Technical Report Resource Estimate for Lithium & Potassium Sal De Los
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Technical Report Resource Estimate for Lithium & Potassium Sal de los Angeles Project Prepared by: Frits Reidel, CPG Effective Date: August 29, 2016 Amended: February 24, 2017 Resource Estimate for Lithium & Potassium / Sal de los Angeles Project Technical Report February, 2017 Resource Estimate for Lithium & Potassium / Sal de los Angeles Project Technical Report DATE AND SIGNATURE PAGE This report titled “Technical Report: Resource Estimate for Lithium and Potassium; Sal de los Angeles Project, Salta, Argentina, dated February 24, 2017 was prepared and signed by the following author: (Signed & Sealed) “Frederik Reidel” Dated at Santiago, Chile Frederik Reidel, CPG February 24, 2017 Consulting Hydrogeologist February, 2017 Resource Estimate for Lithium & Potassium / Sal de los Angeles Project Technical Report Qualified person Frederik Reidel I, Frederik Reidel, CPG, as author of this report entitled “NI 43-101 Technical Report: Resource Estimate for Lithium and Potassium, Sal de los Angeles Project, Salta Argentina, prepared for Lithium X Energy Corporation, dated February 24, 2017 do hereby certify that: 1. I am employed as Principal Hydrogeologist and General Manager by FloSolutions-Chile, residing at: Los Refugios 19000, P32 Santiago, Chile. 2. I am a graduate of New Mexico Institute of Mining and Technology with a Bachelors of Science Degree in Geophysics, 1986 3. I am registered a Certified Professional Geologist (#11454) with the American Institute of Professional Geologists 4. I have worked as hydrogeologist for a total of 29 years since my graduation. My relevant experience for the purpose of the Technical Report is: • Qualified Person and Member of the technical commitees of Li3 Energy Ltd and Minera Salar Blanco for the development of the Maricunga Lithium Project in Chile (2011 – to date). • Co-author of the NI 43-101 Technical Report on the lithium and potash resources in Salar de Maricunga for Li3 Energy Ltd (2012). • Evaluation of lithium and potash resources in Salar de Olaroz for Orocobre Ltd. in support of the project’s DFS and NI 43-101 Technical Report (2010-2011). • Evaluation of lithium and potash resources in Salar de Cauchari for Lithium Americas Corporation; NI 43-101 Technical Report preparation; member of the company’s Technical Advisory Panel (2009-2010). • Evaluation of brine resources in Salar de Hombre Muerto for FMC (1992-1993) • Consulting hydrogeologist in the evaluation and development of groundwater resources for international mining companies in North- and South America.(1989-2012). 5. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43- 101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101. 6. I have visited the Sal de los Angeles Project and had meetings with management of Lithium X Energy Corporation in Salta between August 15 and 19, 2016. 7. I have had no prior involvement with the property and LiX Energy Corporation. 8. I am responsible for the overall preparation of this report. 9. I am independent of the Issuer applying the test set out in Section 1.4 of NI 43-101. 10. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1. 11. To the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. Dated this 24th day of February , 2017 Frederik Reidel, CPG February, 2017 Resource Estimate for Lithium & Potassium / Sal de los Angeles Project Technical Report TABLE OF CONTENTS 1 SUMMARY ................................................................................................................................................. 1 1.1 Property Description and Ownership ........................................................................................ 1 Physiography,1.2 Climate, and Access .......................................................................................... 1 Exploration1.3 and Drilling ............................................................................................................. 2 Geology1.4 and Mineralization ....................................................................................................... 3 Status1.5 of Exploration, Development and Operations ................................................................ 4 Mineral1.6 Resource Estimate ....................................................................................................... 4 1.7 Conclusions and Recommendations ......................................................................................... 5 2 INTRODUCTION ........................................................................................................................................ 7 2.1 Terms of Reference ................................................................................................................... 7 Sources2.2 of Information .............................................................................................................. 7 Units2.3 .......................................................................................................................................... 8 3 RELIANCE ON OTHER EXPERTS ........................................................................................................... 9 4 PROPERTY DESCRIPTION AND LOCATION ........................................................................................ 10 4.1 Property Description and Location .......................................................................................... 10 4.2 Mineral Titles ........................................................................................................................... 10 4.3 Royalties, Agreements and Encumbrances ............................................................................ 14 4.5 Environmental Liabilities ......................................................................................................... 15 4.6 Other Significant Factors and Risks ........................................................................................ 15 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .................................................................................................................................... 16 5.1 Topography, Elevation and Vegetation .................................................................................... 16 5.2 Climate and Length of Operating Season ............................................................................... 16 5.3 Sufficiency of Surface Rights .................................................................................................. 17 5.4 Accessibility and Transportation to the Property ..................................................................... 17 . 5 Infrastructure .............................................................................................................................. 18 5.5.1 Power ................................................................................................................................ 18 5.5.2 Water ................................................................................................................................. 18 5.5.3 Mining Personnel ............................................................................................................... 18 6 HISTORY ................................................................................................................................................. 20 6.1 Pre-Rodinia (prior to 2009) ...................................................................................................... 20 6.2 Prior Ownership and Ownership Changes .............................................................................. 20 6.3 Exploration work by Previous Owners .................................................................................... 20 6.3.1 Overview ............................................................................................................................ 20 6.3.2 Grids and Surveys ............................................................................................................. 21 6.3.3 Hydrogeological Investigations (2011 and 2012) ............................................................... 21 6.4 Historical Production ............................................................................................................... 29 7 GEOLOGICAL SETTING AND MINERALIZATION ................................................................................. 30 7.1 Regional Geology ................................................................................................................... 30 7.2 Local and Property Geology.................................................................................................... 32 7.3 Mineralization .......................................................................................................................... 34 8 DEPOSIT TYPE ....................................................................................................................................... 35 8.1 General 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