  • f qualified investors in section 2 no. 6 of the German Securities Prospectus Act (Wertpapierprospektgesetz). Accordingly, the offering is

exempt from the prospectus requirement in Germany, no prospectus has been published, and this information does not constitute a prospectus in the meaning of the German Securities Prospectus Act. Notice to Hong Kong recipients The contents of these Presentation Materials have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the Placing. If you are in any doubt about any of the contents of these Presentation Materials, you should

  • btain independent professional advice. The Placing is not an offer to the public and these Presentation Materials do not constitute an
  • ffer to the public and will not be registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance
  • f Hong Kong or any other applicable ordinance in Hong Kong.

These Presentation Materials must not, therefore, be distributed, issued, or possessed for the purpose of distribution or issue, to persons in Hong Kong other than (1) to professional investors within the meaning of the Securities and Futures Ordinance of Hong Kong (including professional investors falling within the Securities and Futures (Professional Investors) Rules) or (2) in circumstances which would not constitute an offer to the public for the purpose of the Companies (Winding Up and Miscellaneous Provisions) Ordinance or the Securities and Futures Ordinance of Hong Kong. Notice to Singaporean recipients In Singapore, these Presentation Materials are for distribution exclusively, whether directly or indirectly, to a person being (i) an institutional investor (as defined in Section 4A of the SFA) in accordance with the conditions specified in Section 274 of the SFA, (ii) a relevant person pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A), and in accordance with the conditions specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with, the conditions of any other applicable provision

  • f the SFA.

These Presentation Materials will not, and have not been registered as a prospectus with the Monetary Authority of Singapore. By accessing these Presentation Materials, you are representing that you are a person into whose possession of these Presentation Materials may be lawfully delivered in accordance with the laws of Singapore, and you may not, nor are you authorised to deliver these Presentation Materials, electronically or otherwise, to any other person. If you have gained access to these Presentation Materials contrary to the foregoing restrictions, you should return them immediately to the Company or Canaccord. Notice to Swiss investors These Presentation Materials are not intended to constitute a public offer or solicitation to purchase or invest in Shares. The Shares may not be publicly offered, sold or advertised, directly or indirectly, into or in Switzerland as such terms are used under the Swiss Code of Obligations (the "CO"). Neither these Presentation Materials nor any other offering or marketing material relating to the Shares have been prepared with regard to the disclosure standards for prospectuses under article 652a or 1156 CO, and they do not constitute a prospectus within the meaning of article 652a or 1156 CO. Neither these Presentation Materials nor any other offering or marketing material relating to the Shares may be publicly distributed or otherwise made publicly available in Switzerland as such terms are used under the CO. Information to Distributors Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the "MiFID II Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any “manufacturer” (for the purposes of the Product Governance Requirements) may otherwise have with respect thereto, the Shares have been subject to a product approval process, which has determined that the Shares the subject of the Placing are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the "Target Market Assessment"). Notwithstanding the Target Market Assessment, distributors should note that: the price of the Shares may decline and investors could lose all or part of their investment; the Shares offer no guaranteed income and no capital protection; and an investment in the Shares is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Placing. For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the Shares. Each distributor is responsible for undertaking its own target market assessment in respect of the Shares and determining appropriate distribution channels.

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SLIDE 4

CORPORATE STRATEGY

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Goal to become an international lithium production company with a portfolio of global projects

SONORA LITHIUM PROJECT, MEXICO Construction: 2018 Production: 2020 Market: Asia via Hanwa ZINNWALD LITHIUM PROJECT, GERMANY Feasibility study: 2019 Market: Europe ASIA

Market Ticker Market Cap Share Price AIM BCN ~£116m

(30.05.18)

88p

M&G Investment Funds – 10.04% Blackrock – 9.80% Hanwa Co., Ltd – 9.20% Cadence Minerals – 9.17% Orr-Ewing Estate – 8.07% Igneous Capital Ltd – 7.83% The Capital Group – 6.40% D&A Income Ltd – 3.96% Other – 35.53%

Significant Shareholders

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SLIDE 5

OVERVIEW

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Experienced management

Track record in mine development and production

43-101 Lithium Deposit

8.8 Mt of LCE resources at Sonora, open pit mining *

Completed Feasibility Study

$1.25B NPV; 26% IRR *

Conventional Sulphate Process

Battery grade (99.5%) lithium carbonate produced from Pilot Plant

Strategic partnership

Offtake agreement and equity partnership with Japanese trading group Hanwa for initial 5 years Stage 1 production*

Commencement of construction

Construction of Stage 1 17,500tpa plant scheduled to commence in H1 2018

Rapidly Growing Market

Strong demand from EV and energy storage industries with market growing >15% annually**

Approvals in Place*

MIA permits received. Land acquisition completed. Water licence permits granted

AIM listed company focused on building a 35,000 tpa lithium carbonate operation at Sonora in Mexico Cost Competitive

$3,910/t operating cost *

* (* FS 43-101, **SignumBox)

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SLIDE 6

SONORA: INTEGRATED MINE AND LITHIUM CARBONATE PLANT

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Lithium resource which lends itself to conventional open pit mining with planned low strip ratio

*LCE is the industry standard terminology for, and is equivalent to, Li2CO3. 1 ppm Li metal is equivalent to 5.32 ppm LCE / Li2CO3. Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.

97,389 Ha licence area, located 190km NE of Hermosillo in northern Mexico, consisting of 10 contiguous concessions* Low stripping ratio, open pit mining, no drill and blast* EIA environmental approvals received and acquisition of 100,000 hectares of land over the project* and water licence permits granted Lithium deposit with 8.8Mt LCE resource* 7Km of strike Lithium carbonate off-take in place with Hanwa Infrastructure: labour, water, road, rail, port Conventional sulphate route process*

Source: *Feasibility Study

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SLIDE 7

SONORA LEASES – EXPLORATION UPSIDE

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SLIDE 8

OUTCROPPING LITHIUM DEPOSITS COMBINED WIDTH OVER 40 METRES

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SLIDE 9

CONVENTIONAL SULPHATE PROCESSING ROUTE

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Open pit mining Trommel and screen Sulphate (Na2SO4) roast (900 degrees and 30 mins) to produce Li2SO4 Evaporation and precipitation Soda Ash (Na2CO3 ) addition SX and IX purification Li2CO3 product

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SLIDE 10

PILOT PLANT: HERMOSILLO

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▪ Integrated facility:

▪ Pre-concentration ▪ roasting ▪ leaching ▪ IX circuits

▪ Ongoing pilot plant operations and training ▪ Quality of the battery grade (>99.5%) lithium carbonate validated by HANWA off-take ▪ Believed that the Pilot Plant enables development and refinement of flowsheet to

  • ptimise product quality

▪ It is the current intention to have continuous

  • perations until 2019 to facilitate training

prior to production Believed that the Pilot Plant presents a cost effective way of optimising design, increasing BCN staff’s technical expertise, maintaining customer relationships

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SLIDE 11

FEASIBILITY STUDY: IN NUMBERS

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Pre-tax IRR

26%

Simple Payback Stage 1

4

(years)

Source: See Full Feasibility Numbers in Appendix

  • Av. Operating costs

3,910 $/t Li₂CO₃

($3,418 net of K₂SO₄ credits)

K₂SO₄ production

Up to 30,000 tpa Post-tax IRR

21%

Pre-tax

NPV8 of $1.25B NPV0 of $3.4B

(based on $11,000/t Li₂CO₃ )

Stage 1 Initial Construction Capital Cost of

$420M

Post Tax

NPV8 of $802M NPV0 of $2.37B

(based on $11,000/t Li₂CO₃ )

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SLIDE 12

PEER ANALYSIS: ESTIMATED INDUSTRY COST CURVE POST 2025

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Favourable position on cost curve

550,000 Tonnes

Source:(*Canaccord April 2018, BCN 43-101).

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SLIDE 13

LITHIUM SUPPLY & PRICING

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2 0 1 7 a v e ra g e g l o b a l p r i c i n g a r o u n d $ 1 2 , 0 0 0 / t *

(* SignumBOX November 2017) (** Orocobre, SignumBOX, others)

Lithium Supply by Origin 2017* Lithium Demand by Application* Australia 30% Chile 37% Argentina 14% China 14% US… Others 3%

62% 25% 8% 5%

Batteries Ceramics & Glass Metallurgy&Aluminum Others 5,000 10,000 15,000 20,000 25,000 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030

Base Case High Case Supply and Demand to 2020** Lithium Carbonate Historic Price and Forecast (US$/tonne*)

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SLIDE 14

COMMERCIALISING SONORA

13 ▪ Hanwa Co., LTD is a Japan-based trading company and a trader of battery chemicals in the Asian region ▪ Milestone Off-take Agreement: ▪ Lithium carbonate off-take for initial 5 years Stage 1 production ▪ FOB contract for battery grade lithium carbonate at market pricing ▪ Company-level investment demonstrates Hanwa's commitment to Bacanora: ▪ Hanwa acquired an initial 10% equity interest in Bacanora ▪ Hanwa has expressed an intention to increase its equity interest in Bacanora to 19.9% ▪ The Company sees Hanwa as a cornerstone investor that will aid in the procurement of long term project debt funding

Hanwa agreement is a long term off-take for 5 years of Stage 1 production at commercial pricing

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SLIDE 15

PRE-PRODUCTION MILESTONES

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2 0 1 8 2 0 2 0

H2 Order long lead items. Civil earthworks construction H1 Mechanical engineering and infrastructure H2 Delivery of Long Lead Items. Structural construction Q1 Electrical and mechanical commissioning H1 Detailed design, project debt and equity financing, site access preparation

2 0 1 9

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SLIDE 16

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APPENDIX

CORPORATE PRESENTATION | JUNE 2018

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SLIDE 17

KEY DATA

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Graham Edwards (11.79%) M&G Investment Funds (10.04%) Blackrock (9.80%) Hanwa Co., LTD (9.20%) Cadence Minerals (8.00%) Orr-Ewing Estate (8.07%) The Capital Group (6.40%) Other (36.70%)

NOMAD Cairn Financial Advisers LLP Broker Canaccord Genuity

Market AIM Ticker: BCN MARKET CAP:

~£116m

(30.05.18)

Note: Shareholding Percentages are as of 11 January 2018 60 70 80 90 100 110 120 130 140 150 160

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SLIDE 18

BOARD

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Mark Hohnen – Executive Chairman

▪ Extensive international business experience in wide range

  • f

industries inc. mining and exploration, property, investment, software and agriculture ▪ Founding Chairman of Cape Mentelle and Cloudy Bay wines ▪ Director

  • f

Kalahari Minerals and Extract Resources

Jamie Strauss – Lead Independent Director

▪ 30 years’ experience within the stockbroking and mining finance sector ▪ Has raised in excess of $1bn for projects in both energy and mineral world on behalf of leading institutions in UK, Europe, North America and Australia

Junichi Tomono – Non-Executive Director

▪ Representative of Hanwa under the terms of the agreement ▪ Over 22 years’ experience with Hanwa during - worked in the Metals, Chemicals, Alloys, Scrap metals and Mining divisions ▪ Special focus on the battery chemicals sector

Ray Hodgkinson – Non-Executive Director

▪ Retired Professional Engineer in Alberta, Canada ▪ 40 years’ experience working in oilfields and gasfields in Western Canada, northern Russia and Japan ▪ Founding Director of Canadian mining companies Westcore Energy Ltd and Bacanora Lithium plc. and energy company Troy Energy Corp

Dr Andres Antonius – Non-Executive Director

▪ A Mexican national who has held positions in the Government of Mexico as well as in the private sector and academia ▪ Previously Undersecretary for Energy Policy and a staff member at the Agriculture Secretariat ▪ Currently CEO of Plan B, a provider of strategic advice to a range of clients ▪ B.A., Masters and PhD degree in Economics from Harvard University

Eileen Carr – Non-Executive Director

▪ Has been a key member of teams behind the development of a number of successful mining

  • perations across the world

▪ Holds several executive directorships in the resource sector, including CFO at both AIM traded Monterrico Metals plc and Alexander Mining plc

Derek Batorowski– Non-Executive Director

▪ Over 20 years of experience in the oil and gas & mineral exploration industries ▪ Experienced in accounting, finance, corporate planning, treasury, & taxation with both public and private large and small oil & gas producers and small cap mineral exploration companies

Peter Secker – CEO and Executive Director

▪ Mining engineer with over 30 years’ experience in the resources ▪ Built and operated a number of mines and metallurgical processing facilities in Africa, Australia, China and Canada

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SLIDE 19

SIGNIFICANT RESOURCES AND RESERVES

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A large lithium resources – high grade and scalable

Category Tonnes Ore (000t) Li (ppm) K (%) LCE (000t) LCE attributable to BCN (000t) Proven 80,146 3,905 1.64 1,666 1,550 Probable 163,662 3,271 1.36 2,849 2,126 Total 243,808 3,480 1.45 4,515 3,676

M e a s u r e d a n d I n d i c a t e d R e s o u r c e s * M i n e r a l R e s e r v e s : ( C u t - o f f g r a d e o f 1 , 5 0 0 p p m L i ) *

Category Cut–off (Li ppm) Tonnes (000t) Li (ppm) K (%) LCE (000t) LCE attributable to BCN (000t) Measured 1,000 103,000 3,480 1.5 1,910 1,776 Indicated 1,000 188,000 3,120 1.3 3,130 2,345 Total 1,000 291,000 3,250 1.4 5,038 4,119

Notes: (i) Mineral Resources that are not Mineral Reserves and do not have demonstrated economic viability. (ii) Tonnes rounded to the nearest thousand. (iii) The conversion factor from % Li to LCE is 5.323.

Category Cut–off (Li ppm) Tonnes (000t) Li (ppm) K (%) LCE (000t) LCE attributable to BCN (000t) Inferred 1,000 268,000 2,650 1.2 3,779 3,220

I n f e r r e d M i n e r a l R e s o u r c e s *

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SLIDE 20

FEASIBILITY STUDY: POSITIVE ECONOMICS

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E s t i m a te d p a y b a c k

  • f a p p r ox i m a te l y

f i v e y e a r s

Discount Rate Base Case Pre Tax NPV (US$ million) Base Case Post Tax NPV (US$ million) 0% 3,425.1 2,371.4 2% 2,644.3 1,808.0 4% 2,054.0 1,381.7 6% 1,602.4 1,055.2 8% 1,253.0 802.5

Sensitivity Analysis

Feasibility Study Key Indicators Value Pre-tax Net Present Value ($ 000) 1,253,027 Pre-tax IRR (%) 26.1% Simple Payback Stage 1 4 Initial Construction Capital Cost Stage 1 ($ 000) 419,616 Construction Capital Cost Stage 2 ($ 000) 380,262

  • Av. LOM operating costs ($/t Li2CO3)

3,910

  • Av. operating costs ($/t Li2CO3 net of K2SO4 credits)

3,418 Post-tax NPV (at 8% discount) ($ 000) 802,464 Post-tax IRR (%) 21.2%

  • Av. annual EBITDA with co-products ($ 000)

229,362

  • Av. Annual Li2CO3 production capacity Stage 1

17,500 t

  • Av. Annual Li2CO3 production capacity Stage 2

35,000 t

  • Av. Annual K2SO4 production Stage 2

30,000 t

Feasibility Study Key Indicators

Construction Capital Costs (rounded to nearest US$’000)

Category FS Estimate Stage 1 (US$000) FS Estimate Stage 2 (US$000) Mining 17,611 17,614 Beneficiation plant 18,483 18,483 Lithium processing plant 158,288 158,285 Plant Services 55,334 55,334 Infrastructure 58,841 23,581 EPCM/Owner cost/Indirect 72,912 72,393 Contingency 38,147 34,569 Total 419,616 380,262 Category Stage 1 (US$/t Li2CO3) Stage 2 (US$/t Li2CO3) Average LOM (US$/t Li2CO3) Mining 295 499 490 Processing 3,093 3,266 3,198 G&A 263 209 222 Total 3,651 3,974 3,910

Project Operating Costs

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SLIDE 21

INVESTMENT CASE

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Large lithium deposit Company-making asset with US$1.25Bn NPV Conventional sulphate processing route Japanese trading house as strategic partner Fast-Growing End Markets Moving to construction phase in H1 2018 Experienced Management Team

Transitioning from lithium explorer to lithium developer

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SLIDE 22

ZINNWALD LITHIUM PROJECT

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Strategic asset located in close proximity to a thriving market for lithium and energy products

▪ 50% interest in and joint operational control of Zinnwald ▪ 35km from Dresden on the Czech Republic border in an historic granite hosted Sn/W/Li belt ▪ Historically mined for tin and tungsten over the past 300 years ▪ FS underway focused on development of higher-value, downstream lithium products expected to take 18-24 months ▪ Option to acquire outstanding 50% on completion of Feasibility Study ▪ Measured, Indicated and Inferred PERC resource of 36.4Mt at grade of 3,600ppm Li ▪ Additional drilling completed ▪ Testing for Sn and K2SO4 by-products planned

Resource Category Tonnes (000) Li Grade (ppm)

Measured 10,283 3,661 Indicated 16,287 3,594 Inferred 9,867 3,705

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SLIDE 23

CONTACT

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Bacanora Lithium plc

Peter Secker E: info@bacanoralithium.com www.bacanoralithium.com

St Brides Partners Ltd

Financial PR Frank Buhagiar/ Megan Dennison T: +44 (0) 20 7236 1177 www.stbridespartners.co.uk