Slide 1: Kathleen Valley confirmed as a world-class lithium deposit
ASX ANNOUNCEMENT | ASX : LTR 17 May 2021 Kathleen Valley confirmed as a world-class lithium deposit as Investor Presentation Resource – Kathleen increases to 156MtValley @ 1.4%Lithium Li2O Project Liontown Resources Limited (ASX: LTR, “Liontown” or “Company”) is pleased to release its updated Invest
Slide 2: A unique opportunity to invest in a globally significant lithium resource
A unique opportunity to invest in a globally significant lithium resource ASX: LTR Kathleen Valley Lithium Project Investor Presentation | May 2021 1 | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 3: Important information
Important information CAUTIONARY STATEMENT Competent person statement 1 The production targets and forecast financial information referred to in the PFS & DSS were based on Proven Ore Reserves The Information in this Presentation that relates to Ore Reserves, Production Target and Pre -Feasibility (
Slide 4: Liontown aims to be a world-class battery materials producer
Liontown aims to be a world-class battery materials producer …with By developing Kathleen strong ESG Valley into a long-life With strong market Creating long-term, credentials Tier 1 asset fundamentals sustainable value One of the largest high- Market being driven By seeking partnerships and g
Slide 5: WA-focused world-class hard rock lithium developer
WA-focused world-class hard rock lithium developer Projects Corporate snapshot (14 May 2021) ASX: LTR Kathleen Valley World-class scale and economics Market Cap. Share price (A$/s) (Lithium-Tantalum) 156Mt @ 1.4% Li O & 130ppm Ta O 2 2 5 ~40 year mine life $782m $0.43 High-grade DFS due Q4 2021 Shar
Slide 6: Liontown has a highly experienced Board and Executive Leadership Team
Liontown has a highly experienced Board and Executive Leadership Team Board of Directors Executive Leadership Team Tim Goyder Craig Williams Tony Ottaviano Chairman Non-Executive Director CEO +40 years (Mining Executive) +40 years (Geologist) +30 years (Mech. Engineer) Chairman Chalice Mining Founde
Slide 7: Underground mining enables delivery of positive ESG outcomes
Underground mining enables delivery of positive ESG outcomes ESG commitments matter We aspire to be on a net-zero trajectory1 Customers Automotive OEMs increasingly demand Environment • Best-in-class Scope 1 and 2 emissions environmentally-friendly, low-carbon and reduced impact on local batteries
Slide 8: Update on Lithium Market
Update on Lithium Market Strong long-term market fundamentals | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 9: Strong demand growth driven by global energy transformation supports new spodumene projects
Update on lithium market Strong demand growth driven by global energy transformation supports new spodumene projects entering the market The right time… The right market… The right supply… 29% forecast CAGR driven by stronger 1 25% forecast CAGR for lithium hydroxide 17% cost advantage when producin
Slide 10: Expected market deficit by 2024
Update on lithium market Expected market deficit by 2024, aligning with the commencement of Kathleen Valley production Global lithium market balance (battery grade), 2020-30, Mt LCE Accelerated KV production commencement 2.0 Supply Demand >1 Mt 1.5 1.0 0.5 LCE shortfall in supply by 2030 0.0 2020 20
Slide 11: Kathleen Valley Lithium-Tantalum Project
Kathleen Valley Lithium-Tantalum Project Tier 1 deposit in a premier mining district | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 12: Kathleen Valley lithium-tantalum project
Kathleen Valley lithium -tantalum project Kathleen Valley is a Australian hard rock lithium operations and advanced projects By project, size, and grade uniquely Operating/Established In development Liontown positioned, globally 300 Pilgangoora (Pilbara significant Tier 1 250 Minerals) Lithium Equiv
Slide 13: Liontown has the 4th largest attributable hard rock lithium resource globally
Kathleen Valley lithium -tantalum project Liontown has the 4th largest attributable hard rock lithium resource globally World hard rock lithium (spodumene-dominant) operations and advanced projects By attributable resources to owner, % of global total Independent 138x x EV/resource (LCE) 2 x Market
Slide 14: Kathleen Valley – a unique lithium opportunity
Kathleen Valley lithium -tantalum project Kathleen Valley – a unique lithium opportunity Kathleen Valley is the only large (>40 Mt), uncommitted, x Number of deposits pre-development phase hard rock lithium deposit in the developed world 100% offtake optionality 1 Large, globally significant, high-g
Slide 15: October 2020 PFS key metrics
Kathleen Valley lithium -tantalum project October 2020 PFS key metrics Based on May 2020 MRE – 156Mt @ 1.4% Li2O and 130ppm Ta2O5 NPV1 (post-tax) A$1.12B Reserve Mining IRR 37% 71Mt @ 1.4% Li2O 130ppm Ta2O5 2Mtpa Payback 3 years SC6 Opex US$323/dmt Years 1-53 (FOB) US$261/dmt (excl. royalties) Total
Slide 16: Stable, established and well-governed mining jurisdiction
Kathleen Valley lithium -tantalum project Stable, established and well-governed mining jurisdiction Major Nickel Cliffs Town of Leinster and Gold Mines Cosmos Goldfields Natural Highway (access Bellevue Underground gas pipeline Mine to Geraldton port) Leinster Vivien Agnew Lawlers Powerline Sealed a
Slide 17: The DFS and optimisation efforts are well advanced to maximise value
Kathleen Valley lithium -tantalum project The Definitive Feasibility Study (DFS) and optimisation efforts are well advanced to maximise value DFS update On track to conclude Q4 2021 Assessing technology adoption to minimise Scope 1 and Scope 2 emissions Ongoing test work including ~3 tonne pil
Slide 18: Underground mining strengthens our ESG position and maximises mine life
Kathleen Valley lithium -tantalum project Underground mining strengthens our ESG position and maximises mine life Environmental and social aspirations Best-in-class Scope 1 and 2 emissions enabled by UG approach Designed for electrification potential of UG operations Meaningful engagement with
Slide 19: Second mover advantage - potential 76+% average recovery
Kathleen Valley lithium -tantalum project Second mover advantage - potential 76+% average recovery Flowsheet Mine Our approach Typical industry approach Crush and grind Whole-of-ore flotation (WOF) Dense media separation (DMS) Easier to operate +/- WOF Higher-grade product and More complex – r
Slide 20: We aim to accelerate the schedule to better meet timing of expected market shortfall
Kathleen Valley lithium -tantalum project We aim to accelerate the schedule to better meet timing of expected market shortfall Updated Early PFS FEED/ works/ Construction and DSS DFS FID design complete Commissioning Production Q4 2020 Q4 2021 Q2 2022 Q3 2022 Q4 2023 Q1 2024 Q2 2024 Continued assess
Slide 21: Kathleen Valley is just the beginning...
Kathleen Valley lithium -tantalum project Kathleen Valley is just the beginning… Liontown has additional growth opportunities Liontown has optionality around future growth… … and is actively assessing high potential opportunities Growth dimension 1: organic growth with current assets Downstream Scop
Slide 22: Downstream producers have historically had higher and more resilient margins
Kathleen Valley lithium -tantalum project In the lithium market, downstream producers have historically had higher and more resilient margins Integrated Integrated raw material convertor and downstream players Vertically integrated OEMs & JVs value chain Est. margin 21% - 26%1 6% - 28%1 Example Mark
Slide 23: Near-term objectives: further de-risk and accelerate
Kathleen Valley lithium -tantalum project Near-term objectives: further de-risk and accelerate Delivering Kathleen Valley development project Complete DFS in Q4 2021 Secure high-quality funding – Greenhill appointed as corporate advisor Execute offtake arrangements Understand key risks and o
Slide 24: Liontown – key investment takeaways
Kathleen Valley lithium -tantalum project Liontown – key investment takeaways Kathleen Valley is a globally significant, Significant upside potential high-grade resource With further studies and downstream processing 156Mt @ 1.4% Li 2O Targeting best-in-class ESG credentials Stable, well-established
Slide 25: Thank You
Thank You Visit www.Itresources.com.au For More Information: Investor Relations: Tony Ottaviano Nicholas Read Managing Director Read Corporate T: +61 8 6186 4600 T: +61 8 9388 1474 info@ltresources.com.au nicholas@readcorporate.com.au @LiontownRes liontown-resources-limited 24 | LIONTOWN RESOURCES I
Slide 26: Appendix 1: Kathleen Valley Project Additional Information
APPENDIX 1 Kathleen Valley Project Additional Information 25 | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 27: Resources & Reserves
Appendix 1: Kathleen Valley Project Additional Information Resources & Reserves Mineral Resource Estimate1 – March 2021 Cut-off Resource Million Ta2O5 Li2O% Category Tonnes Li2O% (ppm) 0.55 Measured 20 1.3 145 Indicated 109 1.4 130 Inferred 27 1.3 113 TOTAL 156 1.4 129 Ore Reserve – October 2020 Mil
Slide 28: Peer Comparison Information – Mineral Resource Estimates
Appendix 1: Kathleen Valley Project Additional Information Peer Comparison Information – Mineral Resource Estimates Measured Indicated Inferred Global MRE Li2O Company Project Stage Mt Mt Mt MRE Mt Grade % Information Source Liontown Resources Kathleen Valley Development 20.0 109.0 27.0 156.0 1.35 A
Slide 29: Lithium Equivalency Parameters
Appendix 1: Kathleen Valley Project Additional Information Kathleen Valley Lithium Equivalency (Li2O + Ta2O5) Parameters Inputs Outputs Li2O% Tantalite (Ta2O5) $/lb 69.9 (B2) US$ (Roskill 2025 – 2040 average price adjusted to FOB) Spodumene $/tonne 739 (B3) US$ (Roskill 2025 – 2040 average price, ad
Slide 30: Peer Comparison Information
Appendix 1: Kathleen Valley Project Additional Information Peer Comparison Information Project Global MRE %Global Global Attributable Company (Ownership%) Status Source (Mt) Li2O% LCE1 (Mt) Resources Hard Rock AVZ Manono (60%) DFS May 2019 Resource Update, sourced from 21/4/2020 ASX release 240.0 1.
Slide 31: Peer Comparison Information
Appendix 1: Kathleen Valley Project Additional Information Peer Comparison Information Project Global MRE %Global Global Attributable Company (Ownership%) Status Source (Mt) Li2O% LCE1 (Mt) Resources Hard Rock North American Lithium La Corne (100%) Development NAL website - http://na-lithium.com/pro
Slide 32: PFS Key Parameters And Assumptions
Appendix 1: Kathleen Valley Project Additional Information PFS Key Parameters And Assumptions General and Economic PFS 1 Cost Assumptions PFS 1 Discount rate (real, post-tax) 8% LOM avg open pit mining costs 3 ($/dmt ore processed) A$43 SC6.0 (US$ per tonne FOB Geraldton) US$739/t 4 LOM avg U/G mini
Slide 33: PFS – Operating & Capital Summary
Appendix 1: Kathleen Valley Project Additional Information PFS – Operating & Capital Summary1 Life of Mine Financials Capital Costs Summary (A$B) Main Area Capital (A$M) Revenues (lithium) 14.7 Treatment Plant 84.8 Operating costs2 5.9 Reagents & Plant Services 16.0 Capital expenditure pre-product
Slide 34: NPV Sensitivity Analysis
Appendix 1: Kathleen Valley Project Additional Information NPV Sensitivity Analysis NPV Sensitivity Analysis (PFS) (PFS) 1 1 Refer Cautionary Statement on Slide 2 33 | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 35: 2020 Downstream Scoping Study (DSS)
Appendix 1: Kathleen Valley Project Additional Information 2020 Downstream Scoping Study (DSS) Key Parameters And Assumptions 1 General and Economic LHM LSM Cost Assumptions LHM LSM Discount rate (real, post-tax) 8% 8% LOM avg operating cost (US$/dmt SC6) 2 US$310 US$310 Ave. Price (US$/t FOB Freman
Slide 36: DSS – Cash Flows
Appendix 1: Kathleen Valley Project Additional Information DSS – Cash Flows Integrated Life of Mine Financials1 Capital Costs Summary3 LHM (A$B) LSM (A$B) Main Area LHM (A$M) LSM (A$M) Revenues (lithium) 43.2 32.6 WOF Plant & Mine Dev. 298 298 Operating costs 2, 4 (12.5) (10.4) DSS Refinery and Infr
Slide 37: NPV Sensitivity Analysis (DSS)
Appendix 1: Kathleen Valley Project Additional Information NPV Sensitivity Analysis (DSS) 36 | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 38: DSS | Refinery Flow Sheet
Appendix 1: Kathleen Valley Project Additional Information DSS | Refinery Flow Sheet 37 | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 39: Appendix 2: Net-Zero definition
APPENDIX 2 Net-Zero definition 38 | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 40: Liontown will firm up its net-zero trajectory aspiration before FID
Appendix 2 Net-Zero Definition Liontown will firm up its net-zero trajectory aspiration before FID Selected examples of different “net zero” pathways >2°C 2°C “Well below 2°C” 1.5°C There are many Emissions different ways to meet “net (MtCO2e) 2050 2050 2050 2050 zero” by 2050 Aligned with the Secto
Slide 41: Appendix 3: Grade/Recovery Curves
APPENDIX 3 Grade/Recovery Curves 40 | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 42: Grade/Recovery Curves (DMS vs WOF)
Appendix 3: Grade/Recovery Curves Grade/Recovery Curves (DMS vs WOF) 41 | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 43: Appendix 4: Buldania
APPENDIX 4 Buldania 42 | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 44: Project Overview
Appendix 4: Buldania Lithium Project Project Overview Buldania is in a lithium-rich mineral province 1 Outcropping, fresh, spodumene-related mineralization 2 Mineralisation at Anna extends to the SE under shallow cover – strike length >1.4km and open 3 Similar geology to the Mt Marion and Bald Hill
Slide 45: Resource
Appendix 4: Buldania Lithium Project Resource Maiden Mineral Resource Estimate 14.9Mt @ 1.0% Li2O The MRE complements Liontown’s flagship Kathleen Valley Lithium Project 44 | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021
Slide 46: Level 2, 1292 Hay St West Perth WA 6005
Level 2, 1292 Hay St West Perth WA 6005 +61 8 6186 4600 info@ltresources.com.au www.ltresources.com.au @LiontownRes liontown-resources-limited 45 | LIONTOWN RESOURCES INVESTOR PRESENTATION May 2021