LIVIUM LTD — Investor Presentation 2016

May 9, 2016

Metal recovery from lithium silicates

“Lithium batteries are the biggest change in energy management since cavemen learned to control fire” George Bauk, 2016

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Drivers for corporate change in the lithium industry

Adrian Griffin Managing Director Lithium Australia NL

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Copyright © 2016, Lithium Australia NL

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5th Annual Cleantech & Technology Metals Summit, Toronto, May 2016

Metal recovery from lithium silicates

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.

Copyright © 2016, Lithium Australia NL

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5th Annual Cleantech & Technology Metals Summit, Toronto, May 2016

Metal recovery from lithium silicates

What’s drives historic costs of hard rock lithium?

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ANTIQUATED INSTALLED PROCESSING TECHNOLOGY

• All established processes roast then leach (burning energy is burning dollars)

• To cover the energy cost ore/concentrates must be high-grade

• O

• The starting point is spodumene at 6-7% Li2

• Concentrates must be coarse to achieve kiln retention

THE ULTIMATE IMPACT

• High operating cost

• Reduced reserves/resources

• Relegates other ore types to waste dumps and tailings

REGARDLESS THE SMART MONEY IS INVESTING IN HARD ROCK – WHY?

• Anticipation of rising prices

• Anticipating the breakthrough that eliminates energy costs

• A realization that processing of lower-grade concentrates will become reality

• Awaiting a process that can handle fine-grained concentrate feeds

The industry needs a paradigm shift in the lithium production cost profile

Copyright © 2016, Lithium Australia NL

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5th Annual Cleantech & Technology Metals Summit, Toronto, May 2016

Metal recovery from lithium silicates

From concept to commercialization

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Lithium Australia plans to commercialize disruptive processing technology in the lithium industry to deliver:

• a lower cost option for the production of Li chemicals from hard rock sources

• a competitive means of processing fine grained lithium concentrates

• a commercial opportunity for off-spec spodumene concentrates

• the only commercial means of processing a wide range of lower-grade lithium mineral concentrates.

Commercialization has commenced with an Innovations Connections Grant under the Entrepreneur’s Programme run by the Department of Industry and Science (Australian federal government). Expenditure conditions, under the terms of the grant, provide for partnering with ANSTO Minerals (a division of the Australian Nuclear Science and Technology Organisation). Work continues at private labs in Australia, USA and Israel. Lithium Australia is also seeking funding from the Western Australian state government.

Lithium Australia has made significant advances towards identification of the reaction mechanisms and conditions under which metals can be extracted from silicates. This has permitted widespread application to silicate minerals including spodumene, petalite and the lithium micas.

DE-RISKING THE PATH TO COMMERCIAL PRODUCTION

Commitment to Pilot testing Commercial Lab testing demonstration at ANSTO production plant

In progress Mid-2016 Dec 2016 On finance completion

Commercialization will result in Lithium Australia establishing a number of processing hubs with locations targeted around growing resource bases in Australia, North America and Europe.

Copyright © 2016, Lithium Australia NL

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5th Annual Cleantech & Technology Metals Summit, Toronto, May 2016

Metal recovery from lithium silicates

The opportunity lies in finding the solution

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NEW BATTERY TECHNOLOGY IS THE BIGGEST INNOVATION IN POWER MANAGEMENT SINCE THE INDUSTRIAL REVOLUTION AND IT STARTS WITH MINERALS

BUT HOW ARE WE POSITIONED TO FEED THE INSATIABLE DEMAND?

• The supply chain is constipated

• The most accessible lithium is expensive

• Down-stream processing plants are antiquated

• Not even the new spodumene producers have the answer

THE SOLUTION

• Improved efficiency for existing lithium sources

• Technology that transforms sub-commercial lithium sources into ore

• Processes that are flexible with respect to:

• Physical properties of ore and concentrates

• Chemical characteristics of feed materials

• A wide range of mineralogy

The solution is the Sileach™ process 100% owned by Lithium Australia

Copyright © 2016, Lithium Australia NL

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5th Annual Cleantech & Technology Metals Summit, Toronto, May 2016

Metal recovery from lithium silicates

Current cost profile – Sileach™ can provide an option

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Current hard rock

The Sileach™ advantage

LCE tonnes

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

Copyright © 2016, Lithium Australia NL

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5th Annual Cleantech & Technology Metals Summit, Toronto, May 2016

Metal recovery from lithium silicates

Why Sileach™?

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THE SILEACH™ PROCESS PROVIDES THE BEST OPTIONS FOR HARD ROCK

• High recovery from most lithium bearing silicates

• Zero energy footprint with low carbon emissions

• Does not require coarse concentrates

• Potential for high by-product credits

• High recovery from currently sub-commercial feed stocks

• Battery chemical capability

• High by-product credit and product diversity

SILEACH™ IS A HYDROMETALLURGICAL PROCESS

• Strong similarities to base metal recovery systems

• Simple chemical steps

• Accomplished at atmospheric pressure

• Adaptable to all silicate minerals

Copyright © 2016, Lithium Australia NL

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5th Annual Cleantech & Technology Metals Summit, Toronto, May 2016

Metal recovery from lithium silicates

Inside the Sileach™ process

MATCHING CHEMISTRY TO MINERALOGY

The Sileach™ process success resides in identifying the chemical reactions required to release metals from silicates. The process is easily adapted to silicates containing lithium or other metals of value. The process is energy efficient and has the potential to capitalize on high by-product credits.

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Sileach™ is 100% owned by Lithium Australia NL. The process was initially designed to recover lithium from spodumene (the most commonly produced hard rock lithium concentrate). Subsequent testing proved the flexibility of the process, which has since been adapted to recovery of lithium from all lithium silicates.

The process derives all of its energy requirements from the production of the lixiviant, that has a sulphuric acid base (produced in a sulphur burning acid plant) with additional reagents added in accordance with the specific mineral chemistry of the feed material.

The lixiviant can be tailored to the mineral feed to achieve optimum results. A range of mineral chemistries has been processed generally with lithium extractions around 90% with residence times around 4 hours.

Copyright © 2016, Lithium Australia NL

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5th Annual Cleantech & Technology Metals Summit, Toronto, May 2016

Metal recovery from lithium silicates

The Sileach™ Advantage

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Lithium bearing mineral species have a
range of leach performances in sulphuric
acid, from very reactive in the case of
zinnwaldite, to completely unreactive in
the case of spodumene.
Spodumene
Bespoke lixiviants used in the
Sileach™ process optimize the
dissolution curves for most
silicates, allowing spodumene to
achieve the processing
performance of the less
refractory lithium silicates.
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Copyright © 2016, Lithium Australia NL

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5th Annual Cleantech & Technology Metals Summit, Toronto, May 2016

Metal recovery from lithium silicates

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

• 229 M Ordinary Shares

• 14 M Partly Paid Shares

• 22 M Unlisted Options

• 11 M Performance Rights

• $5.9M Cash at bank 30 April 2016

▸ Market cap. $68M (9 May 2016 – source Yahoo)

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

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Copyright © 2016, Lithium Australia NL

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5th Annual Cleantech & Technology Metals Summit, Toronto, May 2016

Metal recovery from lithium silicates

Lithium Australia – a global value proposition

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Opportunities previously overlooked

The only company with lithium extraction processes for all silicate minerals without the requirement of expensive roasting

• Below commercial spec spodumene

• Tailings

• Current mine-waste discharge streams

Lithium Australia holds the key to expanding global lithium inventories without the requirement for exploration

• Primary lithium mica deposits

Tungsten Mining, Venus Metals

First-mover advantage

Escalating demand for lithium

LIT is the leader in development of processes for the production of battery-grade lithium carbonate/hydroxide from silicates. Assets in North America and Australia with diversification from lithium micas and clays, to a range of more conventional lithium silicates.

• Revolutionary innovations in transport

• New renewable-energy storage solutions

• Emergence of smart-grid systems

Alix JV (in the largest lithium clay province)

• Lithium clay evaluation

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• Exploration potential

• Springboard into lithium-hungry North America market

Australian projects

• Pilgangoora, Greenbushes, Kalgoorlie, Seabrook, Bynoe and Ravensthorpe

• Graphite assets – planned divestment

FURTHER INFORMATION

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

Copyright © 2016, Lithium Australia NL

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5th Annual Cleantech & Technology Metals Summit, Toronto, May 2016