Pure Energy Minerals Ltd. · TSXV:PE
Pure Energy Minerals — Investor Presentation (April 2016)
30 slides from Pure Energy Minerals's investor presentation, Apr 15, 2016
Slide 1: Company Update
TSXV:PE OTCQB:HMGLF COMPANY UPDATE April 15, 2016
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Certain statements contained in this presenta6on, including all statements that are not historical facts, contain forward-looking statements and forward- looking informa6on within the meaning of applicable securi6es laws. Such forward-looking statements or informa6on include, bu
Slide 3: Highlights
HIGHLIGHTS Adjacent to North America’s Only Important Innova6ve Lithium Milestones Technology with Producer at Hand Poten6al for Low- Lithium is “the Cost Produc6on New Gasoline” Proven Management with Experience in Lithium, Only Lithium Hydrology, & Brine Resource in Transac6ons North America Corne
Slide 4: Lithium production is concentrated; oligopoly
LITHIUM PRODUCTION IS CONCENTRATED 4 COMPANIES PRODUCE OVER 89% OF WORLD'S SUPPLY OPERATES AS AN OLIGOPOLY 3% ALBEMARLE SQM TIANQI LITHIUM / ALBEMARLE Mineral Source Brine Source 21% ALBEMARLE 15% 10% FMC 40% Customers want Produc'on figures are es'mates new sources of Lithium... 4
Slide 5: The Outlook for the Global Lithium Market
THE OUTLOOK FOR THE GLOBAL LITHIUM MARKET In 2014 Demand was Forecast to Outstrip Supply in 2020 by 25% 400 Supply Gap: 130% FMC “As we enter “From a lithium announced 2016, FMC is sold standpoint, we’re 350 15% increase out across most 120% preVy well in Li price for (lithium) products.” sold out”
Slide 6: Extraordinary Growth
EXTRAORDINARY GROWTH 266% Global Lithium Ba^ery Market Growth (US Billions) Source: Ci' Research, Lithium – the Future is Electric, October 16, 2015; Jon Hykawy/Stormcrow, Industry Report // Lithium, May 29, 2015 6
Slide 7: Driven by Transportation
DRIVEN BY TRANSPORTATION BaVery powered EV uses ~40 – 80kg of LCE per unit China is targe_ng Electric vehicle 5 million “new sales up 70% Y/Y energy” vehicles to 462,000 units by 2020 in 2015 New BYD electric buses leaving plant Shenzhen, China Electric vehicles sales in China driven by clean air po
Slide 8: Driven by Grid Storage
DRIVEN BY GRID STORAGE INSTALLED & PROJECTED ENERGY STORAGE CAPACITY (US) U6lity Non-Residen6al Residen6al 900 1.1 GW of global installed capacity 800 in 2015, growing to >15GW by 2025 700 600 MEGAWATTS 500 400 300 220 200 62 100 0 2012 2013 2014 2015E 2016E 2017E 2018E 2019E Source: Green Tech Medi
Slide 9: Near-Term Milestones
NEAR-TERM MILESTONES PureEnergy minerals Phase 3 Drilling Phase 3 Dri Mini Pilot Plant BoiResults ; Phase 3 Drilling Permitting Pumping Tests Mini Pilot Plant Pumping Tests Resource Update i! Permitting Resource Update | Permitiog | Ongoing Process Ongoing Process B Ongoing Process Testing Testing O
Slide 10: Clayton Valley Nevada – A Very Busy Place in 2016
CLAYTON VALLEY NEVADA – A VERY BUSY PLACE IN 2016 World-Class Infrastructure Power Lines, Roads, and North America’s Only Lithium Producer… 10
Slide 11: Clayton Valley South Project
CLAYTON VALLEY SOUTH PROJECT Adjacent Historical Produc6on and Lots of Growth Poten6al Deepest Part of Basin ~1,500m ~9 km 9,300+ Acres 11
Slide 12: Clayton Valley South: Drilling and Pumping
CLAYTON VALLEY SOUTH: DRILLING AND PUMPING Three Wells Completed Last Month – Three More to Come in Phase 3 Li - 209 mg/L Mg:Li – 1.96 CV-1 Phase 3 Drilling CV-3 N. Resource Area (Monitoring Well) CV-2 SPD-8 Deeper wells to test resource upside poten_al CV-4 CV-5 CV-6 12
Slide 13: Where Does the Lithium Come From?
WHERE DOES THE LITHIUM COME FROM? Evapora6on Closed Basin Concentra6on: Lithium, Potassium, and other Salts Scale is ver'cally Lithium Sourced exaggerated from Sediments and Geothermal Ac6vity Lithium Bearing Aquifers Poten6al Lithium Bearing Aquifers 13
Slide 14: Growing High Quality Resources
GROWING HIGH QUALITY RESOURCES RESOURCES & KEY TECHNICAL PARAMETERS Lithium Resource LCE Average Lithium Grade (metric tonnes) (mg/L) 816,000 102 TOTAL INFERRED SOURCES FAVORABLE CHEMISTRY Magnesium* Potassium* Sulfate* to Lithium to Lithium to Lithium Ra6o: Ra6o: Ra6o: 2.0 ~ 18 ~ 23 * Chemistry fro
Slide 15: The Past: 20th Century Lithium Technology
CLAYTON VALLEY SOUTH LITHIUM RECOVERY The Past: 20th Century Lithium Technology 15
Slide 16: The Future: 21st Century Lithium Technology
CLAYTON VALLEY SOUTH LITHIUM RECOVERY The Future: 21st Century Lithium Technology 16
Slide 17: Building the Engineering Team
BUILDING THE ENGINEERING TEAM ERNEST BURGA, PE RON MOLNAR, PhD, PE MIKE DRY, PhD, PE 35 years experience as Over 35 years in various R&D Chemical engineer with more mechanical engineer focused func6ons in commercial and than 35 years experience in government labs. Specialist in on design and cos6ng
Slide 18: Mini Pilot Plant
MINI PILOT PLANT Bateman Advanced Technologies (BAT ) Mini Pilot Plant in Israel 1 LiP™ – Removal of alkali earth elements using membranes 2 LiSX™ – Recovery of lithium into concentrated high-purity lithium sulfate solu6on 3 LiEL™ – Conversion of lithium sulfate solu6on into concentrated high-purity
Slide 19: Progress Towards Production
PROGRESS TOWARDS PRODUCTION Leading Edge Partnerships on Processing Technology Ini_al Great Off-Take Chemistry: Bench Scale A Large & Process Agreement Growing A Proven Brine Short Term Confirma_on Resource Pumping Tests A Neighboring Producer 19
Slide 20: Key Team Members
KEY TEAM MEMBERS PATRICK HIGHSMITH ANDY ROBINSON ROBERT MINTAK MSc, CPG; CEO, Director PhD; COO, Director Founder; Chairman Senior mining professional with 20+ years successful project Over 25 years experience in over 25 years mul6-commodity development. Senior technical and mul6ple industries, incl
Slide 21: Key Team Members
KEY TEAM MEMBERS ALEXI ZAWADZKI MARY LITTLE ALEX ROTHWELL M.E.S.; VP Business MSc, MBA; Director BSc ChEng, MBA; Advisor Development More than 20 years mining industry Senior finance professional with 20 experience, including senior posi6ons years in Canadian capital markets and 20 years experience d
Slide 22: Capitalization
CAPITALIZATION CAPITALIZATION AS OF FEBRUARY 18, 2016 Shares Outstanding 66,195,056 Warrants @.15 (exp 09/17) 1,387,137 Warrants @.30 (exp 06/16) 8,606,594 Warrants @.24 (exp 12/16) 2,245,000 TESLA SUPPLY 0.9 AGREEMENT Warrants @.35 (exp 02/17) 800,000 0.8 Op6ons outstanding @avg .41 5,631,666 0.7 F
Slide 23: Contact
TSXV:PE OTCQB:HMGLF Patrick Highsmith, Chief ExecuDve Officer Robert Mintak, Chairman p.highsmith@pureenergyminerals.com robert@pureenergyminerals.com 303.668.3264 604.608.6620 www.PureEnergyMinerals.com
Slide 24: Appendices
APPENDICES
Slide 25: Clayton Valley Geology
CLAYTON VALLEY GEOLOGY Reworked ash Airfall ash and with abundant gravel layers pumice fragments 25
Slide 26: Clayton Valley South: Drill Targets
CLAYTON VALLEY SOUTH: DRILL TARGETS Seismic: Consistent Con6guous Aquifers and Deep Gravels 26
Slide 27: CVS Drilling and Sampling
CVS DRILLING AND SAMPLING Mud Rotary Well Submersible Brine Samples Drilling Development Pump Sampling to Lab for Submersible Pumping 27
Slide 28: More Pumping Tests Coming Soon
MORE PUMPING TESTS COMING SOON Transmissivity, Effec6ve Porosity, Specific Yield, Permeability à COMMERCIALITY 28
Slide 29: Positive Preliminary Indications for Lithium Recovery
POSITIVE PRELIMINARY INDICATIONS FOR LITHIUM RECOVERY Bench-scale Tes6ng on Clayton Valley South Brines in 2015 29
Slide 30: Project Partners
PROJECT PARTNERS Aligned With Visionary Partners For Project Success 30
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