Slide 1: Investor Presentation
INVESTOR PRESENTATION One of the Highest Purity, Lithium Projects in the World February 2021 -V:CRE
Slide 2: Disclaimers
DISCLAIMERS Forward-Looking Information: This presentation contains "forward-looking information" within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Forward-looking information i
Slide 3: Our Vision
CRITICAL ELEMENTS LITHIUM Our Vision Our Vision ▪ It is Critical Elements Lithium’s vision to become a large, responsible supplier of lithium to the flourishing electric vehicle and energy storage systems industries The Opportunity ▪ Our first project, Rose, features one of the purest lithium deposi
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT Critical Elements Lithium’s capital structure Exchange: Trading Symbol Basic Shares 168.8M Options 7.2M ($0.24 - $1.25) TSX-V: CRE Warrants 5.0M ($0.45) Frankfurt: F12 FD Shares(1) 173.8M Share Price C$1.15 OTCQX: CRECF Basic Market Cap C$194.2M Management / Directors 8.0% ownersh
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS North American sourced lithium and tantalum to power a clean energy future High Purity Spodumene Hard Rock Project ▪ Lithium hydroxide demand is expected to dominate the lithium market ▪ Rose is one of the highest purity hard rock spodumene deposits with low iron and mica conte
Slide 6: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM Proven track record in successfully executing value-added growth opportunities Former Rockwood Lithium CEO and CFO possess strong lithium development and operational knowledge ▪ Steffen Haber, President ̶ Former CEO and President of Rockwood Lithium ̶ Instrumental in the
Slide 7: Extensive Portfolio of Targets
EXTENSIVE PORTFOLIO OF TARGETS A dominant land package with exploration upside ▪ Located in a premier mining jurisdiction in Québec, Canada ▪ Excellent access to infrastructure including roads, low-cost power and skilled labor ̶ Camp ̶ Power line on site tapping into Quebec’s low carbon (93% hydroel
Slide 8: Strong Relations with First Nations
STRONG RELATIONS WITH FIRST NATIONS Mining in Québec Map of Québec and Plan du Nord ▪ The Pikhuutaau Agreement, signed July 2019, formalized the relationship between the Cree Nation of Eastmain, the Grand Council of the Crees (Eeyou Istchee) and the Cree Nation Government, and Critical Elements Lith
Slide 9: The Rose Project: Phase 1 & 2
THE ROSE PROJECT: PHASE 1 & 2 A phased approach to supplying the EV market Technical Grade Glass & Spodumene 6.0% Ceramics Industries Chemical Grade Spodumene Global Markets The Rose Spodumene +6.0% Starter material to be Project Phase 1 converted to Lithium Hydroxide Battery Grade Lithium Lithium H
Slide 10: Rose Product to Attract Suitors
ROSE PRODUCT TO ATTRACT SUITORS Rose hosts the high purity material required by the EV industry ▪ Demand for lithium hydroxide is expected to dominate the lithium market going forward ▪ Spodumene is the raw material of choice for the production of lithium hydroxide as it shows a lower cost profile t
Slide 11: Hard Rock Benchmarking
HARD ROCK BENCHMARKING The Rose Project stands out as one of the highest quality deposits Iron Oxide Content (%) – Ore Mica Content (%) – Ore 2,0% Rose ore is one of the purest with Rose has the lowest mica content low iron oxide content 10,0% among its peers 1,2% 1,0% 0,9% 0,9% 7,2% 0,8% 0,8% 0,5%
Slide 12: The Rose Project: Phase 1 Feasibility Study Results
THE ROSE PROJECT: PHASE 1 Feasibility study results Financial Highlights (1) OPEX Details (2) (3) C$183M 17 Year US$344 / C$458 Average Annual Project Life Operating Cost ($/t LiO2 Conc.) EBITDA US$373 / C$497 C$726M 34.9% Total Operating Cost ($/t LiO2 Conc.) After-Tax NPV8% After-Tax IRR (Incl. SG
Slide 13: The Rose Project: Phase 1 Feasibility Study Results (cont'd)
THE ROSE PROJECT: PHASE 1 Feasibility study results (cont’d) Production Volumes Pilot Plant & Metallurgical Results Technical Grade Chemical Grade Tantalum ▪ Metso Outotec recovery modeling Spodumene 6.0% Spodumene 5.0% Concentrate 20.0% achieved 92% using low-risk, sulphate- free processing 50,205
Slide 14: The Rose Project: Phase 1 OPEX Details
THE ROSE PROJECT: PHASE 1 OPEX details (1) Operating costs per tonne processed $66.56 Mining ($3.75 per tonne) $30.69 Processing $16.14 G&A $12.15 Transportation (FOB Port) $7.57 C$/t Li2O US$/t Li2O Concentrate Concentrate Operating costs per tonne of concentrate 458 344 Mining 211 158 Processing 1
Slide 15: Phase 2 Lithium Hydroxide Pilot Plant Flowsheet
PHASE 2 LITHIUM HYDROXIDE PILOT PLANT FLOWSHEET Results of the Pilot Work (1) ▪ The pilot program successfully converted spodumene concentrate from Rose into 99% purity battery grade lithium hydroxide using a thermal leaching process ▪ The thermal leaching process yielded a recovery rate of 93% to s
Slide 16: Phase 2 Simplified Process Flowsheet
PHASE 2 SIMPLIFIED PROCESS FLOWSHEET Spodumene Na2CO3 Leach liquid recycling ▪ The Rose project benefits from the relative ease of each step to deliver a high-quality and cost competitive lithium hydroxide product Pressure ̶ Employing standard open pit mining techniques and a straightforward, 3-step
Slide 17: Vertical Integration to Drive Cost Leadership
VERTICAL INTEGRATION TO DRIVE COST LEADERSHIP Summary A leading cost position as well as a superior, battery-grade lithium hydroxide is enabled through the uniqueness of the ore in the Rose deposit, facilitating ▪ High recovery rates in Phase 1 and Phase 2 ▪ High purity spodumene concentrates ▪ High
Slide 18: Upcoming Catalysts
UPCOMING CATALYSTS Gaining project momentum to drive shareholder value Experienced Operational Team ▪ Expanded operational team with talented members that will advance Rose through permitting and construction Environmental Impact Study Filing ▪ Submitted the Rose EIS in August 2017, which was deemed
Slide 19: Development Timeline
DEVELOPMENT TIMELINE Approaching next steps… Clear Path to Construction and Commissioning ▪ The Company’s near-term focus is on securing final permits and project financing with first production targeted for 2022 ▪ Rose is on track to be fully permitted in H1 2021 2021-2022 Detailed Construction Pro
Slide 20: Project Capex Funding Solutions
PROJECT CAPEX FUNDING SOLUTIONS Targeting strategic partnerships and low-cost financing packages ▪ The Company’s near-term focus is on securing final permits and project financing with first production targeted for 2022 ▪ Critical Elements Lithium is contemplating various project capex funding solut
Slide 21: Lithium Development Projects
LITHIUM DEVELOPMENT PROJECTS Project economics comparison ▪ The Rose Project is well-positioned amongst its peers as a high return project located in a world-class jurisdiction (US$ Millions, except per share amounts, unless otherwise noted) Project LCE (Li2CO3) M&I+Inf. Results of Study(1) Primary
Slide 22: Lithium Developer Companies
LITHIUM DEVELOPER COMPANIES Comparable companies analysis (US$ Millions, except per share amounts, unless otherwise noted) Total Company LCE (Li2CO3) 52 Week Close FD M&I+Inf. EV/ Primary (1) (2) Company Price High / Low Market Cap TEV Resource M&I+Inf. NAV P/NAV Level of Study Operating Location(s)
Slide 23: Forecasted Global Fleet of EVs
FORECASTED GLOBAL FLEET OF EVS Automakers are responding to the expected growth in EVs 127 Millions 87 60 40 25 6 13 4 2017 2018 2020 2022 2024 2026 2028 2030 ▪ Investing US$35 billion in EVs and mobility technology ▪ Production of 500,000 EVs by the end of 2020 by 2025 ▪ Building a US$2.5 billion f
Slide 24: Hardrock to LiOH Supply Chain
HARDROCK TO LIOH SUPPLY CHAIN Covid-19 has exposed the fragility of global supply chains; OEMs China is currently the only country with spodumene to are keen to shorten supply chains LiOH conversion capabilities Grande-Anse International ship and port facility Key provinces with processing facilitie
Slide 25: Lithium Production in Canada
LITHIUM PRODUCTION IN CANADA Overview of potential lithium production in Quebec by 2025 (1)(2)(3) Rose to Drive Canadian Li Market ▪ The Province of Québec has an 100% Mineral opportunity to put Canada on the map for its supply of lithium, just behind Argentina Québec 57.0 ▪ Assuming construction at
Slide 26: Lithium Sector Capital Raising Activity
LITHIUM SECTOR CAPITAL RAISING ACTIVITY Total amount raised improved ~194% in 2020 compared to 2019 (1) ▪ Public market investor appetite in the lithium sector has remained robust both in terms of total amount raised and deal count in the past 5 years $1 000 $902 $800 $659 $600 $400 $321 $226 $244 $
Slide 27: Active Lithium Strategic Transaction Environment
ACTIVE LITHIUM STRATEGIC TRANSACTION ENVIRONMENT Selected recent lithium strategic investments Announcement Date Target Investor Size (C$) Transaction Description 9-Dec-20 $1,162,280,000 (1) Acquisition of Minority Stake 5-Nov-20 N.D. Acquisition of Minority Stake 14-Sep-20 $8,582,702 Private Placem
Slide 28: Appendix
CriticalElements @ ithium Corporation APPENDIX T rs2kv:cRe
Slide 29: Project Logistics
PROJECT LOGISTICS Transportation of Spodumene by 90 tonnes truck 12 trucks per day 370Km to Matagami railway Available Skilled Mining Workers Railway to Montreal or Quebec Ports Sea way to customers TSX-V:CRE 29
Slide 30: District Scale Potential
DISTRICT SCALE POTENTIAL Camp Girard HYDRO POWER LINE Helico South 2,45% Li2O and 92 ppm Ta2O5 PIVERT JR Extention West of JR Resource 1,46% Li2O and 118 ppm Ta2O5 3,04% Li2O and 173 ppm Ta2O5 0.94% Li2O and 226 ppm Ta2O5 / 5 m OPEN channel sample 1.07% Li2O and 215 ppm Ta2O5 / 10 m Pivert Middle ch
Slide 31: Strong Relations with First Nations
STRONG RELATIONS WITH FIRST NATIONS ▪ Eeyou Istchee Territory pre- development agreement in place since 2012 ▪ Capacity study completed in 2014 ▪ Impact and Benefit Agreement signed in July 2019 ▪ Working on a 5-year training plan with the Eastmain community ▪ Discussions and planning with Cree Huma
Slide 32: Mineral Reserves and Resources
MINERAL RESERVES AND RESOURCES (1) Tonnage NSR Li2O_eq Li2O Ta2O5 Category (Mt) ($) (%) (%) (ppm) Probable 26.8 148.99 0.96 0.85 133 Total 26.8 148.99 0.96 0.85 133 Tonnage NSR Li2O_eq Li2O Ta2O5 Category (Mt) ($) (%) (%) (ppm) Indicated Pit-constrained 30.0 161 1.04 0.93 150 Underground 1.9 159 1.0
Slide 33: Mine Infrastructure Layout
MINE INFRASTRUCTURE LAYOUT TSX-V:CRE 33
Slide 34: Phase 1 Detailed Flowsheet
PHASE 1 DETAILED FLOWSHEET Source: Rose Lithium-Tantalum Project Feasibility Study NI 43-101 Technical Report (November 29, 2017) TSX-V:CRE 34
Slide 35: Total Project Capital Cost
TOTAL PROJECT CAPITAL COST Considered Cost Inputs (1) Phase 1 Details C$M Capex 341.2 Working Capital 88.8 Total 430.0 Cost Breakdown – Phase 1 Initial Sustaining Initital Sustaining Capital Capital Capital Capital Item C$M C$M US$M US$M Direct Capital Estimate 235.1 93.8 176.3 70.4 Mining 49.3 89.5
Slide 36: Favourable Business Environment
FAVOURABLE BUSINESS ENVIRONMENT Québec, a favourable environment for business and mining ▪ Combined corporate tax rate of 26.8%, one of the lowest in North America ̶ The Québec Economic Plan includes a reduction of $1.3 billion to the tax burden of Québec companies, including a 25.0% increase to exp
Slide 37: Favourable Permitting Process
FAVOURABLE PERMITTING PROCESS ▪ The Strategic Vision for Mining Development in Québec (2016) stipulates that the regulatory agencies (MERN, MDDELCC and MFFP) establish a single gateway to accelerate the processing of authorizations required to launch a mining project ▪ In parallel with its 104-juris
Slide 38: Management & Board of Directors
MANAGEMENT & BOARD OF DIRECTORS JEAN-SÉBASTIEN LAVALLÉE CEO and Director Mr. Lavallée has been the Chief Executive Officer of the Company since 2009. From 2009 to 2017, he also served as President. Mr. Lavallée was President and Chief Executive Officer of Quebec Precious Metals Corporation (TSX-V :
Slide 39: Board of Directors
BOARD OF DIRECTORS JEAN-RAYMOND LAVALLÉE Director Mr. Lavallée has more than 35 years of experience in mining exploration, as contractor, consultant and manager for several mining companies, such as Louvem, Soquem, James-Bay Development Corporation, Sullivan Consolidated, Cache Explorations Inc., Pa
Slide 40: Operations Team
OPERATIONS TEAM PAUL BONNEVILLE Project Manager Mr. Bonneville has over 30 years of experience in the mining industry in Canada. He is a graduate of Queen’s University in Mining Engineering. He was Vice President Operations for Scorpio Mining and Vice President Mines for Cadiscor Resources. He worke
Slide 41: Corporate Contacts
CORPORATE CONTACTS North American sourced lithium and tantalum to power a clean energy future Critical Elements Lithium Corporation 1080, Côte du Beaver Hall Bureau 2101 Montréal, Québec H2Z 1S8 Phone: +1 (514) 904-1496 Fax: +1 (514) 904-1597 www.cecorp.ca Jean-Sébastien Lavallée, CEO Phone: +1 (819