Slide 1: Sustainable High Purity Lithium
SUSTAINABLE HIGH PURITY LITHIUM Pre-Feasibility Study Results – Kachi Project High Margin, Long Life Lithium Production Steve Promnitz - Managing Director 30 April 2020 ASX:LKE OTC:LLKKF
Slide 2: Disclaimer
Disclaimer General Statement and Cautionary Statement Forward Looking Statements This presentation has been prepared by Lake Resources N.L (Lake) for information purposes and meetings Certain statements contained in this presentation, including information as to the future financial with sophisticat
Slide 3: New Technology – High Purity Sustainable Lithium
New Technology – High Purity Sustainable Lithium. • High Purity Lithium - 99.9% purity battery grade lithium carbonate • Disruptive Lilac Direct Extraction Technology – Extracts lithium from salty water (brine) faster; modular; smaller environmental footprint; pilot plant underway • Prime Location;
Slide 4: PFS – Kachi Project - High Margin Production
PFS – Kachi Project - High Margin Production. Pre-Feasibility Study Results • High Margin Future Lithium Production - 62% Operating Margin (EBITDA)* A$245 million EBITDA in first full year of operation* • Long Life, High Value Project - 25 year production at 25,500 tpa LCE** A$1.66 billion project v
Slide 5: PFS - Kachi. Compelling Economics; High EBITDA Margin
PFS - Kachi. Compelling Economics; High EBITDA Margin Cost Competitive; High Value Product Key Financial Parameters Values NPV8 (NPV @ 8% discount rate) Pre-tax US$1,052 million (A$1,660 million)* NPV8 (NPV @ 8% discount rate) Post-tax US$748 million (A$1,180 million)* IRR pre-tax 25% IRR post-tax 2
Slide 6: Next Steps – Opportunities - Kachi Project
Next Steps – Opportunities - Kachi Project . • Deliver high purity samples to off-takers – from Lilac pilot plant module • Target lowering up-front costs – Solar power should lower energy costs • Staged development – Option to commence at 10,000tpa LCE indicatively • Capital cost reductions – Constr
Slide 7: Prime Location – Next to Large Producers
Prime Location – Next to Large Producers. ATACAMA Tianqui/SQM Albemarle Lithium Triangle produces 40% of world’s lithium at the lowest cost. Lake’s Advancing Projects 5 largest producers all have operations ALB, SQM, LTHM + Tianqui, Ganfeng Our projects Cauchari - China’sare side- Ganfeng paid by-si
Slide 8: Lithium demand to increase
2500 Lithium demand to increase Demand growth 300t to 1400t 2000 Demand increase 5x to 9x ‘000s TONNES OF LITHIUM CARBONATE EQUIVALENT ‘000’s TONNES LCE Focus on high purity lithium 1500 +500% increase vs 2018 • Major electric vehicles (EVs) commitments driving lithium battery makers expansion. 1000
Slide 9: Kachi Project – Size Matters
Kachi Project – Size Matters. 11x Large scale 70,000 Hectares (170,000 acres) Mining leases (11x Size of Manhattan Island)
Slide 10: Major brine resource - Top10
Major brine resource - Top10 4.4 Mt LCE Total Resource (1Mt LCE Indicated Resource; 3.4 Mt Inferred) PFS only uses 22% of resource Open at depth and laterally Plan to increase potential production life
Slide 11: Direct extraction – New Technology
Direct extraction – New Technology. Disruptive game changer in industry More efficient process that removes lithium from salty water (brine) without using the industry wide evaporation process • Faster • Higher Recoveries • High Purity products • Cost Competitive ASX:LKE • Sustainable OTC:LLKKF • Re
Slide 12: Direct extraction. Disruptive Technology
Direct extraction. Disruptive Technology (3 hrs to 60,000ppm vs 1-2 years) Ion exchange Saves time and money -Faster to production. Higher recoveries Lilac Solutions (Silicon Valley backed) Lower impurities Sustainable solution – brine reinjected to aquifer To produce Concentrate vs 12-24 mths 50-60
Slide 13: Direct extraction. – Plant Layout
Direct extraction. – Plant Layout Production Plant Design with Lilac Solutions Direct Extraction Technology Area Description A Direct extraction (Lilac IX plant) B Eluate concentration C Impurity removal D Lithium production ASX:LKE E Bagging plant and product storage OTC:LLKKF F Chlor-alkali plant
Slide 14: Direct extraction. High Value
Direct extraction. High Value Positioned at Low End of Cost Curve Low Impurity Product Direct Extraction Kachi Project Positioned at lower end of cost curve Brine – Lower Cost Hard Rock – Higher Cost ASX:LKE OTC:LLKKF Source: LKE announcements 9/1/2020, 14/01/2020; 10/12/2018 SLIDE / 14
Slide 15: Pilot Plant with New Lilac Technology
Pilot Plant with New Lilac Technology High Purity Sustainable Lithium. California – Pilot Plant modules – Processing brine from Kachi Project Samples Produced for Off-Takers - 99.9% purity battery grade lithium carbonate ASX:LKE OTC:LLKKF SLIDE / 15
Slide 16: Sustainable Lithium
Sustainable Lithium. Lilac’s Technology + Lake’s Large Brine Basin = Solution ASX:LKE OTC:LLKKF Source: Reuters 12 Feb 2020; Bloomberg 20 Feb 2020; Volkswagen April 2019 SLIDE / 16 ASX: LKE SLIDE / 16
Slide 17: Leadership
Lake has extensive development experience in Leadership. the resources sector and in Argentina. Steve Promnitz Stu Crow Nick Lindsay Robert Trzebski MANAGING DIRECTOR CHAIRMAN NON-EXEC NON-EXEC DIRECTOR NON-EXEC DIRECTOR Extensive project management More than 25 years of experience 30 years of exper
Slide 18: Production Timeline
Production Timeline. 2016 - 2018 2020 Large Lease Area Pegged in 2016 Kachi direct extraction pilot plant – operating; later moved to site Kachi – Large new discovery; major Kachi samples to battery makers for qualification purposes resource Kachi PFS (Apr 2020) Direct Extraction method – Phase 1 Fi
Slide 19: Share price chart and capital structure
LAKE RESOURCES (ASX:LKE , OTC:LLKKF) LAKE RESOURCES (ASX:LKE) 1 YEAR Share price chart Total Current Shares on Issue 671,461,957 Listed Options (10c) Jun 2021 Expiry 52,512,693 Unlisted Options (4.6c) Oct 2022 Expiry 18,300,000 Unlisted Options (8c) Feb 2022 Expiry 5,555,000 Unlisted Options (9c) Ju
Slide 20: Size of Lithium Brine Resources vs Market Value
Size of Lithium Brine Resources vs Market Value – Argentina brine companies 1.0 10 Significant Upside 0.9 9 0.8 8 Lake $25m vs Peers tonnes LCE Combined Resource Size Million 0.7 7 $50-120m market cap Market Value A$ Billions 0.6 6 0.5 5 Research Mar 2020: 0.4 4 Available LKE website 0.3 3 0.2 2 0.1
Slide 21: Lake – Where are we now. Contact
Lake – Where are we now. • High purity lithium carbonate from Lilac pilot plant; Larger samples soon to potential off-takers • Financier short list: US$10-20m to fund studies and approvals for 24 mths Technology partner financed - Bill Gates-led Breakthrough fund • Pilot plant with New Technology: 1
Slide 22: Appendix – Mineral Resource – JORC Code 2012
Appendix – Mineral Resource – JORC Code 2012 Kachi Lithium brine Project. KACHI LITHIUM BRINE PROJECT MINERAL RESOURCE ESTIMATE JORC Code 2012 Edition Indicated Inferred Total Resource Area, km2 17.1 158.3 175.4 Aquifer volume, km3 6 41 47 Brine volume, km3 0.65 3.2 3.8 Mean drainable porosity % 10.
Slide 23: Appendix – Table 1 Report – JORC Code 2012
Appendix – Table 1 Report – JORC Code 2012. ASX:LKE OTC:LLKKF SLIDE / 23 ASX: LKE SLIDE / 23