Slide 1: Lithium Charged
Lithium Charged One of the Highest Purity, Undeveloped Lithium Projects in the World V:CRE WWW.CECORP.CA
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: Market Information
MARKET INFORMATION Trading Symbol: TSX-V: CRE Frankfurt: F12 OTCQX: CRECF Basic Shares: 168.8M Options: 7.2M ($0.24 - $1.25) Warrants: 5.0M ($0.45) FD Shares: 181.0M Share Price: C$0.69 Basic Market Cap: C$116.5M Management / 8.3% ownership Directors: Research Coverage: Source: Stockwatch; market da
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS • 10X Upside based on Current market cap to Feasibility NPV P/NAV • Fundamental upside potential with new discoveries and large exploration mining claim landscape Strong • Developers/operators experienced in de-risking large-scale projects Management • Key members include the f
Slide 5: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM 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 sale of Rockwood to Albemarle for US$6.2 billion in January 2015 • Marcus Brune
Slide 6: Project Momentum & Upcoming Catalysts
PROJECT MOMENTUM & UPCOMING CATALYSTS 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 complete by the CEAA in March 20
Slide 7: Continued Support by Loyal Shareholders
CONTINUED SUPPORT BY LOYAL SHAREHOLDERS • Critical Elements maintains conservative G&A expenses and has sufficient cash reserves to maintain operations • The Company continues to evaluate additional financing opportunities to fund G&A and project development costs • Additional capital is available f
Slide 8: Project Capex Funding Solutions
PROJECT CAPEX FUNDING SOLUTIONS • Critical Elements is contemplating various project capex funding solutions for the development and construction of Rose • The funding solutions being considered by the Company include: Strategic Joint Offtake Debt Equity Partnership Venture 8 www.cecorp.ca
Slide 9: Development Timeline
DEVELOPMENT TIMELINE • 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 2021 2021 Detailed Construction Project DFS carbonate engineering Full permitting and mine financing or hydroxid
Slide 10: Hard Rock Project Benchmarking
HARD ROCK PROJECT BENCHMARKING Iron Oxide Content - Ore Mica Content - Ore (%) (%) 2.0% Rose ore is one of the purest with 10.0% Rose has the lowest mica content low iron oxide content among its peers 7.2% 1.2% 1.0% 0.9% 5.0% 0.9% 4.5% 0.8% 0.8% 4.0% 0.5% 0.5% 2.7% 0.4% PAK Georgia Grota do Altura P
Slide 11: Rose Hosts the High Purity Material Required by the EV Industry
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 than that which is possible from
Slide 12: Automakers Are Responding to the Expected Growth in EVs
AUTOMAKERS ARE RESPONDING TO THE EXPECTED GROWTH IN EVs Forecasted Global Fleet of Electric Vehicles Millions 127 87 60 40 25 6 13 4 2017 2018 2020 2022 2024 2026 2028 2030 • Targeting annual production of • Investing US$35 billion in EVs and mobility 500,000 EVs by the end of 2019 technology by 202
Slide 13: Evolution of the Global Lithium Sector
EVOLUTION OF THE GLOBAL LITHIUM SECTOR Most recently … • the investment in Chinese investments … the Canadian lithium projects focus on the • Focus on the conversion principle from the mine of spodumene into lithium to high quality lithium carbonate and hydroxide products for battery using mostly sp
Slide 14: Overview of Global Lithium Production
OVERVIEW OF GLOBAL LITHIUM PRODUCTION Forecasted LCE Production (2025) 41% 000s tonnes Brine 59% Mineral Global 960 kt LCE 44% Brine China 122 kt LCE 56% 100% Chile Mineral Mineral 235 26% kt LCE Mineral 100% Australia Brine Others 450 70 kt LCE kt LCE LCE Production (2013-2018) Argentina 74% 82 Bri
Slide 15: Overview of Potential Lithium Production in Quebec
OVERVIEW OF POTENTIAL LITHIUM PRODUCTION IN QUEBEC Potential LCE Production from Québec (2025) Canada has a large strategic opportunity as the quality of 000s tonnes its lithium resources are superior and more cost competitive for the production of lithium hydroxide compared to the • The Province of
Slide 16: Phase 1 Feasibility Results
PHASE 1 FEASIBILITY RESULTS Pre-Tax After-Tax NPV8% $1.257 B $726M IRR 48.2% 34.9% Payback Period 2.3 2.8 Gross Margin 63% Average Annual EBITDA $183M Mine Life 17 Years CAPEX $341M Mill Throughput 4,900 t/day (1,600,000 t/y) Strip Ratio 7.2:1 Average Mill Feed Grade 0.85% Li2O 133 ppm Ta2O5 Commodi
Slide 17: Phase 1 Feasibility Results (Continued)
PHASE 1 FEASIBILITY RESULTS (CONTINUED) Production Volumes • Technical Grade Spodumene 6.0% 50,205 t • Chemical Grade Spodumene 5.0% 186,327 t • Tantalum Concentrate 20.0% 429 t Recoveries • Technical Grade Spodumene 6.0% 87% • Chemical Grade Spodumene 5.0% 90% • Tantalum Concentrate 20.0% 40% Pilot
Slide 18: Phase 1 Opex Details
PHASE 1 OPEX DETAILS 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 111 83 General & Admini
Slide 19: A Dominant Land Package with Exploration Upside
A DOMINANT LAND PACKAGE WITH EXPLORATION UPSIDE CRITICAL ELEMENTS LITHIUM • Located in a premier CORPORATION Rose Deposit mining jurisdiction in Galaxy Resources James Bay Indicated Resources: Probable Reserves: 26.8 M tonnes: Québec, Canada 40,300,000 tonnes; 1.40% Li2O 0.96% Li2O Eq. or 0.85% Li2O
Slide 20: Management and Board of Directors
MANAGEMENT AND BOARD OF DIRECTORS Jean-Sébastien Lavallée, CEO | 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 : CJC) fro
Slide 21: 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.,
Slide 22: Investment Highlights
INVESTMENT HIGHLIGHTS P/NAV • 10X Upside based on Current market cap to Feasibility NPV Strong • Developers/operators experienced in de-risking large-scale projects Management • Key members include the former Rockwood Lithium CEO and CFO, Team which sold Rockwood to Albemarle for US$6.2 billion in J
Slide 23: Appendix
I. Premier Mining Jurisdiction Appendix www.cecorp.ca
Slide 24: Project Logistics
PROJECT LOGISTICS Railway to Port Transportation of Spodumene by 90 tonnes truck La Baie Deep Water Port Storage & loading facilities 12 trucks per day 15,000 tonnes spodumene shipments 290Km to Chibougamau railway Sea way to Available Skilled Mining customers Workers 24 www.cecorp.ca
Slide 25: District Scale Potential
DISTRICT SCALE POTENTIAL 25 www.cecorp.ca
Slide 26: Relations with First Nations
RELATIONS WITH FIRST NATIONS • Eeyou Istchee Territory pre-development agreement in place since 2012 • Capacity study completed in 2014 • Impact and Benefit Agreement signed in July 2019 • Working on a 5 year training plan with the Eastmain community • Discussions and planning with Cree Human Resour
Slide 27: Mineral Reserves and Resources
MINERAL RESERVES AND RESOURCES Reserves Tonnage NSR Li2O_eq Li2O Ta 2O5 Category (Mt) ($) (%) (%) (ppm) Probable 26.8 148.99 0.96 0.85 133 Total 26.8 148.99 0.96 0.85 133 Resources Tonnage NSR Li2O_eq Li2O Ta 2O5 Category (Mt) ($) (%) (%) (ppm) Pit-constrained 30.0 161 1.04 0.93 150 Indicated Underg
Slide 28: Mine Infrastructure Layout
MINE INFRASTRUCTURE LAYOUT 28 www.cecorp.ca
Slide 29: Simple Operation with Strong Recoveries
SIMPLE OPERATION WITH STRONG RECOVERIES Key metallurgical factors: • Low in-situ impurities such as iron & mica and favorable mineral crystal structure Results: • Estimated overall yield from spodumene ore to lithium concentrate: 81.4% • Overall industry benchmark yield: 60-65% Bi-carbonization Open
Slide 30: Phase 1 Detailed Flowsheet
PHASE 1 DETAILED FLOWSHEET 30 www.cecorp.ca
Slide 31: Lithium Carbonate Pilot Plant Flowsheet
LITHIUM CARBONATE PILOT PLANT FLOWSHEET β-LiAlSi2O6 LiHCO3 + NaAlSi2O6 (liquid) (solid) ∆ 2 LiHCO3 Li2CO3 + CO2 + H2O 31 www.cecorp.ca
Slide 32: Total Project Capital Cost
TOTAL PROJECT CAPITAL COST Considered Cost Input: Details Phase 1 Phase 2 (Estimate) Total • All numbers in C$ Capex $341.2 MM $190.0 MM $531.2 MM Working Capital $88.8 MM $60.0 MM $148.8 MM • MM = Million Total $430.0 MM $250.0 MM $680.0 MM • Accuracy +/- 15% Cost Breakdown - Phase 1 Initial Sustai
Slide 33: Total Project Capital Cost – Phase 2
TOTAL PROJECT CAPITAL COST – PHASE 2 Estimated Cost Breakdown - Phase 2 Initial Initial Item Capital Capital M C$ M US$ Spodumene Calcining Outotec technology package 18.3 13.7 Engineering & Services 3.6 2.7 Piping & EIA 4.1 3.0 Construction 7.5 5.6 Spodumene Calcining 33.5 25.1 Leaching Outotec tec
Slide 34: Québec Overview
QUÉBEC OVERVIEW Mining in Québec Map of Québec and Plan du Nord • Québec is a vast province, covering 1.7 million km2, of which only 5% is covered by mining exploration rights • As of December 2015, there were over 130k active mining titles in Québec, covering 6.1 million hectares, (only 3.7% of the
Slide 35: Favourable Business Environment
FAVOURABLE BUSINESS ENVIRONMENT Favourable Business/Mining Environment • 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 exploration allowance
Slide 36: Favourable Permitting Process
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 •
Slide 37: 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 wo
Slide 38: Thank You
THANK YOU Critical Elements Lithium Corporation 1080, Côte du Beaver Hall Bureau 2101 Montréal, Québec H2Z 1S8 Phone : 514 904-1496 Fax : 514 904-1597 www.cecorp.ca Jean-Sébastien Lavallée, CEO Phone: 819 354-5146 38 38 www.cecorp.ca