LIVIUM LTD — Investor Presentation 2015

Nov 10, 2015

Lithium extraction from unconventional sources

Disruptive technology

to revolutionize lithium production from the world’s most abundant lithium minerals

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lithium silicates

acid

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+

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=

A new wave of commercial opportunity

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RIU Mining 2015 Resources Convention, Hilton Hotel, Brisbane, November 2015

Lithium extraction from unconventional sources

Technology has trumped the tyranny of distance and place no longer matters

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TELL SOMEONE PRODUCING:

• Nickel in Siberia

• Copper in Mongolia, or

• Spodumene concentrates at Pilgangoora

PLACE DOES MATTER – YOU CAN’T MOVE THE OREBODY!

But you can improve economics with good processing technology

• Low energy

• Low operating cost

• Strong by-product credits

• Technology that is disruptive

WHAT IS DISRUPTIVE TECHNOLOGY?

The history of lithium is a history of disruption

• There is a new wave of disruption

• Turn geological curiosities into reserves

• Lithium Australia leads the pack

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Lithium extraction from unconventional sources

Disclaimer

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.

This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in that jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in that jurisdiction.

This presentation does not constitute financial product advice and has been prepared without taking into account the recipients’ investment objectives, financial circumstances or particular needs, and the opinions and recommendations in this presentation are not intended to represent recommendations to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include, among others, the risk of adverse or unanticipated market, financial or political developments.

Certain statements contained in this presentation, including information as to the future financial or operating performance of Lithium Australia NL (‘LIT’ or ‘the Company’) and its projects, are forward-looking statements. Such forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by LIT, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies, involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forwardlooking statements, and may include, among other things, statements regarding targets, estimates and assumptions in respect of commodity prices, operating costs and results,

capital expenditures, ore reserves and mineral resources and anticipated grades and recovery rates and are, or may be, based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.

LIT disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and other, similar expressions identify forward-looking statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forwardlooking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

Many known and unknown factors could cause actual events

or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include, but are not limited to: competition; mineral prices; ability to meet additional funding requirements; exploration, development and operating risks; uninsurable risks; uncertainties inherent in ore reserve and resource estimates; dependence on third-party smelting facilities; factors associated with foreign operations and related regulatory risks; environmental regulation and liability; currency risks; effects of inflation on results of operations; factors relating to title to properties; native title and Aboriginal heritage issues; dependence on key personnel, and share-price volatility. They also include unanticipated and unusual events, many of which it is beyond the Company’s ability to control or predict.

Photographs in this presentation do not depict assets of the Company.

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COMPETENT PERSON’S STATEMENT

The information in this report that relates to reporting of Exploration Results is based on and fairly represents information and supporting documentation prepared by Adrian Griffin, a member of the Australasian Institute of Mining and Metallurgy. Mr Griffin is a shareholder in, and managing director of, LIT and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration. He is qualified as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves . Mr Griffin consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The reporting of mineral species is generic in nature, and the term ‘lepidolite’ – as it is applied to mineral species, and not necessarily locality names – includes mineral species widely considered to be part of the solid solution series of polylithionite/trilithionite, of which the Competent Person considers lepidolite to be approximately a median member. It is also acknowledged that material processed from Lepidolite Hill has bulk compositions tending towards trilithionite, although the rubidium concentration is outside the range generally expected in such minerals.

Similarly, the term ‘zinnwaldite’ has been applied to minerals approximating the accepted composition of zinnwaldite but with variations tending towards lepidolite. This terminology is considered acceptable by the Competent Person, particularly with respect to the Cinovec deposit, the mineralization of which includes the type locality of zinnwaldite, being Zinnwald, close to the border of Germany and the Czech Republic.

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Lithium extraction from unconventional sources

Company snapshot

LITHIUM AUSTRALIA (LIT) – A UNIQUE FOCUS ON LITHIUM

BOARD OF DIRECTORS

George Bauk (non-executive chairman) Expert in specialty metals, particularly rare earths – project management, marketing and financing.

Adrian Griffin (managing director) Exploration, production, mine management.

Bryan Dixon (non-executive director) Corporate, finance, mine development.

ASX ticker: LIT ACN 126 129 413

134 M Ordinary Shares 51 M Partly Paid Shares 21 M Unlisted Options 10 M Performance Rights 9 M Performance Option Rights Market cap. $11 M

info@lithium-au.com www.lithium-au.com

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Lithium extraction from unconventional sources

Disruptive technology to fill supply gap

ABUNDANT FEED POTENTIAL

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• Llithium micas, a ‘forgotten resource’ – the most abundant lithium minerals

• Lithium clays – the emerging opportunity

• Other lithium silicates (pyroxenes, amphiboles, tourmalines)

EXCLUSIVE TECHNOLOGY AGREEMENTS

EXCLUSIVE LICENSING ONGOING PROCESS EVALUATION

EXPANDING SUPPLY GAP

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Lithium extraction from unconventional sources

Company strategy

To produce battery-grade lithium chemicals from unconventional mineral commodities

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Produce the chemicals required by the end user not intermediates convenient for the supplier Dominate global lithium inventories

Develop well serviced regional processing hubs

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Western Australia Europe North America
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Lithium extraction from unconventional sources

LIT progress for 2015

CINOVEC SCOPING STUDY NON BINDING HoA WITH EUROPEAN METALS HOLDINGS LIMITED CONTIUNOUS PLANT RUN FOR LEPIDOLITE HILL EARLY EXERCISE OF TECHNOLOGY LICENCE OPTION CONTINUOUS PRODUCTION OF BATTERY GRADE LITHIUM CARBONATE

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PROGRESS IN NOVEMBER 2015

• Geochemical surveys completed at Lepidolite Hill

• Geochemical surveys commenced at Pilgangoora (Western Australia)

• Agreement with Alix Resources Corp (AIX-TSX:V)

• Short-list of consultants to spearhead lithium clay processing

• Successful capital raising

FUTURE EXPECTATIONS

• Cinovec JVA

• Cinovec continuous mini plant run

• ALiX bench scale leach tests

• ALiX JVA

• Evaluation of additional European deposits

• Commitment to mica pilot testing

• Energy efficient outcome for the processing of lithium clays

• Leverage into lithium clay inventories

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Lithium extraction from unconventional sources

A Case Study – the Lithium Micas

CONTINUOUS PRODUCTION – BATTERY GRADE CHEMICALS

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• Zero energy footprint

• Waste materials with no mining cost

• High feed grades

• Fast reaction time – low capital cost

UTILIZE A FORGOTTEN RESOURCE

• Capitalize on availability of most abundant lithium minerals

• Utilize advantages of strategic partnerships

• Change operating cost profile

• Prosper from by-product credits

RE-EVALUATE GLOBAL LITHIUM OCCURRENCES

• One man’s trash is another man’s treasure

• Turn geological curiosities into reserves

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Lithium extraction from unconventional sources

Proof of concept

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THE CONCEPT BECOMES REALITY

Cinovec lithium concentrate grade

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Li2O K2O CaO Al2O3 FeO MgO S Rb Cs % % % % % ppm ppm ppm ppm 1.81 7.41 1.57 19.3 6.91 367 740 6671 222

Cinovec lithium carbonate purity >99.6%

Li2O K2O CaO Al2O3 SiO2 FeO MgO S P As Co Rb Cs % ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm 40.3 176 57 ND 87 ND 67 1581 162 ND ND 24 ND 40.3 128 75 ND 54 23 ND 1042 94 ND ND 8 ND

LIT has produced battery-grade lithium carbonate from Lepidolite Hill in Western Australia and Cinovec in the Czech Republic, has recovered lithium from two other European deposits and is examining further deposits at Ravensthorpe, Lake Seabrook and Pilgangoora in Western Australia.

LIT has received its first product endorsements from Japanese traders.

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Lepidolite – lithium micaLepidolite - lithium mica K(Li,Al,Rb)K(Li,Al,Rb)3(Al,Si)4O3(Al,Si)10(F,OH)4O2 10(F,OH)2

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Zinnwaldite – lithium mica Zinnwaldite - lithium mica
K(Li,Al,Fe)K(Li,Al3(Al Si) , Fe)4O3(Al,Si)10(F,OH)4O2 10(F,OH)2
19 2 28 3 2 21 13 282 37 2 8 2
19 K 8 83 Li 1 13 Al 18 Rb 37 188
K PotassiumPotassium39.0983 81 1 Li LithiumLithium6.941 Al AluminiumAluminium26.9815388 1 Rubidium85.4678 Rb Rubidium 8 11881
39.0983 6.941 26.8915388 85.4578
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Battery-grade lithium carbonate Battery-grade lithium carbonate. Potassium sulphate. Potassium sulphate

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Lithium extraction from unconventional sources

Continuous plant test – May 2015

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Sulphur
Sulphuric acid
Mica feed
Sulphuric acid leach
Tailings
Sulphuric acid plant pH modifier
Impurity removal
All process energy
Steam requirements derived via Tailings
harvesting waste heat from a
sulphur-burning acid plant
Electricity
Carbonate feed
Lithium carbonate precipitation
Power co-generation
Heat
K2SO4 crystallization
COMMERCIAL PRODUCTS
Electricity
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Lithium market

Consumption by application

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Demand for lithium batteries

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000 t
LCE
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2%
Aluminium
6%
32% 10% Other
17% Metallurgical powders
Chemicals and pharmaceuticals
22% 11%
Lubricants
Batteries
Glass and ceramics
Production by country
3.1%
1.6%
8.5% Argentina
11.3%
Australia
Brazil
36.8%
Chile
38.2%
China
Portugal
0.4% Zimbabwe
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Source: Market Outlook to 2017 – Roskill Information (2013).

HARD-ROCK PRODUCERS

• Talison, Greenbushes – Western Australia (WA)

• Sociedade Mineira de Pegmatites – Portugal

• Bikita Minerals (Pvt) Ltd – Zimbabwe

• Various – China

HARD-ROCK DEVELOPERS

• Pilbara Minerals, Pilgangoora – WA

• NeoMetals, Mt Marion – WA

• General Mining, Mt Cattlin – WA

• Altura, Wodgina – WA

• Nemaska Lithium, Whabouchi – Canada

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Lithium extraction from unconventional sources

The lithium mica landscape

LITHIUM CARBONATE OF HIGH PURITY PRODUCED

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• Capital cost $US164 M – includes sulphuric acid plant, power co-generation

• Zero energy footprint

• Capacity – 20,000 tpa of battery-grade lithium carbonate

• Operating cost <US$2,000/t after potassium sulphate credits

Global perspective

OPPORTUNITIES IDENTIFIED IN:

• Europe (large-scale greisen deposits)

• Africa (including Namibia, and South Africa)

• North America (Canada, Mexico and the US)

• Australia (including WA exclusive processing licence)

Continuous technology improvement

EXPLORATION DEVELOPMENTS

• Real-time, field-portable lithium assays

• Advanced geochemical modelling

PROCESS TECHNOLOGY

• Proprietary technology licences procured

• New technology being developed for other mineral species

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Cost profile

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9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
LIT cost target
1,000
0
Est. cost per LCE tonne
)
e Other (China, mineral)
nir
b Galaxy Resources (China, mineral)
,a Tianqi Lithium (China, mineral) Xinjiang Haoxing (China, mineral) Ganfeng Lithium (China, mineral)
nitn
e
g
r
A CITIC Guoan (China, brine) Qinghai Lanke (China, brine)
( e Tibet Zabuye (China, brine) FMC Lithium (Argentina, brine) Canada Lithium (Canada, mineral)
r
b
o Rockwood (Chile, brine)
c
or SQM (Chile, brine)
O
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LCE tonnes

Estimated global lithium cost curve [sources: Roskill (with modifications) and Orecobre 2014 presentation].

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Global lithium resources

CINOVEC EMERGES AS SIGNIFICANT LITHIUM RESOURCE

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1.0 Mio 0.1 Mio
0.1 Mio 0.1 Mio 3.5 Mio
2.8 Mio
0.04 Mio 0.06 Mio 1.9 Mio
Bolivia
9.0 Mio
2.6 Mio
1.0 Mio
0.2 Mio 1.7 Mio
0.06 Mio
Chile
Argentina
> 9 Mio
6.5 Mio
Source: US Geological Survey, Mineral Commodity Summaries, February 2014.
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Lithium Inferred Resource : 5.5 Mt LCE, 514.8 Mt @ 0.43% Li2O (0.1% Li cut-off) Additional Exploration Target : 3.4 to 5.3 Mt LCE, 350 to 450 Mt @ 0.39-0.47% Li2O*

CAUTIONARY STATEMENT The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

* As announced to the ASX on 26 June 2015.

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LIT and ALiX in North America

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MEMORANDUM OF UNDERSTANDING

• Alix and LIT to co-operate to develop superior processing technology for lithium clays.

• Targets include lithium clay deposits adjacent to Bacanora’s sonora Project (Mexico) – The Electra Lithium Project, which includes Tecolote and Tule.

• Tecolote and Tule are interpreted to

• host extensions of the sedimentary/ volcanic succession that contains the lithium bearing clays.

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Lithium extraction from unconventional sources

Company advantages

VALUE-ADDING FACTORS

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Service agreement with Strategic Metallurgy Technology licences with Lepidico Technical alliance with SciAps

Opportunities previously overlooked

• Tailings

• Current mine-waste discharge streams

• Primary lithium mica deposits

First-mover advantage

LIT is the leader in the production of battery-grade lithium carbonate from micas, and has led to a rapid accumulation of assets and enabled expansion on three continents with diversification from lithium micas to a range of lithium silicates.

Alliances with Pilbara Minerals, Focus Minerals, and Tungsten Mining

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Escalating demand

• Revolutionary innovations in transport

• New renewable-energy storage solutions

• Emergence of smart-grid systems

Cinovec – non-binding HoA with EMH

• Giant lithium mica deposit in the Czech Republic

• Scoping study complete

• High-purity lithium carbonate produced

• Advancing to feasibility

ALiX – non-binding HoA

• Lithium clay evaluation

• Exploration potential

• Springboard into lithium-hungry North America

FURTHER INFORMATION

info@lithium-au.com www.lithium-au.com Adrian Griffin +61 8 6145 0288

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