Lithium extraction from mica

Disruptive technology to revolutionize lithium production

The most common lithium minerals (the lithium micas lepidolite and zinnwaldite)

+ sulphuric acid

= high-purity lithium carbonate + potassium sulphate + aluminium hydroxide

1 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Disclaimer

This presentation is for information purposes only. Neither capital expenditures, ore reserves and mineral resources COMPETENT PERSON’S STATEMENT this presentation nor the information contained in it and anticipated grades and recovery rates and are, or may constitutes an offer, invitation, solicitation or be, based on assumptions and estimates related to future The information in this report that relates to reporting of recommendation in relation to the purchase or sale of shares technical, economic, market, political, social and other Exploration Results is based on and fairly represents in any jurisdiction. conditions. information and supporting documentation prepared by Adrian Griffin, a member of the Australasian Institute of This presentation may not be distributed in any jurisdiction LIT disclaims any intent or obligation to update publicly any Mining and Metallurgy. Mr Griffin is a shareholder in, and except in accordance with the legal requirements applicable forward-looking statements, whether as a result of new managing director of, LIT and has sufficient experience in that jurisdiction. Recipients should inform themselves of information, future events or results or otherwise. The words relevant to the style of mineralisation and type of deposit the restrictions that apply in their own jurisdiction. A failure to ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, under consideration. He is qualified as a Competent Person do so may result in a violation of securities laws in that ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, as defined in the 2012 edition of the Australasian Code for jurisdiction. ‘will’, ‘schedule’ and other, similar expressions identify Reporting of Exploration Results, Mineral Resources and forward-looking statements. All forward-looking statements Ore Reserves. Mr Griffin consents to the inclusion in this This presentation does not constitute financial product made in this presentation are qualified by the foregoing report of the matters based on information in the form and advice and has been prepared without taking into account cautionary statements. Investors are cautioned that forward- context in which it appears. the recipients’ investment objectives, financial circumstances looking statements are not guarantees of future performance or particular needs, and the opinions and recommendations and, accordingly, investors are cautioned not to put undue The reporting of mineral species is generic in nature, and the in this presentation are not intended to represent reliance on forward-looking statements due to the inherent term ‘lepidolite’ – as it is applied to mineral species, and not recommendations to particular persons. Recipients should uncertainty therein. necessarily locality names – includes mineral species widely seek professional advice when deciding if an investment is considered to be part of the solid solution series of appropriate. All securities transactions involve risks, which Many known and unknown factors could cause actual events polylithionite/trilithionite, of which the Competent Person include, among others, the risk of adverse or unanticipated or results to differ materially from estimated or anticipated considers lepidolite to be approximately a median member. It market, financial or political developments. events or results reflected in such forward-looking is also acknowledged that material processed from statements. Such factors include, but are not limited to: Lepidolite Hill has bulk compositions tending towards Certain statements contained in this presentation, including competition; mineral prices; ability to meet additional funding trilithionite, although the rubidium concentration is outside information as to the future financial or operating requirements; exploration, development and operating risks; the range generally expected in such minerals. performance of Lithium Australia NL (‘LIT’ or ‘the Company’) uninsurable risks; uncertainties inherent in ore reserve and and its projects, are forward-looking statements. Such resource estimates; dependence on third-party smelting Similarly, the term ‘zinnwaldite’ has been applied to minerals forward-looking statements are necessarily based on a facilities; factors associated with foreign operations and approximating the accepted composition of zinnwaldite but number of estimates and assumptions that, while considered related regulatory risks; environmental regulation and with variations tending towards lepidolite. This terminology is reasonable by LIT, are inherently subject to significant liability; currency risks; effects of inflation on results of considered acceptable by the Competent Person, technical, business, economic, competitive, political and operations; factors relating to title to properties; native title particularly with respect to the Cinovec deposit, the social uncertainties and contingencies, involve known and and Aboriginal heritage issues; dependence on key mineralization of which includes the type locality of unknown risks and uncertainties that could cause actual personnel, and share-price volatility. They also include zinnwaldite, being Zinnwald, close to the border of Germany events or results to differ materially from estimated or unanticipated and unusual events, many of which it is and the Czech Republic. anticipated events or results reflected in such forward- beyond the Company’s ability to control or predict. looking statements, and may include, among other things, statements regarding targets, estimates and assumptions in Photographs in this presentation do not depict assets respect of commodity prices, operating costs and results, of the Company.

2 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Company snapshot

LITHIUM AUSTRALIA (LIT) – A UNIQUE FOCUS ON LITHIUM

BOARD OF DIRECTORS

George Bauk (non-executive chairman) Expert in specialty metals, particularly rare earths – project management, marketing and financing.

Adrian Griffin (managing director) Exploration, production, mine management.

Bryan Dixon (non-executive director) Corporate, finance, mine development.

ASX ticker: LIT ACN 126 129 413 134 M Ordinary Shares 50 M Partly Paid Shares 12 M Unlisted Options Market cap. $7 M [email protected] www.lithium-au.com

3 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Disruptive technology to fill supply gap

CONTINUOUS PRODUCTION OF BATTERY-GRADE LITHIUM CARBONATE

ABUNDANT FEED POTENTIAL ▸ lithium micas, a ‘forgotten resource’ ▸ advanced resource – world’s fourth-largest hard-rock deposit

EXCLUSIVE TECHNOLOGY AGREEMENTS

EXPANDING SUPPLY GAP

4 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Company strategy

PRODUCE BATTERY-GRADE LITHIUM CARBONATE FROM LITHIUM MICAS ▸ Zero energy footprint ▸ Waste materials with no mining cost ▸ High feed grades ▸ Fast reaction time – low capital cost

UTILIZE A FORGOTTEN RESOURCE ▸ Capitalize on availability of most abundant lithium minerals ▸ Utilize advantages of strategic partnerships ▸ Change operating cost profile ▸ Prosper from by-product credits

RE-EVALUATE GLOBAL LITHIUM OCCURRENCES Turn geological curiosities into reserves

DOMINATE GLOBAL LITHIUM INVENTORIES

5 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Continuous plant test – May 2015

Sulphur

Sulphuric acid Mica feed Sulphuric acid leach

Tailings

Sulphuric acid plant pH modifier All process energy Impurity removal Steam requirements derived via Tailings

harvesting waste heat from a Electricity sulphur-burning acid plant

Electricity Carbonate feed Lithium carbonate precipitation Power co-generation

Heat

K2SO4 crystallization

COMMERCIAL PRODUCTS

6 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Proof of concept

THE CONCEPT BECOMES REALITY

Cinovec lithium concentrate grade

Li O K O CaO Al O FeO MgO S Rb Cs 2 2 2 3 % % % % % ppm ppm ppm ppm

1.81 7.41 1.57 19.3 6.91 367 740 6671 222 Lepidolite – lithium mica Lepidolite - lithium mica K(Li,Al,Rb)3(Al,Si)4O10(F,OH)2 K(Li,Al,Rb)3 (Al,Si)4 O 10 (F,OH) 2 Cinovec lithium carbonate purity >99.6% ZinnwalditeZinnwaldite – lithium - lithium mica mica Li 2O K2O CaO Al2O3 SiO2 FeO MgO S P As Co Rb Cs K(Li,Al,Fe)K(Li,Al,Fe)3(Al,Si)4O3 (Al,Si)10(F,OH)4 O2 10 (F,OH) 2 2 2 2 2 19 2 3 13 2 37 2 % ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm 8 2 1 8 8 19 8 83 1 13 18 37 188 K 8 Li Al 1 Rb 18 Potassium 1 Lithium Rubidium 8 40.3 176 57 ND 87 ND 67 1581 162 ND ND 24 ND K 1 Li AlAluminium Rb 8 39.0983 6.941 26.9815388 85.4678 1 Potassium Lithium Aluminium Rubidium 1 40.3 128 75 ND 54 23 ND 1042 94 ND ND 8 ND 39.0983 6.941 26.8915388 85.4578

LIT has produced battery-grade lithium carbonate from Lepidolite Hill in Western Australia and Cinovec in the Czech Republic, has recovered lithium from two other European deposits and is examining further deposits at

Ravensthorpe, Lake Seabrook and Pilgangoora in Battery-grade lithium carbonate Potassium sulphate Western Australia. Battery-grade lithium carbonate. Potassium sulphate.

7 August 2015 Copyright © 2015, Lithium Australia NL

Lithium extraction from mica Company achievements Daily WebLink Chart Date Range: From 8/10/2014 To 8/7/2015

1. First lithium carbonate produced 2. Cinovec resource upgrade 3. LIT and European Metals sign 3 non-binding 50/50 JV HoA 4. Completion of mini-plant test run

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2 1

Chart by WebLink – http://www.weblink.com.au/

8 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Recent achievements

REPRODUCIBLE RESULTS ▸ Lepidolite Hill (Western Australia) ▸ Three greisen deposits (Europe)

PROJECT EVALUATIONS ▸ Three European and one Australian deposit tested ▸ Tests include continuous production of lithium carbonate ▸ Low operating costs = competitive edge ▸ energy-efficient process ▸ valuable by-product credits ▸ bottom quartile costs

PROCESS EVALUATION ▸ Reproducible results ▸ Wide range of mineral chemistries ▸ Scoping level design and evaluation ▸ Improved by-product credits

9 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica

Cost profile

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LCE tonnes Estimated global lithium cost curve [sources: Roskill (with modifications) and Orecobre 2014 presentation].

10 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Lithium market

Consumption by application Demand for lithium batteries

000 t LCE 2% 6% Aluminium 10% 32% Other 17% Metallurgical powders Chemicals and pharmaceuticals 22% 11% Lubricants Batteries Glass and ceramics

Source: Market Outlook to 2017 – Roskill Information (2013). Production by country

3.1% HARD-ROCK PRODUCERS 1.6% ▸ Talison, Greenbushes – Western Australia (WA) 8.5% Argentina 11.3% ▸ Sociedade Mineira de Pegmatites – Portugal Australia ▸ Bikita Minerals (Pvt) Ltd – Zimbabwe Brazil 36.8% ▸ Various – China Chile 38.2% HARD-ROCK DEVELOPERS China ▸ Pilbara Minerals, Pilgangoora – WA Portugal ▸ NeoMetals, Mt Marion – WA 0.4% Zimbabwe ▸ General Mining, Mt Cattlin – WA ▸ Altura, Wodgina – WA ▸ Nemaska Lithium, Whabouchi – Canada

11 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Global lithium resources

CINOVEC EMERGES AS SIGNIFICANT LITHIUM RESOURCE

1.0 Mio 0.1 Mio 0.1 Mio 0.1 Mio 3.5 Mio 2.8 Mio 0.04 Mio 0.06 Mio 1.9 Mio

Bolivia 9.0 Mio 2.6 Mio 1.0 Mio

0.2 Mio 1.7 Mio 0.06 Mio

Chile Argentina > 9 Mio 6.5 Mio

Source: US Geological Survey, Mineral Commodity Summaries, February 2014.

Lithium Inferred Resource: 5.5 Mt LCE, 514.8 Mt @ 0.43% Li2O (0.1% Li cut-off) Additional Exploration Target: 3.4 to 5.3 Mt LCE, 350 to 450 Mt @ 0.39-0.47% Li2O* CAUTIONARY STATEMENT The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. * As announced to the ASX on 26 June 2015. 12 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica

First scoping study completed LITHIUM CARBONATE OF HIGH PURITY PRODUCED ▸ Capital cost $US164 M – includes sulphuric acid plant, power co-generation ▸ Zero energy footprint ▸ Capacity – 20,000 tpa of battery-grade lithium carbonate ▸ Operating cost

Global perspective OPPORTUNITIES IDENTIFIED IN: ▸ Europe (large-scale greisen deposits) ▸ Africa (including Namibia, South Africa and Zimbabwe) ▸ North America (Canada and the US) ▸ Australia (including WA exclusive processing licence)

Continuous technology improvement EXPLORATION DEVELOPMENTS ▸ Real-time, field-portable lithium assays ▸ Advanced geochemical modelling

PROCESS TECHNOLOGY ▸ Proprietary technology licences issued ▸ Process optimization review underway

13 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Further opportunities

PILGANGOORA PROJECT – THE PILBARA, WA ▸ Close to developed public infrastructure, including roads, rail, ports and mining services ▸ MoU with Pilbara Minerals

1 Pilgangoora

1

14 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Further opportunities

YILGARN CRATON PROJECTS – WA Close to developed public infrastructure, including roads, rail and power

3 1

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1 Coolgardie

2 Ravensthorpe

3 Lake Seabrook 200 kilometres 4 Greenbushes

15 August 2015 Copyright © 2015, Lithium Australia NL Lithium extraction from mica Company advantages

VALUE-ADDING FACTORS Alliance with Strategic Metallurgy Opportunities previously overlooked ▸ Access to technology protected by patent ▸ Tailings applications ▸ Current mine-waste discharge streams ▸ Ongoing technical support ▸ Primary lithium mica deposits

First-mover advantage Escalating demand LIT is the leader in the production of battery-grade ▸ Revolutionary innovations in transport lithium carbonate from micas, and this has enabled a ▸ New renewable-energy storage solutions rapid accumulation of assets. ▸ Emergence of smart-grid systems

Cinovec – non-binding HoA ▸ Giant lithium mica deposit in the Czech Republic ▸ Scoping study complete ▸ High-purity lithium carbonate produced ▸ Advancing to feasibility

FURTHER INFORMATION [email protected] Opportunities previously overlooked www.lithium-au.com Adrian Griffin +61 8 6145 0288

16 August 2015 Copyright © 2015, Lithium Australia NL