Issue 51, February 16th – February 29th CONTENT Introduction

1Despite uncertainties regarding worldwide GDP’s growth for 2012, the lithium industry continues to show signs of strong growth. Batteries will continue driving the growth of the lithium Batteries industry: We estimate that the use of lithium in batteries will reach and Vehicles about 45,000 tones this year, 20.5% more that in 2011. Other applications will also show interesting growth rates: the use of SAFT Groupe SA reported 2011 financial results lithium in lubricating greases (in the form of lithium hydroxide)

Smith Electric Vehicles and will grow about 5 - 6% this year while the use of lithium in frits Group announced Joint Venture and glass will reach around 38,500 tones from 37,000 tones in Agreement 2011. On the supply side, 2012 will be a crucial year: several A123 systems presented a new lithium ion battery system projects are going to commence production at pilot scale, while others will complete their feasibility analysis. New projects will be Panasonic will supply lithium-ion battery to Ford’s hybrid and electric cars added to the portfolio mainly in Chile because the government is going to put out to tender 100,000 tones as Li. In this context, prices should remain stable since new capacity is being added (mainly in Australia) in order to satisfy new demand.

Lithium Industry

International Lithium identified extensive lithium and rubidium pegmatites pegmatites

AmerliLithium begins Preliminary Exploration for its Australian Lithium assets

Galaxy updates on Jiangsu plant

Li3 Energy completed Phase One Exploration Program at Maricunga

Lithium America confirmed lithium resources at Cauchari

LITHIUM, BATTERIES AND VEHICLES Batteries and Vehicles2

BRIEF NEWS HIGHLIGHTS

Johnson Controls introduced new Energy Storage Solutions Date: February 20th Source: Johnson Controls SAFT Groupe SA reported 2011 financial results At the 82nd Auto-Salon in Geneva, Date: February 16th Johnson Controls showed a Source: Saft Batteries new generation of low profile The French battery maker SAFT reported 2011 full year sales of 628.7 prismatic lithium-ion cells and million euro, 8.4% more than 2010 and 5.1% higher excluding a sub modules that will be part of royalty payment. The EBITDA margin of the Company was 18.1% of the components of cost-efficient sales compared to 18.6% in 2010. lithium-ion battery systems for hybrid and electric cars. Some of 2011 highlights include: • The Jacksonville plant started to produce Li-ion cells at the end of Q4 Sales of Opel are going according to schedule • Several energy storage projects for lithium ion batteries were won Date: February 21st • The sale of the shares that the Company had in the Johnson Source: Opel Controls-SAFT Joint Venture Opel announced that the • Sales of the Industrial Battery Group (IBG) showed a 7.5% increase deliveries of the Opel Ampera in the year with a 23% of sales growth in the stationary back-up electric vehicle have begun and power market. Transportation sales grew by 3.0% (at constant the orders are approaching 6,000 exchange rates) mainly because of the performance of the in Europe. The company expects aviation business. sales of 10,000 units in 2012. A 16 kWh lithium-ion battery, delivering • The sales of the Specialty Battery Group (SBG) showed a 4.3% up to 80km of pure electric increase in the year, driven by the good performance of the civil operation, powers the car. markets.

LITHIUM, BATTERIES AND VEHICLES For 2012 the Company expects to continue growing at rates above 5% in 2012. Eelctrovaya delivered Energy Storage System to Arizona Revenues Annual Var. EBITDA EBITDA Public Service Margin (%) Date: February 23rd IBG 350.2 7.5% 43.7 12.5% Source: Electrovaya SBG 271.1 6.7% 64.6 23.8% Electrovaya announced the delivery of a 1.5 MWh capacity Other 7.4 - 1.9 - Lithium-ion SuperPolymer battery Total 628.7 8.4% 110.0 17.5% Energy Storage System to the Source: SAFT Groupe. Arizona Public Service Company in order to provide energy storage for a pilot program that aims to study ways to optimize the integration of renewable energy sources to the grid. and Wanxiang Group announced Joint Venture Agreement Date: February 17th Envia Systems achieved Source: Smith Electric energy density of 400 Wh/kg Smith Electric Vehicles signed a letter of intent with Wanxiang for lithium-ion batteries Group from China. The agreement includes a US$ 25 million Date: February 27th Source: Envia Systems equity investment in Smith by Wanxiang and up to a US$ 75 million investment in a joint venture between both companies in order to Envia Systems showed that they develop, manufacture and commercialize electric school buses have achieved the highest and commercial vehicles for multiple industries in China. recorded energy density of 400 Wh/kg for a rechargeable lithium- ion cell. The Company estimates that this higher energy density would lower the cost of the battery A123 systems presented a new lithium ion battery system pack by more than 50 percent. Date: February 21st Source: A123 Systems

A123 Systems introduced a new lithium iron phosphate battery launched EV system called Military 6T Battery, which was developed in order Charging Network in Hawaii to replace the lead acid batteries that are currently deployed in Date: February 28th military vehicles. The battery was engineered specifically to meet Source: Better Place the demanding requirements of military vehicle applications. Better Place announced the largest electric charging network in Hawaii, offering drivers free charging via more than 130 charge points through the end of Panasonic will supply lithium-ion battery to Ford’s hybrid 2012. According to the information, and electric cars the network of Charge Spots in Date: February 24th the four islands offers more public Source: Panasonic charge points per capita in Hawaii Panasonic announced that it would supply lithium-ion battery cells than any other State. to Ford’s hybrid and plug-in hybrid new models. This agreement is based on a long-term partnership between both companies on which Sanyo Electric –acquired by Panasonic last year– has been supplying Nickel Metal Hydride (NiMh) battery systems for the Ford Escape hybrid vehicle since 2004.

LITHIUM, BATTERIES AND VEHICLES Lithium Industry3

BRIEF NEWS HIGHLIGHTS

International Lithium identified extensive lithium and Lithium Corporation rubidium pegmatites pegmatites completed initial drilling Date: February 21st program Source: International Lithium Corporation Date: February 28th Source: Lithium Corporation International Lithium Corp. announced that the Preliminary drill results of the Mavis Lake-Fairservice Lithium and Rare Minerals Project Lithium Corporation announced revealed more rubidium and lithium mineralized pegmatites than that it has recently concluded anticipated. According to the information, the recent discovery of initial drilling on its San Emidio 78m pegmatite intersection reveals multi-rare metal mineralization; Lithium property in which the 1,924 ppm Rb2O over the entire 78 meters in conjunction with 1.86% company drilled a total of 1,366 Li2O over 26.25m and 1.22% Li2O over 28.45m. feet in 15 holes. The drilling program encountered brines to depths of 105 feet, the deepest AmerliLithium begins Preliminary Exploration for its hole drilled was 145 feet and Australian Lithium assets sampling depths ranged from 49 Date: February 23rd to 140 feet subsurface. Source: AmeriLithium AmeriLithium Corp. announced it has started first stage exploration planning for its three Western Australia lithium assets –which also represent the potential for gold mineralization– in order to take advantage of potential government grants that are currently available. The Company’s three Australian claims cover over 43,000 acres in lake Dumbleyung, and the Australian government’s grant reaches up to AUD$ 150,000 toward the drilling costs on multi-hole exploration projects.

LITHIUM, BATTERIES AND VEHICLES Galaxy Resources updates on Jiangsu plant BRIEF NEWS Date: February 24th Source: Galaxy Resources

Galaxy Resources announced that the commissioning of its Jiangsu Lithium Carbonate Plant in China continues on schedule, with hot commissioning of the plant now formally underway. The plant is on track for first production of lithium carbonate by the end of the first POSCO develops new quarter. technology to extract lithium from brines Date: February 24th Source: The Korea Herald Li3 Energy completed Phase One Exploration Program The Research Institute of Industrial at Maricunga Science and Technology (a Date: February 27th POSCO’s affiliated research Source: Li3 Energy center) succeeded in producing high yields of lithium using a new Li3 Energy announced that it has completed on schedule, the US$ 8 technology without solar pond million Phase One of the US$ 18 million Exploration and Development Program for the Maricunga project established in August 2011. A evaporation. This technology total of 884 meters of 6-inch monitoring wells were drilled, and a consists in a direct extraction of total of 300 meters of 17 inch production wells were drilled, taking a lithium from seawater, reducing total of 431 samples. production time from a year to a month. The Company expects to complete its NI 43-101 Technical Report by March/April 2012. Results of the samples: Maricunga (mg/l) K Li Mg Ca SO4 Ratio K/Li Ratio Mg/Li Ratio SO4/Li Average 8,988 1,240 8,284 12,417 718 7.2 6.7 0.6 Maximum 14,669 2,050 15,100 31,600 2,960 7.2 7.4 1.4

Source: Li3 Energy.

Lithium Americas confirmed lithium resources at Cauchari Date: February 27th Source: Lithium Americas

Lithium Americas Corp. announced the completion of a 3D brine numerical model used to simulate brine extraction at its Cauchari- Olaroz lithium/potash project. The model supported many of the critical assumptions in the Preliminary Economic Assessment including (PEA) the size, quality and estimated productive life of the Cauchari-Olaroz resource estimated. In addition, the model indicated that due to the geological characteristics of the salar, there would be required approximately 50% of the production wells originally estimated in the PEA to put phase 1 of the project into production.

LITHIUM, BATTERIES AND VEHICLES Fidel Oteiza 1921 Of. 1001 Providencia - Santiago - Chile Office: 562-9460407 Fax: 562-2441742 [email protected] www.signumbox.com