Slide 1: Scoping Study Investor Presentation: Solaroz Lithium Brine Project
SCOPING STUDY INVESTOR PRESENTATION Solaroz Lithium Brine Project, Argentina High margin lithium project with large scale & long life potential ASX:LEL 31 OCTOBER 2023 lithiumenergy.com.au
Slide 2: A High Margin, Large Scale Lithium Project
A HIGH MARGIN, LARGE SCALE LITHIUM PROJECT Developing Solaroz for sustainable lithium supply Outstanding Significant Scoping Study Multiple EV Design and project upside demonstrates Battery parties Engineering economics opportunity low technical seeking components of with resource and partnership St
Slide 3: Solaroz Lithium Brine Project
SOLAROZ LITHIUM BRINE PROJECT Scoping Study confirms exceptionally strong project economics for both 20ktpa and 40ktpa LCE production scenarios Pre-Tax NPV10 20ktpa 40ktpa 20ktpa 40ktpa Pre-Tax IRR US$2.3bn US$3.9bn 41% 44% 20ktpa 40ktpa Capital Payback 20ktpa 40ktpa Mine Life Period (Post Tax) 36 y
Slide 4: Corporate Overview
CORPORATE OVERVIEW Lithium Energy Limited (ASX:LEL) Fully Paid Ordinary Shares 103,010,000 Options (Exercise Prices: Various $0.30 - $1.595) 36,500,000 Market Capitalisation (@ $0.675) (as at 30 October 2023) $70 Million ASX:LEL 4
Slide 5: Highly Experienced Team
HIGHLY EXPERIENCED TEAM Strong leadership, technical and commercial experience William Johnson Victor Ho Raúl Di Lena Executive Chairman Company Secretary & CFO GM Solaroz S.A. MA (Oxon), MBA, MAICD BCom, LLB (Western Australia), CTA BSc Chem Eng; MFin (Magister of Finance, UNR) • Masters degree in
Slide 6: Increased Battery Demand Needs Supply
INCREASED BATTERY DEMAND NEEDS SUPPLY 74 new lithium mines required by 2035 to support global demand Average size 45,000 tonnes LCE • 500% increase in battery demand by 2035, forecast by Benchmark. • Solaroz is ideally positioned to feed into forecast LCE supply deficit. • Supply into US and EU from
Slide 7: Accelerating Lithium Demand Driven by EVs
ACCELERATING 3.5 million tonnes Lithium Carbonate Equivalent (LCE) needed by 2033 LITHIUM DEMAND DRIVEN BY EVS • Demand for battery materials is accelerating as the world transitions to net zero. • Unprecedented demand from battery electric vehicles (BEVs) continues. • Fastmarkets forecasts demand f
Slide 8: Lithium Brine Is Key for Future Sustainable Supply
LITHIUM BRINE IS KEY FOR FUTURE SUSTAINABLE SUPPLY Brine processing uses less carbon and less water than hard rock lithium sources • Lower carbon emissions Lithium carbonate produced from brine typically has less than 1/3 the carbon intensity (CO2 emissions) of equivalent lithium chemicals produced
Slide 9: Scoping Study Highlights
SCOPING STUDY HIGHLIGHTS Key Results 20ktpa 40ktpa Parameters Units LCE LCE Lithium Carbonate Production Tonnes/year 20,000 40,000 Project Life Estimate (including ramp-up) Years 36 19 Capital Cost (CAPEX) (ex 30% contingencies) US$M 542 987 Direct Capital Cost (ex contingencies, indirect costs and
Slide 10: Solaroz Is Highly Competitive on the Cost Curve
SOLAROZ IS HIGHLY COMPETITIVE ON THE COST CURVE Industry Total Cash Cost curve for LCE production 2023 SOLAROZ Source: S&P Global Market Intelligence, 27 October 2023 ASX:LEL 10
Slide 11: Solaroz Mineral Resource Estimate
SOLAROZ MINERAL RESOURCE ESTIMATE Solaroz hosts a significant, strategic resource of lithium • Total JORC Indicated and Inferred MRE of 3.3Mt of LCE. • Indicated category 2.4Mt of LCE. • Contains high-grade core of 1.3Mt of LCE with an average concentration of 400 mg/l lithium. • 1.3Mt of LCE alone
Slide 12: Ponds or DLE?
Evaporation Ponds Scoping Study confirms Solaroz brines are suitable for processing using conventional solar evaporation. 12,000ha Solaroz landholding could support evaporation ponds of similar scale to Allkem and Lithium PONDS OR DLE? Argentina. Lithium Argentina Cauchari – Olaroz project Solaroz c
Slide 13: Solar Pond Design
SOLAR POND DESIGN Development base case is solar evaporation • Scoping Study modelling confirms suitability of solar evaporation as base development case for Solaroz. • Solaroz concessions have potential to produce up to 40ktpa LCE via solar evaporation pond processing. • Low technical risk as demon
Slide 14: Conceptual Plant Design
CONCEPTUAL PLANT DESIGN Layout based on capacity for 40ktpa LCE production Boron Removal Area Admin, warehousing and workshops DLE Area LCE Production Water and Steam Services Purple Areas are the expansion areas for an additional 20ktpa plant Brine Holding Ponds 20ktpa LCE Processing Plant Layout w
Slide 15: Flowsheet Configuration
FLOWSHEET CONFIGURATION Standard configuration based on neighbouring operations ASX:LEL 15
Slide 16: Developing Solaroz for Sustainable Lithium Supply
DEVELOPING SOLAROZ FOR SUSTAINABLE LITHIUM SUPPLY 2023 2024 2025 2026 2027 Project Development Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Scoping Study Metallurgical Testwork Feasibility Studies Statutory Approvals Detailed Engineering Construction and Commissioning ASX:LEL 16
Slide 17: The Solaroz Team
THE SOLAROZ TEAM Lithium Energy has assembled an experienced technical team on site in Argentina ASX:LEL 17
Slide 18: Appendix
-L ENERGY LTD
Slide 19: Upgraded Total JORC Indicated and Inferred Mineral Resource Estimate
SOLAROZ LITHIUM BRINE PROJECT Table 1: Upgraded Total JORC Indicated and Inferred Mineral Resource Estimate Mineral Lithology Sediment Volume Specific Brine volume LCE Resource Lithium mg/l Lithium Tonnes Units (million m3) Yield % million m3 Tonnes Category A (Upper Aquifer) 7,200 10.0% 720 245 176
Slide 20: Upgraded High-Grade Core within Mineral Resource
SOLAROZ LITHIUM BRINE PROJECT Table 2: Upgraded High-Grade Core within Total JORC Indicated and Inferred Mineral Resource Sediment Brine volume Mineral Resource Lithology Specific LCE Volume Lithium mg/l Lithium Tonnes Category Units Yield % million m3 Tonnes (million m3) A 878 10.0% 88 349 30,000 1
Slide 21: Solaroz Lithium Brine Project
SOLAROZ LITHIUM BRINE PROJECT Located in the prolific ‘Lithium Triangle’ in Argentina • World’s largest reserves of lithium are found in the Lithium Triangle. • Argentina is the world’s 3rd largest producer of lithium after Australia and Chile. • Lithium brine projects from Argentina are among the l
Slide 22: Solaroz Has Excellent Neighbours and Location
SOLAROZ HAS EXCELLENT NEIGHBOURS AND LOCATION • Brine production potential confirmed by existing production from Alkem's Olaroz Lithium Facility as a low cost, high margin producer of Lithium Carbonate from the Olaroz Salar. • Lithium Argentina’s first production from Olaroz- Cauchari Project rampin
Slide 23: Salar de Olaroz Basin (Olaroz Salar)
SALAR DE OLAROZ BASIN (OLAROZ SALAR) Home of Significant Lithium Production Allkem 66.5% Lithium Argentina 44.8% LEL 90% JV partnership with Toyota JV partnership with Ganfeng JV partnership with Tsusho & JEMSE Argentina Lithium & JEMSE Argentina Hanaq Argentina S.A. Production DFS: In Construction
Slide 24: JORC Code Competent Persons' Statements
JORC CODE COMPETENT PERSONS’ STATEMENTS (1) The information in this document that relates to Mineral Resources estimates (dated October 2023) in relation to the Solaroz Lithium Brine Project is extracted from the following ASX market announcement made by Lithium Energy Limited dated: • 26 October 20
Slide 25: About This Document: Forward Looking Statements
ABOUT THIS DOCUMENT This document has been prepared by Lithium Energy Limited (the "Company” or “LEL”). No representation, expressed or implied, or warranty as to the accuracy or completeness of the information contained herein is made by any party and nothing contained herein shall be relied upon a
Slide 26: Lithium Energy Limited contact
Australia William Johnson Executive Chairman Lithium Energy Limited Tel: +61 8 9214 9737 Mob: +61 419 047 460 wjohnson@lithiumenergy.com.au ASX:LEL lithiumenergy.com.au