Zinnwald Lithium Project Report on the Mineral Resource Prepared for Deutsche Lithium GmbH Am St. Niclas Schacht 13 09599 Freiberg Germany Effective date: 2018-09-30 Issue date: 2018-09-30 Zinnwald Lithium Project Report on the Mineral Resource Date and signature page According to NI 43-101 requirements the „Qualified Persons“ for this report are EurGeol. Dr. Wolf-Dietrich Bock and EurGeol. Kersten Kühn. The effective date of this report is 30 September 2018. ……………………………….. Signed on 30 September 2018 EurGeol. Dr. Wolf-Dietrich Bock Consulting Geologist ……………………………….. Signed on 30 September 2018 EurGeol. Kersten Kühn Mining Geologist Date: Page: 2018-09-30 2/219 Zinnwald Lithium Project Report on the Mineral Resource TABLE OF CONTENTS Page Date and signature page .............................................................................................................. 2 1 Summary .......................................................................................................................... 14 1.1 Property Description and Ownership ........................................................................ 14 1.2 Geology and mineralization ...................................................................................... 14 1.3 Exploration status .................................................................................................... 15 1.4 Resource estimates ................................................................................................. 16 1.5 Conclusions and Recommendations ........................................................................ 17 2 Introduction ....................................................................................................................... 18 2.1 Terms of Reference ................................................................................................. 18 2.2 Sources of information ............................................................................................. 18 2.3 Statement of Qualified Persons ................................................................................ 19 2.4 Terminology and limitations ...................................................................................... 19 3 Reliance on Other Experts ................................................................................................ 19 4 Property Description and Location .................................................................................... 20 4.1 Location ................................................................................................................... 20 4.2 Legal aspects and tenure ......................................................................................... 22 4.3 Environmental liabilities ............................................................................................ 25 4.4 Minerals fee (royalty) ................................................................................................ 25 4.5 Taxes ....................................................................................................................... 26 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ........................ 26 5.1 Accessibility ............................................................................................................. 26 5.2 Climate..................................................................................................................... 27 5.3 Local resources ........................................................................................................ 29 5.4 Infrastructure ............................................................................................................ 30 5.5 Physiography ........................................................................................................... 30 6 History ............................................................................................................................... 31 6.1 Historical mining ....................................................................................................... 31 6.2 Recent Safety and Remediation Measures .............................................................. 33 6.3 Exploration history ................................................................................................... 34 6.3.1 Preface .................................................................................................................. 34 6.3.2 Geological mapping ............................................................................................... 34 6.3.3 Drilling and sampling ............................................................................................. 35 6.3.4 Geochemical Surveys ............................................................................................ 40 6.3.5 Geophysical Surveys ............................................................................................. 40 7 Geological setting and Mineralization ................................................................................ 41 7.1 Regional Geology .................................................................................................... 41 7.2 Project Geology ....................................................................................................... 44 7.2.1 Lithology ................................................................................................................ 44 7.2.2 Structure ................................................................................................................ 50 Date: Page: 2018-09-30 3/219 Zinnwald Lithium Project Report on the Mineral Resource 7.2.3 Alteration ............................................................................................................... 51 7.3 Styles of mineralization ............................................................................................ 53 7.3.1 Description of mineralized zones ........................................................................... 55 7.3.2 Ore grades............................................................................................................. 65 7.3.3 Veining .................................................................................................................. 68 8 Deposit type ...................................................................................................................... 70 8.1 Characterization of greisen deposits ........................................................................ 70 8.2 Application to the Zinnwald property ........................................................................ 70 9 Exploration ........................................................................................................................ 71 9.1 Introduction .............................................................................................................. 71 9.2 Underground trench sampling .................................................................................. 71 9.3 Bulk underground sampling ...................................................................................... 72 9.4 Mapping ................................................................................................................... 72 10 Drilling ............................................................................................................................... 73 10.1 Overview .................................................................................................................. 73 10.2 Drilling Program 2012 - 2014 ................................................................................... 74 10.2.1 Drill hole summaries .............................................................................................. 75 10.2.2 Core recovery and RQD ........................................................................................ 77 10.2.3 Drill core logging .................................................................................................... 78 10.2.4 Drill core sampling ................................................................................................. 78 10.3 Drilling Program 2017 .............................................................................................. 80 10.3.1 Drill hole summaries .............................................................................................. 81 10.3.2 Core recovery, RQD and drill core logging ............................................................. 83 10.3.3 Drill core sampling ................................................................................................. 83 11 Sample Preparation, Analysis and Security ....................................................................... 84 11.1 2012 - 2014 Drilling Campaign ................................................................................. 84 11.1.1 Method of sample preparation ............................................................................... 84 11.1.2 Methods of analysis ............................................................................................... 85 11.1.3 Quality assurance and control measures ............................................................... 87 11.1.4 Adequacy of sample preparation, security and analyses........................................ 99 11.2 2017 Drilling Campaign .........................................................................................