Technical Report, Mineral Resource Estimate And

TECHNICAL REPORT, MINERAL RESOURCE ESTIMATE AND PRELIMINARY ECONOMIC ASSESSMENT OF THE VALJEVO LITHIUM-BORATE PROPERTY, KOLUBARA DISTRICT, SERBIA 20o00’E LONGITUDE AND 44o17.5’N LATITUDE

FOR EURO LITHIUM INC. NI 43-101 & 43-101F1 TECHNICAL REPORT

Eugene Puritch, P.Eng., FEC, CET Richard Sutcliffe, PhD, P.Geo. Yungang Wu, P.Geo. Alexander Partsch, P.Eng. Ernest Burga, P.Eng. D. Grant Feasby, P.Eng. Jarita Barry P.Geo.

P&E Mining Consultants Inc. Report No. 371

Effective Date: March 9, 2020 Signing Date: August 17, 2020 1.0 SUMMARY

1.1 INTRODUCTION

The following report was prepared to provide a National Instrument 43-101 (NI 43-101) Initial Mineral Resource Estimate, Preliminary Economic Assessment and Technical Report for the Valjevo Lithium-Borate Property, Kolubara District, Serbia for Euro Lithium, Inc. (“Euro Lithium”). Euro Lithium’s objective is to advance studies for the development of a large-scale open pit Lithium-Borate mine and associated processing facility. The Technical Report has an effective date of March 9, 2020. Euro Lithium is a private federally incorporated entity registered with Corporations Canada and has an incorporation date of September 18, 2017.

1.2 PROPERTY

The Valjevo Property comprises three contiguous Exploration Permits named Valjevo, Ljig and Valjevo North totalling 274.65 km2 in western Serbia. The vast majority of work to date has been on the Valjevo Permit, the principal permit of interest. These Permits cover Neogene sedimentary basins associated with the Vardar tectonic zone. Euro Lithium Balkan d.o.o. Valjevo, a subsidiary of Euro Lithium, owns the geological exploration rights to the Permit area.

1.3 LOCATION

The Exploration Permits are located approximately 80 km southwest of the capital city of Serbia, Belgrade, which is hosts the closest international airport. Valjevo is the principal city in the area and the administrative center of the Kolubara District with a population of approximately 60,000. Rio Tinto’s Jadar lithium-borate deposit lies about 80 km to the northwest of Valjevo on a similar geologic trend within the Vardar Zone. The approximate center of the Valjevo Permit lies at latitude 44.28°N, longitude 20.02°E or UTM Grid Zone 34T 421,800 m E 4,903,440 m N.

1.4 LOCAL RESOURCES

The Project benefits from significant local resources and well-developed infrastructure including close proximity to Belgrade, capital of Serbia with a population of over 1.37 M. The region has significant coal mining operations. RB Kolubara is a Serbian coal mining operation headquartered at Lazarevac, Kolubara District, currently processeing 30 M tonnes of lignite per year from an open-pit mine. The Project is serviced by a significant all-weather paved road network linking Valjevo and Belgrade. Power, water and natural gas are readily available to the Project area. A national power line parallels the railroad corridor that transverses much of the northern portion of the Valjevo license. The local infrastructure, business community and populace of the region are well-equipped to service mining and exploration activities.

1.5 CLIMATE AND PHYSIOGRAPHY

The climate of the Valjevo area is typical of south-central Europe with generally cold winters and warm summers. Average January temperatures are 0.6°C and average July temperatures are 21.9°C with annual precipitation of 787.7 mm. The climate is suitable for year-round P&E Mining Consultants Inc. Page 1 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 exploration, development and mining. The Valjevo licenses are characterized by flat river valleys cutting through low, rounded hills. The Valjevo basin at an elevation of approximately 150 m is bordered by hills with about 200 m of relief and is drained by tributaries of the Danube River.

1.6 HISTORY

The exploration history of the Valjevo Property is relatively recent. Historically, the local sedimentary basins have been prospected for clay, coal and uranium. More recently, they have been prospected for evaporite minerals, mainly sodium carbonate, borates and lithium. In 1997, Rio Tinto geologists first prospected this area as part of an on-going evaluation of Neogene- aged, lacustrine, sedimentary basins along the Vardar Zone in Serbia and adjacent countries. Geochemical anomalies found by Rio Tinto at Valjevo were tested in 2003 by five core holes to a maximum 397 m depth. Two holes, VAL-1 and VAL-2, terminated in strata containing values of up to 510 ppm Li2O. Rio Tinto subsequently abandoned their search for massive water-soluble sodium borates and allowed their Valjevo license to expire, leaving the area open for new mineral exploration entry.

1.7 GEOLOGY

The Valjevo Property is underlain by Neogene sedimentary basins mapped by the Yugoslavia geological survey (YGS) to contain brackish marine and continental sediments. Pelitic sediments accumulated in a number of semi-interconnected basins along the Vardar Zone that represents the suture associated with the closure of the Tethys Sea and resultant subduction and volcanism. The Vardar Zone extends from northern Iran through Bosnia, where it is truncated by Alpine formations and is buried by Pliocene sediments.

Sedimentary basins along the Vardar Zone are interpreted to have formed as "pull-apart" structures. In the Valjevo-Ljig area, basins are modeled primarily from gravity data as variably- shaped anomalies with gravity lows that have an east-west elongation. The basins of potential economic interest are those that contain continental, lacustrine sediments of Neogene age. Lake beds that formed in a closed basin setting, in association with active volcanism, created the conditions for entrapment within concentrating waters of volatile elements. Both boron and lithium are concentrated in fluids derived from mineral springs or alteration of tuff beds. The targeted strata are typically covered by younger sediments.

The Valjevo basins contain locally, significant lithium and boron mineralization including preserved probertite (NaCaB5O9 5H2O) and searlesite (NaBSi2O5(OH)2), and/or pseudomorphs of calcite after borate minerals. Higher-grade Li-B mineralization seems to be restricted to a section of lacustrine beds of variable lithologic composition having a combined maximum thickness of about 75 m. The borate mineralization encountered to date has been found to be very low in arsenic content with values ranging from 10 ppm to approximately 50 ppm.

1.8 DEPOSIT TYPE

Neogene lithium and borate deposits of the type being explored for in western Serbia are typically found in tectonically active zones associated with deep-seated faulting along the Vardar Zone. The deposits are considered to have formed from hydrothermal fluids associated with

P&E Mining Consultants Inc. Page 2 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 volcanic activity and granitoid intrusions. The deposits accumulated in shallow water lacustrine and mud flat environments in basins developed nearby calc-alkaline volcanic centers. Lake beds that formed in a closed basin setting, in association with active volcanism, created the conditions for entrapment within concentrating waters of volatile elements. Both boron and lithium are concentrated in fluids derived from mineral springs or alteration of tuff beds. Through digenesis during burial, crystalline evaporite deposits formed and are stratigraphically associated with lacustrine sediments, air-fall tuffs, and travertine. The deposit model for the Valjevo Project is Rio Tinto’s Jadar Deposit. These deposits have a similar genesis; however, they subsequently evolved with differing diagenetic processes and do not contain all the same mineral species.

1.9 EXPLORATION

Euro Lithium and its predecessor company LithiumLi, have conducted a number or exploration and core drilling programs on the Valjevo Property since 2011. Geological mapping has been found to be a good guide to the presence of permissive Neogene strata and has allowed inference of buried prospective sections. Surface geochemical sampling returned significant boron and lithium anomalies only in pelitic rocks. Gravity surveys have been found to be useful in visualizing basin geometry and relative thickness of sedimentary sections.

1.10 DRILLING

Over several campaigns between 2011 and 2019, a total of 25 holes (10,874.2 m) have been drilled by Euro Lithium and predecessors on the Valjevo license and 5 holes (1,898.5 m) have been drilled on the adjacent Ljig license These are in addition to the 5 holes (1,391.4) drilled on the Valjevo license area by Rio Tinto in 2003. All holes drilled between 2011 and 2019 on the Valjevo license encountered significant levels of lithium and borate mineralization within pelitic sediments. Mineralization occurs in a 70 m thick unit of tuffaceous sediments ranging from claystone to siltstone to fine sandstone at depth of 240-310 m. Highest Li grades are typically associated with probertite mineralization (NaCaB5O9 5H2O) either as coincident or proximal. Lithium mineralization as currently recognized remains open, constrained only by distribution of host lithologies. The thickest sections of continuous lithium mineralization drilled to date on the Valjevo license is 62.0 m at 0.574% Li2CO3 equivalent in hole VBN_012.

In July 2019 and March of 2020, respective drill holes VBN_025 and VBN_026 intercepted thick, massive water-soluble sodium borates to compliment two other previous drill holes (all on the Valjevo license area) as indicated in the list below:

 VBN_026 from 256.50 to 287.5 (31.00 m) of 13.05% B2O3  VBN_025 from 251.80 to 286.80 (35.00 m) of 12.58% B2O3

These noteworthy intercepts require a follow up drill program to delineate the extent this occurrence. A small scale, low CAPEX solution mining operation could possibly be established if a sufficient borate Mineral Resource can be delineated

No drilling has been completed to-date at the Valjevo North license.

P&E Mining Consultants Inc. Page 3 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 1.11 SAMPLE PREPARATION AND ANALYSIS

Euro Lithium’s geologists carry out RQD logging, colour photography, and lithological logging. Sample intervals are determined at the time of logging and sent for diamond sawing. Typically, only pelitic rock sections, of presumed lacustrine origin are sampled. Visually non-mineralized pelitic sections are normally sampled at 3 m intervals. Samples with visible mineralization are selected on the basis of lithology and mineralogy, and 1.0 m thickness. QC procedures were incorporated into the 2018 to 2019 Valjevo drilling program by Euro Lithium, including the routine insertion of blanks, standards, as well as coarse reject and pulp duplicates. Blanks and standards were inserted at a rate of one in 21 samples and crush and pulp duplicates were analysed at a rate of one in 42 samples.

HQ core is sawn to produce a quarter split that is sent for analysis. NQ core is cut in half with one half sent for analysis. Samples are transported by Euro Lithium to either ALS in Romania or Bor, Serbia. Chain of custody is continuous under the charge of Euro Lithium personnel, from the drill site to the relevant ALS laboratory. Upon receipt at the ALS laboratory, samples are bar-coded, weighed, air-dried (<60°C), then crushed and pulverized. An ICP-AES suite is run on all samples sent for analysis. If core samples are found to be visually mineralized by the logging geologist, in addition to the ICP-AES suite, whole rock analysis (WRA) is run for 13 major oxides and total boron and total lithium is determined by multiple acid digestion, an HCl wash, and XRF, while boron is analyzed by fusion with sodium hydroxide and ICP-AES.

ALS Minerals is an internationally respected laboratory, independent of Euro Lithium, that has developed and implemented strategically designed processes and a global quality management system at each of its locations that meets all requirements of International Standards ISO/IEC 17025:2017 and ISO 9001:2015. All ALS geochemical hub laboratories are accredited to ISO/IEC 17025:2017 for specific analytical procedures.

1.12 DATA VERIFICATION

Mr. Eugene Puritch, P.Eng., FEC, CET, an independent Qualified Person in terms of NI 43-101, visited the Valjevo Property on March 11, 2019 for the purpose of completing a site visit and due diligence sampling. During the March 2019 visit, Mr. Puritch collected twelve samples from seven diamond drill holes. All samples were selected from holes drilling during 2018. A range of high, medium and low-grade samples were selected and collected by taking a quarter-core remaining in the core box. Individual samples were placed in plastic bags, uniquely tagged, and delivered by Mr. Puritch to AGAT Labs in Mississauga, ON for analysis. AGAT is an independent lab that has developed and implemented, at each of its locations, a Quality Management System (QMS) designed to ensure the production of consistently reliable data. The system covers all laboratory activities and takes into consideration the requirements of ISO standards. AGAT maintains ISO registrations and accreditations. ISO registration and accreditation provide independent verification that a QMS is in operation at the location in question. AGAT Laboratories in Mississauga, ON is ISO/IEC 17025:2005 accredited laboratory.

Boron and lithium were determined by sodium peroxide fusion with ICP/OES finish and specific gravity measurements by pycnometer. P&E considers there to be good correlation between the majority of P&E’s independent verification samples analyzed by AGAT Labs and the original analyses in Euro Lithium’s database. It is P&E’s opinion that sample preparation, security and P&E Mining Consultants Inc. Page 4 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 analytical procedures for the Valjevo Project are adequate for the purposes of this Mineral Resource Estimate based upon the evaluation of the QA/QC program and P&E’s due diligence sampling. It is the author’s opinion that the results obtained are suitable for use in the current Mineral Resource Estimate.

1.13 MINERALOGY AND METALLURGICAL TESTING

Mineralogical analysis was conducted by SGS Lakefield on three samples from the Valjevo Deposit, using QEMSCAN (Quantitative Evaluation of Materials by Scanning Electron Microscopy), Electron Probe Micro-Analysis (EPMA), electron microscopy, Laser Ablation by Inductively Coupled Plasma Mass Spectrometry (LA by ICP-MS), X-ray diffraction analysis (XRD), and chemical assays to determine mineral assemblages and to define the host minerals of boron (B) and lithium (Li). Electron microscopy indicated that grains are typically less than 15- 20 μm and difficult to resolve with the QEMSCAN. Probertite [NaCaB₅O₇(OH)₄ꞏ3H₂O] and searlesite [NaBSi₂O₅(OH)₂] were identified. Electron microprobe analysis identified Li-B Illite- montmorillonite (Li-B-Ill-Mo matrix), and finer-grained clays intergrown with carbonates and other fine-grained minerals, referred to as Li-B-carbonates-clays (Li-B CrbClay). The Li-B-Ill- Mo matrix was found to contain lithium at concentrations ranging from 288 ppm to 1,890 ppm and averaging 1,114 ppm. The Li-B CrbClay matrix was found to contain between 770 ppm and 1,118 ppm of lithium, and to average 966 ppm lithium.

Acid leach testing of Valjevo mineralization showed both lithium and boron to be readily soluble. While the extraction of boron was found to be high throughout the tests, that of lithium rose with leach temperature and acid addition. Two stage H2SO4 leaching resulted in >98% B extraction at ambient temperature, while Li required leach temperatures 60°C to achieve >83.1% extraction. Li extraction further improved to >86.6% at 80°C. Appreciable amounts of aluminum, iron and magnesium were leached along with the lithium and boron, and these impurity elements must be removed if the lithium and boron are to be recovered as pure products. Removing aluminum and iron from the solution requires the pH to be raised to cause them to precipitate as hydroxides, which also requires neutralising any residual acid from the leach. The total calculated acid consumption was 425 kg H₂SO₄ per dry tonne of mineralized feed compared to recent testwork that indicated a total consumption of up to 700 kg/tonne. Minimizing the consumption of sulphuric acid can be achieved by arranging the leach in a counter-current manner and that aspect will be an important objective in the Project development that is expected to be addressed in future work.

1.14 MINERAL RESOURCE ESTIMATE

The Mineral Resource Estimate presented in the current Technical Report has been prepared following the guidelines of the Canadian Securities Administrators’ National Instrument 43-101 and Form 43-101F1 and in conformity with generally accepted “CIM Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines. Mineral Resources have been classified in accordance with the “CIM Standards on Mineral Resources and Reserves: Definition and Guidelines” as adopted by CIM Council on May 10, 2014. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the Mineral Resource will be converted into a Mineral Reserve.

P&E Mining Consultants Inc. Page 5 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 All drilling and assay data were provided in the form of Excel data files by Euro Lithium. The database for this Mineral Resource Estimate, compiled by P&E, consisted of 25 diamond drill holes totalling 9,483 m, of which 23 drill holes totalling 8,606 m intersected the mineralization domain wireframes used for the Mineral Resource Estimate.

Verification of the Li and B assay database was performed by P&E against laboratory certificates that were obtained directly from ALS Laboratory in Romania and in Bor, Serbia. 93% of constrained assay data have been verified by P&E and no errors were discovered in the checked data. P&E also validated the Mineral Resource database by checking for inconsistencies in analytical units, duplicate entries, interval, length or distance values less than or equal to zero, blank or zero-value assay results, out-of-sequence intervals, intervals or distances greater than the reported drill hole length, inappropriate collar locations, survey and missing interval and coordinate fields. P&E is of the opinion that the supplied database is suitable for Mineral Resource estimation.

Two (2) wireframes of mineralization domains were constructed for the Mineral Resource Estimate. The wireframes were created with 0.25% Li2CO3 equivalent cut-off. The main mineralization zone is near horizontal and is an average of 262 m below surface. The Lower Zone was modeled over approximately 4,100 m west-east, 4,000 m north-south, with average true thickness of 70 m. A topographic surface was provided by Euro Lithium; while a bedrock surface was created using overburden logs from the drill holes.

Approximately 63% of the constrained sample intervals were 1 m in length. In order to regularize the assay sampling intervals for grade interpolation, a 1.0 m compositing length was selected. The composites were calculated for Li% and B% over 1.0 m lengths. Un-assayed intervals and below detection limit assays were set to 0.001%. Composites less than 0.5 m in length were discarded in order to not introduce any short sample bias in the grade interpolation process. No grade capping was required. The average of 170 wireframe constrained bulk densities provided by Euro Lithium was 2.22 t/m3.

The Valjevo Deposit block model was created using GEOVIA GEMS™ V6.8.2 modelling software. The block model consists of separate model attributes for estimated grade of Li, B, Li2CO3, H3BO3 and Li2CO3 equivalent, rock type (mineralization domains), volume percent and bulk density. Block size is 10.0 x 10.0 x 10.0 m. The Li% and B% grade blocks were interpolated with Inverse Distance Squared (“ID2”) due to the low-grade variability of the deposit assays.

In P&E's opinion, the drilling, assaying and exploration work on the Valjevo Project supports this Mineral Resource Estimate and are sufficient to indicate a reasonable potential for economic extraction and thus qualify it as a Mineral Resource under the CIM definition standards. The entire Mineral Resource was classified as Inferred based on the geological interpretation, poor semi-variogram performance and wide drill hole spacing.

The Mineral Resource Estimate was derived from applying Li2CO3 equivalent (includes Li and B values) cut-off value to the block model and reporting the resulting tonnes and grades for potentially mineable areas within an optimized pit shell using the following parameters:

P&E Mining Consultants Inc. Page 6 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 Li2CO3 Eq Price US$/tonne $12,000 Li2CO3 Eq Process Recovery 87% Mining Cost US$/tonne mined $1.50 Process Cost US$/tonne processed $19.68 G&A Cost US$/tonne processed $1.05 Pit Slopes 45 degrees.

P&E considers the mineralization of the Valjevo Deposit to be potentially amenable to open pit economic extraction. The resulting pit constrained Mineral Resource Estimate at a Li2CO3 equivalent cut-off 0.25% is tabulated in Table 1.1.

TABLE 1.1 VALJEVO PIT CONSTRAINED INFERRED MINERAL RESOURCE ESTIMATE (1-4) AT CUT-OFF 0.25% LI2CO3 EQUIVALENT

Li2CO3 Li2CO3 Tonnes Li2CO3 Li2CO3 B2O3 B2O3 H3BO3 H3BO3 Zone Eq Eq (M) (%) (kt) (%) (kt) (%) (kt) (%) (kt) Lower 1,516 0.43 6,511 2.09 31,671 3.71 56,254 0.65 9,793 Upper 180 0.25 449 1.05 1,886 1.86 3,350 0.36 644 Total 1,696 0.41 6,960 1.98 33,557 3.51 59,604 0.62 10,437 1. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. 2. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. 3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration. 4. The Mineral Resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.

1.15 MINING

The Mineral Resource is located at a depth of approximately 240 to 310 m below the surface, with the average depth of 275 m, is a flat lying body of approximately 70 m vertical thickness and an extent of 4 km by 4 km. It is considered amenable to open pit mining. Due to the location of the Project area and expected rock hardness, a mining method without drilling and blasting is envisioned using mainly electrically powered equipment to reduce noise levels and emissions from diesel powered equipment.

The Mineral Resource block model was used by NPV Scheduler pit optimization software to generate a series of pit shells based on economic and pit design parameters such as mining, processing and G&A costs, process recovery and pit slopes. An optimized pit shell containing 526 Mt of mineralized rock and 2,826 Mt of waste rock was identified as the highest NPV for a 30-year mine life. A somewhat lesser tonnage will be the focus of the mine production schedule and financial analysis.

P&E Mining Consultants Inc. Page 7 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 The mine design incorporates elements of truck-and-shovel operations at the start of the Project and then switching over to a lower cost in-pit crushing and conveying system. The Project requires 2 ½ years of pre-stripping to establish process plant feed supply from a starter pit. It is assumed that the excavation equipment will be capable of digging waste rock and mineralized rock without blasting and some dozer ripping may be required. The potentially mineable portion of the Mineral Resource is separated into six phases starting in the North-East of the oval shaped optimized pit shell and mined counter clockwise over 30 full production years with phasing out mining in year 31. The mining and processing production rates are envisioned to be developed in two phases. The first phase commencing after three pre-production years in year 1 with 65% of the nominal Phase 1 plant capacity (6.6 Mt per year) and then 5 years of production at 100% of the Phase 1 production rate. Construction of Phase 2 commences in years 5 and 6 where the process plant is expanded to an annual Phase 2 capacity of 19.8 Mt to take advantage of economy of scale, short payback and higher proportionate annual free cash flow.

The very large vertical and horizontal dimensions of the potentially mineable mineralized material domains well as the gradational nature of the economic boundaries make mining recovery and losses negligible. Therefore, no dilution was incorporated and a 100% mining recovery was assumed. Very limited information about geotechnical conditions and hydrogeology were available for the PEA. General assumptions for pit design, pit slopes and slopes for berms and waste rock facilities were made following general accepted engineering principles. The mine plan assumes that the pit will be backfilled with waste rock from ongoing mining operations comingled with thickened, filtered tailings from the process plant. The pit is situated in the valley structure for the Kolubara River and ground water issues must be anticipated. No specific information on ground water conditions was available for the PEA. Assumptions for standard pit dewatering methods were made. At the end of mine life the remaining open pit in Phase VI of the mine will be allowed to flood and form an end-pit lake.

The pre-production mining operation is envisioned to use 225-tonne diesel powered haul trucks loaded by electric driven hydraulic excavators of the 800-tonne class. These fleets will be supported by diesel powered dozers and graders in matching sizes for the loading and hauling equipment. During the pre-production phase, waste rock will be moved by trucks to create berms surrounding the pit area to shield the population from the impact of the mining operation. The use of electric mobile equipment will be considered in future work as part of Euro Lithium’s desire to minimize emissions from pre-production mining operations.

Waste mining is envisioned using large 800-tonne class electric-hydraulic excavators loading 225-tonne haul trucks during the pre-stripping. A total of 3 large hydraulic excavators are required to move up to 104 Mt of waste per year. Bench heights in waste mining will be 15 m.

Following the pre-production stripping, the waste system switches to an in-pit crushing and conveying system (IPCC). The excavators are then feeding mobile track mounted crushers. The waste rock is then moved via mobile track-based conveyor bridges, moveable in-pit conveyors and stackers/spreaders from the excavation side of the pit to the waste placement side of the pit.

Mineralized material mining is conducted using smaller electric-hydraulic excavators of the 300- tonne class. The mineralized rock is excavated without blasting and loaded in track-based crushers feeding mobile conveyor bridges and moveable in-pit conveyors. The bench heights for mining mineralized rock is reduced to 10 to 7.5 m to match the reach of the smaller excavator.

P&E Mining Consultants Inc. Page 8 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 During the pre-production phase a temporary mine maintenance and mine development area will be set up that consists of work trailers with offices, change room facilities, temporary work shops, laydown yards, and parts storage facilities, fuel and lube tanks, etc. The permanent mine infrastructure shop will consist of a mine maintenance facility on the West end of the plant site near the ramp exit and the conveyor ramp. The mine will operate 24/7 on a continuous shift for equipment operation of waste mining with planned 353 days per year.

1.16 PROCESSING

The overall process includes crushing and grinding, leaching, solid-liquid separation, solution purification, evaporation, crystallization of sodium sulphate, precipitation of lithium carbonate, acidification and crystallization of boric acid.

The proposed process for the Valjevo Project is outlined in Figures 1.1 and 1.2 Process Block Flow Diagram and Process Flow Diagram. The diagrams present the process steps in consideration for production of Lithium Carbonate and Boric Acid.

P&E Mining Consultants Inc. Page 9 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371

FIGURE 1.1 PROCESS BLOCK FLOW DIAGRAM

MINE SITE PROCESSING PLANTS

SULPHUR

ROM SULPHURIC ACID OPEN PIT RECLAIMING AND ROM CRUSHING PLANT & POWER (‐270m) TRANSFER AND GRINDING GENERATION POWER TO PLANT

OVERBURDEN BORIC ACID BORIC ACID BULK RECLAIMING AND LEACHING EXTRACTION LOAD OUT TRANSFER CIRCUIT BORIC ACID

OVERBURDEN AND TAILINGS DISPOSAL LITHIUM Li2CO3 CARBONATE PACKAGING AND CIRCUIT LOAD OUT

TAILINGS LITHIUM SALT RESIDUE FILTRATION CARBONATE

REAGENTS

P&E Mining Consultants Inc. Page 10 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 FIGURE 1.2 PROCESS FLOW DIAGRAM

ROM ore 1

Water 2

CRUSHER 4

SCREEN 3

MILL 9 8 CYCLONE

MILL MILL THICKENER 64

18 62 BORIC ACID SULPHURIC ACID CRYSTALLISATION 19 Vent 67 66 63 Water 70 69 H Boric acid 71 20 ACIDIFICATION 17 LEACH 2 CENTRIFUGE 3 68 65 14 26 Water LEACH 2 27 Lime THICKENER Vent 27A Acidification 12 residue 24 21 SLAKER 61 15 Vent H SODIUM 13 30 HYDROXIDE 28 16 56 LEACH LEACH 1 31 25 FEED SODIUM CARBONATE TANK BFW LEACH 1 29 THICKENER H H 36 Vent 49 48 Ca REMOVAL Mg REMOVAL VACUUM PUMP 41 32 CONDENSER CENTRIFUGE 2 58 Water Water 33 43 44 57 37 H 60 Lithium carbonate 40 55 35 42 50 LITHIUM CRYSTALLISATION Water 22 H H 46 Tailings 23 34 EVAPORATION 52 51 Water 38 45 54 Sodium sulphate TAILINGS FILTER 39 59 Steam condensate CENTRIFUGE 1 Purification Process condensate 47 53 residue SODIUM CRYSTALLISATION

P&E Mining Consultants Inc. Page 11 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 The following process description was modelled using Aspen PlusTM software which became the basis of the process validation.

The incoming Run of Mine (“ROM”) mineralization is mixed with recycled and fresh water and the oversize fraction from screening. After wet crushing and grinding, the resulting slurry is screened and then leached with sulphuric acid in a two-stage counter-current sequence. In the first stage the incoming mineralization is leached with residual acid from the thickener overflow from the second stage. Essentially all the acid is consumed and the evolved CO₂ is vented. The partially leached slurry in the thickener underflow is sent to the second stage of leaching, where it is contacted with weak sulphuric acid in the residual solution from the crystallization of boric acid and filtrate from the tailings filter. To purify, incoming lime is slaked and the slaked lime is added to the solution from leaching to raise its pH and precipitate aluminum, iron and magnesium hydroxide. The pH of the resulting slurry is raised further with sodium hydroxide and sodium carbonate is added to precipitate calcium carbonate.

The filtrate from purification is concentrated in a two-effect evaporation train. The concentrated solution is cooled to crystallize sodium sulphate and the resulting slurry is separated in a centrifuge where the sodium sulphate crystals are washed with water, partially re-dissolving the sodium sulphate but also removing entrained lithium- and boron-bearing solution. The centrifuge liquid discharge is recycled to the evaporation train.

The primary centrate from the sodium sulphate centrifuge is contacted with a solution of sodium carbonate to precipitate lithium carbonate. The resulting slurry is separated in a centrifuge and the lithium carbonate is washed with water. The wash centrate is recycled to the evaporation train. The washed lithium carbonate leaves the circuit as the required lithium product.

The primary centrate from the lithium carbonate centrifuge is mixed with incoming concentrated sulphuric acid to convert the boron present from B(OH)₄¯ to H₃BO₃. The acidified solution is filtered to remove solid impurities and the filtrate is cooled by heat exchange with cold solution from the crystallization of boric acid. The partly re-heated solution goes to the leach. The pre- cooled acidified solution is further cooled to crystallize boric acid. The resulting slurry is separated in a centrifuge and the crystallised boric acid is washed with water, re-dissolving some of the boric acid but also removing most of the sulphuric acid. The combined (primary plus wash) centrate is used to pre-cool the solution from the acidification step, then sent to the leach where the sulphuric acid is used. The washed boric acid leaves the circuit as the required boric acid product.

1.17 INFRASTRUCTURE

The Project area consists of the pit area and surrounding safety berms, waste rock facilities and plant area including mineralized material receiving, processing facilities, sulphuric acid plants and a railway access. In total an area of 1,660 ha was assumed to be directly impacted by the Project and will need to be acquired and cleared for the Project. The off-site infrastructure included in this Project scope includes relocation of a railway line, the relocation of roads, crossings of roads and the railway, relocation of 110 kV and 220 kV powerlines, a diversion of sections of the Kolubara river and the removal of buildings and businesses.

P&E Mining Consultants Inc. Page 12 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 The on-site infrastructure is split between mine and process plant related infrastructure. The mine will require a network of power supply lines to support the electric-hydraulic mining shovels, the IPCC systems and any electrified pit dewatering systems. The mine infrastructure will also include temporary areas for shovel maintenance, waiting and staging areas for equipment during shift changes, laydown area and equipment parking areas. A mine maintenance facility will be set up outside the pit area near the conveyor ramp.

The plan site infrastructure consists of preparing the plant site for construction, establishing road and railway accesses including a railway yard, establishing a power line connection and establishing water and sewer access as well as water treatment, water discharge facilities and waste collection facilities. The plant area will be stripped of topsoil and will be built up in elevation above the elevation of the Kolubara River with suitable crushed and screened waste rock from the pre-stripping mining operation.

1.18 MARKET STUDIES AND CONTRACTS

There are no existing contracts in place related to the Valjevo Project. Euro Lithium purchased price forecast curves for boric acid and Battery Grade Lithium Carbonate from two separate market research specialist firms. As of Q4, 2019, long-term Battery-Grade Lithium Carbonate is forecast to average approximately US$12,000/tonne through to 2040. The Valjevo Project will produce Technical Grade Lithium Carbonate that is subject to an estimated US$1,000/tonne discount. A LOM average sales price of Technical Grade Lithium Carbonate price of US$11,037 / tonne was used for the PEA. See Lithium Market Overview in Appendix J.

The Global Boric Acid price is forecast to gradually rise from approximately US$750/tonne in 2020 through to US$1,000/tonne in 2040. A flat $800/tonne sales price for Boric Acid was used. See Borate and Boric Acid Market White Paper Appendix I.

1.19 ENVIRONMENTAL

To date, baseline data collection has not been undertaken and Environmental Baseline studies for the Valjevo Project are being initiated.

The landscape at the Project location is primarily medium intensity subsistence agricultural land with fringing woodland, scrubland and riparian areas. Woodland habitats include plantations and native broadleaved woodland which is harvested on a small scale. Agricultural land includes hay meadows, orchards, crop land, pastures and orchards/subsistence garden areas. There is no official protected terrestrial area at the Project location.

Aquatic habitat at the Project location includes the Kolubara River and their Rabas and Krivosija perennial and ephemeral tributaries. Surveys revealed that upstream tributaries of the Kolubara River support a healthy ecosystem with good to excellent biological water quality, as indicated by their diverse macroinvertebrate fauna.

The hydrogeology of the region is determined by alluvium deposits, thick clastic Miocene deposits, and basement rocks. Shallow groundwater data collected from farm wells indicate

P&E Mining Consultants Inc. Page 13 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 neutral pH values and low metal concentrations surrounding the Project area. Groundwater resources are important in the region and are often used for public and private water supplies.

The Municipality of Valjevo is primarily comprised of industrial and agricultural land uses. The Project area is characterized by highly variable air quality. During winter time, the City of Valjevo has poor quality air due to private houses using lignite coal for heating.

Permitting the Valjevo Project will require a number of Serbian permitting applications and approvals, including the following:

1. An application must be made to the Local Authority requesting standard and public information about the proposed site including general spatial and environmental requirements for the development of the project;

2. A modification to the existing spatial plan will be required considering the significant change in land use. The responsible authority will be the Ministry of Construction, Traffic and Infrastructure (MCTI) or the Municipality of Valjevo (Department for Urban Planning and Construction);

3. A Strategic Environmental Assessment (SEA) Report that sets out potential environmental impacts of a proposed land use change, construction of mine and associated infrastructure and also the mitigation measures necessary;

4. A Feasibility Study for Exploitation is required to outline the conditions and manner of exploitation;

5. An Environmental Impact Assessment (EIA) is required by law for new industrial projects and an EIA permit is issued based on the approval of the EIA report. The MAEP regulates the review and approval of the EIA;

6. Approval for Exploitation of Mineral Resources and Reserves is required and is regulated by the MoM;

7. Approval for Execution of Mine Works is the construction permit for the mine and associated infrastructure and is approved by the MME;

8. A water permit defines quantities of water for abstraction and discharge and the associated quality of discharge waters is required and is regulated by the Water Directorate;

A Preliminary Closure Plan is required to provide an overview of the activities which are to take place at the completion of mining. The plan covers six main activities: infrastructure, open pit, quarry, landfill, water management and haulage routes.

P&E Mining Consultants Inc. Page 14 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 1.20 CAPITAL AND OPERATING COST ESTIMATES

The base date for the capital cost estimate (CAPEX) is Dec 2019 and is presented in US$. The capital cost estimate is deemed to have an accuracy of ±40% and was prepared in accordance with the AACEI (Association for the Advancement of Cost Engineering International) Class 5 estimating standard. Contingencies are discussed in Section 21 of this Technical report.

The CAPEX for the Project is presented as a progressed investment. The pre-production and Phase 1 Construction period requires an investment of US$2,003 Million (M). This Phase 1 includes the CAPEX for pre-production investment and the process plant for production during the first 6 years to process an estimated ROM feed of 6.6 Million tonnes per year.

Operating Phase 1 includes a significant amount of pre-production mine development to access mineralized rock. In total, 260 M tonnes (“Mt”) of waste rock and topsoil pre-production mining is required to be moved from a starter pit prior to process plant start-up. The costs for pre- production stripping development are estimated at US$450M. This phase also requires purchase of US$222M in mining equipment and mine facilities.

The Operating and Phase 2 Construction CAPEX includes the investment to reach full production and carrying cost for the Life of the Project, starting in Year 7. The additional CAPEX for Operating Phase 1 and Construction Phase 2 is estimated at US$1,811M.

Total CAPEX for Construction Phases 1 and 2 and Operating Phase 1 is US$3,815M.

At the end of Phase 2 Construction, the processing plant will be handling an estimated ROM feed of 19.8 Mt per year for the life of the project.

CAPEX for Operating Phase 2 is primarily sustaining capital required between years 7 to 31. CAPEX for this period is US$2,171M, plus mine closure costs of US$351M

Total CAPEX for the Valjevo Project is estimated at US$6,337M.

The Project infrastructure costs amount to a LOM total of US$173M of which US$158M are required in the Pre-Production Phase to purchase land, relocate roads, power lines and railways, buy out houses and businesses, and divert some sections of the Kolubara River.

The Total Installed Cost (“TIC”) for the Process Plant, including Phase 1 and Phase 2 Construction is estimated at US$2,343.3M.

Operating costs (OPEX) estimated separately for Pre-Production (which is part of the Pre- Production CAPEX), Phase 1 and Phase 2, as well as the Life-of-Mine cost. The costs are broken down in mining, processing and G&A covering the production of the marketable product on site. Including G&A, LOM OPEX is estimated at US$4.78/tonne mined plus US$25.51/tonne processed for a total of US$30.29/tonne. The major contributor to the process plant OPEX is the reagent costs with a contribution up to 86% for Phase 1 and 90% for Phase 2.

P&E Mining Consultants Inc. Page 15 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 1.21 ECONOMIC ANALYSIS

The Valjevo Project’s economic results are summarized in Table 1.2 and indicate an after-tax Net Present Value (“NPV”) of $3,984M at an 8% discount rate, an after-tax Internal Rate of Return (“IRR”) of 20.6% and a 7.8-year payback (discounted at 8%). Total capital expenditure over the LOM is $6,337M. The economic results include a 5% NSR payable under Serbian Law. All currency values are expressed in Q4 2019 US dollars unless otherwise noted.

TABLE 1.2 ECONOMIC RESULTS SUMMARY Pre-Tax Post-Tax Item ($M) ($M) Undiscounted NPV ($M) 21,783 19,094 NPV (8%) 4,495 3,984 IRR (%) 21.2% 20.6% Discounted Payback Period (Years) 7.82 7.82

1.22 ADJACENT PROPERTIES

The Valjevo Property is located in the Vardar Tectonic Zone that is host to other occurrences and deposits of B-Li mineralization. The reader is cautioned that P&E has not verified data on these adjacent properties. The character of mineralization, or Mineral Resource Estimates on adjacent properties are not necessarily indicative of mineralization on the Valjevo Permit.

Rio Tinto’s 100% owned Jadar Project is located 80 km northwest of the Valjevo Project. Jadar is a world class lithium-borate deposit near the town of Loznica, Serbia. The Jadar Deposit has a published JORC-compliant (March 2, 2017) total underground Mineral Resource of 135.7 Mt grading 1.86% Li2O and 15.0% B2O3 (Rio Tinto Annual Report 2018). The deposit contains jadarite, a lithium sodium borosilicate mineral (LiNaB3SiO7(OH)) discovered by Rio Tinto in Jadar is currently at the pre-feasibility stage.

The Piskanja and Pobrdje Deposits are located within the Miocene-aged Jarandol lacustrine sedimentary basin approximately 120 km SE of Valjevo. Both deposits were serendipitous discoveries made by State exploration companies during searches for coal and magnesite.

1.23 OTHER RELEVANT INFORMATION

1.23.1 Project Development Schedule

The Valjevo Project development schedule is comprised of three parts over the 31-year life of mine (“LOM”) as follows:

Pre-Production (Years -3 to -1). Phase 1 (Years 1 to 6) at 6.6 Mt plant feed/year. Phase 2 (Years 7 to 31) at 19.8 Mt plant feed/year.

P&E Mining Consultants Inc. Page 16 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 1.23.2 Risks

Project risks are summarized below:

 Social Licence to Operate: The Project is located relatively close to a small Serbian city and will require substantial infrastructure which will impact the local population.

 Sulphur Supply: The supply situation of the main project reagent, elemental sulphur, as well as the supply cost for the sulphur, are a major factor. The current in-country infrastructure likely not sufficient to handle the sulphur volumes required in Phase 2.

 Hydrogeology: Little is known about the hydrogeological conditions of the Project area. If unfavourable conditions are found, substantial cost increases to dewater the open pit area may be encountered.

 Geotechnical Parameters: Very little is known about the geotechnical parameters in the expected open-pit area. Assumptions on standard pit wall slopes were made for this Project.

 IPCC Systems: High level assumptions on the operation of IPCC systems were made.

 Tailings Disposal: High level assumptions on the viability of the tailings deposition of comingling with waste rock in the pit were made.

 Metallurgical Process: Only bench scale leach tests of the metallurgical process were made.

 Sulphuric Acid Production: High consumption level requires installation of a large site facility that requires special skills for operation.

 Battery Technology Risk: It is potentially possible that new battery technology is developed that reduces or replaces the need for Lithium in batteries.

 Regional Infrastructure: No detailed study on regional infrastructure was conducted.

1.23.3 Opportunities

Project opportunities are summarized below:

 Market Assumptions for Lithium Carbonate and Boric Acid: Market assumptions in this PEA for both Li and B products follow a conservative approach. The future prices of these chemicals could substantially exceed the assumptions of the Project

 Location and Market Access: The project is located in Central Europe and when in production it would be a very strategic resource for Lithium and Boron.

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 Mine Plan and Mining System: Several scenarios for a mining strategy need to be evaluated that could potentially reduce CAPEX, at the expense of higher OPEX.

 Equipment Costing: Equipment costs are susceptible to where the industry is in an economic cycle. Q4 of 2019 was likely high compared to where the economy is heading in 2020.

 Impact of Local Sourcing: Local labour costs in Serbia are significantly lower than EU Europe or North America. It possible that further cost reductions could be achieved through higher local content than were assumed in this PEA.

 Alternative Equipment Technologies: Potential for new development such as battery-electric vehicles or Trolley Assist systems may reduce the need for diesel fuel substantially.

 Metallurgical Process Optimization: Process optimization work may reduce the overall sulphuric acid and other reagent consumption in the leaching and extraction process.

1.24 INTERPRETATION AND CONCLUSIONS

P&E concludes that the Valjevo Project has economic potential as an open pit mining operation, utilizing an on-site processing plant to produce H3BO3 and technical grade Li2CO3

At a 0.25% Li2CO3Eq cut-off value, the open-pit constrained Inferred Mineral Resource Estimate contains 1,696 Mt at grades of 0.41% Li2CO3 and 3.51% H3BO3 which combined is 0.62% Li2CO3 Eq.

The PEA outlines a subset of the Mineral Resource of 515 Mt of process plant feed containing 31-year LOM average grades of 0.42% Li2CO3, 5.78% H3BO3 and 0.75% Li2CO3 Eq. The LOM strip ratio is 4.96:1.

The Valjevo Property is currently held 100% by Euro Lithium Balkan d.o.o. a subsidiary of Euro Lithium.

Euro Lithium has a good understanding of the regional and local geology to support the interpretation of the mineralized zones on the Property. Resource mineralization is currently defined in two zones, Upper and Lower, with respective average depths/thicknesses of 60 m/45 m and 275 m/70 m over an area of approximately 4 km x 4 km. The Mineral Resource on the Property remains open laterally in all directions.

P&E Mining Consultants Inc. Page 18 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371 from the solution requires the pH to be raised to cause them to precipitate as hydroxides, which also requires neutralising any residual acid from the leach. Using ASPEN-PlusTM software for modelling process simulation of different feed conditions, the total calculated acid consumption was 425 kg H₂SO₄ per dry tonne of mineralized feed compared to recent testwork that indicated consumption of up to 700 kg/tonne. Minimizing the consumption of sulphuric acid can be achieved by arranging the leach in a counter-current manner.

In open-pit Phase I, conventional mining equipment and methodologies will be utilized for waste material mining while IPCC systems will be utilized for all LOM mineralized material mining and waste material mining in Phases II to VI. A rental truck fleet will be utilized in Phase I and de-commissioned during Phase II.

The overall process plant operation includes crushing and grinding, leaching, solid-liquid separation, solution purification, evaporation, crystallization of sodium sulphate, precipitation of lithium carbonate, acidification and crystallization of boric acid. Process plant water will be obtained from the open-pit dewatering operation and from wells if required. Effluent water from the process plant will be recycled and directed to a treatment plant if necessary.

Tailings management at Valjevo will occur in two phases and locations. During open-pit Phase I, tailings will be co-mingled with waste rock in the berms surrounding the pit area. Once Phase II mining commences, tailings will be comingled with waste rock as backfill in the mined out Phase I pit area. Subsequent pit phases will place waste material and tailings in the preceding pit phase area. At the completion of open pit Phase VI, it will be allowed to flood and form a recreational lake.

Infrastructure connections to the nearby electrical power grid, roads and railway is planned. The Project supporting infrastructure (maintenance shops, warehousing, parking, offices, utilities and auxiliary facilities) is planned for the northeast area of the Property. There will be no camp facilities at site. Personnel and contractors will be responsible for their own housing and will travel from nearby communities. An office complex for management and supporting technical services is required.

The Valjevo Project, while a proposed large-scale mining project, is expected to have minimal off-site impacts during development, operations and closure. The H2SO4 and other chemicals utilized to process plant feed material will be neutralized, and the mineralized material and waste rock is not expected to be acid generating or metal leaching and if so, the waste material has a natural buffering effect. This can be determined with future characterisation studies.

Baseline environmental studies have not been performed for the Valjevo Project. These studies which are anticipated to commence in 2020 will establish baseline conditions for a detailed Environmental Assessment that will be required for project development.

The Environmental Assessment (“EA”) processes and permitting framework for metal mining in Serbia are established. Following the EA approval, the Valjevo Project will enter a permitting phase which will regulate the Project through all phases - construction, operation, closure, and possibly post-closure. Throughout all of these processes, consultation with, and advice from, local communities is considered essential.

P&E Mining Consultants Inc. Page 19 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371

Euro Lithium will need to develop a reclamation and Closure Plan that will satisfy all regulatory requirements and will be consistent with best Serbian industrial practice.

Open pit mining costs utilizing an IPCC system have been estimated to average $0.88/t material over the LOM. At a strip ratio of 4.96:1, mining costs equate to $4.78/t of process plant feed. Processing costs ($19.68/t) and site G&A ($1.05/t) contribute to a total LOM cost of $25.51/t processed.

Capital costs for Phase 1 are estimated at $2,003M and Phase 2 capital costs are estimated at $1,811M with no estimate for salvage value. LOM sustaining capital costs are estimated at $2,257M and total project capital at $6,337M. Project economics are expected to yield an after- tax NPV of $3,984M at an 8% discount rate, an after-tax IRR of 20.6%, and a 7.8-year payback period using LOM product prices of US$11,037/tonne of Li2CO3 and US$800/tonne of H3BO3. A 15% contingency was applied to process and infrastructure capital and 5% to mine capital equipment.

1.25 RECOMMENDATIONS

P&E recommends that Euro Lithium advance the Valjevo Project with in-fill drilling, metallurgical testwork, tailings, environmental and hydrology/geohydrology technical studies with the intention of moving the Project to a Pre-Feasibility Study.

The following specific recommendations are made:

 In-fill drilling the PEA mine plan area of Deposit to a 250 m x 250 m drill spacing to convert Inferred Mineral Resources to Indicated Mineral Resources. The Indicated Mineral Resources will have the capability for future conversion to a Probable Mineral Reserve in a Pre-Feasibility or Feasibility Study. Twenty of these drill holes should be targeted in the vicinity of VBN_025 and VBN_26 to test the extent of water soluble borates.

 Investigate alternative mine equipment such as trolley assist trucks, battery powered vehicles and emission reduction technology. A mine contractor operation should be studied as well as equipment lease vs. purchase opportunities. A detailed IPCC applications study is warranted.

 Hydrology and hydrogeological studies to determine pit water inflows and projected impact on local phreatic surface during mine operations.

 Geotechnical studies on waste rock ripping capability, pit slopes and stability of backfilled waste areas including co-mingled tailings.

 Tailings rheology and characterization studies to optimize tailings handling and storage options.

P&E Mining Consultants Inc. Page 20 of 249 Euro Lithium, Inc., Valjevo Lithium-Borate Property, Report No. 371  Advanced Metallurgical bulk sample testwork to determine the most economical and efficient approach to Lithium and Boron extraction. This testwork would focus heavily on H2SO4 consumption, liquid-solid separation and Li extraction from the pregnant leach solution. Additionally, an investigation into battery grade Li2CO3 is essential in order to position the Project in a future strategic market supply position.

 Implement a pilot plant facility to validate test work.

 Tailings rheology study to optimize tailings handling and storage options.

 Environmental Impact Assessment.

 Regional infrastructure assessment and detailed costing.

 Transportation logistics and market study of key reagents especially elemental sulphur.

 Study Sodium Sulphate by-product storage and marketing options.

 Trade-off study to produce battery grade lithium carbonate or battery grade lithium hydroxide.

As the next step, a one-year program is recommended which is estimated at US$2.5M as summarized in Table 1.3.

TABLE 1.3 RECOMMENDED PROGRAM AND BUDGET Budget Program (US $ M) VBN_25 Area Drilling (19 holes @ US$35k ea) 0.75 Additional studies (hydrogeology, environmental, 0.55 metallurgical, economic assessments/trade-offs Overhead costs and consultants 1.20 Total 2.50

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