Zinnwald Lithium Project Technical Report on the Feasibility Study for the Zinnwald Lithium Project, Germany Prepared for: Deutsche Lithium GmbH Am St. Niclas Schacht 13 09599 Freiberg Germany Effective date: 2019-05-31 Issue date: 2019-05-31 Zinnwald Lithium Project Technical Report on the Feasibility Study TABLE OF CONTENTS Page Date and Signature Page ............................................................................................................. 2 1 Summary ........................................................................................................................ 22 1.1 Property Description and Ownership ........................................................................ 22 1.2 Geology and Mineralization ...................................................................................... 22 1.3 Exploration Status .................................................................................................... 23 1.4 Resource Estimates ................................................................................................. 23 1.5 Reserve Estimates ................................................................................................... 25 1.6 Mining ...................................................................................................................... 26 1.7 Processing and Metallurgical Test Work .................................................................. 27 1.8 Recovery Methods ................................................................................................... 28 1.9 Project Infrastructure ................................................................................................ 30 1.10 Market Review and Lithium Pricing .......................................................................... 30 1.11 Environmental Studies ............................................................................................. 31 1.12 Capital Cost Estimates ............................................................................................. 32 1.13 Operating Cost Estimates ........................................................................................ 32 1.14 Economic Analysis ................................................................................................... 33 1.15 Conclusions and Recommendations ........................................................................ 34 1.16 Forward Work Program ............................................................................................ 35 1.16.1 Geology ............................................................................................................... 35 1.16.2 Mining.................................................................................................................. 35 1.16.3 Processing .......................................................................................................... 36 1.16.4 Infrastructure ....................................................................................................... 36 1.16.5 Environment ........................................................................................................ 37 2 Introduction ..................................................................................................................... 37 2.1 Background .............................................................................................................. 37 2.2 Project Scope and Terms of Reference .................................................................... 37 2.3 Study Participants .................................................................................................... 38 2.4 Site Visits ................................................................................................................. 40 2.5 Frequently used Abbreviations, Acronyms and Units of Measure ............................. 40 3 Reliance on Other Experts .............................................................................................. 41 4 Property Description and Location .................................................................................. 43 4.1 Mine Site .................................................................................................................. 43 4.1.1 Location ............................................................................................................... 43 4.1.2 Legal Aspects and Tenure ................................................................................... 45 4.1.3 Environmental Liabilities ...................................................................................... 51 4.1.4 Minerals Fee (royalty) .......................................................................................... 51 4.1.5 Taxes .................................................................................................................. 51 4.2 Mechanical and Metallurgical Processing Site.......................................................... 51 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ...................... 53 5.1 Accessibility ............................................................................................................. 53 Date: Page: 2019-05-31 3/374 Zinnwald Lithium Project Technical Report on the Feasibility Study 5.2 Climate..................................................................................................................... 53 5.3 Local Resources ...................................................................................................... 55 5.4 Infrastructure ............................................................................................................ 56 5.5 Physiography ........................................................................................................... 56 6 History ............................................................................................................................ 57 6.1 Historical Mining ....................................................................................................... 57 6.2 Recent Safety and Remediation Measures .............................................................. 59 6.3 Exploration History ................................................................................................... 60 6.3.1 Preface ................................................................................................................ 60 6.3.2 Geological Mapping ............................................................................................. 60 6.3.3 Drilling and Sampling ........................................................................................... 61 6.3.3.1 Introduction ......................................................................................................... 61 6.3.3.2 Exploration Campaign No. (1) 1917 - 1918, Germany ......................................... 61 6.3.3.3 Exploration Campaign No. (2) 1930 - 1945, Germany ......................................... 62 6.3.3.4 Exploration Campaign No. (3) 1955, Czech Republic .......................................... 62 6.3.3.5 Exploration Campaign No. (4) 1951 - 1960, Germany ......................................... 62 6.3.3.6 Exploration Campaign No. (5) 1961- 1962, Czech Republic ................................ 63 6.3.3.7 Exploration Campaign No. (6) 1977 - 1978, Germany ......................................... 63 6.3.3.8 Exploration Campaign No. (7) 1988 - 1989, Germany ......................................... 64 6.3.3.9 Exploration Campaign (8a / 8b) 2012 - 2013, Germany ....................................... 65 6.3.3.10 Exploration Campaign (8c) 2017, Germany ......................................................... 66 6.3.4 Geochemical Surveys .......................................................................................... 66 6.3.5 Geophysical Surveys ........................................................................................... 66 7 Geological Setting and Mineralization ............................................................................. 67 7.1 Regional Geology .................................................................................................... 67 7.2 Project Geology ....................................................................................................... 70 7.2.1 Lithology .............................................................................................................. 70 7.2.2 Structure .............................................................................................................. 76 7.2.3 Alteration ............................................................................................................. 77 7.3 Styles of Mineralization ............................................................................................ 79 7.3.1 Description of Mineralized Zones ......................................................................... 81 7.3.2 Ore Grades ......................................................................................................... 91 7.3.3 Veining ................................................................................................................ 94 8 Deposit Type................................................................................................................... 96 8.1 Characterization of Greisen Deposits ....................................................................... 96 8.2 Application