Slide 1: Critical Elements September 2012
V:CRE WWW.CECORP.CA September 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: 110MM ($0.21) Fully diluted: 115.6MM Market Cap: $24.3 M Board and Management: Ron MacDonald, Chairman of the board Jean-Sébastien Lavallée, P.Geo, President & CEO Jean-François Meilleur, Vice-President Michel
Slide 4: Board of Directors
BOARD OF DIRECTORS Ron MacDonald, Chairman of the board | 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 5: Board of Directors (continued)
BOARD OF DIRECTORS (CONTINUED) Michel Robert, Director | M.A.Sc.Eng., has over 40 years of mining industry experience in engineering, operations management. He has been responsible for operations of mining companies in both North and South America, including Niobec, Highmont, Tintaya, La Coipa, Quir
Slide 6: Consultants
CONSULTANTS Paul Bonneville, Project Manager | Mr. Bonneville has over 30 years of experience in the mining industry in Canada. He was Vice President Operations for Scorpio Mining and Vice President Mines for Cadiscor Resources. He worked for Dumas Contracting as Project Manager at the Lapa and Gold
Slide 7: Highlights of the Preliminary Economic Assessment Study
HIGHLIGHTS OF THE PRELIMINARY ECONOMIC ASSESSMENT STUDY : Highlights of the Preliminary Economic Assessment Study Include: 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 carbonat
Slide 8: Rose Project Resource Highlights
ROSE TANTALUM-LITHIUM PROJECT Rose Project Resource Highlights • Resource outcrop surface and • Resource calculation work was sub-parallel to surface mineralization carried by InnovExplo under the NI 43-101 rules • Indicated resource of 26.5 Mt grading 0.98% Li2O and • Resource calculation published
Slide 9: Rose Project Metallurgy Highlights
ROSE LITHIUM-TANTALUM PROJECT Rose Project Metallurgy Highlights • Metallurgy work carried by Bumigeme and Acme Metallurgical Ltd. • 99.9% lithium carbonate electric vehicle battery grade • Metallurgy recovery of 90.7% at a concentration grade of 5.87% Li2O and tantalum recovery of 84.8% at a concen
Slide 10: Project Infrastructure
ROSE LITHIUM-TANTALUM PROJECT PROJECT INFRASTRUCTURE • PROJECT LOCATION: Quebec, 75 km due south of Goldcorp’s Eleonore Gold Deposit • 35km north of Nemiscau • Road access , Airport • Power line directly on the project • Quebec Government announced on May 9th 2011 the Plan Nord with a $80B investmen
Slide 11: Rose - Mineral Resource
ROSE - MINERAL RESOURCE Tonnes Li2O Li2O Li2CO3 Ta2O5 (%) (%) ppm (X 1,000) (%) (equivalent) (equivalent) (g/t) Indicated 26,500 1.30% 0.98% 2.42% 163 Resources Total 259,700 t 642,238 t 4,324,690 kg (1,412,923,600 lbs) (9,514,318 lbs) Inferred 10,700 1.14% 0.86% 2.13% 145 Resources Total 92,020 t 2
Slide 12: Rose – PEA Metrics
ROSE – PEA Metrics DISCOUNT NPV NPV RATE (BEFORE TAXES) (AFTER TAXES) 0% 1 078 611 885 CA$ 665 122 755 CA$ 5% 651 789 479 CA$ 387 145 131 CA$ 8% 488 360 406 CA$ 279 358 227 CA$ 10% 403 744 658 CA$ 223 097 949 CA$ 12% 333 626 451 CA$ 176 175 210 CA$ PROJECT IRR Pre-tax 33% After-tax 25% 12 www.cecorp
Slide 13: Rose – PEA Metrics (continued)
ROSE – PEA Metrics (continued) Avg. net operating income $81.4 MM / year Mine / processing / transformation Open-pit / Flotation / Kiln, leaching, carbonate Open-Pit ore mining rate Average ore processing rate 4600 t/d 1.5 MM t/y Operational strip ratio 7:1 Resources 24.3 MM t @ 0.89% Li2O, 132 ppm
Slide 14: 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 15: Feasibility Study Contractors
ROSE TANTALUM-LITHIUM PROJECT Feasibility Study Contractors ENGINEERING FIRM DEPARTMENT AMBUCK Mining GENIVAR Environmental/Infrastructure Metallurgical process/ BUMIGENE / ACME Transformation process SECOR Plant location strategy AMEC Tailings 15 www.cecorp.ca
Slide 16: 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 16 www.cecorp.ca
Slide 17: 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 Nemaska Exploration Indicated Resource
Slide 18: Rose Showings
ROSE SHOWINGS Camp Girard PIVERT PIVERT EST 0.44% LI2O, and 181 ppm Ta205 / 4 m channel sample PIVERT SUD Pivert Middle 0.87% LI2O and 169 ppm Ta205 / 28 m channel sample HELICO 0.44% Li2O and CRITICAL ELEMENTS CORPORATION 196 ppm Ta2O5 / 116 m Rose Deposit channel sample INDICATED Resources : 26,50
Slide 19: Pivert/Rose - Typical Vertical Section
PIVERT/ROSE - TYPICAL VERTICAL SECTION 19 www.cecorp.ca
Slide 20: 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 20 www.cecorp.ca
Slide 21: Electric Vehicle Market
ELECTRIC VEHICLE MARKET • Industry consensus to develop High-Performance Li-ion vehicles • Major World cities are rapidly implementing infrastructures • In North America, over 12,000 charging stations will be in place by the end of 2012. In Europe, Norway has 3,200 charging points. Japan already abo
Slide 22: Smart Grid and Energy Storage Solutions
SMART GRID AND ENERGY STORAGE SOLUTIONS • Smart-grid solutions are critical to sufficient future power demand • Major investment by world leading countries like China and the United-States of America (China invested in 2011 US$52.37 billion and investments are increasing by 2.58% in 2012) • Lithium-
Slide 23: 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 23 www.cecorp.ca
Slide 24: 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 24 www.cecorp.ca
Slide 25: 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 25 www.cecorp.ca
Slide 26: 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 27: 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 performance. These include uses in 120 electronics, medicine, engineering and 100 80 energy generation. 60 40 Tanta
Slide 28: 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 29: 2012 Development Plan & Highlights
2012 DEVELOPMENT PLAN & HIGHLIGHTS • C omplete feas ibility s tudy on the R os e P rojec t • C omplete environmental impac t s tudy • S igning off take agreement for lithium and tantalum • Initiate permitting proc es s • Initiate projec t financ ing • S trengthen management and mining team • Optimiz
Slide 30: Our Projects: Croinor and Matchi-Manitou
OUR PROJECTS PROJECTS PORTFOLIO E X P L O R AT I O N P R O J E C T S CROINOR and MATCHI-MANITOU Quebec | 50% Ownership/JV Proven & probable mineral reserve of 566,872 tonnes at 6.64 g/t gold for a total of 120,883 oz Estimated resource of 583,285 tonnes at 6.64g/t (Measured + Indicated) and 105,87
Slide 31: Our Projects (continued)
OUR PROJECTS (continued) PROJECTS PORTFOLIO E X P L O R AT I O N P R O J E C T S TANTALUM, LITHIUM, RARE EARTHS QUEBEC Rare Earth R O C K Y M O U N TAI N R a r e E a r t h Quebec | 100% Ownership British Columbia | 100% Ownership of 7 early stage properties Up to 4.06% TREE, 2,100 ppm Ta2O5 Discov
Slide 32: 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 33: Rocky Mountain Rare Earth
ROCKY MOUNTAIN Rare Earth 33 www.cecorp.ca