Lithium Americas Corp. · NYSE:LAC
Lithium Americas — Investor Presentation (May 2013)
28 slides from Lithium Americas's investor presentation, May 2013
Slide 1: Developing One of the World's Largest and Lowest Cost Lithium Operations
lity tif M > te Developing One of the World's Largest and Lowest Cost Lithium Operations Zi bye inked = www.lithiumamericas.cor May 2013
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Statements This presentation is intended to be strictly informational. Lithium Americas Corp. (the “Company”) reserves the right, at its sole discretion, to modify all or any part of this presentation without any liability or notification to any person. This pres
Slide 3: Key Highlights
Key Highlights er Q) Lithium industry has extremely favourable fundamentals ® Significant increases in demand = Significant increases in price = Few competitors () Lithium Americas is a pure-play, near-term lithium producer = 3rd largest lithium brine resource in the world = Definitive Feasibility S
Slide 4: Hard Rock Minerals vs Brines Production Costs
Q) Hard Rock Minerals Production costs are historically 2 times as expensive as brine production costs Brines Lithium Americas’ Brine Evaporation Ponds Source: Ziemann et al, 2012 (ee SSS ee LITHIUM 4. MERICAS Li-mineral- concentrates Li-hydroxide Li-carbonate Li-bromide Li-chloride Li-Metal Butylli
Slide 5: Batteries Share of Lithium Demand
QO Inthe year 2000, batteries accounted for ~ 4% of lithium demand Q In 2013, batteries are expected to account for ~ 36% of lithium demand OQ Demand increasing for both small format batteries (ie cell phones, laptops, digital cameras, hand held power tools) and large format batteries (ie e-bikes, c
Slide 6: Current Producers-Approaching Production Limits
Current Producers-Approaching Production Limits Q) Current market dominated by 4 producers (3 from Brine) = Current industry capacity ~ 150,000 tonnes LCE « Forecast demand in 2020 ~ 300,000 tonnes LCE (100% shortfall) =" Forecast demand in 2025 ~ 500,000 tonnes LCE (230% shortfall) Q) Tianqi acquis
Slide 7: Demand and Price Both Increasing Significantly
Demand and Price Both Increasing Significantly Q) Lithium demand expected to more than triple by 2025 O) Lithium price has more than doubled over the last 10 years Q) All major lithium producers have increased prices over the last 12 months Q) Current price of lithium carbonate is ~ US$6,500 per ton
Slide 8: Cauchari-Olaroz Project; Strategically Located
Cauchari-Olaroz Project; Strategically Located Q) Project located in Argentina, the third largest lithium producer Q) Close proximity to current Q) Large property package ~ 83,000 ha | producers (within 200km) | Q) Excellent infrastructure | = Natural gas pipeline 50km = Paved highway = Deep sea por
Slide 9: Large Resource and Reserve Estimation With Significant Upside
Large Resource and-_Reserve Estimation With Significant Upside QO 3 largest lithium brine resource in the world Q) Long mine life = Reserves allow for a 40 year mine life based on the company’s Stage 1 & Stage 2 production profile = Each stage expected to produce 20,000 tonnes per annum of lithium c
Slide 10: Project Outline
Project Outline SSeS ES OU Largest CAPEX component is pond construction f zo ae __ 0 Ponds expect to cover over 650 ha o Portion of the infrastructure already in place (pond, wells, lab and camp) Q) Safe ground conditions to build the mine (not the case with most mines built on a salt lake) — LITHIU
Slide 11: Production Wells
Production Wells Well PB4 i a Q) Large diameter production drilling program complete Sonatas QO) Production wells yielded flow rates 2... — of between 20 and 25 litres per second (in the brine aquifer) , | | f Om Steen C1 4 wells complete - capable of producing 20-25% of the total lithium carbonate
Slide 12: Evaporation process reproduced on-site in large scale ponds
Q) The entire evaporation process is reproduced on-site in large scale ponds QO) The ponds produce concentrated brine to feed the pilot plant C) Over 15 tonnes of concentrated lithium brine has been produced LITHIUM 12 AMERICAS
Slide 13: Full analytical lab on-site
Q Lithium Americas is the only development company in the region with a full analytical lab on-site Top of the line analytical equipment allows instant measurement of all elements in the brine QO) Lab monitored by Alex Stewart Assayers, a fully certified lab LITHIUM 13 AMERICAS
Slide 14: Pilot Plant Fully Operational On-Site
Pilot Plant Fully Operational On-Site Q) Pilot Plant built and operated in Canada and now assembled on- site Oo Fully operational since July 2012 Oo Battery grade lithium carbonate produced at pilot plant and sent to potential customers for qualification purposes LITHIUM a AMERICAS
Slide 15: Lithium
LITHIUM 15 AMERICAS
Slide 16: Agreements with Local Communities
Agreements with-Local Communities Q) Contracts in-place with the 5 aboriginal communities where the project will be built involving: = First right of refusal on jobs they are qualified for = Company will provide training to communities "Company will sponsor a local school of business = Direct invest
Slide 17: Feasibility Study Highlights for Stage 1
Feasibility ay Highlights for Stage 1 Q) Feasibility Study plant engineering prepared by ARA WorleyParsons (+15% accuracy) Q) Operating costs projected to be one of the lowest in the industry Q) Potash significantly contributes to overall project economics FS Stage 1: 20,000 TPA Lithium Carbonate an
Slide 18: Final project approval obtained from the Committee of Experts
QO) Final project approval obtained from the Committee of Experts Q) JEMSE (Provincial Mining company) to own 8.5% of the Cauchari-Olaroz Project, significantly decreasing political risk Q) JEMSE to contribute for their participation out of future dividends ) Most Favoured Nation Status Q) JEMSE to
Slide 19: Final Decree approving the project issued December 2012
QO) Final Decree approving the project for construction issued in December 2012, one year after submitting the EIA Q) Strong support from the Central and Provincial Governments QO) In 2012, 62% of foreign investment in Argentina came from mining LITHIUM 19 AMERICAS
Slide 20: Project Financing—Last Major Milestone Before Construction
Project Financing—Last Major Milestone Before Construction Negotiations Underway QO) Mitsubishi Corporation and Magna International are current strategic investors with off-take options = Collectively own ~ 17% of shares outstanding * Option to purchase up to 37.5% of lithium production, contingent
Slide 21: Market Overview
Market Overview Research Coverage Capitalization SECURITIES ComPoRATION. 77M/87M Bw, BYRON @ DUNDEE Shares Outstanding / Fully Diluted (March 31, 2013) Mackie Research Reps Corporatio SUE , a Share Price (as at May 10, 2013) $0.50 I AU 52 week High / Low $1.25/$0.42 Major Shareholders Market Cap (as
Slide 22: Third largest lithium brine resource and reserve in the world
- TT Q Third largest lithium brine resource and reserve in the world a Fully permitted a Operating costs expected to be one of the lowest in the industry Q Robust project financials a DES identifies Stage 1 project NPV of US$738 million (pre-tax, at 8% discount rate) a Stage 2 provides significant u
Slide 23: Appendix — DFS Information
Al] y LITHIUM AMERICAS Appendix — DFS Information
Slide 24: Average Lithium Mass Cumulated
Average Lithium Mass Cumulated Brine Volume (m°) Concentration (mg/L) Li,CO3 {tonne} Proven Reserves 679 37,000 197,000 5.50 x 10’ Probable Reserves 476,000 2,517,000 7.16 x 10° TOTAL RESERVES 513,000 2,714,000 7.71 x 10° Updated Measured Resource 576,000 3,039,000 9.14 x 108 Updated Indicated Resou
Slide 25: Conservative Price Assumptions Relative to Current Market Price
Conservative Price-Assumptions Relative to Current Market Price Q) The lithium carbonate price assumptions were obtained Price Assumption per tonne of Lithium Carbonate (USS) ear ; 5,800 5,700 4,600 from SignumBOX 3500 a0 ath Q) The Company believes the 5,900 5,700 4,500 pricing forecast to be oe =
Slide 26: Sensitivity Analysis
Sensitivity Analysis-fo QO) Independent market studies identify 3 long term price scenarios QO Current battery grade Lithium Carbonate price ~ USS 6,500 per tonne and Potash ~ USS 580 per tonne (Brazil) QO) Project is profitable even in low price scenario 20,000 TPA of Lithium Carbonate 40,000 TPA o
Slide 27: Projected Operating Cost for Stage 1
Projected Operating.Cost for Stage 1 cases lai i aaa Catering & Camp Services General & Administration Transportation Maintenance Lithium Americas’ projected Lithium Carbonate cash operating costs isUS$1,876 per tonne Salt Removal and Transport Q) The Lithium Carbonate net cash operating costs of US
Slide 28: Initial Capital Cost for Stage 1
Initial Capital Cost-for Stage 1 se _--=. Soda Ash (Li2CO3 Plant) Drilling Wells (Wells) Electric Supply and Distribution (Li2C03 Plant} Q) 50% of the CAPEX is related to pond construction (ti2C03 Plant) Q) Majority of the construction materials can be (Li2C03 Plant) sourced locally USS 269 M for Li