Grounded Lithium Corp · TSXV:GRD
Grounded Lithium — Investor Presentation (October 2023)
31 slides from Grounded Lithium's investor presentation, October 2023
Slide 1: Corporate Presentation October 2023
Corporate Presentation October 2023 W W W G R O U N D E D L I T H I U M . C O M ` DEFINING OUR PATH TO COMMERCIAL CANADIAN LITHIUM PRODUCTION www.groundedlithium.com | TSX.V: GRD.V | OTCQB: GRDAF
Slide 2: Disclaimer
Disclaimer This presentation material contains forward-looking statements and forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. The opinions
Slide 3: Corporate Vision
Resource quality. Starts and ends with the rock. Corporate Vision: Torque in investment Build a Best-in-Class, Environmentally Responsible, - Top tier resource potential - Significant land base under control in Canadian Lithium Producer friendly jurisdiction (333 sections or ~86,000 hectares) W W W
Slide 4: Macro Economic Critical Mineral Environment
Macro Economic Critical Mineral Environment North America poised for significant growth Global supply/demand forecasted to be in major deficit North America playing catch-up… W W W G R O U N D E D L I T H I U M . C O M Share of worldwide Share of industry worldwide industry Source: Benchmark Mineral
Slide 5: Lithium from Brine ("LFB") – Commercial 'Playbook'
Lithium from Brine (“LFB”) – Commercial ‘Playbook’ Key Attributes Investors Should Consider in LFB Development ATTRIBUTES FACTORS GROUNDED FACTS GRD • 220 million bbls/section @ 74 mg/litre W W W G R O U N D E D L I T H I U M . C O M Rock and Resource Lithium + Deliverability + Volume • 14,000 tonne
Slide 6: Grounded PEA – Technical & Economic Vision
Grounded PEA – Technical & Economic Vision Robust Project Economics – 11,000 tonne/yr lithium hydroxide monohydrate (“LHM”) Phase 1 Total Capital = USD$335 Million W W W G R O U N D E D L I T H I U M . C O M NPV(AT) 8% USD$1.0 Billion IRR(AT) 48.5% Capital Intensity per installed tonne capacity/yr U
Slide 7: Leading LFB IRR's with Downside Protection
Leading LFB IRR’s with Downside Protection …with leverage to the upside • Grounded’s -20% 1 2 downside case exceeds W W W G R O U N D E D L I T H I U M . C O M our peer’s stated base case IRR’s. Enterprise Value (Millions of CAD$) • Project protected with economic resilience in a volatile commodity
Slide 8: Grounded – Discounted on a Few Metrics
Grounded – Discounted on a Few Metrics More established peers trade at higher valuations, PEA or Net Asset Value (“NAV”) Opportunity for GRD investors W W W G R O U N D E D L I T H I U M . C O M 3 EV to Published PEA 20.0% 18.4% 18.0% 16.0% 13.6% GRD compared to Brine 14.0% Developers 12.0% 10.0% 8.
Slide 9: Generating Returns For Investors – Compelling Project Economics
Generating Returns For Investors Compelling Project Economics Source: Grounded Lithium filed PEA on August 9, 2023, PHASE 1 ONLY Only a 10 year forward look. PEA goes out to 2046 W W W G R O U N D E D L I T H I U M . C O M Kindersley Lithium Project - Phase 1, US$25,000/tonne realized sale price, 11
Slide 10: Funds Flow on Equity Investment
Funds Flow on Equity Investment Hard-pressed to find other risk adjusted opportunities Equity Financings Forecasted to Achieve Operations Total Equity Invested (high-end of range) W W W G R O U N D E D L I T H I U M . C O M Commercial Pre-pilot/Pilot Pre-Commercial Round Round Round (equity only) CA
Slide 11: Preliminary Economic Assessment Conclusion – Rerate not reflected in share price
Preliminary Economic Assessment Conclusion – Rerate not reflected in share price • PEA’s provide a 3rd party independent corroboration of the economic viability of a project • In Grounded’s case, PEA ranks among the highest results to date for project economics W W W G R O U N D E D L I T H I U M .
Slide 12: Capitalization | TSX.V – GRD | OTCQB: GRDAF
Capitalization| TSX.V – GRD | OTCQB: GRDAF Clean balance sheet with capital structure conducive for growth and returns for all shareholders Capitalization (as at Oct 4'23) GLC Ownership TSXV: GRD - Share Price $ 0.13 14% W W W G R O U N D E D L I T H I U M . C O M Outstanding Common Shares (shrs mil
Slide 13: GLC Project Area – The Leduc Formation
GLC Project Area The Leduc Formation / AKA the Duperow in Saskatchewan Leduc formation: extensively dolomitized ancient carbonate complex that spans 100s km2 and is over 200 m thick Southern Alberta & Saskatchewan contain massive shallow W W W G R O U N D E D L I T H I U M . C O M water carbonate re
Slide 14: Robust Resource Potential
Robust Resource Potential Proven Deliverability & Low-Cost Development Compelling Geology • Thick porous reservoir with confirmed lithium con • 220 million barrels/square mile W W W G R O U N D E D L I T H I U M . C O M • 14,000 tonnes LCE/square mile • Proven high deliverability/well Low Drilling C
Slide 15: GLC Project Area – Kindersley Lithium Project Inferred Resource
GLC Project Area Kindersley Lithium Project (”KLP”) - Inferred Resource1 – 4.2 million tonnes LCE ➢ Sufficient acreage for multiple phases GLC 1St Test Well ➢ Flexibility at this point to produce either lithium (2nd Lithium Well in Sask) AB SASK MB carbonate or lithium hydroxide – will be a function
Slide 16: KLP Production Forecast
KLP Production Forecast Multi-stage build-out minimizes risk on several fronts Future Phases Kindersley Lithium Project • Sufficient land holdings to support W W W G R O U N D E D L I T H I U M . C O M 44,000 multiple 11,000 tonne/yr phases LHM • Grounded continues to add to portfolio 33,000 where o
Slide 17: Tier 1 Operating Jurisdiction to Build Business
-Tier 1 Operating Jurisdiction to Build Business Saskatchewan Chose GLC, We Did Not Chose Saskatchewan! Resource Potential Lead GLC Efforts Saskatchewan ranked 3rd in the world for Easy access to infrastructure and services including: investment attractiveness in the Fraser Institute’s • High graded
Slide 18: ESG & Lithium from Brine
ESG & Lithium from Brine DLE delivers improved social and environmental license Environmentally Friendly Current Lithium Sources • Much lower environmental impact (less land disturbance, minimal water consumption and Large Environmental Footprint W W W G R O U N D E D L I T H I U M . C O M emissions
Slide 19: Direct Lithium Extraction - DLE
Direct Lithium Extraction - DLE Deploy capital to resource development, not R&D DLE: Key to Future of Clean Energy in Western Canada • Applies innovative process to Western Canada’s tremendous lithium resource potential while W W W G R O U N D E D L I T H I U M . C O M leveraging oil & gas expertise
Slide 20: DLE – Noteworthy Industry Progression/Advancement
DLE – Noteworthy Industry Progression/Advancement Grounded – Fast Follower at Low Valuation W W W G R O U N D E D L I T H I U M . C O M Standard Lithium Announces Positive Preliminary Feasibility Study Results for Its South West Arkansas Project “Our team has also been hard at work at our Demonstrat
Slide 21: Direct Lithium Extraction Technology
Direct Lithium Extraction Technology Potential Game Changer in Battery Supply Chain Industry DLE - Koch Technology Koch Technologies Solutions (Current Status) ➢ Sorption and Ion-exchange based technology (Li-ProTM) ➢ Grounded working with Koch to finalize pilot ➢ Would be first of its kind in Canad
Slide 22: Operational Milestones and Objectives
OPERATIONAL MILESTONES AND OBJECTIVES FINANCING PROJECT FUNDING DEBT & EQUITY OFFTAKE PRE-FID DISCUSSIONS FINANCING. & AGREEMENT(S) LEGEND IC COMPLETED INMATIVES IME GICTBC (INFRASTRUCTURE & FACILITIES) GC TBC (WELLS & PIPELINES) 1M PROJECT MILESTONES AV POTENTIAL VALUATION RE-RATE (PROJECT DE-RISKI
Slide 23: Why Invest
Why Invest Robust Value Proposition to Investors • Provides critical exposure to the global energy- transition shift Measured strategy designed to achieve operational wins and • Quality resource in quality rock in the least W W W G R O U N D E D L I T H I U M . C O M successes, while minimizing dilu
Slide 24: Appendix
W W W G R O U N D E D L I T H I U M . C O M APPENDIX 24
Slide 25: PEA Support References
PEA Support References The economic analysis of the PEA is based on the following main assumptions: • realized sales price of USD $25,000 per tonne of LHM; • annual production of 11,000 tonnes per year of LHM; W W W G R O U N D E D L I T H I U M . C O M • commerciality of KTS’ Li-ProTM lithium extra
Slide 26: Leadership Team – We Build
Leadership Team – We Build Disciplined resource development professionals with history of economic success Over 35 years combined technical and managerial Over 28 years of combined experience in finance and Gregg Smith Greg Phaneuf W W W G R O U N D E D L I T H I U M . C O M experience leadership di
Slide 27: Board of Directors & Advisors
Board of Directors & Advisors Wisdom and expertise to guide management and steward shareholder interests Board Member Experience Chair Other Committees John Wright Chairman of GLC, Mr. Wright also serves as the Chairman of two resource Board, development companies in the oil and gas sector (Touchsto
Slide 28: Lithium from Brine Developer Comparables
Lithium from Brine Developer Comparables Grounded is extremely inexpensive to market peers – compelling entry point COMP SHEET LITHIUM FROM BRINE DEVELOPERS Primary Traded Market TSXV TSXV TSXV CSE TSXV ASX W W W G R O U N D E D L I T H I U M . C O M Stock Symbol GRD ETL LBNK EMPS SLI LKE Jurisdicti
Slide 29: Kindersley Lithium Project – Strong Capital Efficiencies
Kindersley Lithium Project – Strong Capital Efficiencies Profitability Index (“PI”) Ranks Favourably to Peers • Grounded’s PI ratio at 5 sensitivity compares favourably with peers at W W W G R O U N D E D L I T H I U M . C O M 1 2 higher pricing Enterprise Value (Millions of CDN$) • Project remains
Slide 30: Deliverability per Well is Mission Critical
Deliverability per Well is Mission Critical Project economic and/or commercial hurdles require deliverability Analysis – how many wells are needed to GRD @ 19,500 bblds/day and 74 mg/litre maintain 11,000 tpa of = 450 tonnes LHM annually per well battery grade lithium (ie. LHM) production at W W W G
Slide 31: Lithium from Brine – Low Cost & Sustainable
Lithium from Brine – Low Cost & Sustainable W W W G R O U N D E D L I T H I U M . C O M Lithium from brines dominate low end of the cost curve DEVELOPING SASKATCHEWAN'S UNTAPPED LITHIUM RESOURCES 31
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