Slide 1: Critical Elements Corporation - February 2012
V:CRE WWW.CECORP.CA February 2012
Slide 2: Disclaimers - Forward Looking Statements
DISCLAIMERS Forward Looking Statements Except for historical information contained herein, this presentation may contain forward looking statements including but not limited to comments regarding predictions and projections. Forward looking statements address future events and conditions and therefo
Slide 3: Market Information
MARKET INFORMATION Trading Symbol: TSX-V: CRE Frankfurt: F12 OTCQX: CRECF Share Structure: 110M ($0.15) Market Cap: $17.5 M Cash: $2M hard dollars including credits Board and Management: Jean-Sébastien Lavallée, P.Geo, President & CEO Jean-François Meilleur, Vice-President Michel Robert, M.A.Sc. Eng
Slide 4: Board of Directors
BOARD OF DIRECTORS Jean-Sébastien Lavallée, President & CEO | Mr. Lavallée has been active in mining exploration since 1994. He is the vice president of Consul-Teck Exploration Inc., a consulting firm of Val-d`Or founded in 2003 that specializes in mining exploration in northern areas. Most of the f
Slide 5: Board of Directors (Continued)
BOARD OF DIRECTORS (CONTINUED) Ron MacDonald, Director | Ron Macdonald is a graduate from Dalhousie University; Halifax, Nova Scotia, Canada. He spent two years as Senior Assistant to the Canadian Minister of Foreign Affairs and Deputy Prime Minister and two years as Chief of Staff to the Leader of
Slide 6: Board of Directors (Continued)
BOARD OF DIRECTORS (CONTINUED) Mark Baggio, Consultant | Throughout the 90's Mr Baggio was well known in Toronto's entertainment industries. From having managed one of the most successful concert houses, to launching and overseeing the marketing and promotion of a number of high profile venues and e
Slide 7: Highlights of the Preliminary Economic Assessment Study
HIGHLIGHTS OF THE PRELIMINARY ECONOMIC ASSESSMENT STUDY : Highlights of the P reliminary E c onomic As s es s ment S tudy Inc lude: The financial analysis of the Rose Project was based of price forecasts of US$260/kg ($118/lb) for Ta2O5 contained in a tantalite concentrate and US$6,000/t for lithium
Slide 8: Rose Tantalum-Lithium Project Highlights
ROSE TANTALUM-LITHIUM PROJECT The 100% owned Rose project Highlights − Preliminary economic assessment study Pre-tax IRR: estimated at 33% NPV CA$488 million at an 8% discount rate After tax IRR: estimated at 25% NPV CA$279 million at an 8% discount rate − Indicated Resources 26.5 MT @ 1.30 % Li2O E
Slide 9: Rose Lithium-Tantalum Project Highlights (continued)
ROSE LITHIUM-TANTALUM PROJECT The 100% owned Rose project Highlights (continued) − Feasibility Study underway under the supervision of Paul Bonneville* as project manager. − Recovery of 90.7% at a grade of 5.87% Li2O and tantalum recovery of 84.8% at a grade of 1,016 ppm Ta2o5 (in primary concentrat
Slide 10: Project Infrastructure
ROSE LITHIUM-TANTALUM PROJECT PROJECT INFRASTRUCTURE − PROJECT LOCATION: Quebec, 75km due south of Goldcorp’s Eleonore Gold Deposit − Road access − Power line directly on the project − Quebec Government announced on May 9th 2011 the Plan Nord with a $80B investment for project development & infrastr
Slide 11: Rose Tantalum-Lithium Project timeline and budget
ROSE TANTALUM-LITHIUM project 2010 2011 2012 2013 2014 Budget Main Activities $ Months since start up (Spent) 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 1st Phase Exploration 2,000,000 1st Resources Definition 75,000 2nd Phase Exploration 1,000,000 2nd Resources Definition 30,000 Metal
Slide 12: Rose - Mineral Resource
ROSE - MINERAL RESOURCE Tonnes Li2O Li2O Li2CO3 Ta2O5 (%) (%) ppm (X 1,000) (%) (equivalent) (equivalent) (g/t) Indicated 26,500 1.30% 0.98% 2.42% 163 Resources Total 259,700 t 642,238 t 4,324,690 kg (1,412,923,600 lbs) (9,514,318 lbs) Inferred 10,700 1.14% 0.86% 2.13% 145 Resources Total 92,020 t 2
Slide 13: Production Sequence
PRODUCTION SEQUENCE 1,500,000 tpy 1,273,000 tpy 0.98% Li2O and 163 ppm Ta2O5 0.12% Li2O and 31 ppm Ta2O5 226,000 tpy of concentrate at 5.87% Li2O 250,000 pounds of concentrate at 25% Ta2O5 213,600 tpy 0.39% Li2O 31,000 tpy 99.5% Li2CO3 , 40% Li2O www.cecorp.ca
Slide 14: Infrastructure Map
INFRASTRUCTURE MAP Lithium One Indicated Resources: 11,750,000 tonnes; 1.30% Li2O Inferred Resources: 10,470,000 tonnes;1.20% Li2O CRITICAL ELEMENTS CORPORATION Rose Deposit INDICATED Resources : 26,500,000 tonnes; 1.30% Li2O Eq. or 0.98% Li2O and 163 ppm Ta2O5 CRITICAL ELEMENTS CORPORATION Rose Dep
Slide 15: Rose Showings
ROSE SHOWINGS Camp Girard PIVERT PIVERT EST 0.44% LI2O, and 181 ppm Ta205 / 4 m channel sample Pivert Middle PIVERT SUD 0.87% LI2O and 169 ppm Ta205 / 28 m channel sample CRITICAL ELEMENTS CORPORATION HELICO Rose Deposit 0.44% Li2O and 196 ppm Ta2O5 / 116 m INDICATED Resources : 26,500,000 tonnes; 1
Slide 16: Pivert / Rose - Typical Vertical Section
PIVERT / ROSE - TYPICAL VERTICAL SECTION www.cecorp.ca
Slide 17: Lithium Use by Industry and Increasing Demand
LITHIUM USE BY INDUSTRY AND INCREASING DEMAND 2010 - 25,300 Metric Tonnes 15% ceramics and glass 31% 6% 6% batteries 9% 23% lubricating greases 2% pharmaceuticals and polymers 2004 - 15,500 Metric Tonnes air treatment aluminum production other uses www.cecorp.ca
Slide 18: Lithium Price & Demand
LITHIUM PRICE & DEMAND Lithium use in batteries expanded significantly in recent years, 3,00 rechargeable lithium batteries are 2,50 2,00 being used increasingly in portable 1,50 electronic devices and electrical 1,00 tools. 0,50 0,00 2004 2005 2006 2007 2008 2009 2010 According to the vice-presiden
Slide 19: Lithium - Supply Demand Conditions Tightening
LITHIUM – SUPPLY DEMAND CONDITIONS TIGHTENING 500 000 400 000 300 000 200 000 100 000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Supply Current Emerging and Growth Future Transport Low Case Future Transport High Case Source: www.talison.com www.cecorp.ca
Slide 20: Lithium - New Projects Not Expected to Have Major Impact on Supply
LITHIUM – NEW PROJECTS NOT EXPECTED TO HAVE A MAJOR IMPACT ON SUPPLY 400 000 300 000 LCE (tonnes) 200 000 100 000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Existing producers New Projects Source: www.talison.com www.cecorp.ca
Slide 21: Lithium - Strong Demand Outlook for All Applications
LITHIUM – STRONG DEMAND OUTLOOK FOR ALL APPLICATIONS 500 000 400 000 300 000 200 000 100 000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Conventional Emerging and Growth Future Transport Future Transport High Case Source: www.talison.com www.cecorp.ca
Slide 22: Tantalum Use by Industry and Upward Price Pressure
TANTALUM USE BY INDUSTRY AND UPWARD PRICE PRESSURE metal powder superalloys sputtering targets Tantalum Import Restrictions tantalum carbide US Wall Street Reform and Consumer Protection Act (Jul 2010) requires all US-listed companies to file annual wire for electronics reports with the SEC stating
Slide 23: Tantalum Price & Demand
TANTALUM PRICE & DEMAND Tantalum is an element used in many TANTALUM PRICE applications in our everyday lives, to (basis 30% Ta2O5 - European Union) improve technology and material 140 120 performance. These include uses in 100 electronics, medicine, engineering and 80 energy generation. 60 40 20 Ta
Slide 24: Tantalum Growing Demand
TANTALUM GROWING DEMAND About half of the tantalum consumed each year is used in the electronics industry: • Laptops, PDA’S, iPods, MP3, etc. • Electrical appliances •Ticket Machines, ATM’s • Antenna for Radar • In car electronics such as anti-lock braking systems (ABS), navigation systems, wheel tr
Slide 25: Highlights of the Preliminary Economic Assessment Study
HIGHLIGHTS OF THE PRELIMINARY ECONOMIC ASSESSMENT STUDY : Highlights of the P reliminary E c onomic As s es s ment S tudy Inc lude: The financial analysis of the Rose Project was based of price forecasts of US$260/kg ($118/lb) for Ta2O5 contained in a tantalite concentrate and US$6,000/t for lithium
Slide 26: Our Projects
OUR PROJECTS PROJECTS PORTFOLIO 8 PROPERTIES IN QUEBEC, 7 PROPERTIES IN BRITISH COLUMBIA Tantalum, Lithium, Rare Earths and Gold. Exploration Projects • CROINOR and MATCHI-MANITOU Quebec | 50% Ownership/JV Estimated Resource of 814,228 tonnes at 9.11 g/t gold for a total of 238,414 ounces and an est
Slide 27: Rocky Mountain Rare Earth
ROCKY MOUNTAIN Rare Earth SEPTEMBER 2011 Critical Elements announces discovery of new in situ molybdenite, colombite or allanite and phosphate mineralization at Kin property. Kin: In situ mineralization consisting in molybdenite, colombite or allanite and phosphate with very similar characteristics
Slide 28: Rocky Mountain Rare Earth
ROCKY MOUNTAIN RARE EARTH www.cecorp.ca