Slide 1: Lithium Charged
Lithium Charged V:CRE WWW.CECORP.CA August 2018
Slide 2: Disclaimers
DISCLAIMERS Forward-Looking Information: This presentation contains "forward-looking information" within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Forward-looking information i
Slide 3: Market Information
MARKET INFORMATION Trading Symbol: TSX-V: CRE Frankfurt: F12 OTCQX: CRECF Shares Outstanding: 158.6 million $2.00 2.5 Warrants: $1.80 3.3 million at $1.07 (December 2018) 420,000 at $1.00 (May 2020) $1.60 2.0 3.5 million at $1.25 (May 2020) $1.40 Volume (millions) Options: 9.1 million ($0.18 - $1.25
Slide 4: Management
MANAGEMENT Strong lithium management & operation knowledge with ex-Rockwood Lithium CEO, CFO and Chief Processing Manager • Steffen Haber, President • Marcus Brune, Director Mining background management involved from discovery to operation • Jean-Sébastien Lavallée, CEO • Paul Bonneville, Project Ma
Slide 5: A Dominant Land Package with Exploration Upside
A DOMINANT LAND PACKAGE WITH EXPLORATION UPSIDE CRITICAL ELEMENTS • Located in a premier CORPORATION Galaxy Resources James Bay Rose Deposit mining jurisdiction in Indicated Resources: Probable Reserves: 26.8 M tonnes: 40,300,000 tonnes; 1.40% Li2O Québec 0.96% Li2O Eq. or 0.85% Li2O and 133 ppm Ta2
Slide 6: Strategy & Deliverables
STRATEGY & DELIVERABLES Our Development Strategy is based on: • Proven Management Team • Low risk two-phase Approach • Simple open pit mining and conventional processing operation • Phase 1 captures 70% of the value • Phase 1 production of spodumene concentrate and tantalum • Phase 2 production of l
Slide 7: Phase 1 Feasibility Results
PHASE 1 FEASIBILITY RESULTS Pre-Tax After-Tax NPV8% $1.257 B $726M IRR 48.2% 34.9% Payback Period 2.3 2.8 Gross Margin 63% Average Annual EBITDA $183M Mine Life 17 Years CAPEX $341M Mill Throughput 4,900 t/day (1,600,000 t/y) Strip Ratio 7.2:1 Average Mill Feed Grade 0.85% Li2O 133 ppm Ta2O5 Commodi
Slide 8: Phase 1 Feasibility Results: Production Volumes and Recoveries
PHASE 1 FEASIBILITY RESULTS Production Volumes • Technical Grade Spodumene 6.0% 50,205 t • Chemical Grade Spodumene 5.0% 186,327 t • Tantalum Concentrate 20.0% 429 t Recoveries • Technical Grade Spodumene 6.0% 87% • Chemical Grade Spodumene 5.0% 90% • Tantalum Concentrate 20.0% 40% Pilot Plant & Met
Slide 9: Phase 1 Opex Details
PHASE 1 OPEX DETAILS Operating costs per tonne processed $66.56 Mining ($3.75 per tonne) $30.69 Processing $16.14 G&A $12.15 Transportation (FOB Port) $7.57 C$/t Li2O US$/t Li2O Concentrate Concentrate Operating costs per tonne of concentrate 458 344 Mining 211 158 Processing 111 83 General & Admini
Slide 10: Mineral Reserves and Resources
MINERAL RESERVES AND RESOURCES Reserves Tonnage NSR Li2O_eq Li2O Ta 2O5 Category (Mt) ($) (%) (%) (ppm) Probable 26.8 148.99 0.96 0.85 133 Total 26.8 148.99 0.96 0.85 133 Resources Tonnage NSR Li2O_eq Li 2O Ta 2O5 Category (Mt) ($) (%) (%) (ppm) Pit-constrained 30.0 161 1.04 0.93 150 Indicated Under
Slide 11: Mine Infrastructure Layout
MINE INFRASTRUCTURE LAYOUT 11 www.cecorp.ca
Slide 12: Project Logistics
PROJECT LOGISTICS Railway to Port Transportation of Spodumene by 90 tonnes truck La Baie Deep Water Port Storage & loading facilities 12 trucks per day 15,000 tonnes spodumene shipments 290Km to Chibougamau railway Sea way to Available Skilled Mining customers Workers 12 www.cecorp.ca
Slide 13: District Scale Potential
DISTRICT SCALE POTENTIAL 13 www.cecorp.ca
Slide 14: Simple Operation with Strong Recoveries
SIMPLE OPERATION WITH STRONG RECOVERIES Key metallurgical factors: • Low in-situ impurities such as iron & mica and favorable mineral crystal structure Results: • Estimated overall yield from spodumene ore to lithium concentrate: 81.4% • Overall industry benchmark yield at: 60-65% Bi-carbonization O
Slide 15: Phase 1 Detailed Flowsheet
PHASE 1 DETAILED FLOWSHEET 15 www.cecorp.ca
Slide 16: Lithium Carbonate Pilot Plant Flowsheet
LITHIUM CARBONATE PILOT PLANT FLOWSHEET b-LiAlSi2O6 LiHCO3 + NaAlSi2O6 (liquid) (solid) ∆ 2 LiHCO3 Li2CO3 + CO2 + H2O 16 www.cecorp.ca
Slide 17: Total Project Capital Cost
TOTAL PROJECT CAPITAL COST Considered Cost Input: Details Phase 1 Phase 2 (Estimate) Total • All numbers in C$ Capex $341.2 MM $190.0 MM $531.2 MM Working Capital $88.8 MM $60.0 MM $148.8 MM • MM = Million Total $430.0 MM $250.0 MM $680.0 MM • Accuracy +/- 15% Cost Breakdown - Phase 1 Initial Sustai
Slide 18: Total Project Capital Cost – Phase 2
TOTAL PROJECT CAPITAL COST – PHASE 2 Estimated Cost Breakdown - Phase 2 Initial Initial Item Capital Capital M C$ M US$ Spodumene Calcining Outotec technology package 18.3 13.7 Engineering & Services 3.6 2.7 Piping & EIA 4.1 3.0 Construction 7.5 5.6 Spodumene Calcining 33.5 25.1 Leaching Outotec tec
Slide 19: Accelerated Development Approach to Lithium Carbonate
ACCELERATED DEVELOPMENT APPROACH TO LITHIUM CARBONATE Two Phased Approach to Minimize Execution and Financial Risk • Execute Detailed Engineering (DE) & Procurement of both phases separately • ❶ 06/18 Start Spodumene DE (duration 12 months) Comment: DE for Carbonate • ❷ 08/19 Start Carbonate DE (dur
Slide 20: Relations with First Nations
RELATIONS WITH FIRST NATIONS • Eeyou Istchee Territory pre-development in place since 2012 • Capacity study completed in 2014 • Impact and Benefit Agreement in progress with goal to sign in october 2018 • Working on a 5 year training plan with the Eastmain community • Discussions and planning with C
Slide 21: Québec Overview
QUÉBEC OVERVIEW Mining in Québec Map of Québec and Plan du Nord • Québec is a vast province, covering 1.7 million km2, of which only 5% is covered by mining exploration rights • As of December 2015, there were over 130k active mining titles in Québec, covering 6.1 million hectares, (only 3.7% of the
Slide 22: Favourable Business Environment
FAVOURABLE BUSINESS ENVIRONMENT Favourable Business/Mining Environment • Combined corporate tax rate of 26.8%, one of the lowest in North America • The Québec Economic Plan includes a reduction of $1.3 billion to the tax burden of Québec companies, including a 25.0% increase to exploration allowance
Slide 23: Favourable Permitting Process
FAVOURABLE PERMITTING PROCESS Favourable Permitting Process • The Strategic Vision for Mining Development in Québec (2016) stipulates that the regulatory agencies (MERN, MDDELCC and MFFP) establish a single gateway to accelerate the processing of authorizations required to launch a mining project •
Slide 24: Comparable Companies
COMPARABLE COMPANIES Comparable Feasibility-Stage Flagship Project – Market Capitalization (US$ M) $1,200 $1,122 (12.0x) Fully Funded Funding Required $1,000 $800 $600 $452 (4.8x) $400 $366 (3.9x) $331 (3.5x) $200 $94 $0 Pilbara Nemaska Altura Lithium Americas Critical Elements Source: S&P Market In
Slide 25: Lithium Company Progression – Catalysts
P/NAV(5%) Formation of JV, 0.45x Significant Funding, 0.91x Feasibility Study, 0.94x L i t h i u m A me r i c as Reserve Estimate Update, 0.57x Source: FactSet, as of August 13, 2018 Reserve Estimate Update, 0.92x A ltur a Phase 2 Feasibility Study, 0.97x Environmental Approval, 0.22x Feasibility St
Slide 26: Management and Board of Directors
MANAGEMENT AND BOARD OF DIRECTORS Jean-Sébastien Lavallée, CEO | Mr. Lavallée has been the Chief Executive Officer of Critical Elements Corporation since 2009. From 2009 to 2017, he also served as President of the Company. Mr. Lavallée has also been the Executive Chairman and Exploration Manager of
Slide 27: Board of Directors
BOARD OF DIRECTORS Jean-Raymond Lavallée, Director | Mr. Lavallée has more than 35 years of experience in mining exploration, as contractor, consultant and manager for several mining companies, such as Louvem, Soquem, James-Bay Development Corporation, Sullivan Consolidated, Cache Explorations Inc.,
Slide 28: Board of Directors
BOARD OF DIRECTORS Matthew Lauriston Starnes, Director | Mr. Lauriston Starnes is a lawyer with over 17 years of experience and the capacity to work in all areas of law, including civil law, common law, contract negotiation and drafting, arbitration, taxes and permits and government relations. Mr. S
Slide 29: Operations Team
OPERATIONS TEAM Paul Bonneville, Project Manager | Mr. Bonneville has over 30 years of experience in the mining industry in Canada. He is a graduate of Queen’s University in Mining Engineering. He was Vice President Operations for Scorpio Mining and Vice President Mines for Cadiscor Resources. He wo
Slide 30: Human Resources – Mining
HUMAN RESOURCES – MINING 30 www.cecorp.ca
Slide 31: Project Workforce
PROJECT WORKFORCE Project Workforce • 300 Employees, (2 shifts of 150 employees) • Workforce from the region, Eastmain, Nemaska, Cree Nation, Jamesians • Employee transportation by airplane • Work schedules of: 14/14 31 www.cecorp.ca
Slide 32: Labour Skills
LABOUR SKILLS Description Type Education Mine Mine Operation Mine Superintendant Professional University Mine General Foreman Skilled College Mine Supervisor Skilled Technical School Drill Operator Skilled Technical School Shovel Operator Skilled Technical School Haul Truck Operator Skilled High Sch
Slide 33: Labour Skills
LABOUR SKILLS Description Type Education Description Type Education Processing and Chemical Chemical Plant Operation Mill & Chemical Administration Chemist Professional University Mill Superintendant Professional University Operator Skilled Technical School Mill Clerk Skilled Technical School Mill &
Slide 34: Labour Skills
LABOUR SKILLS Description Type Education Environment Biology Technician Skilled College Human Resources and Health and Safety HR - H&S Superintendant Skilled University Clerk Semi-Skilled Technical School Security Guard Unskilled High School Nurse Skilled College H&S Coordinator Skilled College H&S
Slide 35: Thank You
THANK YOU Critical Elements Corporation 1080, Côte du Beaver Hall Bureau 2101 Montréal, Québec H2Z 1S8 Phone : 514 904-1496 Fax : 514 904-1597 www.cecorp.ca Jean-Sébastien Lavallée, CEO Phone: 819 354-5146 35 35 www.cecorp.ca