Slide 1: Lithium Charged
Lithium Charged V:CRE WWW.CECORP.CA February 2017
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 Shares outstanding: 146.6 million $0.90 4.5 Warrants: $0.80 4.0 ~1.2 million at C$0.35 (June 2017) $0.70 3.5 ~637,000 at C$0.35 (Dec 2017) $0.60 3.0 Volume (millions) ~2.5 million at C$0.77 (HELM March 2018) Price (C$) $0.50 2
Slide 4: Management & Board of Directors
MANAGEMENT & BOARD OF DIRECTORS Jean-Sébastien Lavallée, 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
Slide 5: Board of Directors (cont'd)
BOARD OF DIRECTORS (cont’d) Richard Saint-Jean, Director | Mr. Richard Saint-Jean is a metallurgist technician with over 20 years of mining experience. He is currently the General Director for BlackRock Metals Inc., a private iron ore mining company. Previously, he was Mill Manager for the Troilus o
Slide 6: Operation Team
OPERATION TEAM David J. Buckley, Chief Processing Operator | Mr. David J. Buckley graduated from Virginia Polytechnic Institute in 1976 with a B.S. in Chemical Engineering. He was the Corporate Process Engineer working to support inorganic, brine-based chemical production processes for finished prod
Slide 7: A Dominant Land Package with Exploration Upside
A DOMINANT LAND PACKAGE with EXPLORATION UPSIDE CRITICAL ELEMENTS • Located in a premier Galaxy Resources James Bay CORPORATION Rose Deposit mining jurisdiction in Indicated Resources: 11,750,000 tonnes; 1.30% Li2O Indicated Resources : 26,5 M tonnes; Quebec Inferred Resources: 10,470,000 tonnes;1.2
Slide 8: Strategy & Mission Statement
STRATEGY & MISSION STATEMENT Critical Elements is focused on capturing the growing lithium demand with a low risk to market strategy. The experienced management team combined with its unique lithium deposit provides a strong reliability of supply to end-users Targeting delivery of feasibility 1st ha
Slide 9: A Two Step to Market Approach
A TWO STEP TO MARKET APPROACH • Phase 1 simple open pit mining with proven processing methods 2019 Phase 1 Production: • 50,000 mt technical grade spodumene concentrate 7.0% • 175,000 mt chemical grade spodumene concentrate 6.0% • 200,000 lbs Tantalum concentrate • Phase 2 lithium carbonate BG plant
Slide 10: A Unique Lithium Deposit
A UNIQUE LITHIUM DEPOSIT • Unique lithium crystals • Recoveries above 90% • Near-surface deposit with easy to mine horizontal structure Geology • Homogenous ore body • Large resource with 17 years of mine life that can be extended • Significant exploration upside • Premium concentrate with low iron
Slide 11: Lithium Price Update
LITHIUM PRICE UPDATE… Lithium carbonate contract prices are in the range of US$11,000/tonne to US$14,000/tonne • SQM reported in its Q3 report an average price for lithium carbonate at US$12,000/tonne Chemical and technical grade spodumene prices have been closely correlated with lithium carbonate p
Slide 12: Rose – NPV & IRR Commodity Price Sensitivity
ROSE – NPV & IRR COMMODITY PRICE SENSITIVITY NPV8% Sensitivity at Various Tantalum and Lithium Carbonate Prices NPV8% Lithium carbonate price/tonne (US$MM) $6,000 $8,500 $10,000 $15,000 Tantalum price/lb $100 $453 $1,051 $1,409 $2,606 $118 $488 $1,085 $1,444 $2,639 $135 $522 $1,119 $1,477 $2,673 IRR
Slide 13: Rose – NI 43-101 PEA Metrics Dec 2011
ROSE –NI 43-101 PEA METRICS DEC 2011 Resources (diluted grade at the mill) • 24.3 million tonnes @ 0.89% Li2O, 132 ppm Ta2O5 Total contained materials • 452,306 tonne Li2CO3 • 3.5 million lbs Ta2O5 Initial mine life • 17 years Throughput rate • 4,600 tpd (1.5 million tpy) Net recovery rates • 84.8%
Slide 14: Products & Markets
PRODUCTS & MARKETS • Technical grade spodumene 7.0% for the glass & ceramic market. Product specification requires a low iron content. This is one of the unique feature of our deposit Current contract price is between $1500 to US$1,800/tonne • Chemical grade spodumene 6.0% for the Lithium conversion
Slide 15: Products & Markets
PRODUCTS & MARKETS Technical grade spodumene concentrate 7.0% is used in the glass & ceramic market. Counts for 1/3 of the global lithium demand (500,000 tonne Spodumene TG or 60,000 tonne LCE). Today, Talison is the only supplier of Spodumene TG 7.0% Their annual production is around 90,000 tonne d
Slide 16: Project Timeline
PROJECT TIMELINE 2017 2018 2019 2020 2021 Main Activities Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Environmental Impact Study ¡¡ ¡¡ Pilot Plant Spodumene ¡¡ Pilot Plant Lithium Carbonate ¡¡ Feasibity Study ¡¡ Details Engineering Spodumene Plant ¡¡ ¡¡ ¡¡ ¡¡ ¡¡ Details Engineering L
Slide 17: HELM AG a Strong Strategic Investor Off-take
HELM AG a STRONG STRATEGIC INVESTOR OFF-TAKE COMMON INTERESTS and SHARED GOALS • A Take or Pay off-take is fully bankable • Supplier & buyer want to maximize products value • World wide freight and distribution power • Combining chemical and mining expertise About Helm: The Agreement includes: • Rep
Slide 18: Comparable Company Analysis
COMPARABLE COMPANY ANALYSIS • Critical Elements is trading at a substantial discount to Canaccord Genuity Research’s universe of mineral exploration and development companies • Excellent potential for a substantial re-rating 0.72x 0.55x 0.55x 0.49x 0.47x 0.45x 0.45x 0.45x 0.44x Average = 0.34x 0.30x
Slide 19: Appendix
Appendix 20 www.cecorp.ca
Slide 20: Infrastructures plans
Infrastructures plans 20 www.cecorp.ca
Slide 21: Rose - Mineral Resource
ROSE - MINERAL RESOURCE Tonnes Li2O Li2O Li2CO3 Ta2O5 ppm (% Li2O Eq.) (%) (% Li2CO3 Eq.) (g/t) Indicated Resources 26,500,000 1.30% 0.98% 2.42% 163 259,700 642,238 Total 9.5 million lbs tonnes tonnes Inferred Resources 10,700,000 1.14% 0.86% 2.13% 145 92,020 227,565 Total 3.4 million lbs tonnes ton
Slide 22: Feasibility Study Contractors
FEASIBILITY STUDY CONTRACTORS ENGINEERING DEPARTMENTS FIRMS WSP Environmental/Infrastructure Metallurgical process/ Flow-Sheet/ BUMIGENE Transformation process SGS Lakefield Spodumene (pilot plant) Outotec Lithium carbonate (pilot plant) SECOR Plant location strategy AMEC Tailings InnovExplo Mining
Slide 23: Transportation Logistics
TRANSPORTATION LOGISTICS 23 www.cecorp.ca
Slide 24: Metallurgy Results: Rose Project Metallurgy Highlights
METALLURGY RESULTS Rose Project Metallurgy Highlights • Metallurgy work carried by Bumigeme and SGS Lakefield • Metallurgical testing based on representative composite sample for the first 8 years of production (selected Holes between Holes LR-09-02 to LR-10-123) • Lithium concentrate batch flotatio
Slide 25: 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 26: Rose Deposit & Growth Potential
ROSE DEPOSIT & GROWTH POTENTIAL Camp Girard HYDRO POWER LINE HELICO SOUTH 2,45% LI2O and 92 ppm Ta205 1,46% LI2O and 118 ppm Ta205 PIVERT 3,04% LI2O and 173 ppm Ta205 Pivert Middle Rose Deposit JR Extention West of JR Resource INDICATED Resources : 26,500,000 tonnes; 0.94% LI2O and 226 ppm Ta205 / 5
Slide 27: Lithium Supply & Future Capacity
Lithium Supply & Future Capacity Quote from Stormcrow Report Current World Producers: Current World Capacity ≈ 180 000T LCE* § SQM: Brine for 39,000 tpy LCE § 20% increase in battery grade lithium in 2013 (Rockwood § FMC: Brine for 22,919 tpy LCE 2013 Q4) § Albemarle: Brine/Hard rock for 30,000 tpy
Slide 28: 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