LIVIUM LTD - Investor Presentation 2017

Applying advanced technologies to create a sustainable industry

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RIU Explorers Conference, Freemantle, Australia – 23 February 2017

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.

RIU Explorers Conference, Freemantle, Australia – 23 February 2017

Lithium Australia – key to sustainability

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Lithium Australia – developing a sustainable lithium future

Control of the best available technology Li extraction technology
Low-energy footprint
Low emissions
High by-product credits

Potential to capitalise on low-cost feed

Potential to process off-spec mineral concentrates
Plan to harness the value of waste streams
Focus on tailings, low-grade concentrates and unconventional lithium minerals
Potential to reprocess tailings, recovering valuable metals and improving the environment.

Bridging the recycling gap

Evaluating the enormous potential of recycling
Improving life-cycle management of energy metals

Lithium Australia holds the key to a new future in energy management by supplying a low-cost, green alternative to conventional lithium production

RIU Explorers Conference, Freemantle, Australia – 23 February 2017

The progress of civilization is driven by disruptive technology

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Stone replaced by bronze

Bronze replaced by iron

Iron replaced by steel

The bow and arrow replaced by gunpowder The seed drill replaced field labour Steam replaced the horse as motive force Tesla and Edison battle to replace steam The horse replaced by the horseless carriage

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Today we replace powerlines with power in the palm of your hand

RIU Explorers Conference, Freemantle, Australia – 23 February 2017

Welcome to the Lithium Age

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RIU Explorers Conference, Freemantle, Australia – 23 February 2017

Lithium – what’s it all about?

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It’s about the biggest change in energy management since the industrial revolution

Portable power in the palm of your hand
Green power wherever it is required

It’s about batteries

Revolution in transport
Renewable power 24 hours a day
The common man a power trader

33[rd] most common element

Crustal abundance about 20ppm
Elevated levels in pegmatites, clays and brines

More lithium is rejected as waste than enters the lithium supply chain

Lithium Australia is focused on commercial treatment of the “too-hard-basket”

Recycling – bringing batteries into the 21[st] century

Current Li recycling is estimated to be only 100t LCE out of 180,000t consumption
Unsustainable use of conflict metals is creating supply shortages (Co in particular)

RIU Explorers Conference, Freemantle, Australia – 23 February 2017

Processing innovation creates a paradigm change

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Froth flotation is widely considered to be the greatest invention to ever come out of the Antipodes. It took a brewer, a metallurgist, a mining engineer and others to turn the waste dumps of Broken Hill into ore and untold wealth.

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“Broken Hill led the world in the profitable treatment of zinc-lead sulfides. At the turn of the 20th century, three out of every four tons that came out of the mine could not be treated. It was stacked in huge dumps along the line of lode; dumps that would mark the grave of Broken Hill unless silver, zinc and lead could be separated cheaply,

In 1902 D.G. Delprat, the general manager of Broken Hill Proprietary Company Limited, invented a process that promised to extract the treasure in the dump. He added oil, salt cake and other chemicals to a tank of pulped ore, and pumped air in through a blower at the bottom. He was delighted to observe that the particles of minerals clung to the rising air bubbles and overflowed the tank which the barren particles sank to the bottom. His company erected the first efficient flotation plant in the world.”

Taken from StumpJump Plough to Interscan, A. Walsh, Australian Academy of Science, 1977.

The Sileach™ processhas the potential to transform the lithium industry… …in the same way froth flotation did for the base metals industry.

RIU Explorers Conference, Freemantle, Australia – 23 February 2017

Aspirational statement

The performance of the Sileach™ process • Low energy consumption
• 100% owned by Lithium Australia
• Capable of generating by-product credits (K, Al and alkali metals)

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8,000
2016 industrial grade lithium
7,000 carbonate price US$7,125/t
6,000
5,000
4,000 Present hard rock operating cost
3,000
2,000 Target hydrometallurgical cost
Salar de Atacama
1,000 Salar de Atacame (SQM) (Albemarle)
Greenbushes (Albemarle/Sichuan Tianqi)
FMC
0
0 20 40 60 80 100 120 140 160 180 200 220
[Source: Deutsche Bank] 2016 cumulative production (kt, LCE)
Pilot testing Commitment to large Commercial
Lab testing
at ANSTO scale pilot plant production
In progress August 2016 Early - mid 2017 On completion of financing
Unit costs (US$/t, LCE)
Chinese producers – Lepidolite
Chinese producers – Spodumene
Chinese producers – Brine
Olaroz Lithium Phase 1 (ORE)
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RIU Explorers Conference, Freemantle, Australia – 23 February 2017

Strategic positions in the global hot spots

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Lithium Australia – working towards resource security and combining technology with a global resource portfolio

Global alliances

Australia
Canada
Mexico
Europe

Lithium Australia 100%

Greenbushes (WA)
Ravensthorpe (WA)
Lake Johnston (WA)
Gascoyne (WA)
Bynoe (NT)
Kangaroo Island (SA)
Cape York (Qld)

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RIU Explorers Conference, Freemantle, Australia – 23 February 2017

What else is happening?

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The near-term

February float of MetalsTech (ASX:MTC) providing access to lithium pegmatites in Canada
Continued commercialisation of Sileach™
Drilling at Agua Fria (Sonora County, Mexico) - February 2017
Drilling Ravensthorpe (Western Australia) – awaiting improved weather
Float of graphite assets and priority entitlement – BlackEarth Minerals – Q2 2017
Develop strategic recycling alliances (North America, Europe, Australia)

Growth by corporate accretion

Evaluation of corporate targets
Takeover of Lepidico Ltd

RIU Explorers Conference, Freemantle, Australia – 23 February 2017

Takeover of Lepidico Limited (ASX:LPD)

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Creating one of the world’s great hard rock lithium companies

LIT announced takeover intentions (ASX release 6 Feb 2017)
Major shareholders back the LIT bid
18% secured by way of pre-bid contracts
“Bidder’s Statement” currently due in March 2017

Consolidation – a compelling business case for LIT and LPD shareholders

Greater exposure to rapidly expanding markets
Greater market capitalization creating improved access to capital
Improved market liquidity
Asset synergies with L-Max® and Sileach™ in one entity*
A united front to delivering the best lithium processing technologies
Creating the world’s largest hard rock exploration portfolio

*Lepidico Limited is the owner of L-Max technology applicable to processing lithium micas and Sileach, 100%owned by Lithium Australia, is applicable to all lithium silicates, including the micas.

RIU Explorers Conference, Freemantle, Australia – 23 February 2017

Why invest in Lithium Australia?

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 Developing and contributing to a sustainable lithium future

 Well advanced down the commercialisation path

 Strategic partnerships & alliances in the world’s major lithium provinces  Large, diversified exploration portfolio with geographic risk mitigation

 Enhanced opportunities through corporate accretion

 Dominance in the field of lithium processing

 Experienced management

RIU Explorers Conference, Freemantle, Australia – 23 February 2017

Company snapshot

Lithium Australia is an ASX listed company (ASX:LIT) developing mineral processing technologies for lithium extraction.

LIT holds the key to a new future in supplying a low-cost, green alternatives to conventional lithium production. The supply chain includes low-energy mineral processing and waste recycling.

LIT is the only company worldwide with the capability to process all lithium silicates without roasting.

LIT has launched a takeover bit for competitor Lepidico Ltd (ASX:LPD). The bid supported by LPD founding shareholders controlling 18% of the register.*

LIT has an extensive lithium interests spanning Australia, Mexico, Canada, Africa and Europe which it plans to expand with the assistance of the LPD takeover.

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Price (AU$) as of 25 Jan 2017 AU$ 0.19 Market Capitalisation (AU$M) AU$ 49M Shares Outstanding 257,832,829 Cash position AU$ 6M Debt position NIL

Lithium Australia holds licences for the LMax process (Lepidico Ltd owner and licensor). The licence agreement provides exclusive licensing rights in Western Australia and two other locations globally. If successful, LIT’s takeover bid for Lepidico will put all advanced lithium processing technology, for hard-rock deposits, under the control of one company – Lithium Australia.

RIU Explorers Conference, Freemantle, Australia – 23 February 2017

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Lithium Australia the key to a sustainable future

Contact Details

Adrian Griffin Managing Director Mobile +61 418 927 658 [email protected]

[email protected] www.lithium-au.com

RIU Explorers Conference, Freemantle, Australia – 23 February 2017

AI assistant

LIVIUM LTD Investor Presentation 2017

65239_rns_2017-02-22_afd1d64a-d4c9-47f9-b223-1e13609659c0.pdf

Applying advanced technologies to create a sustainable industry

Disclaimer

COMPETENT PERSON’S STATEMENT

Lithium Australia – key to sustainability

Lithium Australia – developing a sustainable lithium future

Potential to capitalise on low-cost feed

Bridging the recycling gap

Lithium Australia holds the key to a new future in energy management by supplying a low-cost, green alternative to conventional lithium production

The progress of civilization is driven by disruptive technology

Welcome to the Lithium Age

Lithium – what’s it all about?

It’s about the biggest change in energy management since the industrial revolution

It’s about batteries

33[rd] most common element

More lithium is rejected as waste than enters the lithium supply chain

Recycling – bringing batteries into the 21[st] century

Processing innovation creates a paradigm change

The Sileach™ processhas the potential to transform the lithium industry… …in the same way froth flotation did for the base metals industry.

Aspirational statement

Strategic positions in the global hot spots

Global alliances

Lithium Australia 100%

What else is happening?

The near-term

Growth by corporate accretion

Takeover of Lepidico Limited (ASX:LPD)

Creating one of the world’s great hard rock lithium companies

Consolidation – a compelling business case for LIT and LPD shareholders

Why invest in Lithium Australia?

Company snapshot

AI assistant

LIVIUM LTD — Investor Presentation 2017

65239_rns_2017-02-22_afd1d64a-d4c9-47f9-b223-1e13609659c0.pdf

Applying advanced technologies to create a sustainable industry

Disclaimer

COMPETENT PERSON’S STATEMENT

Lithium Australia – key to sustainability

Lithium Australia – developing a sustainable lithium future

Potential to capitalise on low-cost feed

Bridging the recycling gap

Lithium Australia holds the key to a new future in energy management by supplying a low-cost, green alternative to conventional lithium production

The progress of civilization is driven by disruptive technology

Welcome to the Lithium Age

Lithium – what’s it all about?

It’s about the biggest change in energy management since the industrial revolution

It’s about batteries

33[rd] most common element

More lithium is rejected as waste than enters the lithium supply chain

Recycling – bringing batteries into the 21[st] century

Processing innovation creates a paradigm change

The Sileach™ processhas the potential to transform the lithium industry… …in the same way froth flotation did for the base metals industry.

Aspirational statement

Strategic positions in the global hot spots

Global alliances

Lithium Australia 100%

What else is happening?

The near-term

Growth by corporate accretion

Takeover of Lepidico Limited (ASX:LPD)

Creating one of the world’s great hard rock lithium companies

Consolidation – a compelling business case for LIT and LPD shareholders

Why invest in Lithium Australia?

Company snapshot

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