Slide 1: Kathleen Valley 2020 Pre-Feasibility Study and Beyond
Kathleen Valley 2020 Pre-Feasibility Study and Beyond October 2020
Slide 2: Important Information
Important Information FORWARD LOOKING STATEMENTS COMPETENT PERSON STATEMENT This Presentation contains forward-looking statements which are identified by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, The Information in this Presentation that relates to Ore Reserves, Production Target and Pr
Slide 3: Project Overview
Project Overview Strong Financials • NPV ~$1.12B • IRR ~37% • LoM Free Cash +$4.8B Kathleen Valley Lithium Project • ~40 Years Long Life • 71Mt Reserve • 6% Li2O Spodumene Concentrate (SC6) • Active mining region Infrastructure • Power • Transport • 100% Ownership Moora KALGOORLIE Low Risk • Granted
Slide 4: A Tier 1 Lithium Resource
A Tier 1 Lithium Resource Australian Hard Rock Lithium Operations and Advanced Projects 3.00 Li2O Grade % Greenbushes Kathleen Valley Tianqi/Albemarle 2.50 (Liontown 100%) (Li+Ta*) (Li2O only) 2.00 Pilgangoora Mt Marion (Pilbara Minerals) Finnis (Core) (MinRes/Ganfeng) 1.50 Wodgina (Min Res/ Alberma
Slide 5: A Globally Significant Deposit
A Globally Significant Deposit World Hard Rock Lithium (Spodumene-dominant) Operations and Advanced Projects % Attributable Resources by Company Ownership 14.0 12.0 Liontown owns the world’s 4th largest hard rock (spodumene) lithium resource base 10.0 8.0 LIONTOWN RESOURCES % 6.0 4.0 2.0 0.0 *Refer
Slide 6: October 2020 PFS Key Metrics
October 2020 PFS Key Metrics Based on May 2020 MRE – 156Mt @ 1.4% Li2O and 130ppm Ta2O5 NPV2 (Post Tax) A$1.12B IRR 37% Payback 3 Years SC6: 350Ktpa Mining: Reserve: Ta2O5 (30%): 2Mtpa 71Mt @ Opex3 Years 1 - 10 US$345/dmt (SC6) 1.40% Li2O 430tpa 130ppm Ta2O5 Opex3 Years LOM US$377/dmt (SC6) Ave. SC6
Slide 7: NPV Sensitivity Analysis
NPV Sensitivity Analysis A$1,120M Base Case 7 | KATHLEEN VALLEY PFS AND BEYOND OCTOBER 2020
Slide 8: Resources & Reserves
Resources & Reserves Mineral Resource Estimate* – May 2020 Cut-off Resource Million Ta2O5 Li2O% Li2O% Category Tonnes (ppm) Measured 20 1.3 140 0.55 Indicated 105 1.4 130 Inferred 32 1.3 110 TOTAL 156 1.4 130 * Inclusive of Ore Reserve Ore Reserve – October 2020 Million Ta2O5 Category Li2O% Tonnes (
Slide 9: Location and Infrastructure
Location and Infrastructure Well serviced and highly active mining region Major Ni & Au Goldfields Sealed Airstrips Mines Highway Powerline Town of Leinster Natural Gas Pipeline 9 | KATHLEEN VALLEY PFS AND BEYOND OCTOBER 2020
Slide 10: Opportunities
Opportunities May 2020 MRE Block Model PFS is a critical step towards the DFS and maximising future opportunities • Resource conversion • Resource expansion Open • Throughput increase Open • Potential to produce a premium Open concentrate (>6.5% Li2O)* • Downstream processing – scoping study pending
Slide 11: The longer-term fundamentals remain strong
The longer-term fundamentals The rise of lithium batteries continues remain strong JANUARY 2020 • EU rules begin – heavily penalising carmakers on CO2 emissions MAY 2020 • France to provide €12,000 subsidies to switch out to EVs – aims to be #1 EV manufacturer in Europe • EV industry hits major mile
Slide 12: Timeline
Timeline Consistent delivery of results with targets met or exceeded Updated PFS/ Ore Reserve 71Mt @ 1.4% Li2O FEED Early Works/Design Commissioning and 130ppm Ta2O Q4 2020 Q4 2021 Q2 2022 Q3 2022 Q3 2022 Q3 2023 Q1 2025 Q2 2025 DFS FID Construction Production 12 | KATHLEEN VALLEY PFS AND BEYOND OCT
Slide 13: Moora Au-PGE-Ni-Cu Project
Moora Au-PGE-Ni-Cu Project WESTERN AUSTRALIA 100%
Slide 14: Project Overview
Project Overview Moora is located in an emerging precious and base metal mineral province Same geological terrain as the Julimar Ni-PGE-Au discovery by Chalice Gold Mines (ASX:CHN)1 Tenements acquired in 2018 and 2019 as part of generative exploration strategy for battery metals Limited historical s
Slide 15: Mt Yule - Felton Au - PGE Corridor
Mt Yule - Felton Au - PGE Corridor 15km long, 2.5km wide zone with multiple, coincident Au-PGE and magnetic anomalies Individual auger assays up to: • 925ppb (0.92g/t) Au • 75ppb Pd+Pt • 492ppm Ni • 884ppm Cu Multiple plus 100ppb (0.1g/t) Au zones Airborne EM survey defines multiple late-time respon
Slide 16: Mt Yule Prospect
Mt Yule Prospect 3.6 x 2.2km, multi-element anomaly 16 | KATHLEEN VALLEY PFS AND BEYOND OCTOBER 2020
Slide 17: Results Continue to Validate Exploration Concept
Results Continue to Validate Exploration Concept Phase 1 (Q2/Q3 2020) COMPLETE • Auger sampling – phase 1 • Extend first pass auger sampling to adjacent areas • Airborne EM • Total budget ~ $500,000 Phase 2 (Q4 2020/Q1 2021) • Ground EM (MLEM) – Mount Yule-Felton Corridor (MYFC) and Bindi Bindi Area
Slide 18: Investment Case
Investment Case The only independent “Tier 1” lithium resource in Australia, strengthened by exciting new exploration targets ASX: LTR Share Price (6 months to Kathleen Valley Moora October 2020) 156Mt resource/ 40 Year mine life Au-PGE-Ni-Cu Project in an Development timeline emerging mineral align
Slide 19: Leadership and Key Financials
Leadership and Key Financials David Richards Tim Goyder Craig Williams Anthony Cipriano Steven Chadwick Managing Director Chairman Non-Executive Director Non-Executive Director Non-Executive Director • +35 years • +40 years • +40 years • +30 years • +40 years • Discovered multi- • Chairman Chalice •
Slide 20: Thank You
Thank You For more information visit www.Itresources.com.au @LiontownRes liontown-resources-limited
Slide 21: Appendix
APPENDIX 1 Kathleen Valley Project Additional Information
Slide 22: Peer Comparison Information – Mineral Resource Estimates
Peer Comparison Information – Mineral Resource Estimates Measured Indicated Inferred Company Project Stage Global MRE Mt MRE Grade Information Source Mt Mt Mt Kathleen Valley Development 20 105 32 156 1.35 ASX Announcement, 11 May 2020: https://www.ltresources.com.au Liontown Resources Buldania Scop
Slide 23: Lithium Equivalency (Li2O + Ta2O5) Parameters
Kathleen Valley Lithium Equivalency (Li2O + Ta2O5) Parameters Inputs Outputs LI2O% Tantalite (Ta2O5) $/lb 69.9 (B2) US$ (Roskill 2020 price) Spodumene $/tonne 739 (B3) US$ (Roskill 2020 price) Tantalite recovery 50% (B4) Per LTR testwork inc off site losses ie 90% of 56% Ta2O5 = 0.107 (F4) Spodumene
Slide 24: Peer Comparison Information
Peer Comparison Information Global MRE %Global Global Attributable Company Project (Ownership%) Status Source May 2019 Resource Update, sourced from 21/4/2020 ASX (Mt) Li2O% Resources Hard Rock AVZ Manono (60%) DFS release 240.0 1.7 13.0 https://en.wikipedia.org/wiki/Kings_Mountain_Mine, Kings Mount
Slide 25: Peer Comparison Information
Peer Comparison Information Global Attributable %Global Company Project (Ownership%) Status Source Global MRE (Mt) Li2O% Resources North American Lithium NAL website - http://na-lithium.com/projects/, from Oct 12 2012 Hard Rock (CATL) Ganfeng La Corne (100%) Mt Marion (50%) Development Operating rep
Slide 26: 2020 PFS v 2019 PFS
2020 PFS v 2019 PFS Key Parameters And Assumptions General and Economic 2020 PFS 2019 PFS Cost Assumptions 2020 PFS 2019 PFS Discount rate (real, post-tax) 8% 8% LOM avg open pit mining costs ** ($/dmt ore processed) A$43 A$35.12 US$690/dmt LOM avg U/G mining costs ($/dmt ore processed) A$55 NA SC6.
Slide 27: PFS – Mining Costs
PFS – Mining Costs Life of Mine Financials Capital Costs Summary (A$B) Main Area Capital (A$M) Revenues (lithium) 14.7 Treatment Plant 84.8 Operating costs 5.9 Reagents & Plant Services 16.0 Capital expenditure Infrastructure – general 53.3 - pre-production 0.3 Mining Infrastructure 2.0 - sustaining
Slide 28: Updated PFS | Proposed Processing
Updated PFS | Proposed Processing 2020 Test Work Outcomes • WOF produces higher grade concentrate • Tantalum mineralogy suitable for upgrade to 30% compared with conventional DMS/Flotation Ta2O5 concentrate offsite processing • Magnetic separation reduces iron by up to 55% in • Ta2O5 recovery of 56%
Slide 29: Appendix 2: Buldania Lithium Project
APPENDIX 2 Buldania Lithium Project (Liontown 100%)
Slide 30: Project Overview
Project Overview Buldania is Located in a Lithium-Rich Mineral Province 1 Outcropping, fresh, spodumene-related mineralization Mineralisation at Anna extends to the SE under shallow cover – 2 strike length >1.4km and open 3 Similar geology to the Mt Marion and Bald Hill lithium deposits (71Mt and 26
Slide 31: Resource
Resource Maiden Mineral Resource Estimate 14.9Mt @ 1.0% Li2O The completion of the MRE complements the flagship Kathleen Valley Lithium Project 31 | KATHLEEN VALLEY PFS AND BEYOND OCTOBER 2020
Slide 32: Level 2, 1292 Hay St
Level 2, 1292 Hay St West Perth WA 6005 +61 8 9322 7431 info@ltresources.com.au www.ltresources.com.au @LiontownRes liontown-resources-limited