's Triangle and the Future of the Green Economy January, 2020

Secretaría de Minería South America's and the Future of the Green Economy ARGENTINA January, 2020

Secretaría de Minería : “A key sector for the country development” A new administration (Alberto Fernández, Diciembre 2019) with a strong Federal stamp and Active Policy of Integrated Integrated vision of inclusive and sustainable Productive development: ✓ Local productive chains Development ✓ Endogenous territorial development ✓ Innovation and Knowledge Economy Transition to a Green Industrialization: ✓ Electromobility and Renewable Energies ✓ Sustainable Development of Natural Resources

Secretaría de Minería Argentina has the materials for the green energy transition

79 29 3

Au 47 Cu Li Copper 196.97 Lithium 63.546 Ag 1.941 Plata 107.86 One of the Top Gold & 1st Exploration largest High Mining as a Silver mining destination portfolios of underexplored Federal State companies rd copper 3 Producer Policy operating in Geological projects to be 3rd World potential the country Lithium Reserve developed

Secretaría de Minería 4 Argentina is a Federal Republic and the resources are of provincial domain Federal The territory Provinces Government consists of:

Natural Resources (including mineral deposits) ✗ ✓ 1 Federal Government Mining Code ✓ ✗ Mineral title & permits ✗ ✓ 23 Provinces and 1 Autonomous City Mining Investment Law ✓ ✗ +2000 Municipalities Environmental regulations ✓ ✓

COFEMIN Consejo Federal Minero Nation-Province consensus for Mining Policy

Secretaría de Minería Argentina’s mining framework: legal aspects

• Belongs to the discoverer. Must file claim with the Province TITLE • "Free-entry system” Concession for all minerals type (no restricted minerals)

• Simple to maintain: annual payment and executed TENURE investment plan (within 5 years of title) • Granted in perpetuity, provided there is mineable ore and continued mining activity by owner

• Unified, clear and timely environmental approval PERMITS process. • Environmental and construction permits mostly granted and controlled by the Provinces.

Secretaría de Minería ARGENTINA. MINING OPERATIONS AND ADVANCED PROJECTS 16 MINES 16 PRODUCTION 7* CONSTRUCTION

7** FEASIBILITY 6 PRE-FEASIBILITY PEA 13 (Preliminary Economic Assessment) ADVANCED 26 EXPLORATION EARLY >250 STAGE

* Includes 2 ongoing capacity expansions Secretaría de Minería ** Includes Lama-Pascua, Potasio Rio Colorado and Pachon which are being re-evaluated 18 ADVANCED 11 ADVANCED 13 ADVANCED 5 ADVANCED PROJECTS PROJECTS PROJECTS PROJECTS

Li Cu Au Ag

Ident. Res. 93 Mt LCE Ident. Res. 65 Mt Cu Ident. Res. 14.3 Moz Au Ident. Res. CAPEX 5,400 M USD CAPEX 16,255 M USD CAPEX 1,696 MUSD 4,530 Moz Ag CAPEX 1,390 M USD Pot. aditional production Pot. aditional production Pot. aditional production Pot. aditional production LCE 334.000 kt/y Cu 1,203 kt/y Ag 28 Moz/y Au 767 Koz/y Au 481 koz/y Ag 13.3 Moz/y Au 42 koz /y 2 MINES both Ag 16.4 M oz/y 5 PFSB TO DFS 8* MINES expanding Mo 13 kt/y 5* MINES 2 CONSTRUCTION 2 CONSTRUCTION 2 PEA 3 PEA 10 PEA TO DFS 4 PEA TO DFS 4 ADV. EXPL. 2 ADV. EXPL 6 ADV. EXPL. 7 ADV. EXPL.

*1 of them are Cauchari Olaroz, Jujuy *1 of them are Agua Rica, Catamarca Lindero, maintenance Manantial Espejo, Santa Cruz maintenance

Secretaría de Minería To have reserves does not guarantee production or market

t LCE

t LCE

FUENTE: USGS, SNL y Reportes de Compañías

Australia 2,24% China 0,60% Production/Reserves Argentina 0,38% % Chile 0,21% USA 0,16%

0,0% 0,5% 1,0% 1,5% 2,0% 2,5% Primary production of Lithium 2018 <1% Portugal Hard Rock 7% China Brines/ Hard Rock 454,6 2% kt LCE Brasil 1% Hard Rock EEUU Brines

30% Zimbabwe 2% 61% Hard Rock Australia Brines Hard Rock

19% 70% 70% Chile Brines 454,6 50% Hard Rock 7% 44% 234,2 277 Argentina Namibia 1% 192,5 Brines Hard Rock 117 85 • Olaroz (Orocobre Ldt) 177 • Fénix (Minera del ) 108 117

2016 2017 2018 Source: Own elaboration based on USGS, SNL and company reports Secretaría de Minería Operations and Advanced Lithium Projects

18 ADVANCED PROJECTS

OPERATIONS • OLAROZ (ONGOING EXPANSION) 2 • FÉNIX (ONGOING EXPANSION)

•CAUCHARI-OLAROZ CONSTRUCTION 2 •CENTENARIO RATONES

• SAL DE VIDA • SALAR DEL RINCÓN • TRES QUEBRADAS • CAUCHARI • MARIANA PEA TO DFS • PASTOS GRANDES 10 • PPG • SAL DE LOS ÁNGELES • SALAR DEL RINCÓN (Argosy) • NORTE

•SAL DE ORO •RINCÓN (Pepinnini) ADVANCED •PULAR •RÍO GRANDE EXPLORATION 6 •GALLEGO PROJECT •KACHI >40 early stage projects Puna area: 80.000 km2 23 Salars: >5.200 km2

Secretaría de Minería Operation Mines in Operation, Mines under Construction Expansion announcements and Announcements of Expansion Construction Olaroz • Operations in 3 Salars:

. OPERATIONS Cauchari - Olaroz Mine Company Capacity (2019) Fénix Livent Corp 22.500 t LCE Olaroz Orocobre +Toyota + JEMSE 17.500 t LCE Centenario Ratones . ANNOUNCEMENTS OF EXPANSION Mine Company Capacity after expansion Fénix Fénix Livent Corp 28.500 t LCE (2021) Olaroz Orocobre +Toyota + JEMSE 42.500 t LCE (2022)

. 2 MINES UNDER CONSTRUCTION

Project Company Capacity Operation start year Cauchari-Olaroz Lithium Americas + 40.000 t LCE 2021 Ganfeng + JEMSE

Centenario Ratones Eramet 24.000 t LCE 2021 ADVANCED PROJECTS Project Company Capacity Stage NextView New Energy Lion HK Ltd Feasibility Study undergoing Sal de los Ángeles 25.000 t LCE (Tibet) Pilot Plant Feasibility Study completed Sal de Vida Galaxy Resources Ltd 25.000 t LCE Pilot Plant 25.000 t LCE Feasibility Study completed Salar del Rincón Rincon Ltd 50.000 t LCE Demonstration Plant Feasibility Study undergoing Pastos Grandes Millennial Lithium 25.000 t LCE Pilot plant undergoing Feasibility Study undergoing Tres Quebradas Neo Lithium Ltd 20.000 t LCE Pilot plant 99,1% LCE 25.000 t LCE Advanced exploration Sal de Oro Posco Pilot plant undergoing Project Company Capacity Stage Pozuelos – Pastos Preliminary Economic Assessment Litica - Pluspetrol 25.000 t LCE Grandes (PPG) in elaboration Advantage Lithium Corp. (75%)+ Preliminary Economic Assessment Cauchari 20.000 t LCE Orocobre Limited Argosy Minerals Ltd. (77,5%) + 10.000 t LCE Preliminary Economic Assessment Rincon Lithium Project Privado International Lithium JV con Jiangxi 10.000 t LCE Preliminary Economic Assessment Mariana Ganfeng Lithium Co. Ltd Salar del Hombre 5.000 t LCE Preliminary Economic Assessment NRG Metals Muerto Norte II Salinas Grandes LSC Lithium Corp Advanced exploration Salar de Pular Pepinnini Lithium Limited Advanced exploration

Rincón Project Pepinnini Lithium Limited Advanced exploration

Kachi Morena del Valle S.A. Advanced exploration Río Grande LSC Lithium Corp. Advanced exploration Early stage projects in 23 Salars and 4 Pegmatite Districts PROJECT PROVINCE NAME OF SALAR/NAME OF PEGMATITE DISTRICT Salar de Diablillos Catamarca Salar de Diablillos Antofalla Catamarca Salar de Antofalla Kachi Catamarca Salar Carachi- Pampa Salar Escondido Catamarca Salar Carachi- Pampa Hombre Muerto North Catamarca Salar del Hombre Muerto Guayatayoc Jujuy Laguna Guayatayoc Mina Teresa Jujuy Salinas Grandes San José Jujuy Salinas Grandes Navidad Jujuy Salinas Grandes Olaroz/Cauchari Jujuy Salar de Olaroz-Cauchari Paso Jujuy Salar de Jama Jama Jujuy Salar de Jama Salinas Grandes AdY Jujuy Salinas Grandes Guayatoyoc Jujuy Laguna Guayatayoc Olaroz Minera Santa Rita Jujuy Salar de Olaroz Cauchari de Pastos Grandes SA Jujuy Salar de Caucharí Guadalquivir Salta Salar Rio Grande Pocitos Salta Salar de Pocitos Rio Grande Salta Salar Rio Grande Centenario Salta Salar Centenario Stella Maris Salta Salinas Grandes Cauchari Sur Salta Salar de Cauchari Cruz Salta Salar de Pocitos Brine Salta Salar de Arizaro Arizaro Salta Salar de Arizaro Salar de Arizaro Salta Salar de Arizaro Salar de Arizaro 2 Salta Salar de Arizaro Tolillar Salta Salar Tolillar Salar de Incahuasi Salta Salar de Incahuasi Arizaro Salta Salar de Arizaro Terra Cotta/Salar de Pocitos Salta Salar de Pocitos Pastos Grandes Salta Salar de Pastos Grandes Salar de Pular Lithea Inc Salta Salar de Pular Salar Tolillar ADY Salta Salar Rio Grande El Quemado Salta Distrito Pegmatítico El Quemado Catamarca Catamarca Distrito Pegmatítico Ancasti Vilisman - Ancasti Catamarca Distrito Pegmatítico Ancasti Mina Las Cuevas San Luis Distrito Pegmatítico Conlara La Estanzuela – Conlara San Luis Distritos Pegmatíticos La Estanzuela y Conlara Mina Las Tapias Córdoba Distrito Pegmatítico Altautina/ Las Tapias CASE STUDY JUJUY Metalliferous Lithium* Non-Metalliferous Total 2.244 2.250 MINING EMPLOYMENT 2.112 2.079 173 2.100 2.025 2.001 2.002 1.972 253 1.950 239 1.856 1.803 1.811 212 213 1.748 250 206 1.800 146 566 149 203 232 227 185 223 1.650 196 150 1.554 293 Province of Jujuy 10 26 82 1.500 434 1.350 1.287

1.200

Direct employnment from mining Employees 1.050 of of operations (metalliferous, non- 900 1.713 1.691 metalliferous and lithium) is in a 1.602 1.605 1.590 750 1.561 1.527 1.502 1.506 1.415 1.473 growing path with a peak of Number 2.244 employees in 2018. 600 1.193 1.219 The indirect employment can up 450 to two-fold the direct one. 300

150

0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Lithium*: Includes the employment from Sales de Jujuy, Exar & South American Salars Source: Own elaboration in base of OEDE and companies data

Secretaría de Minería 16 COMMUNITY EMPLOYMENT BY VILLAGE/SETTLEMENT COMMUNITIES LITHIUM – OLAROZ (SALES DE JUJUY)

Province of Jujuy

Local communities participation in the activity is increasing

Olaroz, Susques, recorded, in 2018, 162 communities’s POLYMETALLIC – PIRQUITAS-CHINCHILLAS employees, 42% of the staff and Pirquitas-Chinchillas, Rinconada employed 284, a 59% share

Source: Secretaría de Minería e Hidrocarburos de la Provincia de Jujuy

Secretaría de Minería 17 CURRENT SITUATION AND GROWING PATH OF LITHIUM EXPORTS 2019 Exports: U$S 189,8 Millions

70.000 275 300

60.000 Lithium Carbonate Lithium Chloride (in LCE) Exports (right axis) 250 224 50.000 191 190 200 40.000

150 FOB

Tonnes 4

30.000 4

4 LCE LCE 84 83 90 5 100 71

20.000 63 58

5

7

6

7 29

42 28

26

4

7

4

4

7

7 4

23 50

10.000 U$S of Millions

21 6

14

12

4

9

11

9

11

8

8

10

10

7

6

3 3

- 0 -

2012 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013 2014 2015 2016 2017 2018

Source: Secretaría de Minería

Secretaría de Minería PROBABLE SCENARIO OF LITHIUM PRODUCTION EVOLUTION IN ARGENTINA

e Installed capacity of 129 Probable exports by 2022 : U$S 1.046 Millions Kt LCE from 2022

CURRENT DEVELOPMENT Installed capacity (LCE) SCENARIO

– PROBABLE LCE Investment: U$S 1.442

millions

tonnes of of 4 OPERATIONS

(CURRENT OPERATIONS WITH THEIR RESPECTIVE Thousands EXTENSIONS AND CURRENT CONSTRUCTION OF NEW OPERATIONS) Source: Own elaboration based on JORC & NI 43-101 reports from the operating companies Kt LCE : Thousands of tonnes LCE e : Valued production at a price of 8,011 U$S/t LCE

Secretaría de Minería POSSIBLE SCENARIO OF LITHIUM PRODUCTION EVOLUTION IN ARGENTINA

Installed capacity of 259 Kt Possible exports by 2024 : U$S 2.101e millions LCE from 2023

SCENARIO BASED ON Installed capacity (LCE) ANNOUNCED 400 +556% INVESTMENTS 350

LCE 259 259 POSSIBLE 300 259 250

tonnes 206

Investment: U$S 3.690 of 200 millions 124 150

100 52 Thousands 40 10 OPERATIONS 50 (4 IN CURRENT EXECUTION + 6 NEW 0 OPERATIONS) 2019 2020 2021 2022 2023 2024 2025

Source: Own elaboration based on JORC & NI 43-101 reports from the operating companies Kt LCE : Thousands of tonnes LCE e : Valued production at a price of 8,011 U$S/t LCE

Secretaría de Minería Argentina has the potential to more than three-fold the mineral exports

Our goal is to start-up some of the advanced projects 10.765* 734 34 MORE ADVANCED PROJECTS

$ 758

TOTAL CAPEX US 27.250 M U$S 61% 5420 PROJECTS 7 Millions COPPER 3.200 270 Exports 1752 619 15 PROJECTS 2121 1 PROJECT 1% LITHIUM 2101 URANIUM 190 7% 20% 1 PROJECT 5% POTASH 6% 2019 2030 4 PROJECTS Lithium Gold Copper Silver Others SILVER 5 PROJECTS GOLD *Construction of 5 copper, 3 gold, 3 silver, +6 lithium projects

Secretaría de Minería 21 Strengths of the XXI Century Argentina Mining

Peaceful country Innovative and Copper & Legal frame- Political with a stable entrepreneur Lithium World- work without decision and democracy and environment Class projects to restricted policy absence of developed for be developed to minerals, 3% management to social turmoils the provision of supply the royalties put the mining goods electromobility upperbound and geological and services boom willingness for potential in new mining value investments

… Thanks

Secretaría de Minería 22