Battery Metals Report 2019 Everything You Need to Know About the Battery Metals Lithium, Cobalt, Nickel and Vanadium!!

Battery Metals Report 2019 Everything you need to know about the Battery Metals Lithium, Cobalt, Nickel and Vanadium!!

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] Table of Contents Imprint Commodity-TV The whole world of commodities in one App!

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Preface 09

The electric revolution is only just really getting underway – lithium, cobalt, nickel and vanadium play a key role! �� 10

Interview with Tobias Tretter – Manager of the Structured Solutions Next Generation Resources Fond �� 27

Questions to the European lithium expert Vincent Ledoux Pedailles Editor on Europe‘s future lithium supply �� 32 Swiss Resource Capital AG Poststr. 1 9100 Herisau, Schweiz Firmenprofile Tel : +41 71 354 8501 Fax : +41 71 560 4271 Bankers Cobalt �� 40 [email protected] www.resource-capital.ch Birimian Limited �� 44 Editorial staff Defense Metals �� 48 Jochen Staiger Tim Rödel Energy Fuels �� 52 Layout/Design Giga Metals �� 56 Frauke Deutsch Watch Management & Expert Interviews, Site-Visit-Videos, News Shows and receive top and up to date Infinity Lithium �� 60 All rights reserved. Reprinting material by copying in electronic Mining Information on your mobile device worldwide! Lithium Chile �� 64 form is not permitted.

M2Cobalt �� 68 Deadline 03/01/2019 Amazing features: • Company Facts Millennial Lithium �� 72 Cover: Matej Kastelic/shutterstock.com page 12: ©ser_igor/stock.adobe.com • Global Mining News Neolithium �� 76 page 30: Scharfsinn/shutterstock.com Back: • Push Notoﬁ cations Standard Lithium �� 80 1: canstockphoto • Commodity-TV, Rohstoff-TV and Dukascopy-TV 2: fotolia, powered by: Wealth Minerals �� 84 3: Géry Parent • Live Charts 4: shutterstock • JRB-Rohstoffblog All images and graphics are, unless otherwise stated, by the companies.

Charts: 03/20/2019

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Dear Readers,

With pride and joy we are already entering the dox battery unit has been under construction third year of our Battery Metals Report, the in Germany since this year. Jochen Staiger is founder and CEO successor of our Lithium Special Report. of Swiss Resource Capital AG, All these will be enormous drivers of the de- located in Herisau, Switzerland. As Our special report series started with lithium, mand for lithium, cobalt, nickel and vanadium chief-editor and founder of the first because we see this metal, as well as cobalt, but also copper and you will read in the inter- two resource IP-TV-channels vanadium and new: nickel, as one of the great views with Tobias Tretter and Vincent Ledoux Commodity-TV and its German energy future metals and see great opportuni- Pedailles how and where the developments counterpart Rohstoff-TV, he reports ties and potential in the long term despite the are going. Raw materials are the basis of our about companies, experts, fund boom that has already taken place. Battery economic activities. Without them, there managers and various themes developments are only at the beginning of a would be no products and no technical inno- around the international mining long road and the electric car has yet to con- vations that can be produced with new mate- business and the correspondent quer its place among consumers and in auto- rials. metals. motive history. Lithium and cobalt are the main components of all batteries and rechar- Swiss Resource Capital AG has set itself the geable batteries available in large series and task of providing commodity investors, inte- thus the main link of the electric vehicle dre- rested parties and those who would like to am. A boom of at least the same magnitude become investors with up-to-date and com- will be experienced in the coming years by prehensive information on a wide variety of decentralised storage facilities, which will be commodities and mining companies. On our able to help to achieve the base-load capaci- website www.resource-capital.ch you will ty of wind power and photovoltaic systems find almost 20 companies and lots of infor- that has been lacking up to now. This in turn mation and articles about raw materials. Commodity-TV and Rohstoff-TV get requires larger quantities of vanadium. We would like to give you the necessary in- The annual Paris Motor Show as well as sights through our special reports and provi- your company the awareness it deserves! Tokyo and the CES in Las Vegas have been de you with comprehensive information. Ad- dedicated to electric mobility in recent years. ditionally our two raw material IPTV Channels The short range inhibitor dissolves faster and www.Commodity-TV.net & www.Rohstoff-TV.net faster as new battery technologies do it all by are available to you free of charge at any time. Tim Roedel is chief-editorial- and themselves, which will bring enormous de- If you are on the go, we recommend our new chief-communications-manager at mand to the electric car. We see 2019 as the Commodity TV App for iPhone and Android, SRC AG. He has been active in the starting year for electric vehicles on a grand which provides you with real-time charts, commodity sector since 2007 and scale worldwide, as all well-known manufac- prices and the latest videos. held several editor- and chief- turers - including the Germans - are launching editor-positions, e.g. at the more than 50 new electric models on the mar- My team and I hope you enjoy reading the publications Rohstoff-Spiegel, ket. At last there are models on the road that Battery Metals Special Report and we hope Rohstoff-Woche, Rohstoffraketen, you can afford and not just fancy studies and to provide you with lots of new information, Wahrer Wohlstand and First Mover. concept cars. Among experts, the formula impressions and ideas. He owns an enormous commodity 500+200 kilometers i.e. 500 kilometers range expertise and a wide-spread plus 200 kilometers reserve is valid for a bro- Yours, Jochen Staiger network within the whole resource ad growth of demand. Then, it is assumed, sector. even the hard-boiled combustion engine dri- ver would switch to electric drives. Over the next 8 years, Volkswagen plans to invest a good 40 billion euros in electric mobility and sell one million electric cars a year from 2025. Meanwhile, the world‘s largest vanadium re-

www.commodity-tv.net | www.rohstoff-tv.net www.resource-capital.ch | [email protected] The electric revolution is only just really getting underway – lithium, cobalt, nickel and vanadium play a key role!

Combustion and direct consump- The age of electro tricity, which will account for a total of i.e. a rechargeable battery. In order to be ope- tion were yesterday - electromobi- about 300,000 to 600,000 vehicles; rated economically in the long term, electric lity and decentralised storage are mobility has begun!  Ford: By 2020, at least 13 models are to vehicles, but also increasingly emerging the future! be powered electrically, which is about 10 decentralised storage systems - such as for Many countries are now fully to 25% of the entire model range; photovoltaic or wind power plants - require Energy turnaround, ban on diesel driving, nuc- committed to the electromobility  General Motors: 20 new electric models ever more powerful batteries. In the meanti- lear phase-out, climate change - these and card by 2023 and complete switch to electric me, the lithium-ion battery has emerged as a many other terms used in our daily language mobility - period still open; clear favourite. One of the reasons for this is have led to a true turn of events in recent ye- Above all, several countries have already  Honda: In 2030, two thirds of all models that the voltage within a lithium-ion battery is ars that hardly anyone thought possible 25 jumped on the electric mobility bandwagon are to run with an electric motor - accor- reached by exchanging lithium ions. Due to years ago: The leap from the age of fossil in order to achieve the climate targets they ding to today‘s figures about 3.3 million; their high energy density, lithium-ion batteries combustion and consumption as immediate have set themselves and have initiated mea-  Hyundai: At least 10% electric vehicle deliver constant performance over the entire as possible to the decentralisation of energy sures that will further accelerate the process share by 2025 - 800,000 vehicles; discharge period and have no so-called me- production, the corresponding need for on-si- of turning away from the internal combustion  Peugeot: 80% conversion to electric dri- mory effect, i.e. a successive loss of capacity te storage and, ultimately, to a true revolution engine and towards the electric motor at the ve by 2023; over many years of use or frequent partial in mobility. After more than 100 years of com- same time. Norway and the Netherlands, for  Porsche: Conversion of 90% of the pro- discharge. The name „lithium ion battery“ is bustion engines, the next stage of develop- example, have decided to ban sales of ve- duct range to electric drives; only the generic term for a whole series of ment is finally being ignited, and that is called hicles with internal combustion engines from  Renault/Nissan: 1.5 million vehicles from possible chemical structures, such as the lithi- electromobility. 2025. India wants to achieve this by 2030, 2020; um cobalt (dioxide) battery, the lithium man- France by 2040. Germany wants to ensure  Tesla: 1 million vehicles from 2020; ganese (dioxide) battery, the lithium iron that only emission-free vehicles will be sold  Toyota: 50% conversion to electric drive phosphate battery and – less commonly – the Musk makes it possible – or how a throughout the EU from 2030. In China, at and hybrid by 2030; lithium titanate battery and the tin-sulfur lithi- South African breaks the omnipo- least 25% of all newly registered vehicles  Volvo: 100% conversion to electric and um ion battery. tence of the oil multinationals should be emission-free by 2025. Great Bri- hybrid drive by 2019 (500,000 vehicles); tain wants to follow by 2040. So is California.  VW Group: By 2025, 20 to 25% of all ve- Even though China has long set the tone, the hicles produced are to be powered purely Vanadium redox batteries are electro-revolutionary movement is primarily by electricity, which is equivalent to a total better suited for use in the field of due to one name: Elon Musk! The eccentric Car manufacturers plan to build of around 2 to 3 million vehicles. By 2030, regenerative energies. South African, who was bullied as a child and many millions of electric vehicles 300 electric models are to be launched on beaten to unconsciousness and first made the market. The use of lithium, cobalt and nickel in lithi- headlines with the invention and sale of the These planned measures put the car manu- um-ion batteries or rechargeable batteries of PayPal payment system to eBay, had a vision facturers under pressure, so that they have In total, the leading car manufacturers plan to the same name in automotive engineering is of a purely electric locomotive at the begin- already reacted and have spent the following produce more than 20 million electric vehicles one side of the coin. Correspondingly larger ning of the 21st century and founded Tesla company goals: per year from 2025 alone. From 2030, 25 mil- energy storage facilities are being used more Motors in 2004. This triggered a real chain re- lion electrically powered vehicles per year are and more for storing electricity from alterna- action that led many states, companies and  BMW: By 2025, 15 to 25% of all vehicles expected, from 2040 even 60 million vehicles tive energy sources. The virtually explosive private individuals to clearly opt for the elec- produced are to be powered purely by per year. Daimler alone plans to invest over 80 expansion of energy generation from wind tric motor as their future drive and energy sto- electricity, which is equivalent to a total of billion euros in electric mobility in the coming farms or solar cells is a huge step forward in rage system. Although Musk did not invent around 300,000 to 600,000 vehicles; years. Bloomberg expects that by 2040 at the terms of environmental protection, but an the electric motor, he will always be recorded  Chevrolet: After 30,000 electric vehicles latest every second new vehicle will be equip- enormous challenge for the electricity grids. in history books as the one who broke the om- sold in 2017, no concrete targets defined ped with an electric drive. This is because renewable energy sources nipotence of the oil multinationals and ushe- yet; often exhibit extreme fluctuations in power red in a new era of locomotion.  China: The Chinese carmakers, which generation. When the wind is blowing or the now number more than 170, want to put Lithium-ion batteries are conside- sun is shining, large amounts of Electricity at least 4.5 million electric vehicles on the red to be the non-plus-ultra-low „pumped“ into the grid. In the short term, roads by 2020; battery for electric vehicles. enormous overcapacities of electricity arise,  Daimler: Ten new electric models by some of which are not needed at all. Accor- 2022. By 2025, 15 to 25% of all vehicles The heart of every electric vehicle is not only ding to calculations, up to 20 percent of the produced will be powered purely by elec- the motor but also the energy storage device, annual yield of a wind farm is already lost

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] today because the turbines have to be shut rily and only releasing it back into the grid Composition and operating principle of a lithium-ion accumulator down at short notice due to grid overload. when required. Many manufacturers are al- This can be remedied by storage facilities ready trying their hand at efficient vanadium that initially absorb the excess energy and redox batteries, which are primarily intended later release it back into the grid when nee- for decentralised use, such as directly in the Composition of a lithium-ion accumulator ded, i.e. when there is a threat of undersup- household of a family with a photovoltaic ply. The vanadium redox accumulator plays system on the roof or near wind farms. Essentially a lithium-ion accumulator consists of the following components and materials: a decisive role in this process.

 Positive electrode (cathode): LITHIUM-ION BATTERY North America is Tesla country ... Lithium-Cobalt(III)-oxide CHARGE Vanadium redox battery – ELECTROLYTE Lithium-Nickel-Manganese-Cobalt-Oxide SEPARATOR Higher operational reliability than Outside Asia, North America in particular ANODE (-) Oxygen lithium-ion battery, but not has taken the dominant position in lithi- COPPER Aluminum as conductor material CATHODE (+) suitable for electric vehicles um-ion battery production. Tesla Motors has ALUMINIUM a lot to say about this. The company is cur-  Negative electrode (anode): The vanadium redox accumulator is a so-cal- rently building its so-called „Gigafactory 1“ Graphite or related carbon materials led flux accumulator which uses vanadium in Nevada. Since 2016, lithium-ion batteries, Silicon compounds in aqueous solutions in both battery packs, electric motors and drive Tin dioxide electrolytes. Vanadium redox flow cells offer units for up to 500,000 electric vehicles per Copper as conductor material a very high operational reliability compared year have been built there. to other storage systems (especially lithi-  Electrolyte (solution) CARBON um-ion accumulators), as the electrolyte is (GRAPHITE) neither flammable nor explosive due to its ... but the music is made in Asia!  Separator of polymer membrane LITHIUMION high water content. The commercial batteries OXYGEN + METAL currently available are used exclusively in Although Tesla will account for about 8 to ELECTRON COBALT/NICKEL/MANGANESE stationary applications, such as regenerative 10% of total global lithium and cobalt de- energy sources for peak load coverage and mand when its Gigafactory 1 is completed, it load balancing, and uninterruptible power is already clear that much more material will Operating principle of a lithium-ion accumulator supplies. By mid-2017, more than 40 large be needed in Asia. China alone already ac- vanadium redox flow batteries were in opera- counts for about one third of total demand. In simple terms a lithium-ion accumulator electrically neutral. The negative electro- tion worldwide. However, the vanadium re- According to expert estimates, this will re- generates an electromotive force by the de is a so-called graphite intercalation dox accumulator is not an option for power- main the case for the time being, as China movement of lithium-ions. During char- compound where lithium exists as cati- ful electric cars, as the volumetric energy still has by far the largest output of recharge- ging the positive lithium-ions migrate th- on. During discharge the intercalation density of the battery is much too small, i.e. able batteries and accumulators. This stimu- rough the electrolyte and the separator compound emits electrons which flow the battery needs too much space. lates the country‘s immense consumption of from the positive to the negative electro- back to the positive electrode via the lithium and cobalt. It is also expected that de. In the process the lithium-ions can extern circuit. Simultaneously many China will continue to see the strongest an- move freely between the two electrodes Li+ ions migrate from the intercalation The largest application for nual increase in lithium and cobalt demand through the electrolyte within the accu- compound through the electrolyte also to vanadium redox batteries in the of all major market players over the next 5 to mulator. Unlike the lithium-ions the tran- the positive electrode. At the positive future: decentralized energy 10 years, mainly due to the expected multip- sition metal and graphite structures of electrode the lithium-ions do not receive storage lication of the number of rechargeable batte- the electrodes are stationary and protec- the electrons of the external circuit but ries. Other major suppliers of lithium-ion bat- ted by a separator from a direct contact. the present structures of the transition So-called smart grid systems require a large teries, including South Korea and Japan, are The mobility of the lithium-ions is neces- metal compounds. Depending on the number of short- and medium-term energy also expected to guarantee a robust increa- sary for the compensation of the external type of accumulator these are cobalt, ni- storage devices that absorb too much gene- se in lithium and cobalt demand. The elec- current during recharging and dischar- ckel, manganese or iron ions that change rated energy and can later release it back tronic giants Panasonic, Samsung, LG ging so that the electrodes stay largely their charge. into the grid when wind and sun are absent. Chem, BYD, Boston Power, Lishen, CATL, Vanadium redox batteries can clearly reme- Dynavolt and Great Wall are to be mentioned dy this by storing too much energy tempora- above all here.

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] Lithium production is either chloride. This solution is concentrated in tedious or expensive the vacuum evaporator until the chloride crystallises out. Worldwide lithium production is divided into 2. So-called „Hard Rock Spodumene“, i.e. several different branches that produce the hard rock pegmatite deposits: Lithium following types of lithium compounds: compounds are not obtained from the salt of lakes, but from spodumene, a lithi- 1. Lithium carbonate, um-bearing aluminium silicate mineral. 2. Lithium hydroxide, The concentrate obtained is often conver- 3. Lithium chloride, ted to lithium carbonate with a purity of 4. Butyllithium and more than 99.5% using conventional mi- 5. Lithium metal. ning technology. The intensive thermal and hydrometallurgical process required Metallic lithium is usually produced from lithi- for this is considered to be very costly. (Source: Nemaska Lithium / own chart) um carbonate in a multi-stage process and is Such deposits are currently almost exclu- usually traded with a purity of 99.5%. This sively exploited in Australia, and most of More Gigafactories are already in Lithium metallic lithium is used as a catalyst in the the processing takes place in Chinese fa- the making chemical and pharmaceutical industries and cilities. The Element Lithium for the production of aluminium-lithium alloys. Tesla is by far not the only lithium and cobalt consumer planning to produce more lithi- Lithium is a light metal from the group of alka- The industry essentially distinguishes three New processes and lithium um-ion batteries. LG Chem already started li metals. It has the lowest density of all known types or qualities of lithium compounds: sources could revolutionize production for Chevy in Michigan in October solid elements. It is only about half as heavy production 2015. Furthermore, Foxconn, BYD (the wor- as water, silver white by nature and relatively 1. „Industrial grade“, with a purity of over ld‘s largest producer of rechargeable batte- soft. Lithium is highly reactive, which is why it 96%, mainly for glass, casting powder Recently, more and more exploration and de- ries, especially for mobile phones), Lishen, and lubricants, velopment companies have been relying on CATL and Boston Power are working on the 2. „Technical Grade“, with a purity of about new technologies to help them extract lithi- construction of their own Gigafactories, also [HE] 2s1 3 99.5%, mainly for ceramics, lubricants um from brine deposits within days and even for so-called Power Banks, i.e. decentralized and batteries and hours, rather than by means of natural power storage units. Outside Asia and North 3. „Battery Grade“, with a purity of over evaporation, using specially developed pro- America there are currently only a few serious 99.5%, especially for high-end cathode cesses in corresponding plants. The proces- players to be found. Worth mentioning are Li materials in batteries and accumulators. ses of Tenova Bateman and IBC Advanced Northvolt from Sweden and Terra E Holding Technologies should be mentioned here. Melting Point 180,54° C from Germany, each of which is aiming for a Boiling Point 1330°C production capacity similar to Tesla. There are two types of lithium In addition, a third lithium source was identi- LITHIUM deposits fied by several lithium development companies. This makes it possible to extract lithium Lithium-ion batteries are the latest Lithium is generally obtained from two diffe- from old, exploited oil reservoirs. The lithium state of the art and market leaders always occurs in nature as a lithium com- rent sources. is extracted from the waste water remaining pound. It starts up rapidly in the air, which is in the reservoirs. The fact that this process In addition to the aforementioned raw materi- due to the formation of lithium oxide and lithi- 1. So-called „brine“, i.e. (salt) sheet or brine works has already been proven several times. als lithium, cobalt, nickel and manganese, a um nitride. In pure oxygen, it burns with a deposits: Lithium carbonate is obtained In addition, this seemingly unusual lithium re- lithium-ion battery essentially consists of alu- bright red flame at 180°C to form lithium oxi- mainly in salt lakes from salt solutions covery also seems to be economically fea- minum, copper, graphite, zinc, tin, silver and de. Lithium reacts very strongly with water to containing lithium by evaporation of the sible. This means that brine-containing (for- steel. The majority of (lithium-ion) batteries form lithium hydroxide. water and addition of sodium carbonate. mer) oil fields will also become a focus of the currently on the market are lithium-cobalt (di- To obtain metallic lithium, the lithium car- lithium industry. oxide) batteries, which is why this report de- bonate is first converted with hydrochloric als primarily with the „battery metals“ lithium, acid. This produces carbon dioxide, which nickel and cobalt. escapes as a gas, and dissolved lithium

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] Larger lithium deposits concen- long-term supply contracts with relatively rolytic production of aluminium, in the ceramic trated in a few regions small development companies, some of and pharmaceutical industries and in alloying which will not provide subsidies before 2020. technology. Special degrees of purity of lithi- Lithium accounts for about 0.006 % of the As a result of this offer oligopoly, lithium is um carbonate in the form of very fine powder earth‘s crust and is therefore somewhat less currently also not traded on the stock exch- (battery grade powder) are suitable as raw abundant than zinc, copper and tungsten and ange, the actual trading prices are strictly materials for the production of lithium ion bat- somewhat more abundant than cobalt, tin confidential. teries. The extraction and processing of and lead. Estimates by the US Geological One reason for this, which is always menti- (especially high-grade) lithium is considered Survey assume that around 40 million tonnes oned by the few suppliers, is that the availab- to be very costly. of lithium can be extracted worldwide. About le and required lithium qualities are too diffe- 65% of them in the South American countries rent for a standardized stock exchange. Bolivia, Chile and Argentina alone. The largest The manufacture of lithium-ion lithium carbonate production currently takes batteries requires a large quantity place in Salar de Atacama, a salt lake in the Main fields of application are of lithium northern Chilean province of Antofagasta. alloys, lubricants and rechargeab- Around 30 percent of global lithium producti- le batteries. A large quantity of lithium is required for the on comes from this region. There are also si- production or operation of lithium-ion batte- gnificant lithium deposits in North America, Its above-mentioned special and versatile ries. Every smartphone, for example, cont- Australia and China. properties make lithium a sought-after materi- ains between 5 and 7 grams of LCE (lithium al in many different applications. So, it should carbonate equivalent). With a notebook or come as no surprise that the main field of ap- tablet it is already 20 to 45 grams. Electric plication for lithium has constantly changed in tools such as cordless screwdrivers or elec- the past. Initially mainly used in medicine, the tric saws require about 40 to 60 grams for element began its triumphal march in the their batteries. A 10 KWh storage unit for do- 1950s as a component of alloys. Its low mestic use requires around 23 kilograms of weight, but also its positive properties in terms LCE, while batteries for electric cars require of tensile strength, hardness and elasticity, between 40 and 80 kilograms. An energy sto- made it an integral part of aerospace techno- re with 650 MWh capacity needs about 1.5 logy. This picture has changed once again in tons of LCE. With quantities in the billions the past 20 years. In the course of the begin- (smartphone) or in the millions (notebook, ning electrical revolution one recognized quite tools, cars, e-bikes, etc.), several 100,000 (Source: Infinity Lithium Corporation/Roskill) fast that it is suitable due to its low normal po- tons of LCE demand per year quickly accu- tential almost perfectly as an anode in batte- mulate. The decisive factor is always the ries. Lithium batteries are characterized by a price, which is relatively insignifi- very high energy density and can generate cant for battery production! (Source: Infinity Lithium) particularly high voltages. Lithium batteries Lithium production will (and must) Lithium production currently are not rechargeable. Lithium-ion batteries, on increase sharply Ultimately, it is the price alone that decides concentrates mainly on four the other hand, have this property, in which whether the existing lithium deposits are eco- countries and four companies lithium metal oxides such as lithium cobalt In 2015, worldwide lithium production (often nomically viable. And this has picked up oxide are connected as cathode. As a raw referred to as LCE for standardization purpo- strongly in recent months. While in mid-2015 These three countries plus Australia currently material for the production of rechargeable ses, which stands for „lithium carbonate the price was still around US$ 6,000 per tonne account for around 80 percent of the world‘s batteries, however, higher purity grades than equivalent“) amounted to around 175,000 of lithium carbonate, since then it has peaked total lithium production, which is divided bet- 99.5% are required. Lithium hydroxide is used metric tons of LCE. Projections assume that at over US$ 20,500. Certainly just a snapshot. ween four companies. As a result, the entire in the „Industrial“ quality as a raw material for this figure could rise to around 330,000 ton- It can be assumed that in the medium to long lithium market is very non-transparent, which lubricants and coolants, among other things; nes of LCE by 2020, although no concrete term this will settle at between US$ 10,000 is why the large battery and accumulator ma- with the higher „Technical“ quality grade, it is mine extensions or new mines have yet been and US$ 12,000 per tonne of lithium carbona- nufacturers such as Panasonic and the lea- also used in battery and battery production. identified for the time being, so that lithium is te. One way or another a lucrative business for ding electric car manufacturers, above all Lithium carbonate - crystalline, granulated or likely to run into a huge supply deficit. the producers, the pure production costs for Tesla Motors, have recently relied primarily on powdered - is used, for example, in the elect- the current projects are only around 3,200 to

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] Cobalt and then reduced to cobalt with coke or aluminium powder. The Cobalt Element

Cobalt is a steel-grey, very tough heavy metal The majority of cobalt deposits lie (ferromagnetic transition metal) with a density beneath the seabed. of 8.89 g/cm3. As a typical metal it conducts heat and electricity well, the electrical con- Cobalt is a rare element with a frequency in ductivity is 26 percent of that of copper. Its the earth‘s crust of 0.004 percent. This puts it chemical behavior is similar to that of iron and thirtieth in the list of elements ordered by fre- nickel, and it is resistant to air passivation; it quency. Cobalt can be found in many mine- is only dissolved by oxidizing acids. rals but is usually only found in small amounts. The element is always associated with nickel, often also with copper, silver, iron or uranium. [Ar] 3d74s2 The world‘s known cobalt reserves are around 27 25 million tonnes, with the largest deposits in the Democratic Republic of Congo, Zambia, (Source: own chart) Canada, Morocco, Cuba, Russia, Australia, 6,500 US$ per ton. This is similarly the case Motors) the USA. Another important lithium Co Uganda and the USA. Over 100 million tons with lithium hydroxide. Since lithium makes hot spot is located in northwest Argentina, of cobalt are believed to be present in the up a considerable part of a battery in terms where Orocobre operates the Olaroz lithium Melting Point 1495° C earth‘s crust on the soils of the Atlantic, Paci- of quantity, but is only responsible for mine. There and in neighbouring Chile there Boiling Point 2927°C fic and Indian Oceans. around 4-5% of the cost of a battery, the are also a number of development companies COBALT price of lithium is ultimately relatively insig- that have already reported several top-class nificant for the production of lithium-ion results, such as Millennial Lithium. So far, cobalt has mainly been batteries and should therefore be kept at produced in politically unstable re- an economic level for lithium producers. Cobalt extraction is relatively gions. Conclusion: simple and inexpensive The demand for lithium is rising The majority of the annual cobalt supply co- Development companies are rapidly! Cobalt extraction is a well-known, relatively mes from mines in the Democratic Republic working intensively on new pro- simple process. Cobalt is mainly extracted as of Congo. About 55% of the total production jects, ... The demand for lithium appears almost gi- a by-product from copper and nickel ores. volume comes from the Central African civil gantic not only because of, but above all First, part of the iron sulphide present is con- war country. Followed by China with 6.3%. While the big names Albemarle, SQM, Livent because of, the new boom sector of electro- verted into iron oxide by roasting and slagged Russia accounted for a further 5%, Zambia (formerly FMC) and Tianqi have plans to ex- mobility! While in the case of lithium this was with silicon dioxide as iron silicate. The result for 3.7%, Cuba for 3.4% and the Philippines pand their production, but at the same time still around 65,000 tonnes of LCE in 2000, by is the so-called rough stone, which in addition and Madagascar for almost 3% each. These have no great interest in falling lithium prices, 2017 there was already 220,000 tonnes of to cobalt also contains nickel, copper and are all countries that are regarded as rather numerous development companies are wor- LCE in demand per year. Experts expect LCE other iron as sulphide or arsenide. Further ro- unstable or at least not necessarily inspiring king on advancing new lithium projects and demand to rise to over 900,000 tonnes per asting with sodium carbonate and sodium confidence. The remaining production is divi- identifying concrete deposits and resources. year by 2025. nitrate removes further sulphur. Sulfates and ded between Canada (just under 6%), Aust- The main driving factor will be demand from arsenates are formed from part of the sulfur ralia (4.15%), South Africa (2.45%) and seve- the battery and accumulator sector and the and arsenic, which are leached out with wa- ral other countries with even lower production ... partly in new lithium hot spots associated automotive industry. While in ter. The corresponding metal oxides remain, volumes. 2015 only about 40% of lithium demand which are treated with sulphuric or hydrochlo- The future security of supply appears to be In addition to the classic lithium regions of came from the battery and accumulator sec- ric acid. Only copper does not dissolve, while extremely critical on the basis of the current South America and Australia, more and more tor (60% of demand came from other sec- nickel, cobalt and iron dissolve. With chlorin- producers, which is why there have recently North America is emerging as a lithium hot tors), its share is expected to rise to over 90% ated lime, cobalt can then be selectively pre- been more and more attempts to develop spot, especially Canada, Mexico and (due to by 2025. cipitated as cobalt hydroxide and thus sepa- new mines in Canada, Australia and the USA

its proximity to the future top consumer Tesla rated. This is converted into Co3O4 by heating and to increase production accordingly.

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] Main fields of application are tion, as a hydroxide or lithium cobalt dioxide

paints, alloys, medicine, magnets (LiCoO2) in batteries, in corrosion- and we- and rechargeable batteries. ar-resistant alloys and as a trace element for medicine and agriculture. In addition, cobalt In history, cobalt was used in the form of oxi- is used in the production of magnetic media des, sulfates, hydroxides or carbonates for such as tape and video cassettes, where it heat-resistant paints and pigments. The improves the magnetic properties by doping. best-known decorative application is blue Since the 1990s, cobalt has been used as an cobalt glass. Today cobalt is mainly used as anode material in the anode of lithium-ion an alloying component to increase the hot batteries. strength of alloyed and high-alloy steels, especially high-speed steels and super alloys, as a binder phase in hard metals and dia- Electric vehicles in particular need (Source: own chart) mond tools, as a component of magnetic al- a lot of cobalt – but not only them loys, as a dryer for paints and varnishes, as a Kolwezi, will play a major role in this, produ- eCobalt Solutions owns an almost producti- (Source: M2Cobalt / own) catalyst for desulphurisation and hydrogena- Similar to lithium, cobalt is also consumed in cing about 50,000 tons of cobalt per year on-ready cobalt project in the US state of corresponding batteries. Depending on the alone. Outside the Congo, although several Idaho that could go online in a short time. Ano- version, between 5 and 10 grams of cobalt companies are working to expand their exis- ther hot spot is Africa, where several compa- flow into a single smartphone. With a note- ting mines (including Glencore, Norilsk, Umi- nies have secured promising projects outside book or tablet it is already 30 to 100 grams. core, Sumitomo and Vale), these mine ex- the Democratic Republic of Congo. For ex- Power tools need about 50 grams for their pansions are likely to be only a drop in the ample, M2Cobalt, which found what they batteries. A 10 KWh storage unit for dome- ocean due to the expected increase in de- were looking for in neighbouring Uganda. Aus- stic use (such as Teslas Powerwall) requires mand. tralia, too, is currently engaged in the develop- about 7 kilograms of cobalt, while the batte- ment of promising cobalt deposits. ries for hybrid vehicles require about 4 kilograms and for purely electric cars 10 kilo- Cobalt price explodes! grams of cobalt. Teslas Model S even rea- Conclusion: Cobalt will experience ches 22.5 kilograms. A passenger plane Many market participants have already reali- an immense surge in demand and devours about 4,000 kilograms of cobalt. sed that cobalt production cannot be expan- a supply deficit in the coming With quantities in the billions (smartphone) or ded so easily from now on, which is why the years! millions (notebook, tools, cars, e-bikes, etc.), cobalt price has exploded from around US$ several 100,000 tons of cobalt are quickly re- 10 to just over US$ 40 since mid-2016 and is The demand for cobalt should explode in the quired per year. currently around US$ 15 per pound. However, coming years! While this was still around the all-time high of US$ 52 from 2008 has not 60,000 tonnes in 2008, by 2017 the demand yet been reached, which is only a matter of had already reached 125,000 tonnes per year. The cobalt supply must be time given the threat of a massive supply de- Experts expect demand for cobalt to rise to increased ficit. over 300,000 tonnes per year by 2025. The main driving factor will be demand from And this is also urgently necessary, because the battery and rechargeable battery sector. the lithium-ion battery sector will demand Several junior mining companies Due to the current situation that demand is ri- ever larger quantities of cobalt in the coming have already advanced cobalt sing sharply, but at the same time only a few years. While annual production in 2016 was projects existing mines have any possibility at all to in- still around 123,000 tonnes, leading experts crease their production, there are signs of a si- assume that this production will be difficult to In recent times, junior companies in particular gnificant supply deficit for cobalt in the coming expand at present. The fact is, however, that have been particularly outstanding. First Co- years. Already from the current year 2019, a Congo will remain the absolute world market balt, for example, a merger of three formerly supply deficit seems unavoidable, which will leader for the time being and will expand its independent companies, is working on brin- gradually widen in the coming years and will market share to as much as 70% by 2021. ging the former cobalt camp in the Canadian exceed the 10,000 tons per year mark as early The world‘s two largest mines, Kamoto and province of Ontario back into production. as 2020.

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] Nickel The majority of nickel production comes from sulphide ores. In addition, lateritic nickel ores The Element Nickel are also mined as raw materials for nickel production. Due to the exploitation of classical Nickel is a metallic, silvery-shining transition sulphidic deposits, mining is increasingly metal. It is medium hard, forgeable and easy shifting to lateritic nickel ores, which, howe- to polish. Nickel, like cobalt, is ferromagnetic ver, means more complex extraction. and also very resistant to air, water, hydrochloric acid and alkalis at room temperature, making it ideal for use in lithium-ion batteries. Main applications: steels and nickel alloys

The majority of the annual nickel production (Source: own chart) [Ar] 3d8 4s2 28 (about 85%) is used for the production of stainless steels and nickel alloys. Nickel is this is required for alloys and other applica- velopers will be the next big beneficiaries of one of the most important alloying metals tions. Less valuable Class 2 nickel is used the electro(mobility) boom! Ni used mainly for steel refining. It makes steel exclusively in steel production. resistant to corrosion and increases its hard- Melting Point 1455° C ness, toughness and ductility. High-alloy ni- Boiling Point 2730°C ckel steels are used in particularly corrosive Development from cobalt to nickel Vanadium NICKEL environments. About 20% of the nickel ext- dominated batteries racted is used to produce nickel alloys such The element vanadium as constantane, nickel silver and monel. Due to the fact that the development of lithium-ion batteries is increasingly moving from Vanadium is a steel-grey, bluish shimmering Extraction cobalt to nickel-dominated cathode materi- transition metal which is very soft when pure. Other uses als, it can be assumed that an already exis- Although pure vanadium is relatively soft, it The majority of nickel is extracted from iron ting supply deficit will widen in the coming becomes harder through the addition of other ores containing nickel and copper. By means Pure nickel metal is used in finely divided years. This has already been the case for the elements and then has a high mechanical of a multi-layer process, copper-nickel fine form as a catalyst in the hydrogenation of un- entire nickel market since 2016. For class 1 strength. The majority of vanadium is therefo- stone, which consists of about 80 % copper saturated fatty acids. Because of its chemical nickel, such a supply deficit is expected from re used as ferrovanadium in steel production. and nickel and about 20 % sulphur, is pro- resistance, nickel is used for apparatus in 2023 at the latest, with a strong upward trend. The addition of vanadium to chromium-vana- duced. The nickel must be separated from chemical laboratories and the chemical in- For 2030 it can be assumed that 825,000 tons dium steels leads to an increase in toughness the copper to obtain the crude nickel. In order dustry, such as nickel crucibles for digestions. of nickel will be missing. In 2040, the supply and thus to an increased resistance of the to obtain pure nickel, the raw nickel is refined Nickel alloys, e.g. for coins, are made of ni- deficit is likely to increase to 2 million metric steel. electrolytically. The purity of electrolyte nickel ckel metal. Nickel-based superalloys are allo- tons per year – including new nickel projects, is around 99.9 %. ys specially designed for use at high tempe- of course. ratures and under corrosive media. They are used, for example, in aircraft turbines and gas [Ar] 3d34s2 Occurrence and extraction turbines in power plants. Conclusion: Supply deficit inevita- 23 ble, first signs already noticeable Nickel occurs in the earth‘s crust with a content of about 0.008 %, i.e. about twice the Nickel for accumulators and LME stocks, which have halved to around amount of cobalt and somewhat more fre- batteries 200,000 tonnes in the last 18 months, are al- V quently than lithium. Solid, i.e. nickel is rarely ready providing a foretaste of what may yet Melting Point 1910° C found in elementary form. By 2018, only Class 1 nickel, with a purity of at least 99.98%, come. Since the beginning of 2019 alone, the Boiling Point 3407°C about 50 sites worldwide were known to con- is required for batteries and accumulators. nickel price itself has risen by around 20% to VANADIUM tain dignified nickel. The most important de- Only about 45% of the total nickel production just under US$6 per pound but is still far from posits are found in Canada, New Caledonia, of about 2 million per year is suitable for the its highs of over US$20. All in all, it looks as if Russia, Australia and Cuba. production of Class 1 nickel. More than half of nickel and corresponding producers or de-

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] tems. By mid-2017, more than 40 large vana- the growth of global steel production rates dium redox flow accumulators were in opera- has caused 85% of the increase in vanadium tion worldwide. The largest such battery is consumption between 2001 and 2017. located in Japan and has an output of up to 15 MW. Some vanadium redox flow systems are also in use in Germany. Germany‘s largest va- Conclusion: nadium flow battery, a river cell system with The price of vanadium will 660 m3 tank capacity and initially 1 MW capa- continue to rise as the current city and 10 MWh energy storage capacity, production is needed only for was commissioned in 2017. The world‘s lar- steel production. gest battery will also be a vanadium redox flow cell battery. It should be able to generate Vanadium therefore has one advantage: the 200 MW and store 800 MWh of energy. It will current vanadium production is almost enti- (Source: own chart) be installed in the northeast of China on the rely required for the production of steel alloys. peninsula near Dalian and will consist of ten An expected demand from the area of the units with 20 MW and 80 MWh each. Comple- storage technologies cannot be covered at Extraction is simple found in traces of other minerals, especially tion is expected in mid-2019. the moment quasi at all. The expected expo- iron ores. The most important producing In July 2018, the Irish company redT was nential development in demand from this new Although the extraction of vanadium involves countries are South Africa, China and Russia. awarded the contract for a similarly large pro- area of application will therefore immediately many intermediate steps, it has been tried and ject to be implemented in Germany. The com- lead to a supply gap in vanadium, which can tested over decades and is therefore now qui- pany signed an exclusivity agreement with already be seen from the steadily rising price te simple. In order to obtain pure vanadium, Main field of operations: Energy System Management GmbH (ESM), a of vanadium. On the other hand, there are expensive calcium or aluminium is used as a (Steel) alloys German energy development company belon- currently few or no new vanadium mines in reducing agent, otherwise high purity cannot ging to WWF solar, for the supply of two 40 operation. If this is the case, then vanadium be achieved. Whereas pure vanadium is ob- 91% of the vanadium mined in 2017 was used MWh grid-connected energy storage projects can only be increasingly extracted within the tained directly with calcium, a vanadium-alu- in a variety of alloys, mostly with the metals in Germany, with a further 690 MWh of pro- next 2 to 3 years from old tailings piles, for minium alloy is first formed with aluminium, iron, titanium, nickel, chromium, aluminium or jects planned for the future. example uranium mines. There will clearly be from which pure vanadium is obtained in a manganese. This makes vanadium particular- a need for new primary vanadium capacity in vacuum. However, the majority of vanadium is ly suitable for use in buildings, bridges, tun- the future, which historically has always been not processed as a pure metal but in the form nels and automotive parts, as well as in the Vanadium price has increased six a major challenge and cannot be met within 2 of the iron-vanadium alloy ferrovanadium, aerospace industry. In addition, pipelines are fold in the meantime or 3 years. Vanadium, for example, will beco- which contains at least 50% vanadium. To frequently lined with it and power lines or me a relatively unnoticed booming element, produce ferrovanadium, the slag containing high-voltage pylons are reinforced with it. Va- The number of commissioned plants and because one thing is certain: the decentrali- vanadium and iron is reduced to ferrovanadi- nadium is also used for many infrastructural their size have multiplied in recent years, zed storage of excess energy will become um with ferrosilicon and lime. This alloy is suf- applications such as chemical plants, oil refi- which is mainly due to the fact that ways must THE decisive issue in the future when it co- ficient for most technical applications. neries, offshore platforms, railways, railway finally be found to make fluctuating power ge- mes to the question of where base-load ener- wagons, freight containers, construction ma- nerators such as wind power plants or photo- gy is to come from to „refuel“ millions of elec- chinery and ships. voltaic plants halfway capable of base loads tric vehicles. Occurrence and extraction by means of battery storage technologies. From the beginning of 2016 to the end of Vanadium is a relatively common element, Use in the field of renewable 2018, the price of vanadium rose six-fold to Conclusio: with a similar element frequency to chlorine energies as load balancing for over US$ 30 per pound, currently around US$ The electro-revolution is just and chromium. Its share of the continental wind farms and photovoltaic 18. about to take off and will lead to a crust is about 120 parts per million (ppm). The systems While experts expect global steel production long-lasting boom in lithium, element occurs predominantly bound in diffe- to grow at only 2% per year from 2017-2025, cobalt, nickel and vanadium! rent minerals. Despite the frequency of vana- Recently, there has been a growing use in the the increasing intensity of vanadium dium, deposits with high concentrations of the field of renewable energies for covering peak consumption, combined with specific growth The demand for lithium, cobalt, nickel and va- element are rare, many vanadium minerals do loads and load balancing, often in the immedi- drivers for the end consumer, will allow vana- nadium will in future be mainly determined by not occur frequently. Most of the vanadium is ate vicinity of wind farms or photovoltaic sys- dium demand to increase further. By the way: three different parties:

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] Interview with Tobias Tretter – Manager of the Structured Solutions Next Generation Resources Fonds

1. From the Asian electronics companies in demand is likely to (far) exceed the increase Mr. Tretter, you are Manager of the Structu- greater and the fund is primarily intended for that are mainly focused on the mass pro- in supply in the future. As there is no end in red Solutions Next Generation Resources investors who believe in the long-term suc- duction of high-performance lithium-ion sight to the increase in demand beyond 2025, Fund. What strategy do you pursue and cess of electric cars and want to profit from batteries and rechargeable batteries for and as there are no major production projects what does the fund specifically reflect? this trend. We have already expanded our everyday use, in multimedia devices, worth mentioning in the pipeline, this situati- universe to include companies from the gra- etc... on is likely to continue for the foreseeable fu- The fund was launched in 2010 and invests in phite, cobalt and nickel sectors, thus signifi- 2. From the automobile manufacturers and ture. companies that benefit from the success of cantly reducing the risk of lumps, but we will (initially) above all Tesla Motors, but also The development companies in particular, electromobility and thus from the exponenti- retain our specialisation in battery metals. from almost all established automobile which have already advanced their respective ally increasing demand for battery metals. In- Tobias Tretter has been active in the manufacturers worldwide. projects, should offer the greatest price op- itially limited to lithium companies as a passi- For example, cobalt has some superior pro- mining sector since 2000. During 3. From the manufacturers of decentralised portunities in the coming months, also with ve index fund, the fund has been actively in- perties when used as a cathode, such as fas- his activity at Dr. Jens Ehrhard energy storage systems that are used regard to possible consolidation, i.e. takeover vesting in other battery metals such as cobalt ter battery recharging. However, battery ma- Wealth Management he supported wherever electricity is generated by pho- scenarios. and graphite for 3 years. The strategy change nufacturers are currently not making full use the management of the DJE Gold & tovoltaic or wind power plants and is to be Some of these committed development com- has been crowned with success so far and of this potential, as the majority of global pro- Resources Fund, which was used later by means of storage. panies, as well as prospective producers, are the fund won the Lipper Fund Award in 2016 duction comes from the Congo and is there- awarded as the best performing presented below. and 2017 for the best fund of the past 3 years fore not a reliable source of raw materials. commodity fund of 2003. From This constellation will cause the demand for in the field of commodities. We believe that Moreover, the mining conditions in Congo are 2005 to 2008 he co-managed the lithium, cobalt, nickel and vanadium to in- we are only at the beginning of a new cycle extremely critical and not only investors but Stabilitas Funds, which have been crease many times over in the coming years, and that demand for energy commodities will also customers avoid this production. The awarded as the "best performing with decentralized storage facilities genera- continue to rise significantly until at least need for reliable sources and ethically and Gold Fund" in 2006. Since 2009, Mr. ting the greatest growth in demand and even 2025. In addition to lithium, the demand for ecologically cleanly extracted cobalt is enor- Tretter acts as CEO and responsible putting the other two areas in the shade. cobalt, graphite, nickel and zinc is also likely mous and will be another trend in the coming person for the Index- and to rise significantly in the coming years, and years. We have therefore positioned the fund Portfolio-Managements of A summary of the above is therefore not too the fund offers our investors a good oppor- even more broadly and can thus diversify Commodity Capital AG. He is difficult, a glance at the most important nu- tunity to profit from the boom in lithium batte- even more strongly. Should other commodi- managing the Commodity Capital merical estimates is basically sufficient. The ries. ties become interesting due to demographic Global Mining Fund (ISIN: number of electric vehicles will multiply in the trends or their reduced exploration, the fund LU0459291166), the Structured coming years: From 1.2 million electric cars in can realign itself at any time. If an investor be- Solutions Lithium Index Strategie 2017 to at least 20 million electric vehicles per Is such a fund, which focuses on relatively lieves in the success of electric cars or Pow- Fund (ISIN: LU0470205575) and the year from 2025. 25 million electric vehicles narrow niche commodities, not too speciali- erbanks, he is faced with the choice of buying Managed Accounts of Commodity per year are expected from 2030, and 60 mil- sed and therefore too risky? shares in one or two companies in the sector Capital. Tobias Tretter holds a lion vehicles per year from 2040. At the same or a specialised fund. Due to the specifica- business diploma degree from the time, lithium-ion battery demand will rise from Yes and no. We believe that specialization is tions of the sector, investors should prefer University of Bayreuth. 21 GWh in 2016 to 1,500 GWh in 2030! By one of the factors for our success. The lithium diversified funds or certificates to direct in- 2021 alone, capacity demand will increase to sector is very special and requires consider- vestments in order to minimise individual an estimated 270 GWh, driven by the expan- able experience and due diligence to filter out equity risk to a large extent. sion plans of the upcoming storage producti- the successful companies of the future. Since on giants LG Chem, Samsung SDI, CATL, every lithium project is unique, lithium com- Lishen, Tesla and others. panies in particular require much more inten- Which raw materials - besides lithium and sive due diligence than gold or copper pro- graphite – do you currently consider to be ducers, for example. additionally important for the electro revolu- The imminent supply shortfall tion? – Which of these are to be regarded as will reward the most advanced However, the fund‘s specialisation also in- „critical“, i.e. particularly scarce for the co- developers in particular creases its volatility. The fund cannot easily ming years. escape a correction such as the one in the On the whole, there are signs of a supply first few months of this year, as even good We are currently seeing massive develop- shortfall in the lithium, cobalt, nickel and va- lithium companies initially lose value in a cor- ments and changes in the production of lithi- nadium markets as well as in the cobalt, ni- rection. However, we see the opportunities um batteries. In the coming years, batteries ckel and vanadium markets, as the increase offered by the fund‘s specialisation as much will become significantly more powerful, ligh-

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] ter and faster to recharge. This will also lead Where are the main mining areas for lithium instability, so that investors cannot avoid of primary importance. The Gigafactories cer- to changes in the metals needed to manufac- and cobalt at the moment and which could Congo. The industry and we investors are th- tainly don‘t want to stop their production ture these batteries. In our discussions with be added? Are there currently political, en- erefore looking for cobalt projects outside the because there is not enough lithium available. the major battery manufacturers, however, vironmental or similar restrictions in these Congo that can be mined at cost-covering The lithium market therefore has something we were repeatedly assured that many years regions that could lead to future supply bot- prices. I am sure that battery manufacturers of a race against time at the moment. There will pass on the way to the ultimately optimal tlenecks? and car manufacturers would be willing to are certainly enough lithium resources world- battery - a solid state battery without liquids pay a premium for ethically and ecologically wide, but the massive expansion of lithium within the battery, and in particular the pro- Since this year, Australia has been the world‘s degraded cobalt. battery production and the demand for lithi- portion of lithium will hardly change. Howe- largest lithium producer and we see further um in the coming years will pose considerab- ver, in the coming years, significantly more potential in Australia to expand production Basically, I believe that in the future cobalt le problems for mining companies, which nickel will be used in batteries at the expense from hard rock projects. Traditionally, the ma- can also be mined in North America or South have hardly invested in recent years due to of cobalt or graphite. Basically, we will see jority of lithium production comes from the America at reasonable prices and see consi- the general crisis in the mining sector. bottlenecks in all battery metals in the next 5 country triangle of Chile, Argentina and Boli- derable potential here for purchase agree- years. We see the lithium bottleneck most via, as the low price of lithium meant that pro- ments or joint ventures with the automotive The question for the lithium sector in the co- critically, as there is no solution in sight for duction from the salt lakes in particular was industry for the first new producers. ming years is therefore not: „How high is the the next 5 to 8 years. Graphite is critical, but cheaper and thus economically profitable. lithium price, but where do I get the lithium a few projects should be able to meet the de- There are lithium deposits worldwide and in For lithium, I assume that the number of Hard from and what is its availability“. mand. So it‘s also important here to be the the future we will see various locations for Rock projects will increase due to the increa- first to go into production. Cobalt is critical new lithium production. With lithium there is sed lithium prices and that production will be Lithium is certainly the most critical factor as because it is only mined in small quantities unfortunately a certain risk with all current more strongly distributed worldwide. South it cannot be substituted. But the supply of co- outside the Congo and battery manufactu- projects. Australia certainly has few political America and Australia will remain the main balt, graphite or nickel is also critical and far rers are urgently dependent on alternatives risks, but lithium companies in Australia are mining regions. from secure. Massive investment is needed to from politically stable regions. The emerging currently mining „only“ lithium concentrate, discover and develop new deposits and there increase in the use of nickel in batteries will which is then converted into lithium hydroxide will be a shortage of all these commodities, at also lead to production bottlenecks for nickel or lithium carbonate for battery manufactu- So-called megafactories, i.e. large producti- least for some time. The steadily increasing and we see a considerable need for new pro- rers in refineries in China. Unfortunately, de- on facilities for lithium-ion batteries, are cur- investments in new gigafactories will certainly jects in this area. In the case of nickel, the pendence on China cannot be dismissed rently springing up like mushrooms. Is there worsen the situation in the coming years and enormous initial investments for a new mine here and represents a certain risk. In South already enough raw material for processing we do not expect an easing in the supply of are primarily critical. The incentive to bring America, and especially in Argentina, political for these production capacities? raw materials before 2025. new projects into production for billions of and economic reliability has traditionally been USD was not there in the past years due to a problem. Currently, the immense inflation Gigafactories are the key or motor for lithium In the past 10 years, bubble formation has the falling nickel prices and now the interest and the enormous currency devaluation of demand and play a decisive role. Tesla‘s gi- been observed from time to time in so-called in new projects is increasing again, but these the peso is very positive for lithium producers, gafactory alone will double the worldwide „trend raw materials“. Just remember the ura- projects also need some years to be brought as most costs are incurred in the weak natio- production of lithium batteries. Elon Musk has nium bubble and the hype about rare earths, into production. We wait for nickel shortages nal currency, but the lithium can be sold in already announced the construction of 5 graphite & Co. Why should this be any diffe- over the next 5 years before the situation USD. However, we have learnt from history more gigafactories. But not only Tesla, but rent with raw materials for the production of should ease again. that such extreme scenarios never end well also BYD, Foxconn, LG and Daimler are buil- batteries? and we expect additional taxes and levies for ding new gigafactories and investing billions Vanadium will play a central role in stationary all exporting companies, but hope that the of US$ in the expansion and establishment of Hypes are not necessarily negative for inves- energy storage in the coming years and we country will not relapse and continue along new battery productions. Production will trip- tors. The only important thing is to identify need some new projects to meet demand in the path of opening the market for foreign le to at least 87 GWh by 2020. However, this them early on and to exit these markets in the coming years. Vanadium is similar to the companies and investors. is not only about the batteries for future elec- good time. With all three „hypes“ mentioned it situation with graphite. It will be important for tric cars, but in particular also about the was always a hype among the investors, companies to be the first to go into producti- Cobalt is primarily extracted as a by-product decentralized storage of regenerative ener- which however did not have rising demand on, as demand is urgently dependent on new from copper production and unfortunately a gies with batteries. on the part of the industry as a basis. Yeah, projects, but a few new projects should be large part of the production comes from the there was a rising demand for uranium until able to meet the additional demand. Democratic Republic of Congo. Congo is pri- As already mentioned, the price of lithium the bad events in Fukushima. Thereafter, ho- marily known for its non-existent labour and plays a rather minor role in the cost of battery wever, nuclear power plant operators in Ja- safety standards, child labour and political production, so that the availability of lithium is pan acted as sellers rather than buyers and

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] Chile and Argentina have experienced we- Another of the companies in which we see ather caprioles which have led to losses in considerable potential is Standard Lithium, a production. At present, we do not see the relatively young lithium company that has at- possibility of obtaining lithium even close to tracted a great deal of attention in addition to what would be necessary for the massive ex- other projects, in particular through a joint pansion of lithium battery factories and cur- venture with Lanxess in Arkansas. The com- rently see no hype in the lithium sector, but pany is trying to extract the available lithium rather a very strong increase in demand in the cheaply from old oil wells - which also carry a medium term with only little potential for ex- lot of lithium in addition to oil - and is already panding production. working on the pilot plant here. Even with the support of the German chemical giant, Stan- dard Lithium is likely to become the first signi- Mr. Tretter, let‘s get back to your fund. What ficant lithium producer in America. We see are the largest individual positions in your considerable potential and expect a takeover fund and why? competition for this still young company after the successful demonstration of the pilot In general, we follow the life cycle of commo- plant. dity companies very closely - also with our global mining fund - and see by far the best Another interesting project that is not yet on risk-reward ratio for junior companies that the radar screen of most investors is Jackpot have just gone into production or will go into in Ontario from Infinite Lithium. The project production in the near future. These are the offers excellent potential in a politically stable companies that have already successfully environment and has certainly attracted at- overcome the biggest risks and represent the tention in the coming upward trend in the lit- potential takeover targets of the major ma- hium sector. Switching to electric cars and regenerative jors. Therefore, in addition to the established energy sources and thus decentralized were the main reason for the falling uranium of lithium is ultimately insignificant for the ma- major producers, Lithium Americas and Kid- energy storage is not possible without prices. In rare earths, there was never a bot- nufacture of lithium-ion batteries. It is only a man Resources in particular are overweigh- lithium-ion batteries. tleneck in the production of raw materials, but matter of sufficient supply with lithium. And ted as the coming producers. While Lithium (Source: shutterstock) in their processing in Chinese refineries. And this can definitely be doubted in view of the Americas is about to start production on the with graphite it is simply the problem that the massive investments in new battery producti- Chaucari-Olaroz project in Argentina, Kidman demand increases analogously to the de- on facilities. By 2025 at least 1,000,000 tons owns a joint venture with the lithium giant mand for lithium, but it is also possible to proof lithium will be needed. This corresponds to SQM in Western Australia. The Mt. Holland duce graphite artificially. Furthermore, it is four times the current production of about Lithium Project is certainly one of the most difficult even for „experts“ to estimate which 250,000 tons of lithium. Even with an optimi- promising hard rock projects in the lithium raw material project really has the right quality stic view, it will not be possible to bring 40 to sector. for the end user, i.e. the battery manufacturer. 50 new projects into production in 7 years.

With lithium, the fundamental situation is In addition, we expect the sector to face Which second-tier companies could be of completely different. Switching to electric further significant problems. It became known additional interest to investors because of cars and regenerative energy sources and that there will be no new water licenses for their presence, location, management or thus decentralized energy storage is not pos- the Atacama Desert in the foreseeable future. other reasons? sible without lithium-ion batteries. This can The Atacama Desert is currently the world‘s also be seen from the massive investments largest lithium producer and there were big After the correction in recent months, we are made by industry in new battery factories, all plans to significantly expand current produc- seeing very good entry prices again and are of which will require lithium. Since lithium mation. These plans should be off the table for seeing some interesting companies which are kes up a considerable part of a battery in the time being. The economic problems in Ar- currently very attractive for us due to the pro- terms of quantity, but is only responsible for gentina are also increasing the uncertainty jects, the management teams or in the best about 4-5% of the cost of a battery, the price and, last but not least, in the past two years case both.

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] Questions to the European lithium expert Vincent Ledoux Pedailles on Europe‘s future lithium supply

Vincent, could you please give us a brief creasing battery metals demand in 2018, ho- background on you? How did you become wever, in the long term it will be technically one of the leading Battery Metals experts in challenging for the industry to be able to Europe? meet demand; growth rates are likely to average 20% per year for at least the next 10 ye- My career in lithium started at Talison Lithium ars. Cobalt has the slowest growth in terms who operates the largest lithium mine in the of demand because the industry is moving to world in Western Australia. It was back in high nickel content cathodes and therefore Vincent Ledoux Pedailles 2011 during the first investment wave in lithi- require less cobalt and more nickel. Within um projects and when the EV story was star- the cathode metals, nickel will see amazing ting to pick up. It was also just after financial growth rates during the next decade as its crisis and governments had no money to in- use in batteries is growing, you produce vest in charging infrastructures or subsidies. more batteries and in each battery you use Battery costs were still very high, and the more nickel. Lithium is the most critical in my technology was not as advanced as today. I opinion. It is the only element you can’t repla- did believe in the long-term opportunity of ce in a lithium-ion battery, and it is probably E-mobility and its impact on raw materials the most difficult to process to a high, con- such as lithium so I wrote a thesis on the de- sistent grade. Once again, the metal is not velopment and the deployment of EVs powe- rare or scarce but consistently processing it red by lithium-ion batteries. After this, I then to a high-quality battery grade is challenging. worked for one of the leading consulting and Moreover, in recent years many projects and research firm in battery metals, Roskill Infor- expansions have been cancelled or post- mation Services and later joined IHS Markit poned, especially on the brine side where where I covered basic chemicals and then conditions are difficult and ramp up time is created a new business line looking at the lit- significantly longer. In 2018, sufficient lithium (Source: Infinity Lithium) hium-ion battery supply chain, from extrac- came on stream to feed demand from the ding) have been concluded. Out of those 40 in China. Most of the nickel production is in ting raw material all the way to their use in market despite these challenges, but the offtakes, 76% were concluded by companies countries such as Indonesia, the Philippines, electric vehicles and energy storage sys- market is still in its infancy. It will be different based in Asia and 51% by Chinese compa- or Canada. At the moment, most of the lithi- tems. I recently decided to join the industry when the market is five times this size. nies. China is the only country where spodu- um production comes from Australia, South and Infinity Lithium, a project I had been fol- mene is being converted into lithium chemi- America and China. There is currently no lit- lowing since its beginning with a great asset cals and a lot of those transactions were for hium production in Europe, which is unfortu- and location, filling the gap and feeding the Have battery manufacturers, particularly lithium feedstock in the form of spodumene. nate as the continent is going to need a lot of lithium-ion battery in Europe. those in Europe, sufficiently stocked up on European companies accounted for less lithium. The EU goal is to move towards a the required battery metals? than 8% of those offtakes, which is not much fully integrated lithium-ion battery supply for a region expected to become the second chain. It is interesting to estimate how much What is your assessment of the current The answer is simple; no. The lithium-ion largest producer of electric vehicles and lithi- domestic lithium production this will require. market situation for battery metals? In your battery supply chain today is largely domina- um-ion batteries. Not only are automakers Mid-range forecasts such as the one from opinion, what are the most important bat- ted by China and this will continue in the fu- and battery producers in Europe starting to HSBC, see Europe producing around 13 mil- tery metals and which of them are to be ture. They control virtually every single step realise battery metals such as lithium need to lion EVs by 2030 with a mix of EV, PHEV and classified as critical, i.e. scarce? of the supply chain. They are the largest lithi- be secured, they also understand that the in- HEV. Those 13 million EVs will require more um chemical producer in the world, the lar- dustry needs to be more integrated and re- than 250GWh of domestic lithium-ion battery In my opinion battery metals are all critical gest cathode marker, the largest battery produce its carbon footprint. production, which is almost twice the global today. The issue we have is that the tremen- ducer and finally, the largest producer of EVs. lithium-ion battery market in 2017. In turn, dous growth on the demand side is putting They are not currently a large producer of lit- those batteries will require close to 250,000t great pressure on supply. Some of those me- hium feedstock, but they do control a lot of What about the production of battery me- of lithium chemical, which is almost the size tals are not scarce but extracting them and its output through numerous offtake agree- tals in Europe? of the entire lithium market in 2018. To further processing them to the right quality at the ments they have concluded over the last few put this into context, this would represent right cost proves to be challenging. There years. Actually, over the last 3 years, around Today, most of the cobalt is mined in the De- more than 16 times the size of our project in has been an obvious supply response to in- 40 lithium offtake agreements (MOU or bin- mocratic Republic of Congo and converted Spain. Of course, it’s difficult to imagine that

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] battery suppliers and protect German jobs. consistent product. Another challenge for France has also announced recently that it brine resources, especially in Chile, is that will invest 700 million euros over the next five regulators try to control lithium as much as years into projects to boost the European possible. This makes it difficult to operate in electric car battery industry and reduce its these countries and detracts from new pro- carmakers’ reliance on dominant Asian rivals. jects. There are also significant issues with Spain also has the opportunity to follow this water rights as lithium production from brine trend being the second largest automaker in consumes a large amount of water. Europe while also having the second largest Brine operators have the lowest lithium car- lithium resource in the EU. bonate production costs. However, for lithium hydroxide, which is the fastest growing lithium chemical for battery demand, the sto- What are the different paths for lithium to ry is different. Lithium carbonate needs to be reach its key markets? What are the main produced first and then converted to lithium hurdles and cost influencers along this sup- hydroxide, adding a conversion cost. Chile ply chain? has also imposed significant royalties, up to 40%, which roughly increases domestic lithi- They are many paths to market for lithium, um producers’ costs by around 50%. In Ar- but integration and proximity are both key. gentina, there is also a new export tax on lit- (Source: Infinity Lithium) Today, lithium feedstock is mostly coming hium. from South America and Australia and going Lithium hydroxide is then shipped, predomi- the European lithium-ion battery supply chain European EV battery market could come to to Asia. nantly to the Asian market. However, if it is will be fully integrated by 2030, but even if be worth 250 billion euros annually by 2025, In South America, lithium production comes still in a carbonate form, it can be exported to only part of it is, it will lead to massive lithium which is clearly an incentive for intervention from brines operated in Chile and Argentina. countries like the US for conversion, which is requirements, especially for lithium hydroxi- and to allow Europe to take advantage of this Producing lithium from brines is tough; they obviously adding transportation costs and de. There is clearly a gap in the European opportunity. are situated in very remote locations with a additional conversion costs prior to being ex- market and this gap has finally been identi- Leading those efforts is the European Battery very harsh environments, making everything ported to Asian markets. Lately it seems that fied by decision markers, leading to invest- Alliance (EBA), a platform that consists of the more difficult and expensive. Moreover, a bri- lithium producers are looking at moving away ments in this space. EC, EU countries, the European Investment ne is like a living organism, its composition from Chile and investing in hard rock projects Bank (EIB) and key industrial stakeholders. changes all the time, so it is hard to get a instead. The EBA’s goal is to create a competitive lit- What are Europe and European govern- hium-ion battery supply chain and to limit the ments doing to support the development of reliance of European players on other regions a more integrated lithium-ion battery sup- such as Asia, while also striving to create and ply chain? protect jobs, growth and investments. Recently during an EBA meeting, the EC ex- The EU and a number of governments are fi- plained that primary and secondary raw ma- nally seeing the necessity to develop electri- terials remain a priority and there is a gap in fication in Europe and to support a domestic the existing value chain with no current capa- industry around it in order to protect the con- city to refine battery chemicals. The EC and tinent. There is clearly a lot of investment EIB are promoting a harmonised view to around EVs in Europe and also around batte- build and support processing and refining ries, but battery metals have been overlook- capabilities with Europe. ed until now. A number of industry players At a country level, Germany specifically is ex- have been asking for some protectionist posed to the risk of electrification and the measures in Europe because they cannot effect will have on its industry. They have compete against Asian manufacturers. recently set aside 1 billion euros to support Recently the Vice President of the European battery cell production in order to reduce the Commission (EC), Maros Sefcovic, said the dependence of German carmakers on Asian (Source: Infinity Lithium)

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected]

(Source: Infinity Lithium)) dustrial project will feature a fully integrated nese cathode maker would have to import operation where lithium mining and conver lithium hydroxide from the US for example sion are adjacent. No import duties on feed (18,000km away). The US chemical producer stock are paid and there are no royalties in would need to import lithium carbonate place. All reagents are available domestically feedstock for production, most likely from and there is a gas pipeline right next to the Chile, 7,000km away. This represents more plant. There are no export taxes and the pro- than 50,000km of freight. duct can simply be trucked to an integrated It is crucial to develop a more integrated lithi- battery plant after conversion. um-ion battery supply chain where lithium mining and conversion are adjacent and supply products to the nearby battery and car In Europe and especially in Germany, a industry. It is a model that can definitely be number of people are criticising EVs becau- implemented in places such as Europe where se of its supply chain. The focus is primarily there are large investments, plans for the on environmental and social issues, such as production of EVs, batteries and cathodes. (Source: Infinity Lithium) the immense water consumption in lithium The only missing part of the European supply The new primary pathway for lithium is from Chinese lithium converters were shut down brine projects in the desert regions of South chain is primary and secondary materials. Australia to Asia. In Australia, lithium is mined last year for not respecting the rules. America or the conditions in Congolese co- There is always a debate between hard rock in the form of spodumene from open pit mi- The end product can then be sold in China, balt mines. How do you feel about that? supply and brine supply. It is clear that hard nes. These mines are also remote, although but if you want to export the product to South rock lithium production is going to dominate to a lesser extent than Chile or Argentina, Korea or Japan an additional 17% tax will Environmentally, we need to bear in mind in the future, for many different factors inclu- and there are considerable logistics costs in- need to be paid. that we are moving to E-mobility to be gree- ding ease to bring on stream, easier mining volved. However, the operations are low risk, A number of companies who are currently ner and reduce carbon emissions. That being jurisdiction, lower production cost for lithium in a mining friendly region and the royalties mining in Australia are looking at converting said, when we look at the current supply hydroxide, etc. However, neither mining me- are significantly lower. spodumene into lithium chemicals domesti- chain structure, we can question the actual thod is without some environmental impact. Today, nearly all spodumene mined is expor- cally. There are a fair amount of logistics benefits of EVs. When we observe the exis- On the brine side, the most obvious impact is ted to China, around 8,000km away, for con- costs involved as the conversion plants will ting lithium-ion battery supply chain, it is not water. Large amounts of water are necessary version into lithium chemicals. Import duties still be far the mine, reagents are not always rare to see lithium travelling more than for lithium production in very dry and remote need to be paid and then there is a significant available domestically and energy costs are 50,000km before an EV is purchased by the areas. On the rock side, the conversion of difference in terms of feedstock costs bet- high. The product will still need to then be end-user (see below). spodumene into lithium chemicals in China is ween integrated and non-integrated conver- exported to Asia. A good example of this is to look at a Europe- using large amounts of sulphuric acid, a ha- ters. Non-integrated will have to buy spodu- an customer buying a luxury EV today. The zardous and polluting chemical. There is an mene in the merchant market which is more One of the potential new pathways to market EV would be imported from the US, more alternative to the use of sulphuric acid during expensive and will sometimes need to rely on for lithium is a more integrated and regionali- than 16,000km away. In the US, the auto the conversion process; the sulphate pro- different grades from different miners which sed chain; much simpler and all domestic, plant and the battery plant could be almost cess. This method uses sodium sulphate makes the conversion more difficult. with very limited transport and low costs. Eu- 500km from each other. The battery packing and/or potassium sulphate and a water leach The conversion process is energy intensive rope for instance, has the opportunity to de- is done in the US but the battery cells can be (as opposed to an acid leach) where most of and uses a large amount of sulphuric acid, a velop such a supply chain as it will be the imported from South Korea, almost 10,000km the water is recycled. hazardous and polluting chemical. There are second largest EV and battery maker in the away. In those cells the cathode could be im- We mentioned the carbon footprint of the lit- increasing costs for environmental penalties world after China. The second largest lithium ported from Japan, “only” 400km away. In hium-ion battery supply chain but there is in China with the country becoming stricter in resource in the EU is located in Spain, more those cathodes lithium hydroxide is needed, also a significant carbon footprint involved its environmental policies. For instance, two precisely in the Extremadura region. The in- a material Japan doesn’t produce. The Japa- with lithium chemicals production when re-

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] where renewable energy sources such as chemical for a number of years. Neverthe- solar and wind are becoming very popular less, stronger growth is clearly coming from and less expensive. There are obvious the hydroxide side and its connection to high connections between E-mobility and rene- nickel content cathodes. Finally, there is a wables, not just on the green side, but also need to show a minimal carbon footprint by the fact that both require lithium-ion batte- being close to the market, working with do- ries. Batteries are used for EVs but are also mestic or regional suppliers and customers, used as Energy Storage Systems (ESS), and using more environmentally friendly pro- which includes power systems for grid ope- cesses. rators and off-grid generators. These power systems store electricity for both residential and commercial purposes. The later application is becoming more prevalent along with the strong momentum of off-grid residential and commercial demand. ESS smooth the power fluctuations of “weather-driven” renewable sources such as solar and wind, thus preventing the disruptions to the transmission grid. In the future, EVs could also be used as ESS to store energy from your own renewable production at home.

What advice would you currently give inte- rested investors to make a move into the battery metal sector? (Source: Infinity Lithium) agents, which are a substantial cost in lithium cess method during conversion to reduce 2018 has been a tough year for most inves- production, especially on the brine side, environmental impact. The carbon footprint tors in the battery metal business especially need to be imported from far away. For ex- resulting from sourcing reagents is also mini- on the lithium side. All major and junior stock ample, in Chile, there is no domestic produc- mised as the project is in Europe where all prices declined during the year following a tion of sodium carbonate, a key reagent for chemicals are available domestically. fear of oversupply and a collapse in spot the production of lithium carbonate. Therefo- The concerns around the environmental im- prices in China. It is now clear that oversup- re, all the sodium carbonate requirements pacts of EVs are appropriate when looking at ply is not happening and people understand need to be imported from the USA. It will be the operation of current supply chains. Ho- the fall in spot prices, a minority of the traded a similar issue for Australia when they pro- wever, if you look at emerging projects, such volume, is not representative of the market. If duce large amounts of lithium hydroxide and as Infinity Lithium, you can see how this is I look at lithium I would look at four main require significant tonnage of sodium hydro- evolving with these social issues in mind. things: integration, hard rock, lithium hydroxide. xide and environmental footprint. It is key for All of these issues are able to balance with lithium producers or projects to be integrated strategically appropriate projects. There are a Assuming the e-mobility boom comes as in lithium chemical production and limit ex- number of projects that could support a lo- predicted, where will the electricity needed posure to third party converters. Hard rock wer carbon footprint, such as Infinity Lithi- to support this come from? What solutions operations and projects have key advanta- um’s San Jose project in Spain; fully integra- would you suggest? ges in terms of cost and ease of implementa- ted and close to the European battery and tion. There are also cheaper pathways to lit- car market it is able to fill the current gap, It is important that the growing need in elec- hium hydroxide production, the fastest gro- providing primary and secondary materials tricity from transportation is met by renewab- wing chemical for battery application. Lithium from within Europe. Further, Infinity Lithium’s le sources. There is a clear move in this di- carbonate is still very relevant in the battery project is planning on using the sulphate pro- rection globally and particularly in Europe business and will remain the primary lithium

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Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz www.resource-capital.ch | [email protected] Bankers Cobalt On the way to the first direct hit with a unique business model

Bankers Cobalt is a Canadian exploration Chinese processors in the immediate vicinity Project 2: Kankutu is located approximately 110 km and development company focused on co- will be offered the resources and fines for Kankutu DRC southeast of Lubumbashi. balt and copper. The Company is one of the non-certified deliveries of cobalt and copper (Source: Bankers Cobalt) few to have a high-quality portfolio of appro- will be avoided. This model is strongly sup- Bankers Cobalt‘s second key project is cal- ved copper-cobalt concessions in the De- ported by the mining parties concerned in led Kankutu and is located about 110 km mocratic Republic of Congo (DRC) and Na- the Democratic Republic of Congo. southeast of Lubumbashi. The project con- mibia, which it assesses to Canadian mining sists of a total of 4 concessions, in which standards. The company‘s goal is to genera- 65% and 70% respectively are held and te a reliable, certified supply of conflict-free 27 concessions in the Democratic which cover an area of 10.3 km². 3 km to the cobalt and copper for existing and new pro- Republic of Congo – 1 in Namibia east is the operated Kimpe Mine, which cur- cessors in the DRC who have overcapacity, rently contains a resource of approximately Stephen Barley, CEO but not certified resources, to meet growing Bankers Cobalt is one of the very few foreign 3 million tonnes of 4.4% copper and 0.54% market demands. pioneers to early secure cobalt copper con- cobalt. Kankutu has a strike length of 2.15 cessions in the Democratic Republic of Con- km and has mineralization in the eastern and go. The company currently holds 100% of 6 southeastern areas along the line of the Kim- Unique business model concessions in the DRC. In addition, there pe structure. Sampling (over 1,100 samples) project covers 135 km² and is 70% Bankers are 21 private joint venture agreements with and geophysical surveys have been comple- Cobalt. The project has several visible out- Bankers Cobalt pursues a unique business well-known partners. In total, these conces- ted and drill targets identified. In addition, crops of supergene copper mineralization model that closes a gap in the resource sup- sions comprise 391 km² of potentially around 4,500 metres were drilled. The re- over a strike length of several kilometres. ply chain. The strategy is quite simple and high-quality exploration properties. The ac- sults are still pending. These also show traces of gold, silver, lead synergetic with the existing operators in the quisition of these 27 licenses was preceded and zinc. Early grab samples were assayed DRC. Bankers Cobalt acquires high quality by more than 5 years of research and opera- by the ALS Laboratory in Johannesburg and projects in the Democratic Republic of Con- ting experience in the DRC. In Namibia, a Project 3: returned copper results from 1.2% to go and intends to develop them into certified 70% option on a 135 km² licence was secu- Comipad Comima (292) DRC 24.60% and silver results from 2 g/t to 239 The concessions of Bankers Cobalt cobalt and copper resources using highly red for risk diversification purposes. Not only g/t. These samples were taken extensively, comprise 391 km² of potentially high-grade professional exploration techniques rarely does Bankers have a first-class land packa- Bankers Cobalt‘s third advanced project is and this project has the potential for a large, exploration properties. practiced in the Democratic Republic of ge, it is also one of the few mining compa- the Comipad Comima Copper Cobalt Pro- world-class deposit. Additional minerals are (Source: Bankers Cobalt) Congo. According to the agreement, mainly nies outside the large corporations to have ject. This consists of the two concessions of also available. Kamanjab is located in a se- established an effective operations team in the same name and is 70% owned by Ban- mi-arid environment and exploration can the DRC. kers Cobalt. The project, also known as 292, continue throughout the year. is located approximately 35 km southwest of Likasi and covers 3.4 km². It is located on an Project 1: east-west trend strike anomaly that extends Kamanjab Project covers 135 km² and is Kabolela DRC over a length of 2.7 km. 10 km west lies the under a 70% option to Bankers Cobalt. Mwomba deposit, which contains cobalt, ni- (Source: Bankers Cobalt) Bankers Cobalt‘s first advanced project is ckel, gold, platinum and palladium. The geo- called Kabolela and is 55% owned by the physical sampling and trenching work has company. Kabolela is located about 130 km been completed. A drilling program is in pre- northwest of Lubumbashi and about 10 km paration. northwest of Kambove and covers 3 km². To the east and west of the property there are several running copper and cobalt mines. Project 4: The mineralization known to date extends Kamanjab – Namibia over a strike length of approximately 200 metres. Drilling has already confirmed cop- Bankers Cobalt‘s fourth ongoing project is per and cobalt mineralization. The Company called Kamanjab and is located in the politi- is currently planning further drilling in the cally stable country of Namibia. It is located southern and south-central portions of the in the northwest of the country, about 90 km concession. from the city of Kamanjab. The Kamanjab

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www.bankerscobalt.com www.bankerscobalt.com Kamanjab extension quisitions and financing listed companies. Bankers Cobalt has strong independent di- great potential for one or more direct hits He has participated in a number of TSX-lis- rectors. that could take the company to a whole new The promising results of the sample collecti- ted resource companies involved in major Simon Tuma Waku was the former Minister level. The experienced and highly successful on led to the Bankers management deciding international projects. of Mines in the Democratic Republic of Con- management team has proven impressively at the end of 2018 to drastically expand the Kevin Torudag, President of the whol- go and is the representative of the state mi- in the past that it is capable of fully exploiting Kamanjab project. Bankers has entered into ly-owned subsidiary of the Democratic Re- ning company Gecamines in the world‘s lea- the early opportunities in the Democratic Re- an option agreement with a private Namibian public of Congo and founder of Bankers, has ding copper and cobalt mine Tenke. public of Congo and Namibia. company to acquire a 70 percent stake in been active in the public market for over 25 Shu Zhan is a senior geologist and has been Exclusive Prospecting License 4477, which years and has been directly involved in the responsible for mergers and acquisitions for is adjacent to the Kamanjab project. EPL financing and development of several natu- a major Chinese investment bank in DRC for 4477 has an area of 943 square kilometres, ral resources. Most of the last five years he the past seven years. so that the current Kamanjab land package has lived and worked in the Democratic Re- has expanded to a total of 1,078 square kilo- public of Congo to evaluate projects and metres. build the necessary experience and relati- Summary: onships to successfully evaluate and work in Early chance of a real direct hit the Democratic Republic of Congo. Catalysts for the coming weeks President and COO Grant Dempsey is a me- Bankers Cobalt is one of the first pioneers and months chanical and electrical engineer with over 40 when it comes to cobalt licenses in the DRC. years experience in all aspects of mining. He The company secured a potentially high-ca- In 2018, exploration work was carried out on also has 17 years experience in the De- libre portfolio of concessions, most of which a total of 12 concessions, mainly during the mocratic Republic of Congo, where he is are close to proven reserves. So far, 3 pro- rainy season. Several drill targets have been considered one of the most respected mi- jects have been or are being drilled, with identified and are currently being developed ners, including a strong network in the coun- most results still pending and expected by by drilling. try. Prior to joining Bankers Cobalt, Demp- the end of 2018. Based on the experience sey was a technical advisor to the Board of gained from the projects to date, there is Gecamines, the DRC‘s state-owned mining Competent and experienced ma- company. Dempsey was also President of nagement team Boss Mining (only 3 km from Bankers Co- balt‘s Kabolela project) and Frontier‘s activi- Bankers Cobalt has a very competent and ties, where he helped increase copper ca- ISIN: CA06612P1018 Bankers Cobalt Corp experienced management team. thode production by 70% through plant ex- WKN: A2H6NH CEO Stephen Barley has more than 35 years pansion while reducing operating costs by FRA: BC2 of experience in structuring mergers and ac- 42%. TSX-V: BANC

Outstanding shares: 106.8 million Options: 7.5 million Warrants: 46.5 million Fully diluted: 160.8 million

Photos from the Kamanjab project Contakt: (Source: Bankers Cobalt) Bankers Cobalt Corp. Suite 1080 - 789 West Pender Street Vancouver, B.C., V6C 1H2, Kanada

Phone: +1-604-834-2968

[email protected] www.bankerscobalt.com

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www.bankerscobalt.com www.bankerscobalt.com Birimian Limited Very High Lithium Grades and Open Pit Mining Possibility on One of the World‘s Largest Undeveloped Lithium Projects

Birimian Limited is one of the most active lit- Goulamina Lithium Project – angsha Research Institute of Mining and Me- hium exploration companies in Western Afri- Positive pre-feasibility study tallurgy. Changsha is a division of China Min- ca. The Australian company holds corres- metals Corporation, which is one of the lar- ponding lithium and gold licenses with a sco- In July 2018 Birimian Limited was able to pu- gest mining service companies in China. This pe of approximately 1,100 square kilometers blish an updated pre-feasibility study for is primarily about discussing ways to jointly in Mali. The development areas there are Goulamina. advance the Goulamina-Lithium project, in- characterised by a very well-developed infra- According to this, an annual production and cluding, but not limited to, project financing structure and increased exploration and pro- processing of 2 million tons of rock for the and offtake opportunities. It is also a matter of

duction activity. Birimian Limited could go production of 362,000 tons of 6% Li2O con- determining how the two parties can jointly into production as early as 2020. centrate can be realized over a mining period develop or exploit the Changsha Group‘s ex- of 16 years. The initial cost of capital was pertise in relation to the project. estimated at US$199 million, including preli- In December 2018, Birimian Limited also an- Goulamina Lithium Project – minary work and buffers. The average cash nounced a letter of intent with General Lithium Status cost per ton of concentrate is expected to be Corporation. This involves the annual purcha- US$ 281. This results in a discounted net se of 200,000 tonnes of spodumene concen- The main focus is on the development of the present value (NPV) of US$ 690 million, an trate, which would represent about 55% of the Goulamina Lithium Project. This was 100% Internal Rate of Return (IRR) of very strong annual output. The parties have agreed to en- acquired by Birimian Limited in 2016 and is 49.5% and a payback period of 2.6 years. ter into discussions with a view to signing a located in southwest Mali, approximately 50 Average EBITDA for the year over the life of binding agreement which will include price kilometres from the border with Guinea. The the mine is estimated at US$ 128 million. and volume arrangements. Delivery could the- project area covers approximately 295 square refore take place as early as 2020. Goulamina lies in southwest Mali. kilometres. Goulamina is located about 150 Accordingly, the Randgold subsidiary Socie- (Source: Biriman Limited) kilometers south of Mali‘s capital Bamako. A Goulamina Lithium Project – te de Mines De Morila paid AU$1 million to main road runs directly through the project Metallurgy Massigui Gold Project Birimian, with Birimian retaining an additional site. Energy and water are also available in 4% royalty. sufficient quantities in the immediate vicinity. In addition to its drilling results, Birimian Li- In addition to the high-grade lithium project mited also has access to data from metallur- Goulamina, Birimian Limited also owns the

gical tests. An average grade of 2.2% Li2O promising gold project Massigui, which is Transformed management team Goulamina Lithium Project – could be determined from a bulk sample of also located in the southwest of Mali and co- with maker qualities Resource three tons of rock. Test runs demonstrated vers a license area of 674 square kilometres. the possibility of producing a high-grade lit- The individual licenses border the Morila gold Since 2018, the Birimian management has Goulamina already has a very high-grade re- hium concentrate. A 6.7% chemical grade mine to the north, operated by Randgold and been almost completely replaced. Three new serve of 31.2 million tonnes of rock with an spodumene-lithium concentrate could be AngloGold Ashanti, from which more than six managers stand out in particular.

average of 1.56% Li2O, equivalent to 486,000 produced by screening and float-sink depo- million ounces of gold have been recovered Chris Evans joined Birimian Limited as Mana-

tonnes Li2O. These reserves are part of a sition alone. The recovery rate, i.e. the pro- since 2000. To date, Birimian Limited has ging Director in February 2019. He is an ex- much higher resource of 43.7 million tonnes portion of the total lithium in the rock that can drilled more than 35,000 metres on Massigui, perienced project and operations manage-

with an average of 1.48% Li2O (equivalent to actually be recovered from it, was a very high identifying three gold deposits, all within a ment expert who most recently served as

645,000 tonnes Li2O) in the indicated catego- 84.7%, but in the pre-feasibility study it was maximum radius of 25 kilometres around Chief Operating Officer of Altura Mining. Du- ry and an additional 59.5 million tonnes with initially only estimated at 70.4%. Further Morila. Birimian‘s management assumes that ring his tenure, Altura changed from explora-

an average of 1.34% Li2O (equivalent to tests confirmed that the 6% spodumene at least eight million tonnes of rock with an tion to production to export and expanded

797,000 tonnes Li2O) in the inferred category. concentrate can be used to produce bat- average of 1.5g/t gold, i.e. about 400,000 from a handful of employees to over a hund- Goulamina now has more than 1.38 million tery-capable 99.5% lithium carbonate. ounces of gold, can be extracted from these red. Evans was also involved in establishing

tons of Li2O, making it one of the world‘s lar- three deposits in open pit operation. In addi- and maintaining important relationships with gest undeveloped lithium deposits. Goulami- tion, the license area has an incomparably project financing and acceptance partners. na itself is at least 700 metres long, but the Goulamina Lithium Project – higher potential for further resources. The CEO Mark Hepburn comes from Corporate resource has not yet been fully delineated at Memoranda of Understanding Morila Mine has few resources left and will and Financial Markets with over 28 years ex- strike length or depth. There is also increa- only be able to survive for a few years from perience in a number of management and sed potential in several other mineralized zo- At the end of 2018 Birimian Limited signed a its own deposits. An option agreement with board positions in institutional stockbroking nes, most notably the Danaya Zone. Memorandum of Understanding with the Ch- Randgold was concluded in November 2016. and derivatives trading for large financial ins-

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www.birimian.com www.birimian.com titutions. He has also been involved in nume- The Company is benefiting from previous most prospective Lithium Development pro- ruction of the project. In parallel with this is rous capital raising transactions for ASX lis- tests that clearly demonstrate that Goulami- ject on the planet. The strong financial results the work that the project team is currently ted industrial and commodity companies. na hosts a high grade and high-quality lithi- included a pre-tax NPV of AUD $920M and a conducting on the Feasibility Study. In February 2019, Alistair Cowden was ap- um resource, which has been confirmed by pre-tax IRR of 49% with a payback period of pointed Non-Executive Chairman of Birimian. its own drilling within a very short period of less than 3 years. Cowden has been a Managing Director, Di- time. If you take a closer look at the facts and At the end of 2018 and into early 2019 Birimi- How do you see the current situation on the rector and Geologist in the mining industry in parameters known so far, including reserves, an conducted a capital raising in order to market for battery metals? Australia, Africa, Asia and Europe for more resources and pre-feasibility study, you will continue with a Feasibility study on the Gou- than 35 years. He has founded eight public quickly come to the conclusion that Goula- lamina project and have had a refresh of the I think that the entire market for battery me- limited companies, including Altona Mining, mina is one of the few absolute hits in the Board to reflect the new phase of project de- tals in general, and Lithium in particular, is of which he was Managing Director. Altona lithium range. Good infrastructure, high gra- velopment that the company is now entering, like any other in that it has and will experien- financed the construction and sale of the des and the possibility of cost-effective sur- as opposed to the previous excploration ce cycles. In the past 12 months there has Kylylahti copper-gold mine in Finland in 2014 face mining, this is exactly what investors are phase the company has been through. been a downward trend in Lithium demand and owned the Eva Copper project in looking for in lithium projects! In addition, the and pricing due to negative market sentiment Queensland before merging with Copper Massigui Gold project offers the opportunity based on fears of oversupply. The multitude Mountain for $250 million. to generate positive cash flow at relatively What are the most important catalysts for of announcements from auto manufacturers short notice. The new management team has the next 6 to 12 months? regarding their electric car targets out to shown in the past that it can firstly raise suf- 2030 clearly show that over supply fears go- Summary: Full speed ahead to ficient capital for medium-sized mining pro- The continued development of the Goulami- ing forward are baseless and therefore the one of the world‘s highest grade jects and secondly put them into practice. na Lithium project will be the focus of Birimi- market is starting to look up again. This puts and possibly most economical an for the next twelve months. This will invol- Birimian in the perfect position to ride the lithium mines ve securing off take partners for the planned next wave of Lithium demand when the Gou-

362,000 Tpa of 6% Li2O concentrate the lamina project comes into production. Birimian Limited is one of the very few de- mine will be producing, as well as seeking velopment companies to have seized the op- the finance required to complete the const- portunity to secure a lithium deposit on the African continent.

ISIN: AU000000BGS0 Birimian Limited Exclusive interview with Chris Evans, WKN: A1JQXE FRA: N9F Managing Director of Birimian Limited ASX: BGS

Outstanding shares: 262.7 million

What have you and your company achieved ve grading of 1.56% Lithium Oxide (Li2O). Options: 7.5 million in the past 12 months? Accompanying this was an increase in the Warrants: -

Resource to 103.2MT at 1.32% Li2O. This Fully diluted: 270.2 million The past 12 months for Birimian has been an provides 16 years of mine life at the propo- Chris Evans, Managing Director exciting time with a number of major milesto- sed 2Mtpa processing rate and made the Contact: nes reached during the development of the Goulamina deposit one of the best in the Birimian Limited Goulamina Lithium Project in Mali. world. There also remains a lot of potential Unit 18, Second Floor, Spectrum Building In the first half of 2018 Birimian undertook a upside to further increase the size of the re- 100 - 104 Railway RoadSubiaco WA 6008 drilling program with the aim of increasing source and reserve. the size of the Goulamina resource and esta- The second significant milestone that was Phone: (08) 6149 6100 blishing a maiden ore reserve. This was suc- achieved in July 2018 was the release of an Fax: (08) 9226 2027 cessfully completed in early July 2018 with a updated Pre-Feasibility Study (PFS) that [email protected] maiden ore reserve of 31.2MT at an impressi- confirmed Goulamina as one of, if not the www.birimian.com

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www.birimian.com www.birimian.com Defense Metals Uranium and Rare Earths for National Defense

Defense Metals is a Canadian mining de- Flagship project Wicheeda – on, geochemical sampling, soil magnetomet- velopment company specializing in prospec- Geology ry and blasting from 1985 to 1987. These tive rare earth and uranium projects in Cana- works outlined several areas containing light da. The Company, which did not commence Wicheeda consists of 6 mineral claims cover- rare earth elements as well as niobium, bari- operations in its current form until late 2018, ing an area of 1,780 hectares. Geologically, um, strontium, zinc & fluorine. The so-called Sample from Drill-Hole-WI09 has one rare earth project in British Colum- the Wicheeda project is located in the Fore- „Main“ zone contains a geochemical cerium (Source: Defense Metals) bia, the region with the highest rare earth land Belt and Rocky Mountain Trench, an im- anomaly measuring 1000 metres x 500 met- grades in Canada, and two uranium projects portant continental geological trend in wes- res and containing 400 parts per million in the Athabasca Basin surrounded by major tern Canada. The Foreland Belt hosts a criti- (ppm). Ultimately, Teck did not pursue the uranium companies and high-grade uranium cal portion of a large alkaline magmatic targets by drilling and all claims were extin- projects, respectively. The company strives province stretching from the Canadian Cor- guished. to provide the necessary resources to deliver dillera to the southwestern United States. It reliable energy and contribute to the defense also hosts several carbonatite and alkaline of nations worldwide. complexes, including the Aley (niobium), Flagship project Wicheeda – ject is located approximately 35 kilometers Rock Canyon (REE) and Wicheeda (REE) al- resource estimation + test works northwest of the McClean Lake Mine and Mill kaline complexes, which contain the highest in a relatively unexplored area of the Atha- Flagship project Wicheeda – concentrations of rare earth metals in Cana- In January 2019, The Company published a basca Basin. Location and infrastructure da. first resource estimate for the Wicheeda pro- The Klaproth properties consist of two claims The Wicheeda Project is surrounded by me- ject. It has at least 11.37 million tonnes of and cover approximately 8,130 hectares. The Wicheeda Rare Earths (REE) project is tasedimentary rocks of the Kechika Group rock with an average of 1.96% LREE in the Both projects in the Athabasca Basin are sur- located approximately 80 kilometers penetrated by a southeast trending carbona- derived category. rounded by several major mining companies, northwest of the city of Prince George in the tite. Wicheeda carbonatite is a deformed The Company also announced that a 30-ton- providing the Company with a strategic foo- Canadian province of British Columbia. It is plug or threshold of approximately 250 mene sample has been delivered to a laboratory thold in a proven uranium deposit. relatively easy to reach via an all-weather fo- ters in diameter that hosts potentially econo- in Ontario that will conduct extensive metal- Not far from Geiger North, neighbor ISO

rest road that leaves Highway 97. Wicheeda mic REE mineralization. The penetration lurgical testing. Corresponding flotation and Energy has already detected 1.26% U3O8 is close to major infrastructure such as pow- comprises a ferroane-dolomite carbonatite hydrometallurgical testing at the SGS Lake- over a length of 8.5 meters on its Larocque er transmission lines, railways and motor- core, which gradually changes to calcite car- field laboratory on Wicheeda drill cores was East project, among others. ways. A large hydroelectric power line and a bonatite on the outside. The potentially eco- completed in 2010/2011. This work success- Canadian national railway line, as well as the nomic REE mineralization is absorbed by the fully developed a flotation flow diagram that town of Bear Lake are in the immediate vici- dolomite carbonatite. The favourable minera- recovered 83% of the rare earth oxide and Top management team nity. As well as well-trained mining personnel logy and lanthanide distribution make Wi- yielded a concentrate with 42% REO. Subse- who can be recruited from the strategically cheeda a very attractive deposit for so-called quent hydrometallurgical investigations in Defense Metals has a highly experienced and located Prince George Mining Centre. Low Rare Earth Elements (LREE), i.e. for light 2012 on a 2-kilogram sample of a 39.7% successful management team. rare earths, which are mainly used in military TREO concentrate showed an improved and CEO Max Sali is President of Baccarat Inves- applications. purified failure containing 71% TREO. tments Inc, a private company that provides Flagship project Wicheeda – investment, advisory and management ser- Acquisition vices to public companies. Sali is also CEO, Flagship project Wicheeda – Uranium projects Geiger and Director and Founder of Barrian Mining. Most In November 2018, Defense Metals entered Previous exploration Klaproth recently, he worked for Advantage Lithium, a into an option agreement to acquire 100% of company that has evolved from a shell to a the shares of Spectrum Mining Corporation. What you should know in advance: Most rare In addition to the Wicheeda Rare Earth Pro- positive PEA and has financed $42 million to In return, the company committed to inves- earths are kept in a certain rare element mi- ject, Defense Metals also holds two uranium date. ting at least CA$1.93 million in the develop- neral, the bastnäsite. There‘s more than projects in the Athabasca Basin. The Geiger In January 2019, Dale Wallster joined Defen- ment of the project within 36 months. In ad- enough of that on Wicheeda. In the 1970s, project consists of two claims, Geiger North se Metals. Wallster is a geologist and gold dition, the Company must pay a total of strong zinc mineralisation was first detected and Geiger South, totaling 1,233 hectares prospector with 35 years experience in the 370,000 CA$ in cash to Spectrum and trans- on Wicheeda. Early work also identified the and adjacent to the Wollaston-Mudjatik Tran- exploration of North American mineral depo- fer an additional 200,000 treasury shares presence of elevated levels of niobium. Teck sition Zone - an important crustal seam asso- sits, with a focus on the development and plus an additional 50,000 CA$ in treasury Corporation acquired the project and carried ciated with most of the major uranium depo- discovery of unconformity-related uranium shares to the Company. out geological mapping, soil characterizati- sits in the eastern Athabasca Basin. The pro- deposits since 2002. He was President and

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www.defensemetals.com www.defensemetals.com Founder of Roughrider Uranium Corp., a flagship projects were also recently acquired, where as you know, 95% of rare earths are company acquired by Hathor Exploration so that the company virtually starts from mined and processed. So that‘s very en- Ltd. in 2006 for its strategically located urani- scratch. The Company owns three potentially couraging. Our first goal is to develop a flow um properties in the Athabasca Basin. Walls- high-grade uranium and rare earth projects in sheet from a 200-kg sample, to get 20kg of ter and his team are well known in mineral designated prime locations including very REE concentrate. Then we‘re going to see if exploration for the discovery of Hathor‘s well-developed infrastructure. The combina- we can scale that up in a pilot plant. The end Sample from Drill-Hole-WI09 Roughrider deposit. In January 2012, Hathor tion of uranium and rare earths in particular goal is to build a hydrometallurgical plant that (Source: Defense Metals) became a wholly owned subsidiary of Rio offers North America an ideal opportunity for will produce a commercial REE concentrate, Tinto through a US$650 million acquisition. vertical integration to support the rapidly gro- and possibly REE oxides. Defense Metals should benefit greatly from wing market and reduce dependence on Chi- Investors should see ample news flow over Dale Wallster‘s advice on the technical advi- na. Particularly in military applications, there the next three to six months as we work th- sory board. is a great deal of catching up to do and great rough these phases. market potential in the USA in view of a di- sastrous supply chain, especially in the ura- Neodymium and praseodymium are used in nium sector. Defense Metals has a new and How do you see the current situation on the permanent magnets, found in motors and Summary: Early Stage Opportunity strong management team, which is at full market for battery metals? drives. Samarium-cobalt magnets resist cor- with Top Potential throttle right from the start. Less than 24 mil- rosion and can operate at high temperatures. lion issued shares make Defense Metals a We‘re very encouraged by what we‘re seeing Dysprosium is added to neodymium-iron-bo- Defense Metals is an absolute early-stage narrow and potentially explosive value. in terms of electric vehicle demand: 24% ron magnets in high-heat applications. opportunity and has only existed in its cur- growth every year until 2030. That‘s incredib- rent form for a few months. In addition, the le. All of these EVs will need battery metals The market for this type of magnet is estima- like rare earths, lithium, cobalt, nickel, etc. ted at $11.3 billion. Demand for neodymium We think our Wicheeda deposit is in an excel- has been growing steadily. So, we think now lent position to supply the market with some is a perfect time to be entering the battery of the REEs that go into batteries and mag- metals space. Exclusive interview with Maximilian Sali, nets for EVs and hybrids. CEO of Defense Metals Corp.

ISIN: CA2446331035 What have you and your Company achieved land package to about 9,300 hectares in the WKN: A2PBZ4 Defense Metals Corp. in the past 12 months? highest-grade uranium jurisdiction in the FRA: 35D world. TSXV: DEFN Maximilian Sali, CEO The last year has been very productive for Defense Metals. In November 2018 we si- Outstanding shares: 23.7 million gned an option agreement to acquire Spec- What are the most important catalysts for Options: 2.8 million trum Mining, giving us control of the Wichee- the next 6 to 12 months? Warrants: 3.8 million da Light Rare Earth Elements Project in Fully diluted: 30.3 million northern British Columbia. We also changed We are currently working with SGS Canada our name from First Legacy Mining to Defen- on an extensive metallurgical testing pro- se Metals Corp. This was to reflect the com- gram, as we move the Wicheeda rare earths Contact: pany‘s renewed focus on battery and energy deposit forward to production. Previous Defense Metals Corp. metals, particularly rare earth elements used bench-scale testing yielded more potentially 605 – 815 Hornby Street for defense and industrial purposes at Wi- recoverable rare earth elements than the re- Vancouver, BC V6Z 2E6, Canada cheeda, and uranium in the high-grade Atha- source estimate‘s current REEs, such as basca Basin of Saskatchewan. dysprosium, europium and praseodymium. Phone: +1-833-562-9916 Around the same time, we acquired two mi- The consulting geologist who did the study, [email protected] neral claims in the Athabasca Basin – Klapro- Tony Mariano, said at the time he‘s only seen www.defensemetals.com th and Klaproth East – increasing our total such a high-grade REE concentrate in China,

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www.defensemetals.com www.defensemetals.com Energy Fuels Uranium producer with additional vanadium extraction

Energy Fuels is one of only three uranium Mill is certainly its unique location. It is loca- kilometers west of the White Mesa Mill and jects. The Jane Dough and Hank projects, producers in the USA. In addition, the com- ted centrally between several mines with the has approximately 10.9 million pounds of which are only a short distance away, have at

pany was able to resume its own vanadium highest uranium grades in the USA. In additi- U3O8. least another 30 wellfields with correspon- production in January 2018 due to the sharp on to the possibility of feeding the plant from ding additional resources, which can be rise in prices. This makes Energy Fuels the these mines, a clean-up program is being connected relatively easily and cost-effecti- world‘s newest vanadium producer and the developed with the US government that Uranium projects vely to the existing pipeline system. Jane only primary producer of V2O5 in North Ame- could also generate significant amounts of Dough currently has resources of approxima-

rica. uranium. Last but not least, Energy Fuels tely 3.9 million pounds U3O8, Hank has 1.7

processes uraniferous rock in the White Canyon Mine million pounds U3O8. Both projects have al- Mesa Mill for a third party on a toll milling ba- ready been fully approved for future funding. Focus on vanadium sis. After the renovation and upgrade of the Another mine that the White Mesa Mill will existing facilities, vanadium processing was (again) feed with uranium-rich rock in the fu- In addition to the uranium business itself, resumed. It is estimated that over 4 million ture is the fully licensed and currently stand- Alta Mesa ISR plant

Energy Fuels has been focusing for some pounds of V2O5 with contents between 1.4 by Canyon Uranium and Copper mine in time on restarting its vanadium cycle in its and 2.0g/t are stored in ponds. northern Arizona, which has the highest ura- The Alta Mesa ISR system is located in the White Mesa Mill. nium grades of any conventional uranium southeast of Texas and is currently in stand- In January 2019, Energy Fuels resumed pro- mine in the U.S.! The superficial infrastruc- by mode. Alta Mesa produced a total of 4.6

duction of vanadium pentoxide (V2O5) in its Further approved top projects with ture and the production shaft have already million pounds of U3O8 from 2005 to 2013 White Mesa Mill. The initial focus is on the vanadium component been completed. It is estimated that Canyon and has a fully licensed processing capacity

exploitation of existing sedimentation basins. would be among the conventional uranium of 1.5 million pounds of U3O8 per year. The In February 2019, the company was able to Energy Fuels has a number of additional pro- mines with the lowest mining costs in the associated license area has approximately

announce that commercial vanadium projects that host significant vanadium deposits world. The actual processing of the extracted 20.4 million pounds of U3O8 resources. The duction had resumed with a production rate and are already fully approved for production. rock would take place in the White Mesa Mill approximately 200,000 acres license area of up to 200,000 pounds per month. Starting about 300 kilometres away. continues to have high exploration potential in the second quarter of 2019, this figure is In August 2017, Energy Fuels released a new, which could further extend the estimated 15- expected to rise to up to 225,000 pounds per La Sal Complex in Utah expanded resource estimate for the Canyon year mine life. To this end, Energy Fuels plans month. Energy Fuels has also been supplying Mine. Accordingly, the Upper, Main and Juni- to launch a 200-hole drilling program in 2019 vanadium to customers in the metallurgical The La Sal Complex is located approximately per zones contain approximately 2.6 million to expand existing resources accordingly.

industry since February 2019. In addition, it is 100 kilometers northeast of the White Mesa pounds of U3O8 with average grades bet- checked whether this is also suitable for the Mill and consists of the two mines La Sal and ween 0.20 and 0.89% and approximately battery metal sector. Pandora, which were already in production 12.5 million pounds of copper with average Petition to strengthen US uranium until 2012. Both mines together have appro- grades between 5.70 and 9.29%. production

ximately 4.5 million pounds of U3O8 and 23.4 White Mesa Mill million pounds of vanadium. The Company is In January 2018, the only two remaining US currently conducting a test mining program Nichols Ranch ISR Project uranium producers, Ur-Energy and Energy

The White Mesa Mill is located in the selectively targeting high grade V2O5 resour- Fuels, filed a petition with the U.S. Depart- southeast of Utah and is currently the only ces at its 100% owned La Sal Complex of The Nichols Ranch uranium project is loca- ment of Commerce to highlight the relevance operational and running conventional urani- Uranium/Vanadium Mines in Utah with the ted in the state of Wyoming, USA. Nichols of U.S. uranium production in terms of po- um processing facility in the USA! It has a goal of significantly increasing productivity Ranch is an in-situ-recovery-(ISR)-project tential security concerns and increasing de- fully licensed annual processing capacity of 8 and mining grades and reducing mine costs and could be won by the fusion with Uranerz pendence of the energy industry on uranium

million pounds U3O8. The White Mesa Mill per pound of V2O5 and U3O8. Energy Fuels is Energy. At Nichols Ranch, more than 1 milli- imports.

has several special features. Firstly, it ac- planning an extensive surface and underg- on pounds of U3O8 have been mined and pro- The two companies argued that imports from commodates a separate process circuit, with round drilling program there in 2019 to ex- cessed at the central licensed 2 million successor countries of the former Soviet Uni-

the help of which such material can be pro- pand existing resources. pounds of U3O8 per year facility since the on (namely Russia, Kazakhstan and Uzbekis- cessed cost-effectively. In addition, White The Whirlwind Mine is located approximately start of operations. In addition, Nichols tan) now account for 40% of US demand for Mesa has an additional process loop for pro- 120 kilometres northeast of the White Mesa Ranch offers other wellfields that can be ex- uranium, while only 5% of demand is processing vanadium and has had significant Mill and has approximately 3.0 million pounds ploited in the future. Nichols Ranch is regar- duced in the US itself. The dependence, both

vanadium production in the past. However, of U3O8 and 10.1 million pounds of vanadium. ded as the central piece of the puzzle for a of the US energy industry (after all, 20% of the greatest advantage of the White Mesa The Tony Mine is located approximately 200 whole series of other (potential) satellite pro- the electricity consumed in the USA is gene-

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www.energyfuels.com www.energyfuels.com rated from nuclear power plants) and of the Energy Fuels is the second largest uranium testing new mining techniques at our La Sal There is also an ongoing probe into uranium military, on these nations has increased producer in the USA after Cameco and has Complex of uranium/vanadium mines in Utah. imports into the U.S., which have the potenti- alarmingly as a result. production capacity of over 11 million pounds These new techniques target vanadium, allo- al to result in significantly higher prices for

With their petition, the two producers want of U3O8 per year! The company owns several wing us to determine uranium and vanadium uranium produced in the U.S. If this occurs, both the Ministry of Commerce and Presi- low-cost mines at the same time and could grades in real time. We are creating some mine production from our La Sal Complex of dent Trump to work out a clear assessment significantly restart production from a urani- new grade control methodologies that we be- mines (and other of our uranium/vanadium of the import dependency of the USA on um price of around US$ 40. In addition, there lieve have the potential to significantly lower mines) will become economic, thereby in- Russia, Kazakhstan and Uzbekistan and to are several of own processing plants, which our costs when we resume commercial mi- creasing our vanadium production as a promote the USA‘s own uranium industry. can produce more cheaply with increasing ning. In the meantime, we are also refurbis- by-product. In July 2018, the U.S. Department of Com- utilization. These are very flexible with regard hing this large underground mine complex, so merce initiated an investigation into the im- to increasing production and can also extract it is ready to enter commercial production. pact of uranium imports on U.S. national se- other raw materials such as vanadium and How do you see the current situation on the curity. A decision can be expected within 360 copper. Energy Fuels thus not only has a sig- market for battery metals? days. nificantly high leverage on the price of urani- What are the most important catalysts for um and vanadium, but also a unique variabi- the next 6 to 12 months? We are currently selling our vanadium into lity. Energy Fuels will soon be the only pri- mainly the steel industry, with an eye toward Summary: mary vanadium producer in North America We are not looking at any particular catalysts selling into the chemical, aerospace, and va-

The ability to quickly commission and with a total of 130 million pounds of U3O8 with vanadium, except the continued strong nadium battery industries. The high quality of multiple mines provides a big resources, Energy Fuels is also among the vanadium prices. In 2019, vanadium prices our product may be attractive to certain vana- leverage on vanadium and urani- top 3 companies with the largest uranium re- rose from about $10 per pound to $30 per dium battery manufacturers. um prices! sources in the US. pound in November. By the end of 2018, prices dropped back to about $15 per pound, and today they sit at a little over $17 per pound, which is a good level for us. Exclusive interview with Mark S. Chalmers, CEO of Energy Fuels ISIN: CA2926717083 Energy Fuels Inc. WKN: A1W757 What have you and your company achieved meaning that 35% went to tailings. We esti- FRA: VO51 in the past 12 months? mate that our liquid pond solutions contain TSX: EFR

up to 4 million pounds of recoverable V2O5, NYSE: UUUU In 2018, Energy Fuels became the newest va- and possibly more. This is the material we are nadium producer in the World, and the first producing now. We began production in late- Shares outstanding: 89.0 million Mark S. Chalmers, CEO company to respond to improved market 2018, and in February 2019, we achieved a Options: 2.3 million conditions with real production. Energy Fuels‘ commercial rate of production of 175,000 Warrants: 6.7 million White Mesa Mill in Utah is the only conventio- pounds per month. We expect to reach full Restrictured: 1.6 million

nal vanadium mill in the United States. It beg- production levels of 225,000 pounds of V2O5 Convertible debt: 5.3 million an production in 1980 and has produced per month in Q2-2019, and we expect to pro- Fully diluted: 104.9 million

about 45 million pounds of V2O5 during that duce at these rates for about 16-20 months, time, having last produced 1.5 million pounds subject to continued strong market prices. In Contact: of vanadium in 2013, all as a by-product of addition, we are producing a very high-purity Energy Fuels Inc. uranium production with ore from nearby ura- vanadium product, averaging about 99.6% 225 Union Blvd., Suite 600

nium/vanadium mines. Contrary to past pro- V2O5. This grade of material is attractive to the Lakewood, Colorado, 80228, USA duction, our current production is actually chemical, aerospace and potentially the va- Phone: +1-303-974-2140 coming from our tailings pond solutions at the nadium battery industries. Fax: +1-303-974-2141 White Mesa Mill. Historic recoveries of vana- In order to extend our production beyond the [email protected] dium at the mill have been in the 65% range, current 16-20-month campaign, we are also www.energyfuels.com

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www.energyfuels.com www.energyfuels.com Giga Metals Development of one of the largest nickel-cobalt projects in the world

Giga Metals is a Canadian mining develop- nes of rock containing 0.21% nickel and production for the first 5 years was estimated ment company focused on the development 0.013% cobalt (4 billion pounds nickel and at 23,912 tons of nickel and 1,280 tons of co- of its huge Turnagain nickel-cobalt project in 250 million pounds cobalt). In addition, infer- balt. For the following years, annual produc- the Canadian province of British Columbia. red resources of 976 million tonnes of rock tion was expected to be 44,393 tonnes of Turnagain is considered one of the largest ni- were identified with 0.2% nickel and 0.013% nickel and 2,433 tonnes of cobalt. It should ckel-cobalt projects in the world, which also cobalt (4 billion pounds nickel and 280 milli- be noted that this PEA is based on much fe- led a cobalt royalty company to secure a cor- on pounds cobalt). In total, only 25% of the wer resources than are currently known and responding net smelter royalty in 2018 at a area with signs of nickel occurrence has that the current nickel price is well below the price higher than Giga Metals‘ market capita- been drilled to date. Especially in the area assumed US$8.50 per pound. The cobalt lisation at the time. north of the two main occurrences Horsetrail price assumed at that time appears realistic and Northwest further nickel anomalies could and could even be set higher. With the avai- be detected which can significantly expand lable figures Turnagain would be one of the Turnagain Nickel-Cobalt Project – the already huge resource. 10 largest nickel producers worldwide. Location and Infrastructure Extensive metallurgical testing has also The company‘s goal is to complete a pre-fea- shown that froth flotation can reliably pro- sibility study by the third quarter of 2019, wi- Turnagain is located just north of the Turna- duce a clean concentrate containing 18% thin which the high capital costs will be re- gain River near its confluence with the Hard nickel and 1% cobalt. It is a concentrate duced. Creek. The community of Dease Lake, on which can be further processed into high-pu- Drill cores Highway 37, is located 70 kilometers west of rity Class 1 nickel for use in lithium-ion batte- (Source Giga Metals) the license area. A side road extending east ries. Cobalt was originally only intended as a Turnagain Nickel-Cobalt Project – Royalty company on board from Dease Lake has been used in recent ye- by-product but is now contributing to the Recent Drilling Successes ars by large articulated four-wheel drive ve- long-term profitability of the project. In July 2018 the Giga Metals management hicles to transport large chunks of jade from In 2018, Giga Metals conducted an extensive managed a real coup. It was possible to con- the Kutcho Creek area and supply the gold drilling campaign, totaling 40 holes with a to- clude a net smelter agreement with Cobalt operations at Wheaton Creek. Part of this Turnagain Nickel-Cobalt Project – tal drill length of 10,835 metres. The focus 27, a cobalt royalty company and buyer of road network extends to the Turnagain area. Economic Evaluation was primarily on upgrading the inferred re- physical cobalt. Accordingly, Giga Metals Furthermore, there is a short runway on the sources to the displayed category. Reported sold a 2% net smelter royalty for future co- area. A helicopter flight from Dease Lake to Turnagain already has a positive Preliminary assay results showed remarkable continuity balt and nickel production under the Turna- Turnagain takes about 20 minutes. Economic Assessment (PEA) from 2011, of mineralization in the Horsetrail and gain project to Cobalt 27 Capital for US$1 which evaluated the development of the Tur- Northwest Zones and high platinum and pal- million in cash and 1,125,000 Cobalt 27 sha- nagain deposit in conventional open pit mi- ladium concentrations in the so-called Attic res. The equivalent of US$10 million was hig- Turnagain Nickel-Cobalt Project – ning. It was assumed that the material would Zone, located approximately 3.5 kilometres her than Giga Metals‘ market capitalization at Deposits and Geology be processed with a conventional concentra- northwest of the Horsetrail Zone. the time of the announcement. The Company tor to produce an 18% nickel and 1% cobalt Overall, Giga Metals has been able to report will use the funds to explore the Turnagain Giga Metals holds 100% of Turnagain, which concentrate. some very impressive, very long intervals of project and to develop the project into a hosts multiple zones of significant nickel, co- Based on a nickel price of US$8.50 per significant nickel and cobalt mineralization. pre-feasibility study and beyond. balt, copper, platinum and palladium anoma- pound and a cobalt price of US$14.00 per These include approximately 447 metres of lies. Most of the known resource comes from pound, this resulted in cash costs of US$4.26 0.258% nickel and 0.013% cobalt, 444 met- the Horsetrail and Northwest zones, which per pound of nickel, after-tax discounted net res of 0.25% nickel and 0.013% cobalt, 388 Summary: cover an area of approximately 2.5 by 1.5 kilo- present value (NPV) of US$724 million and metres of 0.257% nickel and 0.015% cobalt, Great leverage on the positive metres. The Attic Zone, approximately 3.5 ki- after-tax profitability (IRR) of 13.5%. The initi- 370 metres of 0.276% nickel and 0.013% co- development of e-mobility lometres to the northwest, shows higher con- al cost of capital was estimated at US$ 1.357 balt, 327 metres of 0.208% nickel and centrations of platinum and palladium, while a billion, the expansion costs after 5 years at 0.012% cobalt and 314 metres of 0.214% Giga Metals strives to be a leading supplier zone 2.5 kilometres to the northwest of Horse- an additional US$ 492 million. The estimated nickel and 0.016% cobalt. All these drilling of battery metals needed in the future with trail shows increased traces of copper. payback period at that time was 7.3 years sections began almost directly from the sur- clean energy as the world progresses. To this The current resource estimate, based on a and the mine life 27.2 years. In the first 5 ye- face! Up to 0.471% nickel, 0.13% cobalt, end, the company is currently concentrating total of 204 drill holes, provides a NI43-101 ars a total mill flow of 15.8 million tons of rock 367ppb platinum and 467ppb palladium over on two of the most important metals used in compliant resource that includes Measured per year was expected, from the sixth year 80 metres have been reported from the plati- the batteries of electric vehicles: nickel and and Indicated resources of 865 million ton- onwards 31.3 million tons per year. Annual num- and palladium-rich Attic Zone. cobalt.

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www.gigametals.com www.gigametals.com The Turnagain Project is one of the largest ject, a situation should develop that would Vale’s base metals portfolio, including Ni- How do you see the current situation on the undeveloped nickel-cobalt sulphide deposits allow corresponding majors and/or battery ckel, Copper, Cobalt and Precious Metals, market for battery metals? in the world in terms of total nickel. The manufacturers to make an offer of Giga Me- responsible for annual sales in excess of growth of electric vehicles and energy stora- tals. US $5 billion. Inventories of class one nickel have been fal- ge is accelerating, so the Turnagain project ling steadily for three years, from a very high should be able to develop rapidly, especially level. We think the crunch comes in the next after Cobalt 27, one of the most important What are the most important catalysts for year or two, when inventories fall to less than cobalt players in the world, provided a lot of the next 6 to 12 months? a one-month supply. In the meantime, class confidence. Everything depends on the price 2 nickel, or ferronickel, is well supplied and it of nickel (and the price of cobalt), which in  2019 is going to be a very busy year for us. is relatively easy to bring new supplies on the event of a rise (nickel has been in a sup- We’ve recently released the results from stream. For class one nickel, bringing new ply deficit for some time) would not only in- our 2018 Drill Program and are working supply online is not easy, so there could be a crease the value of what is already known to with independent engineering companies real crunch coming in class one nickel supply. occur but would also sustainably improve the to recalculate and upgrade the resource Most new supply will be High Pressure, High figures from the PEA. The next important ca- model to serve as a basis for a Pre-Feasi- Temperature Acid Leach (HPAL) projects, talyst is the pre-feasibility study, which is ex- bility Study. which have proven to be very expensive and pected to be completed in the third quarter of  We are also advancing metallurgical stu- tricky. Our project, which can produce both 2019. Together with a new resource estimate, dies and are active with Stakeholder En- class one nickel and cobalt and is of a similar which would increase the current reserves gagement. scale to the big HPAL projects, uses much and thus further reduce the risk of the pro- simpler technology.

Exclusive interview with Mark Jarvis, CEO of Giga Metals Corporation

ISIN: CA37518K1021 Giga Metals Corporation What have you and your company achieved NSR on future production at Turnagain, WKN: A2DWUW in the past 12 months? further validating our plans to advance the FRA: BRR2 project through final Feasibility and into TSXV: GIGA  In July of 2018 we initiated a drill program production, and also keeping us well fun- Mark Jarvis, CEO to increase the confidence level of this ded for the next couple of years. Outstanding shares: 43.1 million enormous resource and to obtain repre-  We also welcomed two new Board Mem- Options: 4.0 million sentative core material for metallurgical bers with significant experience in the ni- Warrants: 24.0 million testing and inclusion in our upcoming ckel industry. Martin Vydra, Head of Stra- Fully diluted: 71.1 million Pre-Feasibility Study. In October, we an- tegy for Cobalt 27, spent 31 years with nounced the conclusion of that program, Sherritt International and held the position Contact: having completed a total of 10,835 metres Senior Vice-President of Metals. He’s wi- Giga Metals Corporation of drilling in 40 holes. These results were dely recognized as an expert in nickel and Suite 203, 700 West Pender Street announced in January and February of cobalt extraction. Also, Robert Morris Vancouver, BC, V6C 1G8, Canada 2019 with results demonstrating the joined our board. This is an extremely exceptional continuity of this massive de- strong addition to the Board of Giga Me- Phone: +1-604-681-2300 posit. tals. His most recent position with Vale  We also closed a very significant transacti- was Executive Vice President with global [email protected] on with Cobalt 27 through the sale of a 2% accountability for sales and marketing of www.gigametals.com

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www.gigametals.com www.gigametals.com Infinity Lithium Strategically Significant Establishment of an Open Pit Lithium Mine and Battery Chemicals Processing Facility in Europe!

Infinity Lithium Corporation Limited (‘Infinity’) fully integrated operation involves adjacent 51% (ex tin credits or sale of other by-pro- butes to reaching these targets. Within the is an Australian company listed on the ASX lithium mining and conversion facilities with ducts). The average C1 cost over the life of existing supply chain, lithium contained wit- with an interest in the San Jose Lithium Pro- the proposed chemical plant less than 3kms the mine is US$5,343/t, placing the project at hin an EV purchased in Europe has potential- ject (‘San Jose’) located in the Spanish pro- from the resource. Reagents used in the pro- the lower end of the cost curve. ly travelled more than 50,000km to reach the vince of Extremadura. San Jose contains the duction process are available within the EU This scoping study was based on the benefi- end user. Having a complete battery supply European Union’s (‘EU’) 2nd largest lithium and a gas pipeline is located adjacent to the ciation of up to 1.25 million tonnes of ROM chain will significantly reduce the carbon JORC resource. It is a fully integrated project plant. The lithium sulphate roast stage of the annually, project to produce up to 15,000 emissions associated with the production of with adjacent infrastructure available to the production process requires gas, and the ad- tonnes of battery grade lithium hydroxide. electric vehicles purchased in Europe. Infini- project, enabling the production of battery jacent gas pipeline (when considered in con- ty’s strategic location in the EU and environ- grade lithium chemicals from a resource in junction with the availability of electricity and mentally advantageous process flow sheet the immediate vicinity. Infinity released a po- water) represents a significant benefit of the European Battery Supply Chain reinforces San Jose’s position as a strategi- sitive lithium hydroxide scoping study in No- project. The low cost and proven production cally important asset within Europe. vember 2018 and is well paced to provide process further utilises commonly available China currently dominates the rest of the battery grade lithium chemicals to rapidly and safe reagents, including sodium sulpha- world in everything from manufacturing Elec- Further comments on the current market si- expanding European markets. te and/or potassium sulphate used in the ro- tric Vehicles (EVs) to packing lithium-ion bat- tuation and the environmental and social im- ast process, as opposed to the more hazar- teries and production of battery cells and pacts of the lithium supply chain can be dous sulphuric acid commonly seen in other components. While all projections have this found in the interview with lithium industry San Jose Lithium Project hard rock projects. The lower temperature dominance continuing into the future, Europe expert, Vincent Ledoux Pedailles, at the front and duration roast process at approximately is projected to be the second largest proof this report. San Jose’s large JORC resource totals 840°C, and a water leach stage whereby the ducer of electric vehicles and lithium-ion bat-

111.2Mt Li2O at 0.61%, representing 1.6Mt vast majority of water is recycled, provides teries. Recent increases in the number of in- LCE (reported above 0.1% Li cut-off), with for an advantageous lower environmental im- vestments by European car manufacturers Move To Lithium Hydroxide approximately 12km of drilling completed. pact. and rising investments into cathode produc- Infinity’s integrated lithium chemical pro- There are no royalties payable on mining action and battery assembly within Europe sup- Parallel to the establishment and de-risking duction project has an initial mine life of 16 tivities and no tariffs and duties payable on port these projections. of the European supply chain is the evolution years and projected 24 years of production, materials otherwise shipped to conversion of battery technologies. Cathodes, the most representing the utilisation of less than 50% facilities often currently located in China. The European Investment Bank (EIB) has important part of a battery from a lithium of the resource. San Jose was previously A sealed dual lane highway enables transport made a commitment to provide capital to fa- perspective, have a mix of chemicals inclu- mined for tin in the late 1980s &1990s, with to the project area within 2.5 hours from cilitate growth EV market and European value ding lithium, cobalt, nickel and manganese. a lithium carbonate feasibility study also Madrid, allowing for the connection the pro- chain participants. It has also acknowledged Nickel, manganese, cobalt (NMC) batteries completed. ject by major arteries to Europe and ensuring the importance of Europe’s strategic position are projected to represent almost 75% of all easy access during the construction phase. in the Lithium-ion Battery supply chain and cathode types used in E-mobility by 2025. In The proposed open pit mine benefits from Battery grade lithium hydroxide, the prefer- promotes the sector. The weak link in this order to reduce the use of cobalt and de- resource with a low strip ratio of <1.2:1. The red chemical for higher nickel content catho- supply chain is access to raw materials for velop a more efficient cathode, the industry de manufacturers, is projected to be pro- battery facilities and cathode production is moving towards higher nickel content in duced at San Jose. plants from within Europe. Mr McDowell cathodes, from a NMC 111 (1/3 Nickel, 1/3 (Vice-President, EIB) has noted that the EIB Manganese, 1/3 Cobalt) gradually to a NMC had identified the significant gap in the mar- 811 (80% Nickel, 10% Manganese, 10% San Jose Lithium Project - ket for battery chemicals and reinforced the Cobalt). NMC 811 cathodes, in addition to Scoping and Feasibility Study EIB’s specific focus on “raw materials and the NCA cathodes used by Tesla, require lit- After the open-pit operation, additional refining facilities”. hium hydroxide making it the preferred lithi- underground mining could take place. Infinity released a scoping study for the pro- um chemical for cathode manufacture. De- (Source: Infinity Lithium) duction of lithium hydroxide at San Jose in Aside from securing raw materials to satisfy mand for lithium hydroxide is expected to November 2018. The scoping study project the gap in the supply chain, European sour- overtake the demand for lithium carbonate economics detailed a robust economic out- ced raw materials also provide environmental by the mid 2020’s, advantageously placing come under conservative average pricing as- benefits. The EU has set key targets around San Jose to support this rapidly evolving in- sumptions of US$14,896/t for battery grade reduction in greenhouse gases, including a dustry. lithium hydroxide, with a pre-tax net present 40% reduction by 2030 (from 1990 levels). value (NPV10) of US$717 million and IRR of Sourcing raw materials within Europe contri-

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www.infinitylithium.com www.infinitylithium.com San Jose Lithium Project – Joint Company Director Vincent Ledoux Pedailles to the completion of our lithium hydroxide identified a gap linked to Europe’s refining ca- Venture Partner has been involved in the lithium industry sin- scoping study which was completed and an- pabilities for lithium. The demand for battery ce 2011 and has extensive industry experien- nounced in November 2018. These studies grade lithium hydroxide will be significant in The San Jose Project is being developed in ce and perspective in highly specialised lithi- confirm the viability of lithium hydroxide pro- Europe, so it makes sense to have lithium refi- conjunction with Infinity’s joint venture partner, um chemicals. duction at San Jose and demonstrate positi- ning capacities in the EU. Spanish company Valoria Mineria (a wholly ve, robust economics for a multi-decade pro- The San Jose Lithium Project is ideally placed owned subsidiary of listed company Sacyr ject in the heart of the EU. to address the significant gap for lithium che- SA). Infinity has earned a 50% interest in the Summary micals in the European supply chain. Currently project and can increase project ownership to cathode production is heavily concentrated in 75% through a number of mechanisms. Infinity continues to progress the San Jose What are the most important catalysts for SE Asia and Europe is addressing supply Project in the rapidly evolving lithium-ion bat- the next 6 to 12 months? chain risks further upstream. Whilst we ack- tery market and specifically the cathode nowledge it will take some time for European Infinity’s Board technology space. Infinity continues to pro- Infinity’s main focus for the next 6-12 months cathode production facilities to become esta- gress technical work with the delivery of a is the progression of technical work and deli- blished in Europe, we note European partici- Infinity Lithium has a unique management PFS expected in Q2 2019. With avenues very of a PFS. Our other major focus is ob- pants such as Umicore, BASF, and Northvolt team to successfully bring the San Jose Pro- available to increase project ownership, Infi- taining strategic investment and offtake for coming to the market over the next few years. ject to production. nity is well placed to move forward to the the lithium hydroxide produced at San Jose. Other battery cell production plants will seek Chairman Kevin Tomlinson lives in London and next phase of project development through While working on these outcomes we will also efficiencies of cathode production in Europe is a specialist in both geology and finance. the engagement of strategic partners and be progressing our project interest as we work and potentially expand their operations to in- Managing Director, Ryan Parkin, brings a we- offtakers. towards 75% ownership. clude cathode production, the essential ele- alth of experience in corporate development The results of the lithium hydroxide scoping ment when considering lithium chemicals and finance. study demonstrates the robust economic consumption. Company Director Adrian Byass has been in- outcomes available under a long life, low How do you see the current situation on the OEMs are becoming increasing focused on volved in the San Jose Project from its incep- cost, strategically significant European lithi- market for battery metals? the carbon footprint of all aspects of the sup- tion and has extensive experience in the ac- um chemicals project. Infinity had approxi- ply chain and the availability of both raw ma- quisition and development of high-quality mately A$2.5 million in cash and cash equi- In a rapidly growing battery metals market, a terials and lithium chemicals in close proximi- commodity projects including successes in valents as at 31 December 2018. major area of growth is Europe. Recently both ty to consumers will become of increasing Europe for more than 10 years. the European Commission and the EIB have importance.

Exclusive interview with Ryan Parking, CEO and Managing Director of ISIN: AU0000000000762727 Infinity Lithium Corp. WKN: A2JH72 Infinity Lithium FRA: 3PM ASX: INF

What have you and your company achieved furt and Stuttgart stock exchanges providing Shares outstanding: 190.2 million in the past 12 months? relevant platforms for European investors. Options/warrants: 25.4 million Other notable technical milestones included an Fully diluted: 215.54 million Ryan Parking, CEO & Managing Director The last 12 months has seen some exciting increase in Europe’s 2nd largest lithium JORC times for the group, having changed our name resource to 111.2MT, of which the indicated Contact and composition of the Board to reflect our resource increased by approximately 1.7MT to Infinity Lithium Corp. focus on the San Jose Lithium Project. This 59.0MT. An improvement in pit design has led Level 1 was further accentuated with the appointment to further optimisations and lowering of an al- 329 Hay Street of a lithium expert, Vincent Ledoux Pedailles, ready impressive strip ratio of 1.2:1. Subiaco, 6008, Western Australia, Australia to the Board of Infinity Lithium earlier this year. Infinity have responded to evolving market dy- These decisions strengthen the capabilities of namics and the trend towards higher nickel Phone: +61-864-616-350 Infinity and reinforces our focus in aligning our content cathodes through the decision to un- European based interests. dertake a lithium hydroxide technical option [email protected] Infinity also successfully listed on the Frank- study. The positive outcomes of this study led www.infinitylithium.com

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www.infinitylithium.com www.infinitylithium.comwww.orocobre.com Lithium Chile 15 Top Projects in the Hottest Lithium Region of the Planet

Lithium Chile is a Canadian development license package in Chile. The 6 most import- ratio of magnesium to lithium is only 2.6, In 2018 several brine target zones with lithi- company focusing on the development of lit- ant projects are presented below. which is even lower. In the course of a gravi- um contents of up to 1,140mg/L were identi- hium projects in Chile, currently the world‘s tational and geophysical program, Lithium fied in the licence area, each covering 20 to hottest lithium region. The company currently Chile was able to announce the discovery of 25 square kilometres. These are located in owns licenses with a total area of over Salar de Coipasa a lithium brine target of 60 square kilometers the area of the southwestern arm of the Salar 159,000 hectares, making it the largest licen- in February. and have a thickness of between 20 and over se holder in Chile. The Salar de Coipasa is located in the very 200 metres. north of Chile, directly at the border to Boli- via. The project area covers 13,100 hectares Salar de Atacama As part of an extensive drilling program in Chile – country with the highest and has extremely high near-surface lithium August 2018, the company was able to de- lithium reserves and lowest grades. For example, samples were taken Probably the most famous Salar in Chile, the monstrate a lithium content of up to 480mg/L mining costs worldwide and up to 1,410mg/L lithium could be detec- Salar de Atacama, where the two lithium gi- within a 180-metre-long section from the first ted, which is on the same level as the grades ants SQM and Albemarle operate correspon- drill hole. Three additional holes drilled to With its involvement in Chile, Lithium Chile of the two processing sites of SQM and Albe- ding processing facilities, is located in depths of 250 meters and 170 meters, res- has chosen the most important lithium hot marle in the Salar de Atacama. Chemically, northern Chile, about 40 kilometers from the pectively, also terminated in lithium/potassi- spot of all. Chile offers several advantages to Coipasa seems almost perfect, since the ra- Bolivian border and about 80 kilometers from um mineralization up to 270mg/L and remain foreign mining companies. First, the country tio of lithium to potassium is only 0.06 and the Helados project. Due to the activities of open to depth. has the most lithium reserves in the world. the ratio of magnesium to lithium is only 3.9. SQM and Albemarle, they have an excellent More than 50% of the world‘s known reser- In May 2018, a 58 square kilometer brine tar- connection to the existing infrastructure. The ves are hidden in the sometimes extremely get zone with lithium contents of up to project area, which is located in the very Salar de Turi high-grade salaries and await their uplift. Al- 1,410mg/L was identified in the license area. north of the Salar, covers 6,600 hectares and though Bolivia possesses more lithium than This has a thickness of between 100 and has extremely high near-surface lithium de- The Salar de Turi is also located in northern Chile, the deposits there have not yet mana- over 300 metres. The Company is currently grees. For example, lithium up to 1,330mg/L Chile, 30 kilometres from the Bolivian border ged to exceed the much higher risk status of working on a drilling program that will soon could be detected during sampling, which is and about 80 kilometres north of the Salar de resources. The second important point is the provide more detailed information on possib- on the same level as the grades of the two Atacama. The project area covers 7,600 hec- cost of the subsidies. These are currently le high-grade lithium deposits in the Salar de processing sites of SQM and Albemarle. tares and has near-surface lithium grades up around US$ 1,800 per tonne in Chile. By way Coipasa. From a chemical point of view, there is a very to 590mg/L. Chemically, the ratio of lithium to of comparison, in Australia you have to The smaller Norte Project is located in the good ratio of lithium to potassium of only potassium is only 0.05 and the ratio of mag- spend around US$5,000 to produce one ton- immediate vicinity, northwest of Coipasa. 0.09 and a ratio of magnesium to lithium of nesium to lithium is a good 7.8. The Compa- ne of lithium. In Chile, two decisive factors only 2.6. ny is currently working on an extensive geo- play a decisive role here: the relatively high In 2018, several brine target zones with lithi- physical study leading to a 3-hole drilling degrees of evaporation and a high evaporati- Salar de Helados um contents of up to 1,330mg/L were identi- program. on rate, which accelerates the production fied in the licence area, each covering 20 to process. A third important point is Chile‘s The Salar de Helados is located in the 25 square kilometres. These are located in well-known straightforward approval proce- northeast of Chile, directly on the border to the area of the northeast flank of the Salar Salar de Talar dure. The country is considered by mining Argentina and Bolivia. The proximity to the and have a thickness of between 50 and over companies to be one of the best jurisdictions Salar de Atacama (only 80 kilometres to the 75 meters. The Salar de Talar is located in the northeast in the world. west) provides Helados with a very good ye- of Chile, about 50 kilometers southeast of the ar-round connection to the existing infra- Salar de Atacama. The project area, inclu- structure. The project area covers 22,700 Salar de Ollague ding the smaller Capur project, covers 3,500 15 top-class projects – Largest hectares and has extremely high near-surfa- hectares and has near-surface lithium grades land package in Chile ce lithium grades. For example, samples of The Salar de Ollague is located in the north of of up to 740mg/L. Chemically, the ratio of lit- up to 1,280mg/L lithium could be detected, Chile, directly on the border to Bolivia, with hium to potassium is only 0.1 and the ratio of Lithium Chile currently holds exploration which is on the same level as the grades of part of the project area even on Bolivian ter- magnesium to lithium is a good 4.5. The concessions on 15 lithium projects, all of the two processing sites of SQM and Albe- ritory. The project area covers 2,200 hectares company is currently working on an extensi- which are located in the north of the country. marle in the Salar de Atacama. From a che- and has near-surface lithium grades of up to ve geophysical study. These concessions cover a total of around mical point of view, the situation on Helados 1,140mg/L. Chemically, the ratio of lithium to 159,000 hectares, making Lithium Chile – is similar to that on Coipasa, since the ratio potassium is only 0.1 and the ratio of magne- apart from the Chilean state – the largest of lithium to potassium is only 0.1 and the sium to lithium is a good 7.1.

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www.lithiumchile.ca www.lithiumchile.ca Summary: jects, of which the most recent have not yet What are the most important catalysts for How do you see the current situation on the First hit landed! – Several more undergone major exploration activities. The the next 6 to 12 months? market for battery metals? chances available! lithium-bearing brines, which seem to be only a few metres deep, and the extremely Our goals for the next 12 months are quite The biggest issue I see in the battery metals Lithium Chile is still at an early stage of de- high evaporation rate in Chile at the same simple and that is to successfully complete a space is the disconnect currently taking place velopment. After all, the company did not time mean that promisingly low figures can drilling program on at least 2 of our priority between the EV/battery industry and the lithi- start acquiring potentially high-caliber lithium also be expected for possible mining costs. prospects. Turi has already been approved um exploration and mining companies. The projects in Chile until 2016. The largest licen- Investors can look forward to a whole series and as mentioned we expect to be drilling in growth and demand in the electric mobility se areas were not even added until 2017. of potential top results in the coming months. the next 60 days upon completion of our TEM space has shown double digit growth year With the help of some top-class and experi- program. We also hope to begin a drilling pro- over year and battery manufacturing has been enced mining specialists, it was possible to gram on either Coipasa or our Helados pros- growing at an even more torid pace. Lithium secure the largest portfolio of lithium projects pects where we have completed geophysical prices while declining in the first half of 2018 in one of the best mining areas with extre- programs already and have identified nume- have stabilized in the $12,800US per ton of mely high-grade lithium results. The Compa- rous exciting targets. On Coipasa we have LCE. Yet through out the year we saw equity ny‘s objective is to initially sample all 15 pro- received the approval from the community prices for lithium exploration companies executive and are awaiting final approval of decline by 70% plus. I believe investors are our agreement. We could have a drill program going to realize this year that the EV market is underway there in the next 30 days. Lastly we growing, demand for battery metals is gro- have had on going discussions we a number wing unabated and that the performance and of major Asian players in the lithium space and appreciation in the Lithium equities will more Exclusive interview with Steve Cochrane, my goal is to complete at least 1 joint venture accurately reflect the strength in the EV mar- agreement before the end of 2019. ket. I also expect to see the M&A activity pick CEO of Lithium Chile up for lithium miners as well.

What have you and your company achieved consistent over the 5 holes and that made us in the past 12 months? realize we needed to add an experienced lithi- Steve Cochrane, CEO um expert to the team. In January we announ- While it hasn’t always felt so the last 12 ced that Jose de Castro Alem, a chemical en- months have been incredibly busy for Lithium gineer, and one of the original Orocobre em- Chile and upon looking back we have accom- ployees joined our team. This was a real coup ISIN: CA53681G1090 Lithium Chile Inc. plished a lot. Early in 2018 we completed a for Lithium Chile and gives us the necessary WKN: A2JAHX TEM geophysical program on 4 of our priority expertise to maximize our drilling results on FRA: KC3 prospects, Ollague, Coipasa, Helados and our other prospects going forward. In Decem- TSX-V: LITH Atacama. Based on results of that program ber we also received permission from the Turi our exploration team designed, submitted and Community Association to complete a TEM Shares outstanding: 100.9 million was approved for a reconnaissance drill pro- geophysical program and drill 3 exploration Options: 4.1 million gram on all 4 properties. We initiated surface holes on our Turi prospect. TEM has begun Warrants: 5.7 million access discussions with all 4 communities, and drilling is expected to commence late first Fully diluted: 110.8 million received approval from the Ollague Communi- quarter of 2019. We began 2018 with 14 pros- ty association and late summer completed a pects and 56,000 hectares of exploration pro- Contact: 5-hole program. The program was successful perties and we finished 2018 with over 159,000 Lithium Chile Inc. from two standpoints, 1) we had lithium bea- hectares and 15 prospects. The majority of the #900, 903 – 8th Ave. ring brines over all 5 holes proving up a 20 hectarage we added was on our top priority S.W. Calgary, AB, T2P 0P7, Canada sqkm area and 2) we validated our geophysi- projects. In early 2018 we also added cal model as the brine aquifers were exactly $5,000,000 of equity at $1.00 per share to our Phone: +1-403-852-7117 where they were identified on the TEM. This treasury. All in all it was a busy and successful give us great confidence in the data on the 12 months. [email protected] other 3 properties. Our lithium grades were in- www.lithiumchile.ca

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www.lithiumchile.ca www.lithiumchile.ca M2 Cobalt Giant projects in the world‘s most productive cobalt region!

M2 Cobalt is a Canadian development com- Flagship project Kilembe called Bujagali, is located in central Uganda new license. To date, up to 0.65% cobalt pany specializing in potential world-class and comprises 5 huge license areas with a and up to 0.18% copper have been detec- cobalt projects. The two flagship projects One of two Ugandan flagship projects is cal- total of 1,371.2 square kilometres. Bujagali is ted. are located in the most productive cobalt re- led Kilembe. The two license areas together at the crossroads of two of the most import- gion on the planet. cover 193.3 square kilometres and are loca- ant East African trends, the Kibali Trend and ted within a 25-kilometre radius of the suc- the Twangiza Trend. Bujagali hosts an IO- Project Silverside cessful Kilembe Mine, which produced more CG-typical mineralization with copper, co- Uganda – the exact opposite of than 16 million tonnes of rock averaging 2.0% balt and traces of nickel. Sampling has al- The third cobalt project is called Silverside the DRC copper and 0.17% cobalt between 1956 and ready detected up to 0.31% cobalt, 0.17% and is located in the so-called Cobalt Camp 1977. Both project areas (Kilembe North and copper and 3.5g/t silver. Geochemically, in the Canadian province of Ontario. It covers More than 60% of the cobalt produced wor- South) are located not far from the Congolese geophysically and geologically, Bujagali has approximately 2,800 hectares and has a num- ldwide comes from mines in the Democratic border and on the same geological trend as the same indicators as Olympic Dam and the ber of anomalies and structures, as recent Republic of Congo. However, many of the the Kilembe Mine. The entire region is the Congolese mines. GTK, Finland‘s govern- studies have shown. Historical exploration mines there are not operated professionally, most important exploration hot spot for cop- ment agency for soil research, rates the Bu- work has been able to demonstrate cobalt and the safety measures are sometimes ext- per and cobalt in East Africa outside the De- jagali region as one of the world‘s highest mineralization with grades ranging from remely precarious. mocratic Republic of Congo. Accordingly, the priority exploration targets. In 2018, the 0.62% to 0.74% confirmed. In addition, a Kilembe Project also hosts a VHMS cop- company was able to report its first explora- 6-centimeter-long soil sample contained an The situation is different in neighbouring per-cobalt mineralization. tion successes from Bombo, one of the 5 average of 25 ounces of silver per ton of rock. Uganda. Politically stable, with a legal sys- In 2018, M2 Cobalt carried out airborne geo- license areas. Sampling encountered up to tem based on British law. The Mining Code physical studies on the project that identified 0.65% cobalt, 0.4% copper and 0.15% ni- is transparent and clearly regulates the con- a total of over 700 zones of potential cobalt ckel. In the Waragi target area, up to 1.24% Planned merger with Jervois ditions to be observed in operated mines. and copper occurrences. 80 of these were cobalt and 0.4% copper were found. During Mining Limited Uganda is also free of conflicts such as tho- classified as high-priority and are currently trenching, the Company encountered se in the Democratic Republic of Congo. Ne- being investigated by the teams. In addition, Bombo including 0.19% copper over 95 me- In January 2019, M2 Cobalt announced that it vertheless, Uganda lies in the same geologi- two areas could be identified which are suita- tres including 0.91% copper over 1 metre was planning a merger with Jervois Mining cal region as the rich Congolese mines. ble for initial drilling work. In October 2018, and 0.27% cobalt and 0.13% copper over 3 Limited. Jervois main asset is the Nico Young the Company commenced its first drilling metres. There were also longer mineralized cobalt nickel deposit in New South Wales, program on Kilembe. intervals with, among others, 0.012% cobalt Australia. The Company is about to complete East African Trench System over 33 metres. The whole on the surface a pre-feasibility study on the 3.0 million tonne with high potential in depth. The Bombo tailings leach plant in the deposit. After cons- Uganda is located directly between the right Kilembe extension anomaly currently covers an area of 2.2 x 1 truction, the plant will be one of the largest and left foothills of the East African Rift Val- km, Waragi 1 km x 900 meters. The best cobalt-nickel plants in Australia. ley, a geological formation that stretches In October 2018, M2 Cobalt announced that sample so far showed a cobalt content of from the Gulf of Aden in the north to Mozam- it had secured three additional exploration 1.75%! In November 2018, M2 Cobalt laun- bique in the south of East Africa. Uganda is licenses adjacent to or near the existing Ki- ched the first drilling campaign in the Bombo Experienced and successful thus on the same commodity-rich trend as lembe project area. This covers about 515 and Bombo NW areas. management team Southern Sudan, Congo, Tanzania and square kilometres and triples the area of the Rwanda. Typical of the East African trench original Kilembe project. Two of the licenses M2 Cobalt is led by a highly experienced and system are so-called IOCG deposits, i.e. de- are directly adjacent to the Kilembe Project Bujagali extension successful management team. posits containing iron, copper, uranium, and the Kilembe Mine, while the third area is CEO Simon Clarke is one of the co-founders gold, silver and rare earths. Furthermore, the located approximately 50 kilometers east of In November 2018, M2 Cobalt announced of Osum Oil Sands, an 8,000-barrel oil pro- East African trench system is home to a lar- the mine and hosts both gold and copper mi- that it had secured another exploration licen- ducer per day. ge number of so-called VHMS deposits, neralization. se with an area of approximately 334 square Director VP Ops Thomas Lamb is co-founder which are of volcanic origin and often cont- kilometres. These extend the Bujagali licen- of Goldgroup Mining. He was also a Director ain silver, gold, cadmium, bismuth and tin in ses to the south and west, where significant at Russia‘s third largest gold producer Uz- addition to the main elements copper and Flagship project Bujagali cobalt anomalies have been identified with huralzoloto Group. zinc. Waragi and 4 other areas. By taking samples Dr. Jennifer Hinton is a world-renowned ex- The second flagship project, which, like Ki- by the end of 2018, the Company was able pert in local and private exploration, especial- lembe, was only acquired in January 2018, is to demonstrate that these also extend to the ly in East and Central Africa.

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www.m2cobalt.com www.m2cobalt.com Graham Harris was formerly Senior Vice Pre- Summary: Potential world-class What are the most important catalysts for kets, again we believe this is coming and sident of Canaccord Capital and is currently projects and strong experts the next 6 to 12 months? with the continued growth in electric vehic- Chairman of Millennial Lithium. le sales we think this will also spread to the Director Mahendra Naik, who joined M2 M2 Cobalt is an early-stage opportunity that  Through the merger process we now have more traditional battery metals including Cobalt in September 2018, is a chartered ac- really has it all! Two huge copper-cobalt pro- additional capital to continue and expand cobalt countant and one of the founding directors jects were secured in a region with the wor- our initial drill program with the goal of a  On the cobalt side, there are signs that the and officers of IAMGOLD Corporation. As ld‘s most productive cobalt mines. This in major new discovery in Uganda during 2019 short-term over-supply generated through Chief Financial Officer of IMAGOLD from politically stable, mine-friendly Uganda and  The completion of our merger, and the the run up in cobalt prices last year is wor- 1990 to 1999, he negotiated a number of mi- thus in a region that is classified as one of the depth of the resulting technical team, will king its way through the system and wi- ning joint ventures with Anglo American and world‘s highest prioritized exploration tar- also position us for a number of large-scale thout major new discoveries and continued was instrumental in arranging over $550 milli- gets. The exploration potential is almost gi- opportunities across East Africa growth in demand we believe the funda- on in debt and equity financing for IAMGOLD, gantic: countless near-surface finds and vi-  Providing our shareholders with access to mentals remain strong especially as we including the IPO. Naik is also Chairman of sible mineralization suggest that M2 Cobalt other large-scale projects globally including move into the 2020s the Board, Audit and Compensation Commit- could hit the mark in Uganda. It is certain that existing assets in Australia provides strong  We also believe that investors going for- tee of Fortune Minerals Limited, which focu- investors can look forward to countless re- additional diversity ward will be more discerning and favour ses on the NICO Cobalt Gold Bismuth Cop- sults from the exploration program launched those companies with strong teams and a per Project in the North West Territories. As in the coming months. If the company only good asset mix which provide a compelling CEO of Fortune, Naik was actively involved in succeeds in hitting a single bull‘s eye, this How do you see the current situation on the opportunity to invest directly in the battery raising more than $100 million for Fortune should quickly raise the share price to a com- market for battery metals? metals sector and negotiating several joint ventures. pletely new level. Mahendra Naik is an absolute expert in the field of capital procurement  While markets remain challenging, there are and possible joint ventures with large compa- signs that a stronger market is coming. nies. Copper and nickel have both seen good gains in recent times and although this has not fully filtered down into the junior mar-

Exclusive interview with Simon Clarke, ISIN: CA55379T1030 M2 Cobalt Corp. WKN: A2H8WQ CEO of M2 Cobalt Corp. FRA: A0K TSX-V: MC

Shares outstanding: 63.0 million What have you and your company achieved sampling up to 1.7% Co, 1% Cu and Options: 5.8 million Simon Clarke, CEO in the past 12 months? 0.51% Ni Warrants: 12.5 million  We have launched an initial drill program Fully diluted: 81.3 million  We acquired a large package of assets, to test several key targets and this is now highly prospective for battery metals in being expanded Uganda, East Africa (cobalt, copper, ni-  We announced an agreed Merger with Contact: ckel), positioning us a first-mover for cobalt Jervois Mining of Australia to combine our M2 Cobalt Corp. in this mineral rich jurisdiction strong exploration focused team with their Suite 2000 - 1177 West Hastings Street  We raised C $8.5 million strengths in development, production and Vancouver, BC, V6E 2K3, Canada  Through major work programs (geochem, metallurgy to target a number of key op- geophysics, VTEM, trenching and drilling) portunities in East Africa and globally with Phone: +1-604-669-2191 across the assets we deployed over C$- the goal of building on strong foundations 5million and identified numerous targets to establish a mid-tier, multi jurisdictional [email protected] and 3 different styles of mineralization with battery metals focused company www.m2cobalt.com

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www.m2cobalt.com www.m2cobalt.com Millennial Lithium With mega-management in production within three years PASTOS GRANDES – LINING PILOT EVAPORATION PONDS

Millennial Lithium is a Canadian development lones in Chile runs 53 kilometers north of the company focusing on lithium projects in Ar- project area. A natural gas pipeline runs gentina. The company is far better connec- about 26 kilometers northwest of the project. ted to the existing infrastructure than most of its competitors and intends to go into production within just three years. Pastos Grandes Lithium Project – Exploration and Development Successes Tailing ponds at Pastos Grandes. Pastos Grandes Lithium Project – (Source: Millennial Lithium) Situation and Acquisition In autumn 2016 Millennial Lithium started its first own drilling campaign on Pastos Gran- The flagship project is Pastos Grandes, a lit- des. The first well (up to 192 metres deep) hium project in the northwestern Argentine already encountered three layers of wa- province of Salta. Pastos Grandes is a salt ter-bearing brine of different depths, with lake that is part of a series of similar lakes densities of 1.19 g/cm3 to 1.22 g/cm3. The that run like a string of pearls through the second well (up to 352 metres deep) even Pastos Grandes Lithium Project – per tonne of lithium carbonate over the 25- provinces of Salta and Catamarca. encountered eight intervals, each about one Resource Estimation and Produc- year mine life. The initial cost of capital inclu- Millennial Lithiums Pastos Grandes Project metre long. These drilling successes led the tion Plans ding the 20% buffer amounts to US$ 410.2

consists of several sub-areas, which current- company to drill a further third well. In total, million. The repayment period is 4.5 years.15 ly cover 8,664 hectares and have been gra- lithium contents of up to 471mg/L could be In November 2017, Millennial Lithium presen- On this basis, internal profitabilityTSX-V: ML | OTCQB: MLNLF | Frankfurt: A3N2 is at a very dually acquired since around mid-2016. The detected by means of these boreholes. ted the first reliable resource estimate for Pas- solid 23.4% after tax. Company initially carried out geophysical In June 2017, Millennial Lithium discovered tos Grandes based on the Canadian NI43-101 In July 2018, Millennial Lithium commissi- work, a comprehensive drilling program, re- an average lithium content of 535mg/L over resource calculation standard. Accordingly, oned WorleyParsons Chile S.A. to prepare a source estimation and construction of evapo- 381.5 meters by drilling another well. the project has at least 2.131 million tonnes of feasibility study for Pastos Grandes based ration ponds, a mini processing facility and a A subsequent pump test carried out in ano- lithium carbonate equivalent (LCE) and 8.141 on the PEA data to be completed by the se- camp. Furthermore, a hybrid solar power ther borehole yielded average lithium cont- million tonnes of potash equivalent (KCI) in the cond quarter of 2019. supply system was put into operation. ents of around 430mg/L over a period of 60 measured and indicated categories and hours. In addition, the lithium content was 878,000 tonnes of LCE and 3.263 million ton- slightly reduced from only 439 to 431 mg/L nes of KCI in the inferred category. Cauchari East Lithium Project Pastos Grandes Lithium Project – over the entire test period. The management around CEO Farhad Very good connection to the In August 2017, Millennial Lithium was able Abasov expects a production start in about At the end of September 2016, Millennial Lit- existing infrastructure to demonstrate that the brine-bearing layer three years and an annual production of hium announced that it would acquire ano- also continues outside the Salar Center. 10,000 to 15,000 tons of lithium due to the ther lithium project called Cauchari East. This The biggest plus point is the relative proximi- Among other things, a near-surface layer of good infrastructural location as well as the covers 2,990 hectares and is located on the ty to the provincial capital Salta. While most 33 metres with an average of 523mg/L and a simplicity of a possible mining. eastern side of the Cauchari-Olaroz Salar, of its competitors‘ projects are literally loca- deeper layer of 545mg/L over 211.3 metres adjacent to Orocobre‘s producing Salar de ted in the Pampa, Millennial Lithium‘s project were encountered! Olaroz and Lithium Americas Corp.‘s advan- has a direct connection to the city of Salta, An additional well in 2018 returned up to Pastos Grandes Lithium Project – ced Cauchari-Olaroz project. Millennial Lithi- which is about 235 kilometres away by road 701mg/L lithium within a 545-meter-thick sec- Preliminary Economic and Feasi- um‘s new project has the same geological and has about 350,000 inhabitants. At the tion. In November 2018, a 236-meter-long bility Study characteristics as the two producing or highly same time, Salta is the capital of the province section with an average lithium content of 566 advanced projects of adjacent competitors of the same name in the very northwest of mg/L was also discovered. New pump tests In January 2018 Millennial Lithium for Pastos and particularly high potential in the lower Argentina. At the same time, there is a direct, showed lithium contents between 482mg/L Grandes was able to present a first prelimi- salar layers. Studies carried out by Orocobre approximately 490 km long road connection and 518mg/L over a period of 24 days. nary economic feasibility study (PEA). Accor- on their own project suggest that the corres- to the Chilean port of Antofagasta, which not In January 2019 Millennial Lithium was able dingly, the project has a Net Present Value ponding lithium brine resources extend to the only has a Pacific deep-sea port, but is also to confirm in the laboratory that a battery-ca- (NPV) of US$824 million (discounted at 8%), eastern part of the Salar and thus also to the one of the leading mining cities in South pable lithium carbonate concentrate of assuming an average production of 25,000 Cauchari East project. Millennial Lithium has America. A 600-megawatt, 375 kilovolt 99.92% can be produced using brine from tonnes of lithium carbonate per year. Opera- now been able to confirm this by means of high-voltage line connecting Salta and Mejil- Pastos Grandes. ting costs were estimated at a low US$ 3,218 geophysical studies.

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www.millenniallithium.com www.resource-capital.chwww.millenniallithium.com | [email protected] In June 2017, Millennial Lithium expanded its He has already worked for several big names evaporation ponds, finished the construction How do you see the current situation on the Cauchari East project by a further 8,742 hec- in the industry (SQM, BHP) and was jointly of a liming plant and are now completing the market for battery metals? tares. responsible for the design and construction design of a pilot processing plant. We have In June 2018, the Company received the of the evaporation ponds on Orocobres Salar also engaged Credit Suisse as our lead finan- The demand picture is growing stronger with long-awaited environmental permit to drill up de Olaroz project. cial advisor to assist us in financing the cons- every day as more and more car makers an- to 6 wells. truction phase and in our current strategic nounce an increased number of new electric discussions. vehicle models for the next few years. We be- Summary: Full speed ahead lieve the demand for lithium ion batteries from Top management for rapid project towards production automotive and energy industries will be very development What are the most important catalysts for strong in coming years. The supply side will Even though there is still a long way to go the next 6 to 12 months? continue to be constrained due to various A top management team was put together before the targeted start of production, it is factors that will limit potential new supply co- for the rapid further development of the com- clear to the management that this is absolu- 2019 promises to be a big year for Millennial ming on line in the next few years due to fi- pany‘s own projects. tely pushing the pace. The excellent drilling as we are planning to update our 43-101 nancing, technical and other reasons. We be- During his career, CEO Farhad Abasov has and pumping results, which could be presen- compliant resource report in the first quarter, lieve this situation will ensure robust lithium led Allana Potash to a $170 million acquisition ted in only a few months, show that one pos- finalize our feasibility study in the second prices and strong margins for potential low- by Israel Chemical Ltd. and Energy Metals to sesses a high-grade lithium resource. The quarter and starting the pilot operations by cost producers like Millennial Lithium with its a $1.8 billion acquisition by Uranium One, good infrastructural situation (in contrast to the middle of 2019. We are also building a hy- potentially low-cost structure in Pastos Gran- among others. In addition, he was co-founder many competitors) could accelerate a pos- brid solar power plant to meet our power re- des. of Potash One, which was taken over by the sible production. With the help of further top quirements for the pilot operations and other German K+S for 430 million dollars in 2010. exploration results, the feasibility study and camp needs. We are fully funded to complete Chairman Graham Harris was Senior Vice the commissioning of the pilot production all these programs this year. President and Director of the Canadian in- plant in the second quarter of 2019, Millenni- vestment house Canaccord for five years. He al Lithium‘s market capitalization is expected raised more than $250 million in capital for to increase rapidly. This is also due to the fact listed and private companies. Harris is also that the company has sufficient financial re- the owner of Sunrise Drilling, which is a deci- sources. In March 2018, for example, the sive advantage for exploration. company was able to do two financings Peter Ehren is a specialist for evaporators worth CA$ 24.15 million and CA$ 7.7 million when it comes to the production of lithium. respectively. ISIN: CA60040W1059 WKN: A2AMUE Millennial Lithium Corp. FRA: A3N1 OTCQX: ATWGF TSXV: ML Exclusive interview with Farhad Abasov, Shares outstanding: 82.6 million CEO of Millennial Lithium Options/RSUs: 10.1 million Warrants: 7.5 million Fully diluted: 100.3 million

What have you and your company achieved Grandes project in 2018 demonstrating ro- Contact: in the past 12 months? bust economic numbers for our lithium brine Millennial Lithium Corp. project in Salta province of Argentina. The Suite 2000 - 1177 West Hastings Street Farhad Abasov, CEO Millennial Lithium has made a tremendous Company has initiated a Definitive Feasibility Vancouver, BC Canada V6E 2K3 progress in the past 12 months. The Compa- Study and began an expansion drilling pro- Phone: +1 604-662-8184 ny completed a major financing in early 2018 gram on our recently acquired property which Fax: +1 604-602-1606 making it one of the best funded companies is adjacent to our original grounds. In additi- in the sector. We have also completed a Pre- on, we have started pilot operations whereas [email protected] liminary Economic Assessment on our Pastos we have built and been operating solar www.millenniallithium.com

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www.millenniallithium.com www.millenniallithium.comwww.orocobre.com Neo Lithium Steadily growing lithium deposits with top framework conditions on the way to the feasibility phase

Neo Lithium is a Canadian mining develop- part of the project. These contain high-quali- rities that is not in production. It is also the ment company that has secured one of the ty lithium and feed the lakes and salars with sixth highest grade project in the world (ba- world‘s largest lithium deposits within the about 3,000 tons of lithium carbonate equi- sed on a 400mg/L lithium cut-off), with the so-called „Lithium Triangle“ in Argentina. The valent per year. Isotope and mass balance higher-grade area north of the Salar being special thing about it is that the lithium re- studies show that the lithium mineral deposit the second highest of all brine projects in the source there is growing - day by day! The is still being formed by evaporation from the world. most recent resource estimate has returned lakes. a very high-grade resource that is just below surface. A recently published pre-feasibility 3Q Project – study impressively illustrated the world-class 3Q Project – Pre-Feasibility Study status of the 3Q project. Large Resource, High Grade In March 2019, the Company published a With over 10,000 metres of drilling and further Pre-Feasibility Study (PFS). An after-tax capi- The Company is currently focusing on 3Q Project – geophysical surveys, the company has alrea- tal value (NPV, discounted at 8%) of US$ expanding its high-grade resources in the Location and Infrastructure dy produced a hydrostratigraphic model of 1.14 billion was calculated. After-tax profita- northern part of the lake. the salar. In addition, a resource estimate bility (IRR) is an excellent 49.9%. Capital (Souce Neo Lithium) Neo Lithium‘s flagship project Tres Quebra- was published in 2018 that impressively un- costs were estimated at US$ 318.9 million das (3Q) is located in the Argentine province derscored the world-class nature of the 3Q and operating cash costs at US$ 2,914 per of Catamarca, about 30 kilometers from the project. The Salar contains a total of at least ton lithium carbonate equivalent. This would Chilean border. The nearest town is about 4,000,000 tons of lithium carbonate equiva- place 3Q in the range of the world‘s most 100 kilometres to the east. The nearest mo- lent, with high average grades of 614mg/L in cost-effective lithium mines. Over a period of torway to the project is the Ruta Nacional 60, the measured and indicated category. The 35 years, 20,000 tons of lithium carbonate which connects the capital Catamarca (San ratio of magnesium to lithium is very good, could be produced annually. According to Fernando del Valle de Catamarca) with Copi- since it is low at 3.3. A further 3,000,000 ton- this estimate, the repayment period is 1 year apó and the port of Caldera via the Paso de nes of lithium carbonate equivalent are ad- and 8 months. Compared to the first profita- San Francisco. The project can be reached ded in the inferred category. The average bility study, capital costs were reduced, and by motorway over a distance of 60 kilomet- grade is 584mg/L and the ratio of magnesi- profitability increased from 27.9% to 49.9%. res in all weathers. By September 2018, over um to lithium is 4.5. The cut-off grade is Even if the production is now set smaller, this lithium carbonate was built and installed on US$25 million had been invested in the 3Q 400mg/L. In the northern part of the salar, an means a much better economy than previ- the project site in February 2019. The plant, project, including a 100-person camp. Disco- even higher-grade resource was also found. ously assumed. designed and built by the Instituto de Investi- vered in December 2015 by the company‘s This contains at least 746,000 tons of lithium gaciones Tecnologicas of the University of founders, 3Q is already fully equipped, inclu- carbonate equivalent at an average of Concepcion, Chile, was previously success- ding a camp, weather station, geochemical 1,007mg/L measured and indicated in the 3Q Project – fully tested with synthetic brine in Chile and analysis laboratory, solar and diesel power categories and 186,000 tons of lithium car- pilot production, pilot plant is now fed with brine from the 3Q project, plants, and a wastewater-free sewer system. bonate equivalent at 1,240mg/L in the infer- which concentrates about 4% lithium from red category. The ratio of magnesium to lithi- A complete pilot plant on a scale of 1:1,200 the evaporation ponds of the 3Q project to um is only around 1.7. The cut-off grade was has been in operation for more than two ye- start production of lithium carbonate on a pi- 3Q Project – 800mg/L. The interesting thing about this is ars. For about a year now, Neo Lithium has lot scale in the plant. Currently, the planned The occurrence grows every day that while the southern area was drilled to a been able to achieve a concentration of 3.8% annual capacity of the pilot ponds is over 500 depth of 600 metres, the northern, hig- lithium in the brine without the addition of ad- tonnes of approximately 4% lithium brine per The 3Q project covers about 350 square kilo- her-grade area only advanced to depths of ditives. This makes 3Q the only project in the year, with a planned capacity of 50 tonnes meters, Neo Lithium has a 100% share. The 100 metres. Among them is thus still a high world that can achieve a lithium concentrati- lithium carbonate per year. project is located at about 4,000 metres abo- Blue Sky potential. More than 50% of the to- on of 3.8% without the addition of additives ve sea level and consists of a complex of tal resource lies within an area from surface and only by means of natural evaporation. three brine reservoirs and three salars. This is to a maximum depth of 100 metres. 33% lie The existing brine is rich in calcium and cal- Top management team a brine lake, of which only one more is known in deeper sediment layers and have not yet cium chloride naturally precipitates with 6 worldwide. It is located in China and houses been completely delineated. 3Q is thus cur- water molecules, reducing the size of the Neo Lithium has a top management team a lithium mine. What is special about this is rently the fifth largest brine project in the wor- ponds calculated in the PEA. In 2018, a pilot from which President & CEO Waldo Perez that geothermal sources feed the northern ld, and the only project with low critical impu- plant for the annual production of 50 tons of stands out once again.

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www.neolithium.ca www.neolithium.ca Exclusive interview with Waldo Perez, CEO of Neo Lithium Corp.

What have you and your company achieved time and are getting to frution with the com- in the past 12 months? pletion of the pre-feasibility study.

We have increased the lithium resource of the 3Q project by 220%, increased the grade of How do you see the current situation on the Waldo Perez, CEO the core by 40% and we are about to comple- market for battery metals? te the prefeasibility study by Q1, 2019 2019, Drilling Programm Sales in electric cars are beatting records (Souce Neo Lithium) months after month. The fundamentals re- What are the most important catalysts for main very strong and current lower proces the next 6 to 12 months? from china will nto last. Also major floods in Atacama desert will produce a disruption on We will completed the pre feasibility study im- the Chilean exports (biggest world producer) Dr. Perez has more than 28 years of acade- the content and size of the deposit still in- minently, we will present the final enviromen- and this will have a positive effect in prices in mic and industrial experience in mineral ex- creasing daily today - almost unique in the tal permit to allow mine construction and we the next 6 months ploration in South America. He was founder world. Furthermore, the company is in nego- will move the project to final feasibility study. and technical director of the Cauchari project tiations with strategic groups to advance the We are also in negotiations with strategic acquired by Lithium Americas Corp. and its project. These negotiations have been ongo- groups to move the project fordward. These president and CEO from inception to final ing for some time and should continue to in- negotiations have been going on for some feasibility study. Previously, he was CEO of tensify with the recent completion of the Latin American Minerals Inc, Senior Geolo- pre-feasibility study, which takes further risk gist for Barrick Gold, IAMGOLD, Apex Geos- from the project and has shown further im- cience and Opawica Exploration. provements over the previous feasibility study. The pre-feasibility study clearly confirmed that the 3Q project is one of the best, highest ISIN: CA64047A1084 Stable shareholder structure, grade and most cost-effective lithium brine WKN: A2AP37 Neo Lithium Corp. sufficient cash projects in the world. In addition, the final en- FRA: NE2 vironmental permit for the mine workings TSXV: NLC Neo Lithium has a stable shareholder struc- should be available in the coming weeks, al- ture. About 45% of all outstanding shares are lowing the project to be aligned with the final Shares outstanding: 117.5 million in the hands of institutional investors such as feasibility study. In parallel, a new drilling Options/warrants: 11.3 million BlackRock, Sprott, JPMorgan and Macken- campaign is underway to extend to depth the Fully diluted: 128.8 million zie. About 16% of the shares are held by in- particularly high-grade area, which has only siders. Neo Lithium has about 40 million CA$ been investigated to a depth of 100 metres to Contact: in cash and has no debts. date. Management has already impressively Neo Lithium Corp. demonstrated in the past that it can success- 01 Bay Street, Suite 2702 fully develop lithium brine projects and bring Toronto, Ontario, M5H 2Y4, Canada Summary: them to production maturity. Top project with seven-league Phone: +1-416-962-3300 boots towards feasibility study [email protected] The 3Q project is an active lithium deposit www.neolithium.ca that is still in the process of formation, with

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www.neolithium.ca www.orocobre.comwww.neolithium.ca Standard Lithium Huge Lithium Carbonate Deposit in the USA and Cooperation with LANXESS

Standard Lithium is a Canadian raw material nuary 2019. Accordingly, it has at least In June 2018, Standard Lithium finally started covers approximately 155 square kilometers, developer specializing in lithium projects in 802,000 metric tons of lithium carbonate taking samples from existing wells and for over 100 years. Bristol Lake is a classic the USA. New technologies are increasingly equivalent in the derived category. The aver- evaluating production data from the Arkan- salt lake with a significant lithium content, being used to extract lithium in a relatively age lithium concentration is 160mg/L in the sas Oil and Gas Commission. This led to first but has not been part of the production stra- environmentally friendly way, which shortens northern area and 399mg/L in the southern promising results from a total of 4 brine samples tegy to date. Historical Drilling of the USGS approval processes and gives the company area. containing between 347 and 461 mg/L lithium. (The United States Geological Survey is a an additional time advantage. In November 2018, Standard Lithium an- scientific agency within the Department of nounced its intention to enter into a commer- the Interior of the United States. The USGS is Arkansas Smackover Lithium cial joint venture with LANXESS. the most important institute in the United Arkansas Smackover Lithium Project – Development + Pilot Also, in November 2018, an initial resource States for official cartography.) found 110 Project – Acquisition, Location Plant estimate was submitted for the project area mg/L lithium in corresponding brines. and Resource developed in cooperation with LANXESS. With the help of a mini pilot plant, it has alrea- This means that it has at least 3.086 million In 2018, Standard Lithium signed an option dy been demonstrated that lithium can be metric tonnes of lithium carbonate equivalent Expansion of the Bristol Lake agreement with TETRA Technologies to ac- extracted from so-called Smackover Brine. in the inferred category. The average lithium Lithium Project quire exploration rights in the Smackover In March 2018, Standard Lithium signed a concentration is 165mg/L. Together with the Formation in Arkansas. This involves 30,000 readiness agreement with Zeton Inc. for the TETRA project area, Standard Lithium now In May 2018, Standard Lithium announced acres of brine licenses in one of the most design, construction and operation of a lar- has around 3.888 million metric tons of lithi- the signing of a license, exploration and opti- highly productive brine production regions in ge-scale pilot plant in South Arkansas. In um carbonate equivalent in the inferred cate- on agreement with TETRA Technologies to southern Arkansas. The annual production of June 2018, the company commissioned gory in Arkansas Smackover. This is the lar- acquire an additional 12,100 acres within brine in Arkansas averaged 42.6 million cubic Saltworks Technologies Inc. to design and gest lithium brine deposit in the United Sta- Bristol Lake and an additional 11,840 acres metres between 2010 and 2016. Albemarle‘s build a novel, selective crystallization plant tes. of Cadiz Dry Lakes, located approximately production licence area is also located in the for the production of battery-compatible lithi- 20 kilometers away in the Mojave Desert, Ca- immediate vicinity of the TETRA sites. Histo- um carbonate in a continuous process. In lifornia. The company now has the exclusive rical data on standard lithium area from 1992 October 2018, Standard Lithium completed Bristol Lake Lithium Project – right to carry out exploration activities for lit- report on lithium contents between 370 and and commissioned the prototype for the pilot Location hium brines. Within the Cadiz Dry Lake, lithi- 424mg/L. A well-developed infrastructure plant for a selective crystallization process. um contents between 112 and 139mg/L were and a low-risk geology make the project a By the beginning of 2019, the company had Standard Lithium‘s second flagship project is detected during appropriate sampling. company maker. A first resource estimate for been able to produce a lithium carbonate called Bristol Lake and is located in the Moja- Standard Lithium's Licenses in Bristol Lake the TETRA project area was submitted in Ja- concentrate with 99.56% lithium content. ve region of San Bernadino County, near the (Source: Standard Lithium) town of Amboy in southeastern California. Bristol Lake Lithium Project – Amboy is located on the old Route 66, near Exploration and Production Arkansas Smackover Lithium the current Interstate Highway 40. The distan- Potential Project – Expansion + LANXESS ce to Las Vegas is 200, to the port of Los An- deal geles about 330 kilometers. In addition, an The fact that chloride has been mined for active railway line runs within 5 kilometres. over 100 years makes Bristol Lake one of the A Memorandum of Understanding was also best developed salt lakes in North America in signed with LANXESS Corporation to test terms of infrastructure. At the same time, the and demonstrate the economic viability of Bristol Lake Lithium Project – project has a high exploration potential for the production of lithium from tail brine pro- Production and Resources the raw material lithium. After all, only chlori- duced at Lanxess‘ three plants in South Ark- de has been degraded by the previous con- ansas as part of its bromine production busi- Through several acquisitions, Standard Lithi- veyors to date, while the significant lithium ness. Standard Lithium has paid LANXESS um secured a total of over 25,000 acres of content has not been taken into account at an initial reservation fee of US$3 million to license space within the Bristol Lake area by all. This results not only in a high exploration secure access to tail brine. LANXESS land August 2017. potential but also in a high production poten- operations in South Arkansas include more The majority of the licenses come from the tial for lithium and possible by-products. than 150,000 acres, 10,000 brine leases and National Chloride Company. This company In October 2017, Standard Lithium launched surface agreements, and 250 miles of pipe- and several others have been producing a large-scale exploration and analysis pro- lines. chloride from Bristol Lake Salt Lake, which gram with the goal of establishing a resource

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www.standardlithium.com www.resource-capital.chwww.standardlithium.com | [email protected] definition. The depth and lateral course of the Summary: an inferred resource report of 3.08 Million ton- What are the most important catalysts for brines are to be determined first and fore- Full risk right from the start! nes LCE. On that report, because we are wor- the next 6 to 12 months? most. Several samples have already been king on a project that is already producing sent to various laboratories in the USA for Standard Lithium‘s Project in Arkansas is al- massive commercial volumes of brine the The completion and commission of our pilot testing purposes. In addition, the first evapo- ready the largest lithium brine resource in the data came from existing producing wells. Not plant is definitely very exciting and something ration tests were carried out. It turned out USA. If you look at this smackover formation, from pump tests. On the 27,000-acre Tetra that our investors and partners are keen to that the brine originally contained an average you will quickly come to the conclusion that project we have announced an inferred re- follow. lithium content of 146mg/L. The brine was Standard Lithium is investigating a (former) oil source of 802,000 tonnes LCE. We have engaged Worley Parsons to produce then used for the production of the first gas. project for lithium resources and wants to win Our processing team has also been very a PEA, Preliminary Economic Assessment. After four weeks, the lithium content was the corresponding. From the outset, this invol- busy. As we have access to large volumes of We are targeting mid Q2 for that. concentrated to an average of 556mg/L only ves full risk, both financially and technically. brine with out having to permit, drill, and through passive evaporation by solar radiati- Even though the Tenova Bateman concept is pump we have been able to run at the mini on, with a peak value of 717mg/L. The lithium already quite well developed, there is always a pilot scale our extraction process for the past How do you see the current situation on the content was 556mg/L on average after four small residual risk that is now to be reduced to year to fine tuning our process flow sheet. We market for battery metals? weeks. Further tests showed that the lithium zero by operating a pilot plant. Standard Lithi- have filed the final patent application on our content of the brines can even be increased um‘s second project, Bristol Lake, is charac- proprietary lithium extraction technology. The Exciting and frustrating. The demand side to an average of 686mg/L with an evaporati- terized by an excellent infrastructure and a demonstration scale extraction pilot plant is projections are getting more and more ag- on time of 7 weeks. certain degree of purity, which is due to the under construction at Zeton in Ontario Cana- gressive. The key for investors is to look at Additional drilling confirmed the presence of fact that the chloride, which was actually a nu- da. We will be mobilizing and shipping that projects that are achievable in favorable juris- appropriate brines throughout the tested isance, has already been removed as far as modular plant to south Arkansas in late Q2 of dictions area. possible. All in all, Standard Lithium offers an this year. In 2018, Standard Lithium carried out a lar- outstanding opportunity with a decisive ad- ge-scale geophysical gravity survey in the vantage: the management is unique and far Cadiz Dry Lake area, which concluded that it ahead of its time. With the help of Bateman was a backfilled basin with a maximum depth technology, lithium brine deposits can be ex- of 700 metres. ploited at seemingly unrivalled prices. A fact that will cause some positive surprises for Standard Lithium in the coming months.

ISIN: CA8536061010 Standard Lithium Ltd. WKN: A2DJQP Exclusive interview with Robert Mintak, FRA: S5L TSXV: SLL CEO of Standard Lithium Ltd. Outstanding shares: 73.5 million Options/warrants: 8.7 million Fully diluted: 82.2 million What have you and your company achieved Lanxess and followed that announcement in the past 12 months? with a general term sheet and planned JV with Lanxess with the intention, subject to Contact: A very busy and successful 12 months. We proof of concept and positive feasibility stu- Standard Lithium Ltd. have moved our south Arkansas project from dy, to bring the project into phased commer- 888 – 1100 Melville St. Robert Mintak, CEO a concept to the most advanced and largest cial production. The planned JV comes with a Vancouver, BC V6E 4A6 lithium brine project in the USA. We have real- commitment from Lanxess to project finan- ly separated our selves from a crowded field cing and all merchant market sales of lithium Phone: +1-604-409-8154 of companies with the strategic partnerships from the project. We announced two 43-101 that we have secured. We announced a bin- resource reports on our south Arkansas pro- [email protected] ding MoU with global chemical company jects. On the 150,000-acre Lanxess project www.standardlithium.com

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www.standardlithium.com www.standardlithium.comwww.orocobre.com Wealth Minerals One of the largest land parcels of all lithium juniors in Chile‘s top-class Salars with the most important state-owned company on board

Wealth Minerals is a Canadian lithium de- centrations, possibly even relatively close to kilometres and have therefore been com- cessions with a total area of 5,700 hectares velopment company based in Vancouver and the surface. SQM and Albemarle currently bined into one project. Trinity is located about per option to the southwest and northwest of Santiago de Chile. In Chile, the company has extract their lithium from a depth of only 40 100 kilometers east of the Atacama Salar. the existing project area. The decisive factor been able to secure one of the largest land metres, with the salar itself reaching a depth for this additional acquisition was probably packages of all lithium juniors operating in of up to 975 metres. Wealth Minerals started the electromagnetic studies that the compa- Chile since February 2016. And this mostly in an extensive geophysical study in Septem- Salar de Aguas Calientes ny had previously carried out. Several ano- salars, which were classified as the 15 hig- ber 2018 in the Salar de Atacama. malies have been identified that are interes- hest grade of Chile. In July 2016, Wealth Minerals signed an opti- ting drill targets to be further investigated by on agreement to acquire 100% of the royal- drilling. Laguna Verde Project ty-free Puritama Concessions 1 to 8, totaling Atacama Project 2,000 hectares, located in the Salar de Aguas In December 2016, Wealth Minerals signed a Calientes. Historical sampling in the 1990s Seven Salars Project Wealth Minerals signed an option agreement letter of intent to acquire 100% of the royal- indicated a lithium concentration of up to with Atacama Lithium SpA in November 2016 ty-free Laguna Verde project. This covers a 169mg/L. Further investigations, which were In August 2017, Wealth Minerals announced under which the Company has the right to total of 6,300 hectares and is located in completed in 2015, revealed lithium concen- that it had signed a binding letter agreement acquire 100% of 144 royalty-free exploration northern Chile, close to Highway 60 and only trations between 205 and 290 mg/L. to acquire 49% of all outstanding shares of concessions totaling 46,200 hectares in the 15 kilometres from the Argentine border. La- San Antonio Sociedad Contractual Minera. northern area of Atacama Salar. The property guna Verde already has a historical NI43-101 This in turn holds a 50% stake in the 7 salars is directly adjacent to licenses from BHP Bil- compliant inferred resource of 512,960 ton- Salar de Pujsa in northern Chile, which cover a total of liton, SQM and CORFO, a state-owned Chi- nes of lithium carbonate equivalent and 39,400 hectares. Talison Lithium, controlled lean company. On CORFO‘s territory, appro- 4.223 million tonnes of chloride equivalent. Also, in July 2016, Wealth Minerals signed an by Albemarle and Tinanqui Lithium, holds the ximately 15 kilometers south of Wealth‘s Radiometric and geophysical surveys have option agreement to acquire 100% of the remaining 50% of Seven Salars. Even though concessions, are the two production facilities shown that the lake basin is 400 to 1,000 me- royalty-free Pujsa Concessions 1 to 7, tota- Wealth Minerals only owns an indirect share of SQM and Albemarle, which produce tres deep. It also showed that a saline ling 1,600 hectares, located in the Salar de of 24.5% of the Seven Salars, it is still a top approximately 62,000 tons of lithium carbo- groundwater layer, which could be a potenti- Pujsa of the same name. The state, Chilean deal! One of these salars, La Isla, is Chile‘s nate equivalent (including potassium) an- al brine, exists in 200 to 300 metres. Another authority Sernageomin (Servicio Nacional de second largest lithium deposit. An average nually. brine layer could be present in the northeas- Geologia y Minera) classifies the Salar de Pu- lithium grade of 863mg/L was found in 68 Geophysical surveys have already identified tern area at a depth of more than 400 metres. jsa as one of 15 high-grade salars in Chile. shallow holes. So, it could well be that La Isla several drill targets within an area of 10 by 15 These discoveries have resulted in Wealth Independent studies concluded in 2015 that will be put into production relatively quickly, kilometres. One suspects there several wa- Minerals securing an additional 6,300 hecta- lithium concentrations between 220 and especially with such strong companies as Al- ter-bearing soils with significant lithium con- res of adjacent concessions. 620mg/L can be found there. bemarle in the background. Laboratory tests have also shown that Lagu- In addition, synergies could arise for the de- Wealth Minerals' main assets lie in na Verde is suitable for the use of the innova- velopment of Piedra Parada. Northern Chile: tive Tenova Bateman technology, which gre- Salar de Quisquiro A: Atacama atly accelerates lithium extraction compared B: LagunaVerde to the classic evaporation process. In September 2016, Wealth Minerals signed Strategic alliance with ENAMI C: Trinity In July 2018, the company started with an in- an option agreement to acquire 100% of the (Source: Wealth Minerals) itial economic evaluation (PEA), which will royalty-free Quisco Concessions 1 to 9, tota- In March 2018, Wealth Minerals entered into initially be based on an annual production ling 2,400 hectares, located in the Salar de an agreement with the fully state-owned Na- capacity of 6,000 metric tons of lithium car- Quisquiro. The 15 best Salars of Chile are tional Mining Company of Chile under which bonate. classified in the three levels Tier 1, 2 and 3, the parties have agreed to enter into a strate- whereby Quisquiro is together with Atacama, gic alliance to develop and commercialize Maricunga, Pedernales and La Islain in the the Company‘s projects in Salar de Atacama Trinity Project highest category Tier 1. The northern part of and Laguna Verde. The agreement provides the salar is owned by SQM, suggesting that that the parties will have 24 months to study The Trinity Project consists of the three inde- you might actually be dealing with a top lithi- and evaluate the above properties and form a pendent projects Aguas Calientes Norte, Pu- um location. partnership to explore, develop and mine jsa and Quisquiro, all of which are located in In January 2018, Wealth Minerals announced these properties and to market the products the north of Chile within a radius of only 15 that it had secured further exploration con- from the projects. The agreement provides

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www.orocobre.com www.wealthminerals.com that the joint venture will take the form of a considered to be the best Chilean projects, What are the most important catalysts for agreements with lithium consumers don’t gu- registered joint venture in which ENAMI will you can rely on high-grade test results. Mas- the next 6 to 12 months? arantee that the lithium will actually be pro- hold 10% of the joint venture while Wealth termind Henk van Alphen‘s absolutely clever duced and delivered, that there is still a lot of will own the remaining 90% of the joint ven- move was the inclusion of ENAMI. Thus, the- We have had an ongoing dialog with local counterparty risk in the industry due to opera- ture. re is now a real possibility to further develop communities in the Atacama and we believe tional issues, and as such, lithium prices will The background to this is that lithium depo- the projects up to the production stage. We- that soon we will start drilling on the property, remain volatile for a long time as supply and sits in Chile, due to their strategic importan- alth Minerals has made the leap from being a which is, undoubtedly a major milestone demand are mismatched. This issue is at the ce, can only be exploited with the participati- pure acquirer to a development company event. Additionally, our conversations with heart of the evolution of the lithium space: no on of state enterprises. and was also able to generate CA$ 15.8 mil- potential strategic partners is ongoing, and in one knows what it is going to look like 10 ye- lion in fresh funds between the end of 2017 the backdrop of a looming lithium supply cri- ars from now. Will it be a division of chemical and January 2019, so that the current drilling sis for 2019, these conversations are taking companies? Oil companies? Will there be Summary: campaigns are largely fully financed. Additio- on a sense of urgency not seen in 2018. enough capital for the industry to be robust Great projects, great strategy nal momentum could be provided by Cesar enough to feed demand consistently? Is the Jil, former Manager of Lithium Extraction model of non-mining lithium consumers fi- Wealth Minerals is about to become one of Technologies at Albemarle Corporation, who How do you see the current situation on the nancing mines sustainable? the most important lithium players in South was recently appointed General Manager for market for battery metals? America – as long as you don‘t get acquired Wealth Minerals Chilean Assets. beforehand. The more than 110,000 hectares Given the recent public record of Nemaska’s of licensed space in some of Chile‘s top sa- problems, Orocobre’s problems and clearly lares should arouse the desire of big players. other lithium suppliers in the Andes moun- The success story of Wealth Minerals is only tains of Argentina and Chile, we believe lithi- just beginning. After all, the company has um consumers are going to see a very tight only been able to carry out sporadic explora- market in 2019 and higher prices. This is part tion work to date. This will change in the co- of a greater issue Wealth has addressed in ming months, so that an increased news flow the past with investors, namely that off-take can be expected. If you take a look at the individual projects, the majority of which are

ISIN: CA9468852095 WKN: A12C3D Wealth Minerals Ltd. Exclusive interview with Henk van Alphen, FRA: EJZN CEO of Wealth Minerals TSXV: WML Outstanding shares: 119.1 million Options: 8.5 million Warrants: 2.6 million What have you and your company achieved about what we have in the Atacama. The hi- Fully diluted: 130.2 million in the past 12 months? ring of Cesar Jil is a huge milestone event for Wealth, as there are literally only a handful of Contact: Wealth has done extensive work building up people on the planet who have experience in Wealth Minerals Ltd. a long-term viable platform to be a major lithium brine recovery technologies. His 2300 - 1177 West Hastings Street player in the global lithium market. While the- career at Albemarle, a major lithium producer, Vancouver, British Columbia, V6E 2K3 Henk van Alphen, CEO re were limited press release events in the was stellar and the added value he can provi- past year, much work has been done on gai- de will ensure that Wealth advances Atacama Phone: +1-604-331-0096 ning the buy-in of multiple stakeholders in as efficiently and with the best performance Fax: +1-604-408-7499 our development of the Atacama project. Ad- as possible. ditionally, geophysical work has generated [email protected] data that has made the team very excited www.wealthminerals.com

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