Slide 1: Lithium Charged
Lithium Charged V:CRE WWW.CECORP.CA April 2016
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 Share Structure: 125,9 MM ($0.325) Warrants: 2,5 M at $0.35 Fully diluted: 134.9 MM Market Cap: $40,9 M Management & Directors ownership: ≈20% Board and Management: ■ Jean-Sébastien Lavallée, P.Geo, President & CEO ■ Matthew L
Slide 4: Lithium The Only commodity in demand
Lithium Carbonate price Update… Lithium The Only commodity in demand High growth for battery grade lithium Limited scalability from current producers Double digit growth factor for the next 5 years Not all deposit can deliver high purity at low cost 4 www.cecorp.ca
Slide 5: Board of Directors & Consultant
BOARD OF DIRECTORS & CONSULTANT 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.
Slide 6: Board of Directors & Consultants (cont'd)
BOARD OF DIRECTORS & CONSULTANTS (cont’d) 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 gove
Slide 7: Rose Lithium-Tantalum Project Infrastructure
ROSE LITHIUM-TANTALUM PROJECT PROJECT INFRASTRUCTURE • PROJECT LOCATION: Quebec, 75 km due south of Goldcorp’s Eleonore Gold Deposit • 35 km north of Nemiscau, road access, airport • Power line directly on the project • 100 Ton capacity road 100 m from site • Mining Camp available 30 km from site •
Slide 8: Transportation Logistics
TRANSPORTATION LOGISTICS 8 www.cecorp.ca
Slide 9: 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$6,000/t for lithium carbonat
Slide 10: Rose NPV & IRR commodity price sensitivity
ROSE – NPV & IRR commodity price sensitivity NPV* Lithium carbonate price per tone Tantalum price (US$MM) $4,500 $6,000 $8,500 $10,000 $100 $95.3 $453 $1,051 $1,409 per pound $118 $129 $488 $1,085 $1,444 $135 $163 $522 $1,119 $1,477 $155 $202 $561 $1,158 $1,517 IRR Lithium carbonate price per tone (
Slide 11: PEA Revenue and Net Operating Profit Projections
PEA Revenue and Net Operating Profit Projections (first 5 years) *Tax credits and past losses & debt repayment are passed at year 4 250.000 Revenue ($ 000's) 200.000 150.000 Gross Operating Profits ($ 000's) *Pre-tax 100.000 Net Operating Profits 50.000 ($ 000's) *After-tax 0.000 Year 1 Year 2 Year
Slide 12: Rose NI 43-101 PEA Metrics (continued)
ROSE –NI 43-101 PEA Metrics (continued) Open-pit / Flotation / Magnetic / Kiln, leaching, 1- Mine / processing / transformation carbonate 2- Open-Pit ore mining rate Average ore processing rate 4,600 t/d 1.5 MM t/y 3- Cash cost per tonne of lithium carbonate (net of tantalum credit) $2,900 / t Li2CO
Slide 13: Rose Project Metallurgy Highlights
ROSE LITHIUM-TANTALUM PROJECT Rose Project Metallurgy Highlights • Metallurgy work carried by Bumigeme and SGS Lakefield. • Over 300 composites over the deposit have been tested • Metallurgical testing based on representative composite sample for the first 8 years of production (selected Holes betwe
Slide 14: High Lithium Purity Material
HIGH LITHIUM PURITY MATERIAL Product diversification advantage from the Rose Deposit • Low-iron spodumene concentrate for the Glass & Ceramic market • Battery Grade material, with 99.98% purity lithium carbonate • The battery grade and the glass & ceramic market represents 66% of the lithium demand
Slide 15: LCT Flotation Flowsheet
LCT FLOTATION FLOWSHEET The early cash flow advantage 1- After crushing and grinding we run the material in a magnetic separator and extract the Tantalum for a first product 3- We make a mica flotation (potential for an additional revenue) 7- We make the low-iron spodumene concentrate for the glass
Slide 16: Our partner and Off take agreement
Our partner and Off take agreement Our Partner: The Agreement includes: • Representing more than 50 years of history • Take or Pay* off-take for all products in the chemical industry produced from the Rose Lithium-Tantalum Deposit, to be executed by the parties • A solid balance sheet • The partner
Slide 17: Rose - Mineral Resource
ROSE - MINERAL RESOURCE Tonnes Li2O Li2O Li2CO3 Ta2O5 Ga Be Rb (%) (%) (%) ppm ppm ppm ppm (X 1,000) (equivalent) (equivalent) (g/t) (g/t) (g/t) (g/t) Indicated Resources 26,500 1.30% 0.98% 2.42% 163 66 128 2,343 Total 259,700 t 642,238 t 4,3 M kg 1,7 M kg 3,4 M kg 62,1 M kg (1,412 M lbs) (9,5 M lbs
Slide 18: Infrastructure Map
INFRASTRUCTURE MAP Lithium One CRITICAL ELEMENTS CORPORATION Indicated Resources: 11,750,000 tonnes; 1.30% Li2O Inferred Resources: 10,470,000 tonnes;1.20% Li2O Rose Deposit INDICATED Resources : 26,500,000 tonnes;1.30% Li2O Eq. or 0.98% Li2O and 163 ppm Ta2O5 CRITICAL ELEMENTS CORPORATION Rose Depo
Slide 19: Rose Deposit & Growth Potential
ROSE DEPOSIT & GROWTH POTENTIAL Camp Girard HYDRO POWER LINE PIVERT EST 0.44% LI2O, and 181 ppm Ta205 / 4 m channel sample PIVERT PIVERT SUD 0.87% LI2O and 169 ppm Ta205 / 28 m channel sample Pivert Middle HELICO 0.44% LI2O and 196 ppm Ta205 / Rose Deposit 116 m channel sample INDICATED Resources :
Slide 20: Lithium Supply & Future Capacity
Lithium Supply & Future Capacity Supply / Demand Conditions Tightening Current World Producers: SQM: Brine for 47,949 tpy Lithium Carbonate Equivalent FMC: Brine for 22,919 tpy LCE 500,000 Albemarle: Brine/Hard rock for 39,204 tpy LCE Tianqi: Hard rock for 110,072 tpy LCE China Miners (collectively)
Slide 21: Recent Lithium Market Developments
Recent Lithium Market Developments Albemarle & Rockwood Lithium to merge Chemicals maker Albemarle Corp.’s (ALB) proposed acquisition of Rockwood Holdings, Inc.(ROC) for $6.2 billion has been cleared by shareholders of both companies at their respective special meetings. Albemarle agreed to acquire
Slide 22: Lithium Price & Forecast
Lithium Price & Forecast Historical lithium price Lithium price Forecast Source: Asian Metal Stormcrow Capital 22 www.cecorp.ca
Slide 23: Lithium Demand Drivers
LITHIUM DEMAND DRIVERS • Battery manufacturing to triple by 2020 • LG Chem mega lithium battery factory in operation since 2015 • 2 other Mega-factories to commence lithium battery production in 2016 in China and North America (Tesla & FOXCONN • Lithium demand from 2000 to 2008 grew by 10% per year
Slide 24: EV Charging infrastructure in place
EV Charging infrastructure in place • Industry consensus to develop High-Performance Li-ion vehicles • Major World cities are rapidly implementing infrastructures • In North America, over 12,000 charging stations have been put in place by the end of 2012. In Europe, Norway has 3,200 charging points.
Slide 25: Potential new lithium suppliers and valuation
Potential new lithium suppliers and valuation Company Projected output Lithium Source Project stage Off-Take/ ≈ Project Project NPV Project ≈ Market (ton/year) LCE Partner CAPEX IRR Cap RB Energy ≈20,000 Hard rock In Marubeni/ Spend $318 MM 32% 0 receivership/bankruptcy Tewoo Orocobre ≈17,000 Brine
Slide 26: Tantalum Market
TANTALUM MARKET Tantalum Price Tantalum is an element used in many applications in our everyday lives, to improve technology and material performance. These include uses in electronics, medicine, engineering and energy generation. Tantalum ores are found primarily in Australia, Canada, Brazil, and c
Slide 27: 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 • Radar Antenna • In car electronics such as anti-lock braking systems (ABS), navigation systems, wheel tract