Slide 1: Kathleen Valley Pre-Feasibility Study & Downstream Scoping Study Update
Kathleen Valley Pre-Feasibility Study & Downstream Scoping Study Update Plus Moora Highlights October 2020
Slide 2: Important Information
Important Information COMPETENT PERSON STATEMENT CAUTIONARY STATEMENT The Information in this Presentation that relates to Ore Reserves, Production Target and Pre-Feasibility Study (PFS) for the Kathleen 1 The production targets and forecast financial information referred to in the PFS & DSS are bas
Slide 3: Project Overview
Project Overview PFS Financials1 • NPV ~$1.1B • IRR ~37% (SC62) • LoM Free Cash $4.8B Kathleen Valley Lithium Project • NPV ~$4.8B3/$3.2B4 DSS Financials1 • IRR ~41%3/35%4 (LHM3 or LSM4) • LoM Free Cash $19.5B3/$13.7B4 • ~40 Years Long Life • 71Mt Reserve • 100% Ownership • Granted Mining Leases KAL
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 Metrics1 Based on May 2020 MRE – 156Mt @ 1.4% Li2O and 130ppm Ta2O5 NPV2 (Post Tax) A$1.12B IRR 37% SC6: 350Ktpa Mining: Reserve: Payback 3 Years Ta2O5 (30%): 2Mtpa 71Mt @ 1.40% Li2O Opex3 Years 1 - 10 US$345/dmt (SC6) 430tpa 130ppm Ta2O5 Opex3 Years LOM US$377/dmt (SC6) A$ Tota
Slide 7: Downstream Scoping Study Key Metrics
Downstream Scoping Study Key Metrics1 Based on October 2020 PFS METRIC LHM LSM NPV (Post Tax/8% real) A$4.8B A$3.2B Reserve: IRR 41% 35% 71Mt @ 1.40% Li2O LOM Free Cash Flow A$19.5B A$13.7B 130ppm Ta2O5 Life of Mine Payback 3 Years 3 Years ~40 years Total production LoM Opex (2, 6) US$4,744/t US$2,6
Slide 8: Integrated Project – Cash Flow and Payback
Integrated Project – Cash Flow and Payback Cumulative net cashflow after tax1 19.0 17.0 LHM Integrated LHM 15.0 LSM Integrated 13.0 PFS (SC6.0 and Ta2O5) 11.0 LSM A$B 9.0 7.0 5.0 3.0 PFS 1.0 -1.0 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 2051 2053 2055 2057 2059 2061 2063
Slide 9: Resources & Reserves
Resources & Reserves Mineral Resource Estimate1 – 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 1 Inclusive of Ore Reserve Ore Reserve – October 2020 Million Ta2O5 Category Li2O% Tonnes (
Slide 10: 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 10 | KATHLEEN VALLEY PFS AND DSS UPDATE OCTOBER 2020
Slide 11: 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)1 • Downstream processing1 – explore options 1 Re
Slide 12: 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 13: Timeline
Timeline Consistent delivery of results with targets met or exceeded Updated PFS and DSS FEED Early Works/Design Commissioning Q4 2020 Q4 2021 Q2 2022 Q3 2022 Q3 2022 Q3 2023 Q1 2025 Q2 2025 DFS FID Construction Production 13 | KATHLEEN VALLEY PFS AND DSS UPDATE OCTOBER 2020
Slide 14: Moora Au-PGE-Ni-Cu Project
Moora Au-PGE-Ni-Cu Project WESTERN AUSTRALIA 100%
Slide 15: 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 16: 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 17: Mt Yule Prospect
Mt Yule Prospect 3.6 x 2.2km, multi-element anomaly 17 | KATHLEEN VALLEY PFS AND DSS UPDATE OCTOBER 2020
Slide 18: 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 19: Investment Case
Investment Case The only independent “Tier 1” lithium resource in Australia, strengthened by exciting new exploration targets Kathleen Valley Moora 156Mt resource/ 40 Year mine life Au-PGE-Ni-Cu Project in an Development timeline emerging mineral aligned to demand province Exceptional early Strategi
Slide 20: 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 21: Thank You
Thank You For more information visit www.Itresources.com.au @LiontownRes liontown-resources-limited
Slide 22: Appendix 1: Kathleen Valley Project Additional Information
APPENDIX 1 Kathleen Valley Project Additional Information
Slide 23: 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 24: Lithium Equivalency (Li2O + Ta2O5) Parameters
Kathleen Valley Lithium Equivalency (Li2O + Ta2O5) Parameters Inputs Outputs LI2O% Tantalite (Ta2O5) $/lb 69.9 (B2) US$ (Roskill 2025 – 2040 average price adjusted to FOB) Spodumene $/tonne 739 (B3) US$ (Roskill 2025 – 2040 average price, adjusted to FOB) Tantalite recovery 50% (B4) Per LTR testwork
Slide 25: 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 26: 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 27: 2020 PFS v 2019 PFS
2020 PFS v 2019 PFS Key Parameters And Assumptions General and Economic 2020 PFS 1 2019 PFS Cost Assumptions 2020 PFS 1 2019 PFS Discount rate (real, post-tax) 8% 8% LOM avg open pit mining costs 3 ($/dmt ore processed) A$43 A$35.12 US$690/dmt LOM avg U/G mining costs ($/dmt ore processed) A$55 NA S
Slide 28: PFS – Operating & Capital Summary
PFS – Operating & Capital Summary1 Life of Mine Financials Capital Costs Summary (A$B) Main Area Capital (A$M) Revenues (lithium) 14.7 Treatment Plant 84.8 Operating costs2 5.9 Reagents & Plant Services 16.0 Capital expenditure Infrastructure – general 53.3 - pre-production 0.3 Mining Infrastructure
Slide 29: 2020 Downstream Scoping Study (DSS)
2020 Downstream Scoping Study (DSS) Key Parameters And Assumptions1 General and Economic LHM LSM Cost Assumptions LHM LSM Discount rate (real, post-tax) 8% 8% LOM avg operating cost (US$/dmt SC6) 2 US$310 US$310 Ave. Price (US$/t FOB Fremantle 2025-2040) US$14,079/t 5 US$6,991/t 6 LOM avg operating
Slide 30: DSS – Cash Flows
Capital Costs Summary3 DSS – Cash Flows LHM LSM Main Area (A$M) (A$M) Integrated Life of Mine Financials1 WOF Plant & Mine Dev. 298 298 LHM (A$B) LSM (A$B) DSS Refinery and Infrastructure Revenues (lithium) 43.2 32.6 Plant site/Earthworks 7.1 7.1 Operating costs 2, 4 (12.5) (10.4) Treatment Plant 37
Slide 31: NPV Sensitivity Analysis (PFS)
NPV Sensitivity Analysis (PFS)1 1 Refer Cautionary Statement on Slide 2 31 | KATHLEEN VALLEY PFS AND DSS UPDATE OCTOBER 2020
Slide 32: NPV Sensitivity Analysis (DSS)
NPV Sensitivity Analysis (DSS)1 1 Refer Cautionary Statement on Slide 2 32 | KATHLEEN VALLEY PFS AND DSS UPDATE OCTOBER 2020
Slide 33: Updated PFS | Proposed Processing
Updated PFS | Proposed Processing 2020 Test Work Outcomes • WOF produces higher grade concentrate compared with • Tantalum mineralogy suitable for upgrade to 30% conventional DMS/Flotation processing Ta2O5 concentrate offsite • Ta2O5 recovery of 56% at a grade of 15% achieved • Magnetic separation r
Slide 34: DSS | Refinery Flow Sheet
DSS | Refinery Flow Sheet 34 | KATHLEEN VALLEY PFS AND DSS UPDATE OCTOBER 2020
Slide 35: Appendix 2: Buldania Lithium Project
APPENDIX 2 Buldania Lithium Project (Liontown 100%)
Slide 36: 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 37: Resource
Resource Maiden Mineral Resource Estimate 14.9Mt @ 1.0% Li2O The completion of the MRE complements the flagship Kathleen Valley Lithium Project 37 | KATHLEEN VALLEY PFS AND DSS UPDATE OCTOBER 2020
Slide 38: Level 2, 1292 Hay St, West Perth WA
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