Lithium Americas Corp. · NYSE:LAC

Lithium Americas — Investor Presentation (December 2014)

20 slides from Lithium Americas's investor presentation, December 2014

  1. Slide 1: Committed to Developing a World-Class Resource With World-Class Technology

    Commi7ed to Developing a World-­‐Class Resource With World-­‐Class Technology www.lithiumamericas.com December 2014

  2. Slide 2: Cautionary Statements

    CauBonary Statements Forward-­‐Looking Statements This presenta-on is intended to be strictly informa-onal. Lithium Americas Corp. (the “Company”) reserves the right, at its sole discre-on, to modify all or any part of this presenta-on without any liability or no-fica-on to any person. This presenta-

  3. Slide 3: LAC's Mission

    LAC’s Mission LAC is committed to developing it’s world-class lithium resource, using world-class technology, in order to: - Maximize the recovery rate of the resource, - Have a project which is scalable to meet increasing world demand over time, - Minimize evaporation ponds and the environmental fo

  4. Slide 4: Key Highlights

    Key Highlights q Cauchari-­‐Olaroz lithium project is a world class asset with a7racBve economics § 3rd largest lithium brine resource in the world (behind Uyuni and Atacama) § Completed Feasibility Study in 2012 – based on the use of tradi-onal evapora-on technology § Stage I Project NPV of US$

  5. Slide 5: Lithium Has Many Uses

    Lithium Has Many Uses q Brine is the low cost producer § Hard rock produc-on costs are historically twice as expensive as brine produc-on costs Source: Ziemann et al, 2012 5 34

  6. Slide 6: Batteries: The Fastest Growing Application for Lithium

    Ba7eries: The Fastest Growing ApplicaBon for Lithium q In the year 2000, batteries accounted for ~ 4% of lithium demand q In 2014, batteries are expected to account for ~ 38% of lithium demand q By the year 2025, batteries are expected to account for ~ 63% of lithium demand q Demand is increasin

  7. Slide 7: Strong Demand Forecast – Currently Supplied by an Oligopoly

    Strong Demand Forecast – Currently Supplied by an Oligopoly q Lithium demand has doubled since the year 2000 q Lithium demand (base case) is expected to at least double again over the next 10 years, with battery growth at least quadrupling (and higher growth expected under an optimistic scenario)

  8. Slide 8: Cauchari-Olaroz Project - Strategically Located

    Cauchari-­‐Olaroz Project -­‐ Strategically Located q Project located in Argen-na q Large property package ~ 83,000 ha q Close proximity to current producers (within 200km) q Excellent infrastructure § Natural gas pipeline § Paved highway § Water § Access to labour § Deep sea port 550km Cau

  9. Slide 9: Large Resource and Reserve Estimation With Significant Upside

    Large Resource and Reserve EsBmaBon With Significant Upside q 3rd largest lithium brine resource in the world q Long mine life § Reserves allow for a 40 year mine life based on the company’s Feasibility Study produc-on profile for Stages 1 & 2 § Each stage expected to produce 20,000 tonnes per ann

  10. Slide 10: Extensive Geological and Hydrogeological Studies to Support Reserve and Resource Estimate

    Extensive Geological and Hydrogeological Studies to Support Reserve and Resource EsBmate q Approximately $47 million has been spent on explora-on and development ac-vi-es q Independent 3D brine numerical model was created in order to support the development of the reserve and resource es-mate q 3

  11. Slide 11: POSCO Co-operation Agreement

    POSCO Co-­‐operaBon Agreement q POSCO is responsible for the development of the technology and management and opera-on of the pilot plant q Lithium Americas is providing resources in the form of brine and local support q Following determina-on by POSCO that the pilot plant is opera-ng to expecta-

  12. Slide 12: Project Fully Approved and Ready for Mine Construction

    Project Fully Approved and Ready for Mine ConstrucBon Focussed on Sustainability q Final Decree approving the project for construc-on issued in December 2012 q JEMSE (Provincial Mining company) to own 8.5% of the Cauchari-­‐Olaroz Project, significantly decreasing poli-cal risk, and providing proje

  13. Slide 13: Senior Executive Team with Strong Financial Expertise and Local Knowledge

    Senior ExecuBve Team with Strong Financial ExperBse and Local Knowledge Tom Hodgson – ExecuBve Chairman of LAC § Director since 2010 § Previously served as an advisor to the Chairman of Magna Interna-onal § Extensive experience in Mergers & Acquisi-ons, and execu-ve management § Appointed Execu-

  14. Slide 14: Strong and Experienced Independent Board

    Strong and Experienced Independent Board Gary Cohn Myron Manternach • Vice-­‐President, Mergers and Acquisi-ons of Magna • President of Castle Grove Capital. Interna-onal Inc. • A consultant to the investment comminee of Geologic • Mr. Cohn has been employed by Magna or one of its Resource Partners.

  15. Slide 15: Strong Balance Sheet

    Strong Balance Sheet q Successful Equity Raise in March 2014 Common share financing based on an offering of rights to all shareholders (taken up by § 84% of shareholders) § Underwrinen by Geologic Resource Partners, our largest shareholder (~ 26%) § Gross proceeds of ~ $18.6 million § Repaid line

  16. Slide 16: Summary

    Summary Ø Third largest lithium brine resource in the world Ø Project is fully permined for construc-on Ø Excellent infrastructure Ø Strong Balance Sheet Ø Co-­‐opera-on Agreement with POSCO Ø Senior Execu-ve Team with extensive financial experience and local knowledge Ø Significant expected de

  17. Slide 17: Appendix – Feasibility Study Summary

    Appendix – Feasibility Study Summary

  18. Slide 18: Feasibility Study Highlights for Stage 1

    Feasibility Study Highlights for Stage 1 q Feasibility Study plant engineering prepared by ARA WorleyParsons (+15% accuracy) q Opera-ng 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 a

  19. Slide 19: Reserve and Resource Estimation

    Reserve and Resource EsBmaBon Average Lithium Mass Cumulated Brine Volume (m³) ConcentraBon (mg/L) Li (tonne) Li2CO3 (tonne) Proven Reserves 679 37,000 197,000 5.50 x 107 Probable Reserves 665 476,000 2,517,000 7.16 x 108 TOTAL RESERVES 666 513,000 2,714,000 7.71 x 108 Updated Measured Resource 630

  20. Slide 20: Conservative Price Assumptions Relative to Current Market Price

    ConservaBve Price AssumpBons RelaBve to Current Market Price q The lithium carbonate price Year Price AssumpBon per tonne of Lithium Carbonate (US$) assump-ons were obtained High Case Base Case Low Case 2015 5,800 5,700 4,600 from SignumBOX 5,900 5,800 4,700 2016 q The Company believes the 2017 5,

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